Q1 2019 Report

SIF2 SIF MOLDOVA S.A.

Report date: May 15, 2019

Information according to: Law 24/2017, ASF Regulation 5/2018, BSE Market Operator Code  

Issuer name: Societatea de Investitii Financiare MOLDOVA S.A.

Headquarters: 94C Pictor Aman street, Bacau

Phone/fax/e-mail: 0234576740 / 0234570062 / [email protected]

Sole registration number at the Trade Register Office: 2816642

Trade Register Number: J04/2400/92

LEI: 254900Y1O0025N04US14

Share capital: 101,317,917.6 RON

Number of issued shares: 1,013,179,176

Face Value: 0.1 RON/share

Ownership structure: 100% private

Free float: 100%

ASF Register No.: PJR071AFIAA/040002

Regulated market on which the issued securities are traded: Bucharest Stock Exchange, Premium category

International identifiers:

Bucharest Stock Exchange: SIF2

ISIN: ROSIFBACNOR0

Bloomberg: BBGID BG000BMN5F5

Reuters:  SIF2.BX

 

To:       BUCHAREST STOCK EXCHANGE

 

FINANCIAL SUPERVISORY AUTHORITY

Financial Instruments and Investments Sector

 

Important Event: Availability of the Board Report and Q1 2019 Financial Statements

 

1. Summary of the Q1 2019 Board Report

The Q1 2019 results registered by SIF Moldova and the objectives of the following period are in accordance with the “2019 Activity Program” and “Investment strategy and policy”, approved in the General Meeting of Shareholders.

 

Portfolio Structure

Relative to the total assets under management, the listed shares portfolio holds the main weight of 73.8% (Q1 2018: 79%), while the unlisted shares ratio is 10.6% (Q1 2018: 6.8%), based on the investment policy shift.  

There were maintained as main sectors in the portfolio structure - the financial sector with 41.4% (Q1 2018: 45.8%) and the energy sector with 17.4% (Q1 2018: 18.7%) in the total assets value.

The total assets under management reached 1,950 million lei (Q1 2018: 2,075 million lei), while the net asset value per share (NAV per share) was of 1.83 lei (Q1 2018: 1.93 lei). The price of SIF2 share at the end of Q1 2019 was of 1.2040 lei, which led to a SIF2 price/NAV per share discount of 34%.

 

Financial performance

The net result recorded in Q1 2019 has been of  1.7 million lei, being comprised of the net profit and net gain from assets sale reflected in reported result, while investments in securities has been of 12.7 million lei.

However, we emphasize that the occurrence of exceptional events, independent of the issuers’ or investors’ will, such as an unpredictable tax policy, a relevant example being GEO 114/2018, which caused the occurrence of severe turbulences in the economic environment and on the capital market, affecting the performance of issuers and titles in the portfolio, our performance and implicitly the performance of SIF2 share. 

In this context, the investment strategy differentiated on managed assets portfolio proved to be the optimum approach. Thus, we opted for:   

·         Increase for the Majority Holdings portfolio – “private equity” type approach within existent majority holdings ( real estate, agriculture, other sectors);   

·         Recalibration for the CORE portfolio – listed portfolio what provides liquidity to SIF Moldova assets, representing the main income generator;    

·         Restructure for the SELL portfolio – continuation of the restructure process for the SELL portfolio, reducing the number of holdings by 11 in comparison to Q1 2018 through full holdings sale.

 

The focus on the “private equity” type approach for the implementation of certain investment projects, leads to the increase of managed assets profitability and insures the compensation of the risk generated by the high volatility of the listed titles in the portfolio, in the analyzed period.  

A short presentation of the status and results of these project indicates the following:  

·       “Baba Novac Residence Real Estate Project (100% holding through Tesatoriile Reunite SA) – is running according to the set schedule, the building of the residential complex comprised of 6 blocks with 363 apartments and 436 parking spaces (above and underground). The sale pace is above that initially forecast, so that by the end of Q1 2019, 92% of the total number of apartments has been sold. Stages 2 and 3 of the complex will be completed in Q4 2019.

·        “Blueberry Farm” Project (100% holding through Agrointens SA) – The production sold in 2018 has been of around 233 tons. We are currently extending the cultivated area to 67 ha, the aim being 84 ha by 2020 and 200 ha in the following 4 years.  

·       “Veranda Mall” Project (37% indirect holding through Professional Imo Partners SA and Nord SA) – generated in Q1 2019 revenue of around 1,6 mil. euro, with an occupation degree of 92% and a number of around 1,8 million visitors. The extension project will be completed in Q2 2019 with the opening of a new multiplex cinema.

·        “Atria Urban Resort” Real Estate Project (50% holding through Straulesti Lac Alfa SA) – targets the setup, in 4 stages, of a residential center to include 1.339 apartments, on a land area of around 9 ha, located in the NW of Bucharest Municipality, in the vicinity of Colosseum Retail Park with easy access to Piata Victoriei and the north part of the capital city. At present, stage 1 (160 apartments) is under construction, completion deadline in Q2 2019, 35% of the apartments being already sold. 

·        Iasi Real Estate Project (100% holding through Agroland Capital SA) – We have purchased assets belonging to IASITEX SA company, namely around 30.000 square meters of land and an administrative building (GF+8) with a built area of 4.600 square meters, located in the center of Iasi municipality. Our analysis and forecasts targeted both the quality and location of the purchased assets, and the potentially significant real estate development of Iasi Municipality, on the following segments: residential, office and commercial. We are currently running the process for the selection of the architectural solution of the real estate project. 

 

2. Q1 2019 Board Report availability

In compliance with the 2019 financial communication calendar, we hereby inform the investors that starting with May 15, 2019, at 18:00 hours, it will be made available:  

·         “SIF Moldova’s Board of Directors Report for Q1 2019” drafted in compliance with the Law 24/2017, FSA Regulation 5/2018 and Norm 39/2015; 

·         “Special purpose financial information for the three months’ period concluded on March 31, 2019, unaudited”

(www.sifm.ro/Regular Reports/2019).

 

The Report can be viewed in the links below.

 

Claudiu Doros

CEO

 

Catalin Nicolaescu                        

Compliance Officer