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H.I.G. Invests in Distressed Italian Debt by Working With Banks (7/13/16)
H.I.G. Bayside is working with Italy’s banks to help restructure the country’s distressed corporate debt.
The international investment firm, together with Milan-based private equity Idea Capital Funds, have set up a new vehicle that will take the lenders’ non-performing loans and invest new money to help turn around the businesses. The banks will own units of the 260 million-euro ($288 million) Idea CCR fund and participate in any recovery of the underlying credits, said Giuseppe Mirante, a managing director at H.I.G. Bayside in London.
Distressed debt investors are exploring new ways to access non-performing loans, while Italian banks seek to avoid crystallizing losses on the debt. The government and European Central Bank are increasing pressure on lenders to clear about 360 billion euros of NPLs from their balance sheets after years of ignoring the situation.
“Banks have been amending and extending bad loans, hoping for better times that never came,” Mirante said. “They have finally accepted the need to do something about their bad debts piling up. The government is also trying to break the corset that inhibits debt sales through the reform of bankruptcy laws. This will open up potential opportunities for distressed debt investors.”
New Financing
The new fund is taking on the debt of small exporters and “mini-multinationals” from banks including Banca Monte dei Paschi di Siena SpA and Banca Popolare di Vicenza SpA, while H.I.G. Bayside and Idea Capital contribute new financing, according to Mirante.
Mirante will join the investment committee of the fund, which closed its first round of financing last week.
“Small and medium enterprises are at the heart of the Italian economy, and their growth prospects are being suffocated due to their financial distress and lack of access to capital,” Mirante said. “By working together with lenders to help rekindle growth in SMEs, we can help provide a solution to all parties.”
Other funds are also cooperating with Italian banks on bad loans. KKR & Co. and Italy’s largest lenders UniCredit SpA and Intesa Sanpaolo SpA said last year that they started working together to transfer bad corporate loans to a new investment platform. The fund, known as Pillarstone, took over the banks’ debt exposure in shipping company Premuda SpA and in engineering company Sirti SpA.
http://www.bloomberg.com/news/articles/2016-07-13/h-i-g-invests-in-distressed-italian-debt-by-working-with-banks
Eurocastle Declares a Dividend of €0.125 per Ordinary Share for the Second Quarter 2016 (6/23/16)
Guernsey – Eurocastle Investment Limited (Euronext Amsterdam: ECT) today announces that its Board of Directors has declared a second quarter 2016 cash dividend of €0.125 per ordinary share.
The dividend is payable on 29 July 2016 to shareholders of record at close of business on 1 July 2016, with an ex-dividend date of 30 June 2016.
About Eurocastle
Eurocastle Investment Limited is a closed-ended investment company that owns Italian loans and real estate related assets, German commercial real estate and European real estate securities and loans. The Company is Euro denominated and is listed on Euronext Amsterdam under the symbol “ECT”. Eurocastle is managed by an affiliate of Fortress Investment Group LLC, a leading global investment manager. For more information regarding Eurocastle Investment Limited and to be added to our email distribution list, please visit www.eurocastleinv.com.
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Eurocastle Announces Results of Tender Offer (6/21/16)
Company Purchases 12,295,081 Shares At €6.10 Per Share
Guernsey, 21 June 2016 - Eurocastle Investment Limited ("Eurocastle" or the "Company") today announces the final results of its tender offer. On 23 May 2016, Eurocastle sent a circular (the "Circular") to shareholders in relation to a proposed tender offer for the purchase of ordinary shares in the Company ("Ordinary Shares") for a price in a range of €6.10 to €7.00 per Ordinary Share in order to return a maximum of €75 million in cash to shareholders (the "Tender Offer").
The Tender Offer closed at 6:00pm (CET) on 20 June 2016. In accordance with the terms and conditions set out in the Circular and based on the final count by the Company`s agent, ABN AMRO Bank N.V. ("ABN AMRO"), Eurocastle has accepted tenders of 12,295,081 ordinary shares at a Clearing Price (as defined in the Circular) of €6.10 per Ordinary Share for a total cost of approximately €75 million, excluding fees and expenses relating to the Tender Offer. The Company has scaled back all tenders of Ordinary Shares at the Clearing Price pro rata in accordance with the terms and conditions set out in the Circular. The Ordinary Shares accepted for repurchase represent approximately 17.0% of the Ordinary Shares in issue as of 20 June 2016.
The last day of record for the tendered Ordinary Shares purchased was 20 June 2016 with settlement expected to occur on 27 June 2016. Where an accepted tender relates to Ordinary Shares held by shareholders in CREST and in certificated form, cheques or bank transfers for the consideration will be despatched on 27 June 2016 by Anson Registrars Limited.
ABOUT EUROCASTLE
Eurocastle Investment Limited is a publicly traded closed-ended investment company that focuses on investing in performing and non-performing loans and other real estate related assets primarily in Italy. The Company is Euro denominated and is listed on Euronext Amsterdam under the symbol "ECT". Eurocastle is managed by an affiliate of Fortress Investment Group LLC, a leading global investment manager. For more information regarding Eurocastle Investment Limited and to be added to our email distribution list, please visit www.eurocastleinv.com.
http://phx.corporate-ir.net/external.file?t=2&item=o8hHt16027g9XhJTr8+weNRYaV9bFc2rMd0Q/AXw4zs+RqeOTm3Qfj99qEQ3crhSq3Oi5/u0/NF69pX83Erd+Ykd9f/74d7vB3ZeC1bdM8ktVxBmKxpy2tsb0CaRM94zoM1n1NwYQq0z7ryPUvxCSw==&cb=636020856449804798
Eurocastle Announces Tender Offer to Repurchase up to €75 million of Ordinary Shares (5/23/16)
Guernsey. 23 May 2016 - Eurocastle Investment Limited (Euronext Amsterdam: ECT) ("Eurocastle" or the "Company") today announces the posting of a circular (the "Circular") to shareholders in relation to a proposed tender offer for the repurchase of ordinary shares in the Company ("Ordinary Shares") to return up to €75 million in cash to shareholders (the "Tender Offer"). The Tender Offer is being undertaken pursuant to the authority passed at the Company's Annual General Meeting held on 18 May 2016.
The Tender Offer will commence today and will remain open until 6.00 p.m. (CET) on 20 June 2016.
Background to and reasons for the Tender Offer
The Board believes that the Tender Offer meets the dual objectives of using surplus cash on the Company's balance sheet to (i) return excess cash to investors seeking liquidity, and (ii) take advantage of the discount that the current share price represents to the most recently reported adjusted net asset value of the Company. Having successfully deployed €274 million in new investments during the past year, which largely absorbed the proceeds of the capital raise completed in April 2015, the Tender Offer will be funded primarily from net proceeds from the sale of the Company's legacy assets.
Should the Tender Offer be fully subscribed, the Company will have over €90 million of cash available for future investment (excluding additional capital that could be raised from the financing of its existing assets).
The Tender Offer will provide shareholders who are eligible with an opportunity to sell part or all of their Ordinary Shares and to receive their respective share of the cash which the Company is seeking to return. The Tender Offer will allow the Company to broaden the return of cash to include those shareholders whose Ordinary Shares might not otherwise be purchased by the Company through a general on-market buyback. Tendering shareholders may also be able to participate in the cash distribution in excess of their otherwise pro rata entitlement.
Clearing Price
A single price per Ordinary Share will be applied to all Ordinary Shares purchased pursuant to the Tender Offer, being the "Clearing Price". The Clearing Price will be the lowest price per Ordinary Share in a range of €6.10 to €7.00 that will allow the maximum number of Ordinary Shares to be repurchased by the Company for a total cost not exceeding €75 million (or, if the aggregate value of all Ordinary Shares validly tendered by Shareholders is less than €75 million, such lesser number of Ordinary Shares as are validly tendered pursuant to the Tender Offer). The Clearing Price will be determined following the closing of the Tender Offer at 6.00 p.m. (CET) on 20 June 2016.
A price of €6.10 per Ordinary Share represents a premium of 2.5 per cent. to the closing price of €5.95 per Ordinary Share on 20 May 2016 (being the latest practicable date before announcement of the Tender Offer) and a discount of 0.7 per cent. to the volume weighted average price over the last month to the same date.
A price of €7.00 per Ordinary Share represents a premium of 17.6 per cent. to the closing price of €5.95 per Ordinary Share on 20 May 2016 (being the latest practicable date before announcement of the Tender Offer) and a premium of 13.9 per cent. to the volume weighted average price over the last month to the same date.
The repurchase of Ordinary Shares by the Company will be carried out on-market through the available systems of Euronext. The Tender Offer will be financed through the use of the Company's cash on account.
The Tender Offer is available to eligible shareholders outside Canada, Australia and Japan in respect of the number of Ordinary Shares registered in those shareholders' names at 6.00 p.m. (CET) on 20 June 2016.
The Tender Offer
The formal terms and conditions of the Tender Offer are set out in the Circular and tender form. The results of the Tender Offer will be announced on 21 June 2016 and published on the Company's website (www.eurocastleinv.com).
Information in connection with the Tender Offer is available on the Company's website (www.eurocastleinv.com) or can be obtained from ABN AMRO Bank N.V., Corporate Broking (telephone number +31 20 344 2000). If you hold Ordinary Shares in CREST or in certificated form and have any questions about the procedure for tendering or you want to request tender forms, CREST payment forms or for help completing the tender form, please contact the Company's registrar, Anson Registrars Limited, between 9.00 a.m. and 5.00 p.m. (GMT) Monday to Friday (telephone number +44 1481 711301).
About Eurocastle
Eurocastle Investment Limited is a publicly traded closed-ended investment company that focuses on investing in performing and non-performing loans and other real estate related assets primarily in Italy. The Company is Euro denominated and is listed on Euronext Amsterdam under the symbol "ECT". Eurocastle is managed by an affiliate of Fortress Investment Group LLC, a leading global investment manager. For more information regarding Eurocastle Investment Limited and to be added to our email distribution list, please visit www.eurocastleinv.com.
http://phx.corporate-ir.net/external.file?t=2&item=o8hHt16027g9XhJTr8+weNRYaV9bFc2rMd0Q/AXw4zvhDpUy3NbWdnD9KYnAtoU12RyCRQeXFy799/EkeHXSj/QH/uGlBtfZVG+Q3akFN0Z6MBYduCMIsgpz99lX3EeKh1KH3t1sSputum1bQ7dyEA==&cb=635995627084084829
Eurocastle Announces 2016 AGM Results and First Quarter 2016 Financial Results (5/19/16)
Guernsey, 19 May 2016 - Eurocastle Investment Limited (Euronext Amsterdam: ECT) today announces the results of its 2016 Annual General Meeting held yesterday, 18 May 2016. All ordinary and extraordinary business tabled before the meeting in accordance with the Notice of Annual General Meeting circulated to shareholders on 28 April 2016 was approved. This includes the approval of the standing share buyback authority. Under this program, the Company may repurchase a maximum of 18,100,374 shares at the minimum price of €0.01 per share and the maximum price equal to 97.5% of the Company's most recently published net asset value per share as at the date of the acquisition. The definition of net asset value for these purposes was clarified by an amendment to resolution 5 to refer to 'adjusted net asset value' as reported by the Company. A copy of the Notice of Meeting is available on Eurocastle's website at www.eurocastleinv.com.
In addition, the Company today released its financial results for the first quarter ended 31 March 2016.
FINANCIAL HIGHLIGHTS
Normalised FFO1
€10.5 million, or €0.15 per share, for the first quarter of 2016 reflecting the first full quarter ownership of doBank and including €0.02 per share one-off impacts from the Legacy Business2,6 (Q4 2015: €8.1 million, or €0.11 per share).
Before costs, Italian Investments3 alone generated €12.0 million, or €0.17 per share of Normalised FFO, resulting in a return on average net invested capital4 of 15% (Q4 2015: €9.7 million, or €0.13 per share).
Adjusted Net Asset Value5
€532.2 million, or €7.35 per share, in line with previous quarter after paying €9.1 million of quarterly dividend (Q4 2015: €532.5 million, or €7.35 per share).
First Quarter 2016 Dividend
€9.1 million or €0.125 per share paid in April.
BUSINESS HIGHLIGHTS
Italian Investments - On 8 March 2016, Eurocastle entered into a structured transaction ("Fund Investment IV") investing €1.0 million out of an anticipated €7.0 million to acquire substantially all of the units of a newly established unlisted Italian real estate fund set up to restructure and monetise real estate properties owned by an over-levered real estate fund. The portfolio owned by the fund consists of a retail portfolio in Northern Italy and 3 office assets with a combined value of €132 million.
Italian Investment Performance - During the first quarter, these investments in aggregate generated €10.9 million, or €0.15 per share, of cash flow. This includes €2.0 million from the NPLs within doBank and €5.5 million from doBank's servicing business.
Legacy Business - The Company continued making progress towards its goal of fully disposing of these assets, collecting €4.7 million over the period including €3.6 million from the sale of the Zama portfolio. As at 31 March 2016, the Legacy Business has a remaining NAV of €13.0 million, or €0.18 per share, representing only 2% of the Group's Adjusted NAV.Since January 2015 the gacy Business has generated €82.5 million of cash flow.
HIGHLIGHTS SUBSEQUENT TO 31 MARCH 2016
At its Annual General Meeting, amongst other items, the Company received approval to buy back up to 25% of outstanding shares at a price not exceeding 97.5% of its most recently published Adjusted Net Asset Value per share.
On 10 May 2016, Eurocastle invested an additional €6.0 million into the Fund Investment IV transaction bringing the Company's total equity investment to €7.0 million. On completion, Eurocastle's share of the implied net asset value of this fund was €14.2 million indicating an acquisition at approximately a 50% discount to the implied NAV.
In May 2016, Eurocastle received €6.8 million, or 63% of its original investment in Fund Investment III. The distribution followed the sale of an asset which represented 26% of the fund's total assets, with the sale price representing a 5% premium to reported market value. The units in this fund were acquired by the Company at a 56% discount to the fund's reported NAV at acquisition.
In May 2016, the Company invested €5.0 million to acquire an interest in mezzanine tranches of a securitisation of senior Italian real estate fund debt at a significant discount to expected recovery.
ADDITIONAL INFORMATION
For additional information that management believes to be useful for investors, please refer to the latest presentation posted on the Investor Relations section of the Company's website, www.eurocastleinv.com. For consolidated investment portfolio information, please refer to the Company's most recent Financial Report, which is available on the Company's website (www.eurocastleinv.com).
EARNINGS CALL INFORMATION
Eurocastle's management will host an earnings conference call at 2:00 P.M. London time (9:00 A.M. New York time) later today. All interested parties are welcome to participate on the live call. You can access the conference call by dialing first +1-800-215-5243 (from within the U.S.) or +1-330-863-8154 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference "Eurocastle First Quarter 2016 Earnings Call" or "conference ID number 1385711."
A webcast of the conference call will be available to the public on a listen-only basis at www.eurocastleinv.com. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast. A replay of the webcast will be available for three months following the call. For those who are not available to listen to the live call, a replay will be available until 11:59 P.M. New York time on 19 August 2016 by dialing +1-855-859-2056 (from within the U.S.) or +1-404-537-3406 (from outside of the U.S.); please reference access code "1385711"
NORMALISED FFO
Normalised FFO is a non-IFRS financial measure that, with respect to the Company's Italian Investments, recognises income on an expected yield basis allowing Eurocastle to report the run rate earnings from these investments in line with their projected annualised returns. On Eurocastle's Legacy Business the measure excludes realised gains and losses, sales related costs (including realised swap losses), impairment losses and foreign exchange movementsand any movements on portfolios with a negative NAV other than sales or asset management fees realised.
Eurocastle believes that, given the strategy of seeking to monetise the existing value of the Legacy Business, focusing on the Normalised FFO of the Company's Italian Investments will further enable investors to understand current and future earnings given annualised returns achieved and the average net invested capital over the relevant period.
the first quarter of 2016, Eurocastle generated Normalised FFO of €10.5 million, or €0.15 per share compared to a dividend of €9.1 million, or €0.125 per share. Before corporate costs, Italian Investments generated €12.0 million, or €0.17 per share. Given the average net invested capital in the period was approximately €310 million, this equates to a yield of 15%.
ABOUT EUROCASTLE
Eurocastle Investment Limited is a publicly traded closed-ended investment company that focuses on investing in performing and non-performing loans and other real estate related assets primarily in Italy, and actively managing its legacy business-commercial real estate assets in Germany and European real estate related debt. The Company is Euro denominated and is listed on Euronext Amsterdam under the symbol "ECT". Eurocastle is managed by an affiliate of Fortress Investment Group LLC, a leading global investment manager. For more information regarding Eurocastle Investment Limited and to be added to our email distribution list, please visit www.eurocastleinv.com.
http://www.benzinga.com/pressreleases/16/05/tr8005088/eurocastle-announces-2016-agm-results-and-first-quarter-2016-financial
Eurocastle to Release First Quarter 2016 Financial Results on 19 May 2016 and Announces Posting of Annual General Meeting Notice
Guernsey (4/28/16)
http://phx.corporate-ir.net/external.file?t=2&item=o8hHt16027g9XhJTr8+weNRYaV9bFc2rMd0Q/AXw4ztHsvFOTbMOOHp0ZGp0rG5JxyO+B5lfEaqBDS8uNs7/Lv/qqk6yqXwE4BkspfL8prRoIeSrv8MEsFdug481jDi74d82xfx/3BeNUrbFCRLWpQ==&cb=635974200073448061
Investor Presentation (4/2016)
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzMyMDg3fENoaWxkSUQ9LTF8VHlwZT0z&t=1&cb=635959803027407781
Eurocastle Announces Appointment of doBank CEO (4/11/16)
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Grey. Where real money is often found.
Eurocastle Releases Fourth Quarter and Year End 2015 Financial Results (3/10/16)
Guernsey. 10 March 2016 - Eurocastle Investment Limited (Euronext Amsterdam: ECT) today released the annual report for the twelve months ended 31 December 2015.
FINANCIAL HIGHLIGHTS
Normalised FFO[1]
Q4 2015: €8.1 million, or €0.11 per share (Q3 2015: €2.4 million, or €0.03 per share).
Full Year 2015: €17.1 million or €0.29 per share (FY 2014: €9.4 million, or €0.29 per share).
Before costs, New Investments[2] alone generated €21.4 million of Normalised FFO in 2015, resulting in a return on average net invested capital[3] of 22%.
Adjusted Net Asset Value[4]
€532.5 million, or €7.35 per share
An increase of €4.2 million or €0.05 per share, in the fourth quarter of 2015 after having paid a dividend of €0.125 per share following revaluation gains from the Company's New Investments.
Annual Dividend
€31.2 million, or €0.50 per share.
In addition, the Board of Directors has declared a first quarter 2016 dividend of €0.125 per share payable on 29 April 2016 to shareholders of record at close of business on 18 March 2016, with an ex-dividend date of 17 March 2016.
[tables deleted]
FULL YEAR & FOURTH QUARTER 2015 BUSINESS HIGHLIGHTS
Capital Structure - On 29 April 2015 Eurocastle successfully completed an equity offering raising gross proceeds of €312.1 million through the issuance of 39.8 million shares at a price of €7.85 per share, more than doubling the size of the Company. Net proceeds of the offer were approximately €304.4 million or €7.65 per share providing the Company with additional funds to pursue new investment opportunities in the Italian debt and real estate markets. As at 31 December 2015, after having invested 88% of the net equity raised in April, Eurocastle had net corporate cash of €192 million.
New Investments - In 2015, the Company invested €266.4 million in line with its targeted returns across seven transactions including:
A €246.0 million investment1 to acquire a 50% share in doBank (formerly UniCredit Credit Management Bank S.p.A. ("UCCMB")), now the largest 3rd party loan servicer in Italy with over €45 billion Gross Book Value ("GBV") under management and a €3.3 billion GBV portfolio of non-performing loans ("NPLs").
An investment of €10.7 million to acquire 27% of the units of an unlisted Italian real estate fund at a discount of 56% to the fund's NAV2.
A 25% share of four NPL portfolios with a total GBV of approximately €160 million for €5.6 million.
A further €1.9 million investment in a distressed bond.
New Investment Performance - During the year Eurocastle collected €32.5 million, or €0.55 per share, €10.1 million ahead of underwriting expectations. €6.6 million was generated in the fourth quarter, predominantly from its NPL portfolios.
Legacy Business - The Company made significant progress towards its goal of fully disposing of these assets, collecting €77.8 million over the year, of which €17.3 million was received in the fourth quarter primarily from the sale of the remaining assets in the Mars Fixed II and Floating portfolios. In December the Company agreed to sell the Zama portfolio generating a further €3.6 million expected to be received by the end of March 2016. As at 31 December 2015, the legacy business has a remaining NAV of €13.5 million, or €0.19 per share representing just 3% of the Group's Adjusted NAV.
HIGHLIGHTS SUBSEQUENT TO 2015
On 8 March 2016, Eurocastle entered into a structured transaction which, on completion (anticipated in the second quarter of 2016), would see the Group acquire substantially all of the units of Fondo Virgilio, a newly established unlisted Italian real estate fund set up to restructure and monetize real estate properties owned by an overlevered real estate fund. The transaction has been made cooperatively with the lenders. The portfolio owned by the fund consists of a retail portfolio in Northern Italy and 3 office assets together valued at €132 million. This transaction will represent a new capital investment of up to €7 million. On completion of the transaction, Eurocastle's share of the implied net asset value of this fund is expected to be approximately €14 million assuming the full €7 million investment is made.
ADDITIONAL INFORMATION
For additional information that management believes to be useful for investors, please refer to the latest presentation posted on the Investor Relations section of the Company's website, www.eurocastleinv.com. For consolidated investment portfolio information, please refer to the Company's most recent Financial Report, which is available on the Company's website (www.eurocastleinv.com).
EARNINGS CALL INFORMATION
Eurocastle's management will host an earnings conference call at 4:00 P.M. London time (11:00 A.M. New York time) later today. All interested parties are welcome to participate on the live call. You can access the conference call by dialing first +1-800-215-5243 (from within the U.S.) or +1-330-863-8154 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference "Eurocastle Fourth Quarter 2015 Earnings Call or conference ID number 63936024."
A webcast of the conference call will be available to the public on a listen-only basis at www.eurocastleinv.com. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast. A replay of the webcast will be available for three months following the call.
For those who are not available to listen to the live call, a replay will be available until 11:59 P.M. New York time on Sunday, 10 April 2016 by dialing +1-855-859-2056 (from within the U.S.) or +1-404-537-3406 (from outside of the U.S.); please reference access code "63936024"
http://www.benzinga.com/pressreleases/16/03/tr7659081/eurocastle-releases-fourth-quarter-and-year-end-2015-financial-results
The Italian NPL market - Towards NPL Market Renaissance (6/2015)
http://www.pwc.com/it/it/publications/assets/docs/npl-market-1506.pdf
Eurocastle Releases Financial Results for the First Nine Months Ended 30 September 2015 (11/05/15)
Guernsey. 5 November 2015 – Eurocastle Investment Limited (Euronext Amsterdam: ECT) today has released the financial results for the first nine months ended 30 September 2015.
FINANCIAL HIGHLIGHTS
Normalised FFO
- Q3 2015: €2.4 million, or €0.03 per share
- First Nine Months 2015: €9.0 million or €0.16 per share
- Before costs, New Investments alone generated €4.3 million of Normalised FFO for the third quarter, resulting in a return on average net invested capital1 of 30% (27% over the first nine months of 2015)
Adjusted Net Asset Value2
- €528.3 million, or €7.30 per share, a decline of €15.0 million or €0.20 per share from the second quarter following impairments within the Legacy Debt Investment portfolio and the third quarter dividend of €0.125 per share.
Third Quarter Dividend – of €9.1 million, or €0.125 per share paid in October 2015
[tables deleted]
THIRD QUARTER 2015 BUSINESS HIGHLIGHTS
New Investments - On 16 September 2015, the Company successfully executed on its €10.7 million commitment to acquire units in an unlisted Italian real estate fund at a discount of 56% to the fund’s NAV3. The investment is now valued at €15.4 million as a result of positive asset management activity since the original commitment made last year.
New Investment Performance – Collected €10.0 million of cash flow. This includes €7.4 million from a €3.9 million investment in a distressed bond; the Company’s first fully resolved investment since the establishment of its new investment strategy in 2013. Cash flows for the nine months ended 30 September 2015 totalled €25.9 million, €11.6 million ahead of expectations.
Legacy Business Realisations – In addition to the €33.2 million received from sales in the first half of 2015, Eurocastle received a further €27.4 million of cash flow primarily through the sale of the majority of the assets in the Wave portfolio. Further expected net proceeds of €8-10 million have been secured from the sale of the remaining assets in the Wave and Mars Fixed 2 portfolios.
HIGHLIGHTS SUBSEQUENT TO THIRD QUARTER END
On 30 October 2015, together with Fortress affiliates, the Company completed the acquisition of UniCredit Credit Management Bank S.p.A. ("UCCMB") from UniCredit. Eurocastle acquired a 50% share of the deal for an equity investment of approximately €250 million, subject to certain post-closing adjustments. The investment includes:
- A portfolio of non-performing loans (“NPLs”) with a Gross Book Value (“GBV”) of approximately €2.4 billion.
- An NPL servicing business (the “Servicer”). The Servicer has been renamed from UCCMB to doBank and is now the largest third party servicer in Italy servicing over €45 billion GBV of loans.
On 30 October 2015, the Company sold the remaining assets in the Mars Floating portfolio within its Legacy Business. The sale resulted in Eurocastle receiving fees of €1.2 million with the remaining outstanding debt forgiven by the lender.
ADDITIONAL INFORMATION
For additional information that management believes to be useful for investors, please refer to the latest presentation posted on the Investor Relations section of the Company’s website, www.eurocastleinv.com. For consolidated investment portfolio information, please refer to the Company’s most recent Financial Report, which is available on the Company’s website (www.eurocastleinv.com).
EARNINGS CALL INFORMATION
Eurocastle’s management will host an earnings conference call on Thursday, 5 November 2015 at 1:00 P.M. London time (8:00 A.M. New York time). All interested parties are welcome to participate on the live call. You can access the conference call by dialing first +1-800-215-5243 (from within the U.S.) or +1-330-863-8154 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “Eurocastle Third Quarter 2015 Earnings Call or conference ID number 66035588”
A webcast of the conference call will be available to the public on a listen-only basis at www.eurocastleinv.com. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast. A replay of the webcast will be available for three months following the call.
For those who are not available to listen to the live call, a replay will be available until 11:59 P.M. New York time on Sunday, 5 December 2015 by dialing +1-855-859-2056 (from within the U.S.) or +1-404-537-3406 (from outside of the U.S.); please reference access code “66035588”
NORMALISED FFO
Normalised FFO is a non-IFRS financial measure that, with respect to Eurocastle’s Legacy Business, provides investors with additional information regarding the underlying performance of its Legacy Assets and their ability to service debt and make capital expenditure. The measure excludes realised gains and losses, sales related costs (including realised swap losses), impairment losses and foreign exchange movements. On the Company’s New Investments, income is recognised on an expected yield basis allowing Eurocastle to report the run rate earnings from these investments in line with their projected annualised returns.
Eurocastle believes that, given the strategy of seeking to monetise the existing value of the Legacy Business, focusing on the Normalised FFO of the Company’s New Investments will further enable the investor to understand current and future earnings given annualised returns achieved and the average net invested capital over the relevant period.
In the first nine months of 2015, Eurocastle generated Normalised FFO of €9.0 million, or €0.16 per share, with €11.6 million (€0.21 per share) related to New Investments before corporate costs. Given the average net invested capital in the first nine months of 2015 was approximately €57.2 million, this equates to a yield of 27%.
ABOUT EUROCASTLE
Eurocastle Investment Limited is a closed-ended investment company that owns Italian loans and real estate related assets, German commercial real estate and European real estate securities and loans. The Company is Euro denominated and is listed on Euronext Amsterdam under the symbol “ECT”. Eurocastle is managed by an affiliate of Fortress Investment Group LLC, a leading global investment manager. For more information regarding Eurocastle Investment Limited and to be added to our email distribution list, please visit www.eurocastleinv.com.
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzExOTI3fENoaWxkSUQ9LTF8VHlwZT0z&t=1&cb=635823041187817360
Eurocastle Completes Acquisition of UniCredit Credit Management Bank (10/30/15)
Guernsey. 30 October 2015 - Eurocastle Investment Limited (Euronext Amsterdam: ECT) ("Eurocastle" or the "Company") announces that, together with other affiliates of Fortress Investment Group LLC, it has completed the acquisition of UniCredit Credit Management Bank S.p.A. ("UCCMB") from UniCredit. Eurocastle acquired a 50% share of the deal for an equity investment of approximately €250 million, subject to certain post-closing adjustments.
As previously announced, the acquisition includes a portfolio of non-performing loans ("NPLs") with a GBV of approximately €2.4 billion and an NPL servicing business (the "Servicer"). The Servicer has been renamed from UCCMB to doBank and is now the largest third party servicer in Italy. doBank has a banking license, over €45 billion assets under management and a wide network of branches throughout Italy. In addition to the acquisition of the NPLs and the Servicer, the transaction includes a 10-year servicing contract on future sub-performing and non-performing loans with balances below €1 million and selected assets above €1 million.
About Eurocastle
Eurocastle Investment Limited is a closed-ended investment company that owns Italian loans and real estate related assets, German commercial real estate and European real estate securities and loans. The Company is Euro denominated and is listed on Euronext Amsterdam under the symbol "ECT". Eurocastle is managed by an affiliate of Fortress Investment Group LLC, a leading global investment manager. For more information regarding Eurocastle Investment Limited and to be added to our email distribution list, please visit www.eurocastleinv.com.
http://www.reuters.com/article/2015/10/30/idUSnHUGbxzDx5+1c4+ONE20151030
Eurocastle Investment Limited : Eurocastle Receives Formal Regulatory Clearance to Acquire UniCredit Credit Management Bank (10/21/15)
Thomson Reuters ONE via COMTEX) -- Guernsey. 21 October 2015 - Eurocastle Investment Limited (euronext amsterdam:ECT) ("Eurocastle" or the "Company") announces that, together with other affiliates of Fortress Investment Group LLC, it has received formal regulatory clearance to acquire UniCredit Credit Management Bank S.p.A. ("UCCMB") from UniCredit. The acquisition includes a portfolio of non-performing loans ("NPLs") with a GBV of approximately EUR2.4 billion and an NPL servicing business (the "Servicer"). Eurocastle will acquire a 50% share of the deal for an equity investment of approximately EUR250 million, subject to customary closing adjustments.
UCCMB is the largest captive servicer in Italy with a banking license and approximately EUR34 billion assets under management and a wide network of branches throughout Italy. In addition to the acquisition of the NPLs and the Servicer, the transaction includes a 10-year servicing contract on existing NPLs with the right to service all of UniCredit's future NPLs with balances below EUR1 million generated in the 10-year period.
The transaction is expected to close in the coming weeks.
About Eurocastle
Eurocastle Investment Limited is a closed-ended investment company that owns Italian loans and real estate related assets, German commercial real estate and European real estate securities and loans. The Company is Euro denominated and is listed on Euronext Amsterdam under the symbol "ECT". Eurocastle is managed by an affiliate of Fortress Investment Group LLC, a leading global investment manager. For more information regarding Eurocastle Investment Limited and to be added to our email distribution list, please visit www.eurocastleinv.com.
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Eurocastle Investment Limited via Globenewswire
http://www.marketwatch.com/story/eurocastle-investment-limited-eurocastle-receives-formal-regulatory-clearance-to-acquire-unicredit-credit-management-bank-2015-10-21
Eurocastle Declares a Dividend of €0.125 per Ordinary Share for the Third Quarter 2015 (9/24/15)
Guernsey. 24 September 2015 – Eurocastle Investment Limited (Euronext Amsterdam: ECT) today announces that its Board of Directors has declared a third quarter 2015 cash dividend of €0.125 per ordinary share.
The dividend is payable on 29 October 2015 to shareholders of record at close of business on 30 September 2015, with an ex-dividend date of 29 September 2015.
About Eurocastle
Eurocastle Investment Limited is a closed-ended investment company that owns Italian loans and real estate related assets, German commercial real estate and European real estate securities and loans. The Company is Euro denominated and is listed on Euronext Amsterdam under the symbol “ECT”. Eurocastle is managed by an affiliate of Fortress Investment Group LLC, a leading global investment manager. For more information regarding Eurocastle Investment Limited and to be added to our email distribution list, please visit www.eurocastleinv.com
http://phx.corporate-ir.net/external.file?t=2&item=o8hHt16027g9XhJTr8+weNRYaV9bFc2rMd0Q/AXw4ztPkOh2sidwSJvV1T+g2wzxfBKy4K0lZbRFHns7OAL4THUYksX/315+SuqQFnJo9ReWm8HaItOto9XNmyaBydNHOxC4vBr5BJcsmApxMveDxQ==&cb=635786255544769034
ECB Says Eurozone Housing Prices Have Turned Corner (9/15/15)
Recovery in residential property prices would have positive impact
By Todd Buell
A paper published by the European Central Bank signaled that the housing market is improving in the eurozone, a development could have a positive impact on the domestic economy in the 19-country bloc.
“Recent developments in euro area residential property prices suggest that the corner has been turned and a recovery is under way,” said the study published Tuesday.
It said that a similar rebound was seen in 2009-2010 but that this couldn’t be sustained in the face of the eurozone debt crisis. The article flags differences between then and now. One key difference is that the current recovery in housing prices “seems less contingent on prices in metropolitan areas.”
The article also concludes that for now at least financial stability concerns are limited. “The ongoing upturn in euro area house prices appears to be sustainable.” The price rise also hasn’t “so far been accompanied by a significant increase in euroarea real household loans.” The lack of “rapid credit growth” limits financial stability risks from the rise in house prices, said the report.
Such a development would be positive because some eurozone economies, notably Spain and Ireland, saw their economies badly shaken by the bursting of housing bubbles in recent years.
“The recovery in euro area house prices appears to be relatively broad-based across groups of countries,” said the report. “With contributions to euro area house price growth from Germany and Austria remaining solidly positive, the upturn in the annual growth rate since early 2013 essentially reflects a gradual easing of the negative contributions from the countries most affected by the financial crisis,” said the report.
A stronger housing market has the potential to boost consumer confidence and spending.
“A prolonged period of rising house prices, or the expectation that there will be one, could be perceived by households as a permanent increase in wealth, which, in turn, could lead to stronger consumption via a propensity to save less or borrow more, and thereby to higher economic growth,” said the paper.
If things really played out this way, this would be good news for European policy makers, as a stronger domestic economy could complement the bloc’s export sector, which is currently benefiting from a weaker euro. A stronger domestic economy would also potentially cushion any setbacks that Europe’s export sector might feel from a slowdown in emerging markets.
A stronger economy could also help push up inflation in the currency bloc, which currently at only 0.2% in annual terms is far off the ECB’s medium-term target of just below 2%.
http://www.wsj.com/articles/ecb-says-eurozone-housing-prices-have-turned-corner-1442310407
European Retail and Real Estate Stocks Headed Higher (9/05/15)
Europe must still cope with China and deflation. But certain sectors still look like opportunities.
By Digby Larner
European investors received a much-needed shot in the arm last week when the European Central Bank hinted it could expand its quantitative-easing program to help combat pressure on inflation from weak commodities prices and China’s economic woes.
The Stoxx Europe 600 index closed more than 2.3% higher on Thursday after ECB President Mario Draghi stressed the central bank’s “willingness and ability to act if warranted.”
Stocks around the world have taken a battering lately, as oil prices resumed their downward path, and China, a key export market for the euro zone, continued to push out disappointing economic data. Following Thursday’s gains, the Stoxx index had still tumbled by almost 12% from the previous month.
The problems afflicting markets have upset the ECB’s efforts to lift inflation, dampening the positive impact of its 60 billion euros ($67.44 billion) a month bond-buying program launched earlier this year. As a result, its initial signs of success turned out to be short-lived.
The euro dropped to about $1.05 when QE was launched in March, but more recently crept back to around $1.12 ahead of last week’s ECB announcement.
At Thursday’s meeting, the ECB reduced its inflation forecast for this year to 0.1% from its previous figure of 0.3%, which itself was modest relative to its medium-term target of just under 2%. In August, euro-zone inflation was only 0.2% on the year. The ECB also lowered its expectations for next year to 1.1% from 1.5%, and for 2017, to 1.7% from 1.8%.
Some adjustment had been widely expected following comments from the central bank’s Chief Economist Peter Praet a week earlier, who warned the risk of Europe suffering weak inflation in the longer term had increased.
Bank of America Merrill Lynch’s Europe economist Gilles Moec had expected minor tweaking to the ECB’s monetary policy, with the possibility of a more substantial move further out. “In the medium run, we believe the negative risk to consumer prices from the China-related turmoil matters more than the adverse shock on growth,” he says.
Hopes that China’s problems weren’t as deep-rooted as some feared were shaken on Tuesday when the country published weaker-than-expected manufacturing data.
Apart from the likely positive impact on European stocks from more extensive monetary intervention, investors are buoyed by the prospect that ongoing economic weakness will continue to keep a lid on interest rates. Janus Capital reckons China’s woes and low rates will be especially helpful for Europe’s retailers and property businesses. “China’s weakness to some extent is a boon to consumers, with lower oil and gasoline prices, lower prices on imported goods such as apparel, and lower raw-material prices overall. Retailers can do well if positioned to take advantage of healthier and savvier consumers,” says Janus European Equity Strategy fund portfolio manager Wahid Chammas.
LOW INTEREST RATES, in particular, should be good for European real estate businesses, he says. “The property market is firming throughout Europe and looks especially attractive in Germany,” he says, as lower rates keep prices high and provide cheap financing for acquisitions.
He says Germany has one of the fastest growth rates in household formation, as people continue migrating from the countryside to cities and as the number of working immigrants increases. “The German housing market is one of the lowest priced when considering their [gross domestic product] per capita, their average wage rate versus house prices, and their low interest rates,” he says.
Vonovia (ticker: VNA.Germany), formerly Deutsche Annington Immobilien, Germany’s largest residential real estate player, last month reported that its funds from operations more than doubled in the first half of the year to €264.3 million from €130.3 million a year earlier. JPMorgan Cazenove’s European property analyst, Tim Leckie, described the figures as “positive” and in line with the bank’s upbeat view of the company.
He has the stock at Overweight with a €32.50 price target. It closed on Friday at €29.57.
Among retailers, says Chammas, many apparel and food “discounters” in the United Kingdom have generated strong growth that should go further. “Online retailers continue to see positive momentum, and it is another area that we expect positive growth from,” he says.
RBC Capital Markets analyst Richard Chamberlain says a challenging summer for European apparel retailers is likely to give way to a stronger fall and winter period. Among others, he favors undervalued British stocks, such as Debenhams (DEB.UK). Last week, he upgraded the company to Outperform with a 100-pence ($1.53) price target. He expects Debenhams to post its first full-year pretax profit in four years in October, something he says isn’t currently factored into the share price. The stock closed Friday at 74 pence.
http://www.barrons.com/articles/european-retail-and-real-estate-stocks-headed-higher-1441434108
Eurocastle Investment Ltd (EUIVF)
8.40 + 0.24 (2.94%)
Volume: 60
I finally have my initial stake. Only a partial fill, but it is a start.
Investor Presentation (8/06/15):
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9Mjk4NjUxfENoaWxkSUQ9LTF8VHlwZT0z&t=1&cb=635744364820159318
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Eurocastle Investment Ltd is undegoing a new investment strategy seeking to leverage experience of over two decades in the Southern European distressed debt market. With over €200 billion of non-performing exposures (“NPE”) having traded from banks in Italy, Spain and Greece over the past 3 years and now largely sitting in the hands of investors, the Manager has identified an opportunity to create a Southern European speciality finance and real estate platform with a geographic focus initially in Greece and Italy. Through the new investment strategy, Eurocastle is seeking to build a large granular portfolio of loans and real estate assets over time, targeting gross unlevered returns in the high single digits, increasing to the mid-teens after modest leverage.
The strategy has two key pillars which capitalise on the desire of NPE investors to accelerate collections:
(1) Speciality Finance
• The platform intends to source opportunities to provide capital to borrowers who are unable to raise financing from traditional banks.
• The platform intends to focus on borrowers which the Company believes are likely able to agree a discounted pay off (“DPO”) of their debt with NPE investors who are willing to accept DPOs to drive their own returns.
• Capital is expected to be provided to borrowers with strong collateral asset value to refinance or restructure their debt. The Company believes that borrowers in this position are generally willing to agree to attractive terms, in order to rehabilitate their credit and become re-performing.
• New capital would typically be secured against real estate and other hard assets and provided in situations where the borrower is free of other senior creditors. Sustainability criteria will be employed in structuring the Company’s investments.
(2) Opportunistic Real Estate
• The Company has identified an opportunity to build a granular portfolio of real estate coming from NPE portfolios.
• The strategy seeks to take advantage of an anticipated significant supply and demand imbalance (i) for real estate collateral being sold through uncompetitive auctions and (ii) from NPE investors seeking to dispose of individual real estate assets they have repossessed.
• The Company believes that high barriers to entry generally limit participation in judicial auctions, while it expects volumes to increase following a backlog from auctions postponed during the COVID-19 pandemic. The Company also expects a significant increase in auction volumes driven by the recent changes in legislation to streamline the auction processes and recent sizeable trades of portfolios to NPE investors actively seeking to realise collateral in order to enhance their returns.
• The Manager expects this significant demand and supply imbalance will likely result in real estate assets being sold at a material discount to their open market value. The Company intends to capitalize on the Manager’s experience and knowledge of the market and auction systems to identify assets being sold at a discount to market value which the platform will then acquire and sell through an open market process over time. The Company will also seek to improve the environmental performance of such assets. • In addition, complementing its specialty finance business, the platform may also provide capital to real estate companies who are unable to access traditional financing sources.
• In light of the anticipated granular nature of the opportunity, the strategy is targeting individual real estate acquisitions of below €10 million, subject to certain exceptions.
While specialty finance and real estate form the core of the Company’s new investment strategy, the Company may seek to make opportunistic investments arising from the significant capital to be provided by the European Union’s recently established recovery and resilience facility (“RRF”) of approximately €724 billion to support business in the wake of the COVID-19 pandemic. The Company will focus on opportunities aligned to its sustainable investing principles. The Board believes that these investments will provide the Company with stable running cash flows which, once the business is deemed sufficiently established, will provide the Company with the basis to pay a regular stable dividend with a targeted unlevered yield in the high single digits.
The Company is also intending to raise cash from new and existing institutional investors by way of a private placement of Ordinary Shares in order to support the new investment strategy in the course of 2022. The timing and quantum of the funds to be raised and the terms (including the price) at which the new shares could be issued will be determined by the Board at the relevant time.
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