We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
ECA Marcellus Trust I | NYSE:ECT | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.4002 | 0 | 01:00:00 |
Guernsey, 21 March 2018 - Eurocastle Investment Limited (Euronext Amsterdam: ECT) today has released its annual report for the year ended 31 December 2017.
FY 2017 | FY 2016 | Q4 2017 | Q3 2017 | |||||||||
€ million | € per share2 | € million | € per share2 | € million | € per share2 | € million | € per share2 | |||||
Adjusted NAV1 | 556.5 | 10.56 | 550.6 | 9.16 | 556.5 | 10.56 | 641.0 | 10.49 | ||||
Normalised FFO3 | 111.1 | 1.86 | 46.0 | 0.70 | 7.8 | 0.14 | 68.2 | 1.12 | ||||
Dividends2 | 116.3 | 2.10 | 33.1 | 0.525 | 14.2 | 0.27 | 59.6 | 1.13 |
FULL YEAR 2017 BUSINESS HIGHLIGHTS
Successful doBank IPO
In July 2017, doBank completed a €704 million IPO at €9.00 per doBank share, (equivalent to approximately 2.5x Eurocastle's original investment, net of distributions received up to the IPO). doBank is the largest & highest rated third party NPL servicing group in Italy.
doBank Financial Performance
Strong Capital Deployment
During 2017, invested or committed over €144 million of capital including €117 million relating to FINO, one of the largest NPL transactions in Italy since the financial crisis.
Significant Distributions to Shareholders
Other Significant Realisations
BUSINESS HIGHLIGHTS SUBSEQUENT TO 31 DECEMBER 2017
Sale of Senior Notes of FINO 1 Securitisation
Follow on Investment in FINO NPL Portfolio
NORMALISED FFO
Normalised FFO ("NFFO") is a non-IFRS financial measure that, with respect to all of the Company's Italian Investments other than the doBank Group, recognises i) income on an expected yield basis updated periodically, allowing Eurocastle to report the run rate earnings from these investments in line with their expected annualised returns and ii) any additional gains or losses not previously recognised through NFFO at the point investments are realised. Cash flow receipts are therefore allocated by the Company between income and capital in accordance with this expected yield methodology. With respect to the doBank Group, following the IPO, the Company now recognises NFFO based on its share of doBank's reported annual net income after tax together with any gains or losses arising from the sale of its shares. The income cash flow profile of each of the Company's investments may not exactly equal the NFFO recognised by the Company each period but will do so over the life of each investment.
Segmental Normalised FFO for the Year Ended 31 December 2017 | Average Net Invested Capital[8] | Italian Investments | Legacy | Total | ||
€ Thousands | Yield | € Thousands | € Thousands | € Thousands | ||
doBank Group | 126,232 | 79% | 99,220 | - | 99,220 | |
Italian NPLs | 104,689 | 16% | 17,027 | - | 17,027 | |
Real Estate Fund Investments | 44,707 | 58% | 25,837 | - | 25,837 | |
Other[9] | n/a | n/a | 7,247 | - | 7,247 | |
Italian Investments NFFO before expenses | 275,628 | 54% | 149,331 | - | 149,331 | |
Legacy Portfolios NFFO before expenses | - | 3,258 | 3,258 | |||
Manager Base & Incentive Fees[10] | (37,357) | - | (37,357) | |||
Other operating expenses | (3,744) | (371) | (4,115) | |||
Normalised FFO for the year | 108,230 | 2,887 | 111,117 | |||
Per Share[11] | 1.82 | 0.04 | 1.86 |
Segmental Normalised FFO for the Fourth Quarter 2017 | Average Net Invested Capital1 | Italian Investments | Legacy | Total | ||
€ Thousands | Yield | € Thousands | € Thousands | € Thousands | ||
doBank Group | 81,151 | 13% | 2,673 | - | 2,673 | |
Italian NPLs | 112,879 | 18% | 5,062 | - | 5,062 | |
Real Estate Fund Investments | 43,801 | 35% | 3,809 | - | 3,809 | |
Other2 | n/a | n/a | - | - | - | |
Italian Investments NFFO before expenses | 237,831 | 19% | 11,544 | - | 11,544 | |
Legacy Portfolios NFFO before expenses | - | 434 | 434 | |||
Manager Base & Incentive Fees3 | (3,012) | - | (3,012) | |||
Other operating expenses | (774) | (371) | (1,145) | |||
Normalised FFO | 7,758 | 63 | 7,821 | |||
Per Share4 | 0.14 | 0.00 | 0.14 |
Following the change in classification to an investment entity[12] as defined under IFRS 10, all investments are to be fair valued through profit and loss prospectively from 1 July 2017 onwards. The Company's income statement as reported under IFRS therefore presents six months of consolidated results for the first half of 2017 and six months of Company stand-alone results from 1 July 2017. To aid understanding of performance, the table below also reflects the profit and loss under the retrospective application, i.e. as if the Company had always been classified as an investment entity, which is consistent with how the information was presented in the Company's Q3 2017 interim report.
IFRS | Adjustments | Non-IFRS | |||
Income Statement for the Year Ended 31 December 2017 | Prospective | Reallocation | Timing | Retrospective | |
€ Thousands | € Thousands | € Thousands | € Thousands | ||
Portfolio Returns | |||||
doBank Group | 193,526 | - | - | 193,526 | |
Romeo NPLs | 6,882 | - | - | 6,882 | |
FINO NPLs | 2,988 | - | - | 2,988 | |
Other NPL Pools | 3,436 | 1,335 | - | 4,771 | |
Real Estate Fund Investment I | 1,611 | - | - | 1,611 | |
Real Estate Fund Investment II | (2,528) | 626 | - | (1,902) | |
Real Estate Fund Investment III | 1,445 | - | - | 1,445 | |
Real Estate Fund Investment IV | 9,190 | - | - | 9,190 | |
Real Estate Fund Investment V | 552 | - | - | 552 | |
Fair value movement on Italian investments | 217,102 | 1,961 | - | 219,063 | |
Real Estate Fund Investment II | 626 | (626) | - | - | |
Other NPL Pools (Pools 6,7-18) | 1,335 | (1,335) | - | - | |
Share of post tax profits from Italian investments | 1,961 | (1,961) | - | - | |
Fair value movements on operating subsidiaries - New investments | (1,967) | - | - | (1,967) | |
Fair value movements on operating subsidiaries - Legacy investments | 879 | - | - | 879 | |
Fair value movements on other investments | (1,088) | - | - | (1,088) | |
Gain on classification to an investment entity - Real Estate Fund Investment II | 6,393 | - | (6,393) | - | |
Other Income | |||||
Other income - Legacy investments | 2,379 | - | - | 2,379 | |
Gains on foreign currency, translation and other derivatives | 7,381 | - | - | 7,381 | |
Total income | 234,128 | - | (6,393) | 227,735 | |
Operating Expenses | |||||
Interest expense | 286 | - | - | 286 | |
Transaction costs | 287 | - | - | 287 | |
Manager Base and Incentive Fees | 37,357 | - | - | 37,357 | |
Remaining operating expenses | 3,171 | 371 | - | 3,542 | |
Other Operating expenses | 40,815 | 371 | - | 41,186 | |
Total expenses | 41,101 | 371 | - | 41,472 | |
Net operating profit before taxation | 193,027 | 371 | (6,393) | 186,263 | |
Total tax expense | 16 | (16) | - | - | |
Net profit after taxation from continuing operations | 193,011 | (355) | (6,393) | 186,263 | |
Net profit after taxation from discontinued operations - Legacy investments | 40,492 | 355 | (40,847) | - | |
Net profit for the year | 233,503 | - | (47,240) | 186,263 | |
€ per share | 3.92 | - | (0.79) | 3.13 | |
Attributed to: | |||||
Italian Investments | 189,753 | 16 | (6,393) | 183,376 | |
Legacy Investments | 43,750 | (16) | (40,847) | 2,887 |
The impact of the change to accounting method on the 2017 income statement as reported under IFRS is €6.4 million and relates to Real Estate Fund Investment II which was previously accounted for under the equity method at cost. The equivalent impact under the retrospective method would have been recognised in the previous year. In addition, the retrospective approach does not recognise €40.5 million of income arising from the deconsolidation of the CDO V portfolio, as the equivalent impact would have been recognised in the prior year given the investment would have been carried at a fair value of nil by virtue of its negative NAV and non-recourse liabilities. Outside of these timing related effects, all other differences reflect the reallocation of profit and loss items.
For the year ended 31 December 2017, the total net profit as reported under IFRS was €233.5 million, or €3.92 per share. Applying the accounting change on a retrospective basis results in net profit of €186.3 million, or €3.13 per share, of which €58.2 million, or €1.01 per share relates to the fourth quarter.
Balance Sheet and Adjusted NAV Reconciliation as at 31 December 2017 | Italian Investments € Thousands | Corporate € Thousands | Total € Thousands | |
Assets | ||||
Cash and cash equivalents | - | 121,481 | 121,481 | |
Other assets | - | 55 | 55 | |
Investments: | ||||
doBank Group | 271,842 | - | 271,842 | |
Romeo NPLs | 48,712 | - | 48,712 | |
FINO NPLs | 43,451 | - | 43,451 | |
Other NPL Pools | 47,938 | - | 47,938 | |
Real Estate Fund Investment I | 11,119 | - | 11,119 | |
Real Estate Fund Investment II | 13,131 | - | 13,131 | |
Real Estate Fund Investment IV | 198 | - | 198 | |
Real Estate Fund Investment V | 5,514 | - | 5,514 | |
Other net assets of subsidiaries (residual legacy entities) | - | 148 | 148 | |
Total assets | 441,905 | 121,684 | 563,589 | |
Liabilities | ||||
Trade and other payables | - | 3,852 | 3,852 | |
Manager Base and Incentive Fees | - | 3,218 | 3,218 | |
Total liabilities | - | 7,070 | 7,070 | |
Net Asset Value | 441,905 | 114,614 | 556,519 | |
FINO Deferred Purchase Price Commitment | 64,680 | (64,680) | - | |
FINO follow-on Commitment | 8,440 | (8,440) | - | |
RE Fund Investment V remaining unfunded Commitment | 795 | (795) | - | |
Adjusted NAV | 515,820 | 40,699 | 556,519 | |
Adjusted NAV (€ per Share) | 9.79 | 0.77 | 10.56 |
ADDITIONAL INFORMATION
For additional information that management believes to be useful for investors, please refer to the latest presentation posted on the Investor Relations section of the Company's website, www.eurocastleinv.com. For consolidated investment portfolio information, please refer to the Company's most recent Financial Report, which is available on the Company's website (www.eurocastleinv.com).
EARNINGS CALL INFORMATION
Eurocastle's management will host an earnings conference call at 1:00 P.M. London time (9:00 A.M. New York time) later today. All interested parties are welcome to participate on the live call. You can access the conference call by dialling first +1-800-215-5243 (from within the U.S.) or +1-330-863-8154 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference "Eurocastle Fourth Quarter 2017 Earnings Call" or "conference ID number 6277238".
A webcast of the conference call will be available to the public on a listen-only basis at www.eurocastleinv.com. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast. A replay of the webcast will be available for three months following the call.
For those who are not available to listen to the live call, a replay will be available until 11:59 P.M. New York time on Saturday, 21 April 2018 by dialing +1-855-859-2056 (from within the U.S.) or +1-404- 537-3406 (from outside of the U.S.); please reference access code "6277238"
ABOUT EUROCASTLE
Eurocastle Investment Limited is a publicly traded closed-ended investment company that focuses on investing in performing and non-performing loans and other real estate related assets primarily in Italy. The Company is Euro denominated and is listed on Euronext Amsterdam under the symbol "ECT". Eurocastle is managed by an affiliate of Fortress Investment Group LLC, a leading global investment manager. For more information regarding Eurocastle Investment Limited and to be added to our email distribution list, please visit www.eurocastleinv.com.
FORWARD LOOKING STATEMENTS
This release contains statements that constitute forward-looking statements. Such forward-looking statements may relate to, among other things, future commitments to sell real estate and achievement of disposal targets, availability of investment and divestment opportunities, timing or certainty of completion of acquisitions and disposals, the operating performance of our investments and financing needs. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may", "will", "should", "potential", "intend", "expect", "endeavor", "seek", "anticipate", "estimate", "overestimate", "underestimate", "believe", "could", "project", "predict", "project", "continue", "plan", "forecast" or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. The Company's ability to predict results or the actual effect of future plans or strategies is limited. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, its actual results and performance may differ materially from those set forth in the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and other factors that may cause the Company's actual results in future periods to differ materially from forecasted results or stated expectations including the risks regarding Eurocastle's ability to declare dividends, amortise the Company's debts, renegotiate the Company's credit facilities, make new investments, or achieve its targets regarding asset disposals or asset performance.
[1]Adjusted NAV for Q4 is before deducting the fourth quarter dividend of €0.27 per share declared in March 2018.
[2]Amounts per share are calculated on the following basis: Q4 2017 Adjusted Net Asset Value ("Adjusted NAV") - 52.7 million voting shares in issue; Q3 2017 Adjusted NAV - 61.1 million voting shares in issue; Q4 2017 NFFO - 57.5 million weighted average shares; Q3 2017 NFFO - 60.7 million weighted average shares and FY 2017 NFFO - 59.6 million weighted average shares. Q4 2017 & Q3 2017 dividends paid on 52.7 million voting shares; FY 2017 dividend per share represents the sum of the first, second, third quarter 2017 dividends (€1.83 per share) and €0.27 per share dividend for the fourth quarter 2017 declared in March 2018.
[3] Normalised FFO ("NFFO") is a non-IFRS measure used to explain the financial performance of the Company, as outlined on page 11 of the 2017 Annual Report.
[4] Financials for 2016 are pro forma for the acquisition of 100% of the share capital of Italfondiario S.p.A. and derecognition of the Romeo portfolio, as if these had been put in place on 1 January 2016
[5] Increase in collections assumes net collections for Italfondiario for the 12 months ended 31 December 2016. Alternatively, it would be an increase of 3% if gross collections of Italfondiario for the same period were applied.
[6]At completion of the acquisition, and following interim collections from the cut-off date the €17.7 billion GBV FINO NPL portfolio reduced to €16.2 billion, with the sub-pool reducing to €13.2 billion GBV.
[7]The Legacy business encompasses all investments owned by the Group prior to April 2013, date at which the group re-strategised and started focusing on investments in Italian performing and non-performing loans and other credit receivables.
[8]Time weighted average of invested capital (net of any capital returned) over the relevant period.
[9] Fully realised investments.
[10]Manager base fees are equal to the sum of (i) 1.5% of the Company's Net Asset Value excluding Net Corporate Cash and (ii) 0.75% of the Company's Net Corporate Cash calculated and paid monthly in arrears. Incentive fees are equal to 25% of the euro amount by which the Company's NFFO derived from Italian Investments (net of allocable fees and expenses) exceeds the net amount invested in such investments multiplied by a simple interest rate of 8% per annum (calculated on a cumulative but not compounding basis).
[11]Amounts per share are calculated on the following basis: FY 2017 NFFO - 59.6 million weighted average shares; Q4 2017 NFFO - 57.5 million weighted average shares.
[12]Refer to page 10 and pages 28-30 of the 2017 Annual Report for further details.
1 Year ECA Marcellus Trust I Chart |
1 Month ECA Marcellus Trust I Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions