Advance Terrafund EPS reaches BGN 0.064 on significant land sales at the end of the year (NEUTRAL)

Advance Terrafund booked BGN 4.9m revenue for Q4'19. Rental income was BGN 1.8m, and profit from land trade was BGN 2.9m, or 20% on sales of BGN 14.6m. Hired services increased significantly to BGN 2.5m, with BGN 2m attributable to management fee. The bottom line for the quarter came to BGN 2.1m. Direct land sales for the year amounted to BGN 16.8m, and recognized revenue from deferred land sales were BGN 1.8m, with the total land sales amounting to BGN 18.7m with 20% profit vs book value. Rents were up 4.3% YoY to BGN 6.7m. Overall revenue of BGN 11.4m was 49% YoY higher when adjusted for 2018 revaluation gains. Hired services of BGN 5.6m were also up 50%, as management fee reached BGN 4.5m (+38%) and brokerage fees tripled to BGN 0.8m. Preliminary net profit for 2019 came to BGN 5.5m, representing an EPS of BGN 0.064. For the 12 months the fund has sold 12 241 daa for BGN 16 816k under direct payments and 1 343 daa for BGN 2 199k under a deferred payment scheme. Advance Terrafund also finalised the sale of 3 451 daa sold under deferred payments previously. Total sold under financial leases and deferred payments which will be finalised in the 2020-2024 period is 19 464 daa (only 2 161 of them for leases, remainder is deferred payment sales).