Fairplay Properties REIT booked BGN 1m revenue in Q1’17; Guidance 2017 sales of BGN 22.3m

Fairplay Properties REIT booked operating revenue of BGN 1m (-9.7% YoY) for Q1’17. The revenue represented the sale of property (two garages) for BGN 25k (-89% YoY) and revenue from investment property and insurance pay-outs of BGN 0.98m. OpEx decreased 16% YoY, which led to an EBITDA increase of 28% to BGN 0.25m. Slightly lower interest expense helped the net profit to reach BGN 69k. Guidance sales for the year are BGN 22.3m, with apartments in Sofia making up BGN 19.4m. Fairplay Properties REIT closed contracts for 18 apartments at an average price of 863 EUR/sqm and 5 garages in the Malinova Dolina project. The total sales value was BGN 2.7m. Book value remained flat Ytd at BGN 51m (BVPS of BGN 1.55). Inventory, which includes mostly apartments in construction, increased 5% Ytd to BGN 44.6m. The increase was financed mostly with cash and increase in payables to BGN 17.8m (+18%). The REIT also paid back ca. BGN 1m of financial liabilities.