Fondul Proprietatea (FP) Q3 2024 earnings summary

Executive summary

• Net Asset Value (NAV) per share rose 10.8% to RON 0.7319 as at 30 September 2024 compared to 31 December 2023, driven by portfolio revaluations and dividend income.

• Share price declined 6.4% in Q3 2024 and traded at a 44.2% discount to NAV at quarter-end, reflecting regulatory changes and increased retail investor presence.

• The Fund completed the sale of its entire holding in Engie Romania SA for RON 432.6 million in February 2024.

• The 15th buy-back programme repurchased 355.6 million shares (10% of share capital), with a weighted average price of RON 0.6083 per share, and is pending cancellation.

• Regulatory changes now limit buy-backs to 10% of share capital per year and require EGM approval and own-source funding.

Financial highlights

• Total NAV at 30 September 2024 was RON 2,120.0 million, down 8.3% from Q2 2024 and 37.2% year-over-year.

• Gross dividend income for 9M 2024 was RON 145.8 million, mainly from CN Aeroporturi Bucuresti SA and Societatea Nationala a Sarii SA.

• Net gain from equity investments at fair value was RON 63.5 million, driven by revaluations of key unlisted holdings.

• Profit for the period was RON 209.6 million, compared to a loss of RON 968.9 million in 9M 2023.

• Share capital decreased by RON 1,098.4 million following the cancellation of 2.1 billion shares acquired in the 14th buy-back programme.

Outlook and guidance

• The Fund will continue efforts to minimize the discount to NAV through governance improvements, efficiency, and proactive investor relations.

• The 16th buy-back programme for up to 320 million shares is proposed for 2025, subject to shareholder approval.

• Ongoing selection process for a new Alternative Investment Fund Manager (AIFM), with FTIS mandate extended to March 2026 if no new manager is appointed.