The value of the properties of Appeninn Nyrt. increased by 25% in 2019.

2020
March
27
News

Appeninn Nyrt. disclosed the proposals and proposed decisions of the annual general meeting, as well as the profit and loss account for last year. The property market company listed by the Budapest Stock Exchange in premium category increased the value of its properties by 25% in 2019, which is equivalent to an increase of more than 30 million EUR. Generating profits of more than 10 million EUR in the reporting year, the company continued the implementation of its strategy. The company aims to keep on growing in accordance with its updated strategy disclosed in the beginning of 2020 by following new directions.


The implementation of the growth strategy is going well

The main consolidated financial figures of Appeninn Nyrt. in 2019 are as follows:

  • The value of property assets increased by 25%, from EUR 118 million to EUR 148 million (that is to a value of almost HUF 50 billion).
  • The comprehensive profits of the company for 2019 amounted to more than EUR 10.2 million, which is more than HUF 3.3 billion.
  • A significant element in the profit is the difference between direct coverage on properties, that is rent, and operating costs, which was EUR 6.4 million (HUF 2 billion) after EUR 4.2 million in 2018, constituting a 50% increase.
  • It is important to highlight that the above result was achieved by the company by spending four times as much on upkeep and renovation projects than in 2018.
  • The improving efficiency of operation is also presented by the fact that the cost/revenue ratio decreased from 25% to 14%.
  • In line with the changing market conditions, the annual evaluation of the company’s property portfolio brought about a smaller increase of EUR 7.9 million (HUF 2.5 billion) than the one in 2018 of EUR 16 million. Thus earnings before interest, taxes, depreciation, and amortization calculated in accordance with the international accounting standards decreased compared to 2018.

The company will keep focusing on dynamic growth in the upcoming years thanks to its participation in the Bond Funding Growth Scheme announced by the Hungarian National Bank and in accordance with the targets determined in the updated business strategy disclosed earlier this year. Accordingly, the Board of Directors of the company suggests to the General Meeting that all after-tax profits should be set aside as reserves. The proposal of the Board of Directors was affected by the extraordinary conditions against the backdrop to the globally spreading epidemic which also justifies the establishment of reserves.

Furthermore, the Board of Directors of Appeninn Nyrt. requests the authorisation of the General Meeting for the option to purchase own shares which the company is going to make use of in the near future in order to further strengthen investors’ trust as well as to increase shareholder value. In accordance with the proposal, the Board of Directors could purchase own shares up to 5% of the equity for +/- 20% of the actual market price for a period of 18 months.

Ádám Détári-Szabó received his diploma in 2011 at University of Szeged, Faculty of Law and State, Department of International Studies. From 2012, he was charged with the duties related to property acquisition and rent in the CMS Cameron McKenna LLP Property Group with regard to commercial properties, office buildings, warehouses and residential buildings. Since December 2017, he has been the managing director of the subsidiaries of Appeninn Nyrt., and since 1 November 2018, he has also been assisting the comprehensive and continuous communication with the Company’s investors.

Ádám Zágonyi acquired an MBA in economics specialised in audit at Faculty of Economics of Budapest Corvinus University. He started working at the Financial Infrastructure Directorate of the Hungarian National Bank in 2012, and then from 2014, in the Ministry of National Economy, he was mainly working on the regulatory aspects of the IFRS transformation. From 2015, he returned to the Hungarian National Bank, where he mainly focused on the evaluation of the impact of the IFRS transformation on banks as well as the analysis of the liquidity of the banking system. The Board of Directors shall also suggest the election of new members of the Board of Directors and one new member of the Audit Committee, as dr. Nóra Szabó and György Guttmann resigned from their positions in the Board of Directors due to their other duties. The General Meeting may elect as members of the Board of Directors, Ádám Détári-Szabó, who is the investment contact in Appeninn Nyrt., and Ádám Zágonyi, economist. The Board of Directors shall propose Ádám Zágonyi as the new member of the Audit Committee.

Last year, we laid the groundwork for further growth, related to which the update of our strategy disclosed in 2018 was completed earlier this year. We expect further significant growth in the upcoming years, to which a significant grant of HUF 20.1 billion is provided under the Bond Funding Growth Scheme of the Hungarian National Bank. However, in the extraordinary global situation of the present times, we are continuously updating our plans. I believe that Appeninn Nyrt. will keep growing: our property portfolio will grow, and our financial results will significantly improve” – said Tamás Bernáth, Chairman and CEO of Appeninn Nyrt.