Hili Properties plc - Interim Results

On 28 August 2024, Hili Properties plc published its interim financial statements covering the six-month period ended 30 June 2024.

Revenues remained virtually unchanged at €7.61 million despite the disposal of a retail complex in Latvia in February 2024.

Meanwhile, operating expenses (net of other income) dropped by 11.5% to €1.69 million due to lower administrative expenses. Consequently, operating profit increased by 4.4% to €5.90 million compared to the €5.65 million figure reported in the first half of 2023. As a result, the operating profit margin improved to 77.8% (H1 2023: 74.9%)

However, the financial performance was negatively impacted by €0.14 million in investment losses. Furthermore, net finance costs increased by 9.8% to €3.20 million.

Profit before tax amounted to €2.55 million compared to €2.73 million in the same period last year. After accounting for a tax charge of €0.50 million and profits attributable to non-controlling interests of €0.38 million, the net profit for the period attributable to shareholders of Hili Properties amounted to €1.67 million compared to €1.98 million recognised for the first half of 2023.

The Statement of Financial Position as at 30 June 2024, compared to figures as at 31 December 2023, shows that total assets increased by 0.5% (or €1.3 million) to €256.9 million, principally comprising of real estate assets amounting to €232.9 million. Total liabilities fell by 0.5% (or €0.7 million) to €128.4 million which include borrowings of €115 million. Shareholders’ funds increased by 1.6% (or €2.0 million) to €129.2 million. After accounting for a non-controlling interest of €9.9 million, equity attributable to shareholders amounted to €119.2 million, which translates into a net asset value per share of €0.297 (31 December 2023: €0.293).

Post balance sheet events

Following the end of the reporting period, the Group successfully acquired the remaining 25% of the issued share capital in Baneasa Real Estate S.R.L., which owns and operates the MIRO Office Building in Bucharest, Romania.

Outlook

In their commentary, the Directors remarked that the Group will continue to proactively manage its property portfolio, acquiring and disposing of properties as necessary to align with evolving real estate trends. The Board remains cognisant of the economic conditions and rise in inflation in the EU, where the Group’s properties are located.  Furthermore, the board remains cautiously optimistic in spite of several external factors outside of the Board’s control such as regulatory shifts, geopolitical developments, and financial market conditions. Moreover, it was noted that interest rate fluctuations could affect the group’s operations, particularly through potential tax implications.