Secure Property makes solid NAV gains in 2017

South eastern European-focussed property and investment company Secure Property Development & Investment announced on Monday that, as at 31 December, the net asset value of its portfolio of properties stood at approximately €51.5m - including €2.8m being the net value of the prepayments already made by year-end for the Olympians project in Romania.

The AIM-traded firm said that represented a 7% increase on 2016's year end NAV of €48m, and was achieved despite the company incurring a €1.5m forex loss arising from the valuation of its properties in Ukraine, which are dollar-denominated.

It said the 2017 NAV formed part of the company's annual year-end valuation of its portfolio, and auditing of its accounts.

SPDI's portfolio consists of South eastern European prime real estate, the majority of which was let to blue chip tenants on long leases.

The company’s core income-producing portfolio is comprised of assets in high-yielding countries such as Romania and Greece, the board explained, and includes logistics terminals in Athens and Bucharest, offices in Bucharest, as well as a retail big-box asset in Craiova, Romania

“At €51.5m, the net asset value of SPDI's portfolio of properties is almost four times higher than its current market valuation,” commented SPDI chief executive officer Lambros G Anagnostopoulos.

“We believe the substantial discount at which our shares trade to NAV is unwarranted, particularly when one considers our existing core portfolio of prime real estate is located in South east European countries such as Romania and Greece, which are strategically important in terms of trade flows.

“In addition, our properties are exposed to the ongoing European yield compression play, which is pushing capital values in the region higher.”

Anagnostopoulos said that, to have achieved NAV growth despite forex losses of €1.5m during the year, was testament to the quality of the company’s assets and management team.

“This bodes well for delivering on our corporate objective to take advantage of macro and regional trends and build the leading South eastern European income generating and dividend paying property company.”