On 23 June 2023, Hili Properties plc published an updated Financial Analysis Summary. The following are the main highlights of the company’s expected financial performance and position in 2023:
- Revenues are expected to surge by 15.8% to a record of €14.5 million reflecting the full-year income from the properties acquired in 2022, including the Miro Office Building (75% owned) in Bucharest, which is the largest asset of Hili Properties.
- In view of the strong growth in revenues and the lower net operating expenses, EBITDA is anticipated to increase by 26.4% to €10.7 million compared to €8.45 million in 2022.
- Finance costs are expected to increase to €5.33 million compared to €4.64 million in 2022. Nonetheless, in view of the higher level of EBITDA, the interest cover is anticipated to climb to 2.00 times compared to 1.82 times in 2022.
- In terms of financial position, total assets are expected to decline by 11.2% to €227.6 million as Hili Properties is planning the disposal of an investment property amounting to around €30 million. Total liabilities are projected to drop by 22% to €102 million.
- Likewise, total debt is forecasted to decline by 22% to €92.3 million (31 December 2022: €118.7 million). As a result, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to ease to 42.4% compared to 48.7% as at the end of 2022. Similarly, the net debt-to-EBITDA multiple is forecasted to drop to 7.3 times compared to 12.5 times in 2022.