Eastern European Property has just published results for the year ended 31 December 2015. Eastern European Property’s consolidated net asset value (“NAV”) at 31 December 2015 was GBP15.8 million, equivalent to 101.46p per Ordinary Share (2014: GBP16.4 million; 105.36p per Ordinary Share). The Company’s share price decreased by 14.375p during the year to 50.75p at 31 December 2015, with the discount to NAV widening from 38.2% at 31 December 2014 to 50.0% at 31 December 2015.
Eastern European Property reported a net loss for the year ended 31 December 2015 of GBP1.0 million (2014: loss of GBP0.5 million), representing a loss per Ordinary Share of 6.30p (2014: loss of 3.06p). The properties in Turkey have been intentionally kept largely vacant as they are being actively marketed for sale. However, rental income in Turkey increased by 45% (including foreign exchange movements) compared to 2014 due to the successful challenge and resultant award of rent increases backdated to 1 April 2013 relating to one tenant. In addition, the Company has trialled a short-term letting within the Markiz Passage property with a view to raising the profile of the building to potential purchasers. Rental income from the property in Romania increased 6% compared to the comparative period, whereas in Bulgaria, rental income decreased 8%.
Eastern European Property continued with its programme of orderly realisation of investment properties in 2015 with the sale of a number of individual units within the Nil Passage building. In conjunction with further sales of units at the same property in 2016, EEP no longer has any interest in the Nil Passage building. Despite an increase in interest shown by potential investors in EEP’s flagship property, the Markiz Passage on Istiklal Street, during the past year, it has not been possible to complete the sale of this asset. Due to the ongoing Syrian conflict and terrorist activities that have occurred in Turkey, tourism has taken a hit and is impacting on the potential for sale of the Markiz building as a hotel concept. For this reason, EEP is exploring other options by which to maximise the potential return on this property.
EEP : Eastern European Property hit by discount widening