Eastern European Property’s net asset value at 30 June 2016 was GBP15.7 million, equivalent to 100.79p per share (31 December 2015: GBP15.8 million and 101.46p per share). They are reporting net income after tax for the period ended 30 June 2016 of GBP0.3 million, representing earnings per share of 2.24p. The share price decreased by 1.25p during the period from 50.75p at 31 December 2015 to 49.50p at 30 June 2016, with the discount widening from 50.0% at 31 December 2015 to 50.9% at 30 June 2016.
All remaining units within the Nil Passage property were sold during the first half of 2016 for a total of US$1.0 million (GBP0.7 million) (including VAT). The disposals were marginally above the 31 December 2015 independent valuation and EEP no longer has any interest in the Nil Passage property. EEP’s three remaining properties continue to be actively marketed for sale. The flagship Markiz Passage continues to elicit interest from Turkish buyers, however, to date no acceptable fully funded offers have been received. Similarly, they say, it is particularly disappointing that, despite pursuing active sales processes in Sofia and Bucharest over the past six years, EEP is still yet to receive any deliverable bona fide offers for either property. They say there remains interest in the Markiz Passage building from local businesses. Many of these are hoteliers or developers but virtually all are involved in tourism-related businesses, which are experiencing the most difficulties at the present time.
If the remaining Turkish property were to be sold in the second half of 2016, any profits would be paid as a dividend to the company in 2017, with the remaining funds being transferred on the liquidation of the Turkish subsidiary later in 2017. If the remaining Turkish property is not sold in 2016, this process will be put back at least a year, with the subsequent distributions to shareholders of the company also being delayed. The Board will endeavour to ensure that cash is distributed to shareholders as quickly as possible. Disposal of the Turkish subsidiary containing Markiz Passage should result in a more timely return of proceeds.
EEP : Eastern European Property making slow progress with sales