On 26 April 2023, Hili Properties plc published its Annual Report and Financial Statements for the year ended 31 December 2022.
Total revenue, inclusive of other operating income, increased by 48.2% to a record of €12.5 million largely reflecting the increase in rental income following acquisitions in Lithuania, Latvia, and Romania throughout the year, which offset the loss of contributions from the three shopping centres in Latvia that were sold during the year.
On the expenditure side, operating costs increased by 14.8% to €4.13 million, reflecting higher cost of sales and other operating expenses. Excluding depreciation, EBITDA surged by 72.3% to a record of €8.45 million, which translates into an EBITDA Margin of 67.4% (2021: 58%).
The financial performance was also boosted by net investment income of €3.04 million which includes positive fair value movements on property assets.
After accounting for net finance costs of €4.64 million (2021: €3.22 million), a tax charge of €0.83 million (2021: €0.59 million), and a profit attributable to non-controlling interests of €0.65 million, the net profit attributable to shareholders amounted to €5.32 million (2021: €3.17 million).
The Statement of Financial Position as of 31 December 2022 shows that total assets increased by 22.8% to €256.4 million reflecting the increase in investment properties. Meanwhile, total liabilities increased by 34.4% to €131.4 million driven by the €29.2 million increase in bank borrowings. Shareholders’ funds increased by 4.8% to €116.2 million which translate into a net asset value per share of €0.2899 (2021: €0.2766).
The board will be meeting on 2 May 2023 to consider the recommendation of a dividend.
In their commentary, the Directors referred to recent acquisitions which complement the Group’s strategy of owning a diversified portfolio of low-risk properties to provide a steady long-term return. Management acknowledged potential negative effects of rising interest rates on both property values and financing costs but explained that the property portfolio continues to provide strong cash flows. In this respect, the Board will continue to monitor market conditions and identify sales or acquisitions of assets that will build further resilience for the company.