Secure Prop Share News (SPDI)

LONDON (Alliance News) - Secure Property Development & Investment PLC on Friday reported a sharply widened annual pretax loss, but a rise on adjusted basis on the back of disposals.

Shares in the South Eastern Europe-focused property company were up 13% at 13.00 pence on Friday.

Secure Property said its rental income for 2017 was EUR2.9 million, down from EUR5.2 million in 2016, due to a substantial drop in the Warehouse segment and a small decline in Residential, despite small rises in Office and Retail.

Pretax loss for the year widened sharply to EUR37.9 million from EUR2.2 million the year before, as a result of the foreign exchange difference of EUR37.4 million from the disposal of foreign group subsidiaries, including the Terminal Brovary Logistics Park.

Annual earnings before interest, taxes, depreciation and amortisation rose by 61% to EUR3.7 million from EUR2.3 million in 2016, due to the sale of Delia Lebada in Bucharest.

The company's net assets dropped to EUR36.4 million from EUR38.9 million the prior year, while its net asset value per share fell to EUR0.35 from EUR0.43.

"A focus on fast-growing economies such as Romania, exposure to the ongoing European compression play, a portfolio of prime real estate let to blue chip customers, and a management team with a proven track record in identifying and securing properties at attractive yields, the growth credentials of SPDI are clear," said Chief Executive Officer Lambros Anagnostopoulos.

"I am confident that the period ahead will see us make great strides towards delivering on our objective to build SPDI into the leading London-listed property company focused on selected emerging South East European countries and in the process close the 63% discount that has opened up between our share price and our NAV per share," Anagnostopoulos added.