Fondul Proprietatea (FP) H1 2024 earnings summary

Executive summary

• NAV at end of July 2024 was RON 2.31 billion (USD 0.50 billion), with NAV per share at RON 0.666 (USD 0.1451).

• Market capitalization stood at RON 1.38 billion, with shares trading at a 40.3% discount to NAV.

• Portfolio comprised 24 companies (5 listed, 19 unlisted), with 74.6% of NAV in unlisted holdings and top holdings in Bucharest Airports, Constanta Port, and Salrom.

• H1 2024 saw strong operational results from key holdings, especially Bucharest Airports and Constanta Port.

• Major portfolio developments included the sale of Engie Romania SA for RON 432.6 million and continued buy-back programs.

Financial highlights

• Net profit for H1 2024 was RON 212.9 million, reversing a loss of RON 680.3 million in H1 2023, mainly from dividend income and valuation gains on unlisted holdings.

• Gross dividend income for H1 2024 was RON 145.3 million, mainly from Bucharest Airports and Salrom.

• Net gain from equity investments at fair value was RON 66.9 million, versus a loss of RON 1,657.5 million in H1 2023.

• Operating revenues for Bucharest Airports rose 18% YoY to RON 613 million; Constanta Port net income surged 112% YoY to RON 231.6 million.

• Cash and cash equivalents at period end were RON 351.1 million, with total assets at RON 2,797.4 million.

Outlook and guidance

• Ongoing preparations for a potential IPO of Salrom and Bucharest Airports, with efforts to advance listings.

• Shareholder meeting on 27 September 2024 to address budget approval, board appointments, auditor reappointment, and fund manager selection.

• Regulatory changes limit buy-backs to 10% of share capital per year and may impact future capital allocation.

• The Board of Nominees is conducting a selection process for a new Sole Director/AIFM, with a decision expected by March 2025.