Advance Terrafund sold 3 012 daa in December (NEUTRAL)

18.01.2022 Source: Advance Terrafund REIT; FFBH

Advance Terrafund REIT purchased 997 daa new land in Dec’21 at an average price of BGN 1 342/daa (+1.7% MoM). The fund sold directly 3 012 daa during the month at BGN 1 770/daa (+8.6% MoM) and finalized the sale of 391 daa under a contract for deferred payment from 2019 at BGN 1 500/daa. Total land sales for 2021 reached 39 198 daa for BGN 60.9m and 13 030 daa under deffered payment contracts for BGN 17.8m. On the other hand, the fund bought only 11 913 daa for BGN 14.6m. In light of that it‘s reasonable to expect significantly higher or even record dividend. The expected rent revenue for the 2021-2022 agricultural year is BGN 5 994.4k (-12.8% YoY) with 37% of it already collected. Currently, the fund has rented out 143 612 daa, or 82.2% of its rentable portfolio at an average price of BGN 41.74/daa (+3.4% YoY).