Advance Terrafund‘s 2023 net profit increased to BGN 10.0m after audit (BGN 2.4m in the preliminary accounts), reflecting the booked BGN 7.6m profit related to land revaluations. As a result, total investment property on the balance sheet amounted to BGN 310.8m (-0.8% YoY). The company’s distributable net profit amounted to BGN 19.0m, after adjusting net profit for land sales and revaluations. Consequently, Advance Terrafund provisioned 17.1m for dividends (DPS of BGN 0.20), corresponding to 90% payout ratio. Note, that the overwhelming majority of land sales (which are usually the biggest contributor to the yearly dividend) in 2023 were completed in Q1’23 as part of a preliminary sale contract from 2022. As agricultural business conditions have deteriorated rapidly throughout the year, due to lower crop yields and collapsing grains prices, farmers are being squeezed-out of capital and largely abstain from land purchases. Based on this, land sales in 2024 could be weak as well, unless the business conditions improve.