Fondul Proprietatea (FP) Q1 2025 earnings summary

Executive summary

• Net Asset Value (NAV) decreased 4.5% in Q1 2025 to RON 2,148.4 million, with NAV per share down 3.1% to RON 0.6813 compared to year-end 2024.

• Share price rose 20.2% in Q1 2025, but traded at a 44.4% discount to NAV at quarter-end.

• Portfolio remains concentrated in unlisted Romanian equities, with CN Aeroporturi Bucuresti SA as the largest holding (48.1% of NAV).

• Annual dividend of RON 0.0409 per share approved, with payment scheduled for June 2025.

• Delisting of GDRs from the London Stock Exchange completed in April 2025.

Financial highlights

• Total equity at 31 March 2025: RON 2,148.4 million, down 0.6% from 31 December 2024.

• Net loss for Q1 2025: RON 2.4 million, improved from a loss of RON 5.8 million in Q1 2024.

• Interest income: RON 5.6 million; net gain from equity investments: RON 0.8 million.

• Operating expenses increased to RON 8.7 million, mainly due to higher base management fees and fund manager selection costs.

• Current liquidity ratio at 1.91; no borrowings as of 31 March 2025.

Outlook and guidance

• New AIFM selection process advanced, with IRE AIFM HUB S.à r.l. in partnership with Impetum Management SRL selected as preferred candidate; new strategy may focus on listed equities and fund-of-funds approach from 2027.

• Dividend policy and buy-back programs to continue, with 16th buy-back program for up to 320 million shares ongoing in 2025.

• Regulatory changes, including reduced construction tax and updated corporate governance rules, expected to impact portfolio companies and fund operations.