Hili Properties plc - Updated Financial Analysis Summary

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.