Appeninn profits skyrocket on portfolio value growth in 2018

MNB

Real estate holding company Appeninn Nyrt.始s revenue from real estate leasing rose from EUR 4.9 million to EUR 7 mln last year, according to a press release sent to the Budapest Business Journal. After-tax profit soared 544% to EUR 16.4 mln.

After-tax profit of the firm - which is listed in the Equities Prime category of the Budapest Stock Exchange (B脡T) - was lifted by a big increase in portfolio value, according to an audited earnings report published in preparation for the firm始s annual general meeting.

Appeninn booked EUR 16.0 mln on revaluations of income-generating property in its portfolio, compared to EUR 2.5 mln in the base period. Rental revenue was up 42% at EUR 7.0 mln, while rental revenue minus direct costs was up 20% at EUR 4.2 mln.

Appeninn put the market value of properties in its portfolio at EUR 117.8 mln at year始s end.

According to Appeninn始s annual report published today, the listed company鈥檚 EBITDA exceeded EUR 19 mln for the first time. This was attributed to the company鈥檚 real estate portfolio being enhanced by new acquisitions, better occupancy rates, increasing yields, and a positive market environment, said the press release.

The number of properties owned by Appeninn increased from 18 to 41 and gross rentable area from 63,000 square meters to 93,000 sqm. The growth was primarily due to the purchase of offices in the premium 鈥淎鈥 category, the company said.

In 2018, Appeninn accomplished, and in many cases exceeded, the yearly targets of its five-year strategy published last summer, focusing on expansion in the premium office segment and retail property markets both in Hungary and the CEE region, according to the press release.

Some 20.29% of Appeninn shares are held by BDPST Zrt., owned by Istv谩n Tiborcz, son-in-law of Prime Minister Viktor Orb谩n, while combined stock of over 32% is held by members of the Konzum group, controlled by investor L艖rinc M茅sz谩ros, likewise a close Orb谩n ally, according to information on the B脡T website. Shares in free float currently amount to 42.31% of the total.

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