fpp annual report 2010 en.pptfpp.bg/files/documents/articles/51d16b2291a3b0e4db... · award in 2009...

1

FairPlay Properties REIT

Annual report 2010

� BGN 183 mln. Investments as at 31.12.2010, VAT not incl. and 381 000 sq.m. TBA projects;

� BGN 35 mln. concluded sales agreements

as at 31.12.2010, VAT incl.;

� Revenues from sales BGN 27 mln.,

FPP – General information. Company development.

Conditions and perspectives.

67%

18%

15%

Shareholders' structure as at 31.12.2010

2© FPP all rights reserved, Sofia - 1407, Bul. Cherni Vruh, 51B; Tel.: 02/8 199 103, Fax: 02/9 621 322, Е-mail: [email protected], www.fpp.bg 2

� Revenues from sales BGN 27 mln.,

Cash Flows Statement 2010, VAT not incl.;

� NAV per share BGN 1,27

Main Shareholders

Mutual Funds and Investment Companies - 20

Pension Funds -10

Retail investors - 330

FPI Legal Entities Retail investors

FPP – General information. Achievements

� The project Santa Marina, Sozopol-Building of the year 2006 award in category holiday complexes ;

� Award – The Best Corporate Governance of REIT’s 2006 year award from the Investor’s Association;

� Award - The Best IR web site for 2008 from the Association of the Investor Relations Directors in Bulgaria;

� Award The Best Sea Project 2009 for the project Santa Marina;

© FPP all rights reserved, Sofia - 1407, Bul. Cherni Vruh, 51B; Tel.: 02/8 199 103, Fax: 02/9 621 322, Е-mail: [email protected], www.fpp.bg 3

� Award in 2009 by the Bulgarian Hotel and Restaurant Association (BHRA) for the company's project Spa Hotel St. Ivan Rilski, Bansko in the category “Best four-star holiday Hotel”

� Gold award “Best Holiday Village of 2010” for the project “Santa Marina” in Sozopol of the Russian magazine Homes Overseas;

� Second place in the Annual rating of Dnevnik newspaper – “The top 100 best companies on the stock exchange in Bulgaria in 2009” in the category “Best REIT for properties;

� Annual Award “Best Holiday Village of 2010” of the BHRA for the project “Santa Marina” in Sozopol

FPP – General information

Value of investments and NAV*, 2010

Balance and market value of assets as at 31.12.2010

(in BGN’ 000)

Net assets value as at 31.12.2010

(in BGN’000)

80 000

100 000

120 000

140 000

24 633 37 340

34 49131 734

10 23510 235

80 000

100 000

120 000

140 000

70 651 77 067


* Market valuations of Yavlena Impact Ltd, as at December 2010

NAV per share in BGN

Balance value 1,27

Market value 1,38

0

20 000

40 000

60 000

80 000

Balance value 123 352 (in

BGN' 000)

Market value 129 768 (in

BGN' 000)

53 993 50 458

24 633 37 340

Investment estates Production Uncompleted construction Others

0

20 000

40 000

60 000

80 000

Balance value 123 352 (in

BGN' 000)

Market value 129 768 (in

BGN' 000)

52 701 52 701

Total liabilities NAV


Book and Net Assets Value, 2005-2010

Book and Net assets value by years from the start of the activity (in BGN’ 000)

60000

80000

100000

120000

140000

72 610

84 990

137 086

133 142

123 352

51 787

62 915

80 139 74 515

70 651


� Significant growth of the assets until the end of 2008 as a result of four successful capital

increases;

� 6% average annual decline of the book and net assets value after 2008.

0

20000

40000

60000

2005 2006 2007 2008 2009 2010

480476

Book Assets Value (BGN'000) Net Assets Value (BGN'000)


Investment portfolio, 2010

as at 31.12.2010 %

Santa Marina 112 446 000 61

St. Ivan Rilski 23 021 000 13

Marina Hill 9 443 000 5

Malina valley 11 397 000 6

Projects Investments

(in BGN, VAT not incl.)

(1from 2 p.)

61%13%

2%

3%

5%

6%

4%6%

By Projects


Malina valley 11 397 000 6

Sofia 6 562 000 4

Rila lake Resort 3 171 000 2

Sapareva Banya 5 950 000 3

Sozopol 1 716 000 1

Sandanski 1 412 000 1

Trakia 7 788 000 4

Total: 182 906 000 100

13%

Santa Marina St. Ivan Rilski

Rila Lake Resort Sapareva Banya

Marina Hill Malina valley

Commercial park-Trakia Others


Investment portfolio, 2010 (2 from 2 p.)

61%15%

11%

10%3%

By Market segments

Market segments

Investments (in BGN,

VAT not incl. as at

31.12.2010) %

Holiday apartments 110 473 000 61

Residential buildings 27 281 000 15

Commercial areas 20 252 000 11

Hotels 18 950 000


61%15%

Holiday apartments Residential buildings

Commercial areas Hotels

Recreation, Wellness & SPA

Hotels 18 950 000 10

Recreation, Welness & SPA 5 950 000 3

Total: 182 906 000 100

FPP – Financial Statements as at 31.12.2010

Balance sheet (1 from 4 p.)

1. Financial statements and results from the Company’s activities in 2010.

60 000

80 000

100 000

120 000

140 000

4 0764 392

65 28370 379

Assets (in BGN' 000). General groups.

60 000

80 000

100 000

120 000

140 000

6 625 6 6258 201 12 065

10 454

25 765

42 247

32 862

Share capital and groups of Liabilities. (in BGN' 000)


� 8% decline of the investment properties and 7% decline of the assets on an annual basis;

� 59% decline of the non-current liabilities and 29% growth of the current liabilities.

0

20 000

40 000

60 000

53 993 58 371

4 076

Y2010; 123 352 Y2009; 133 142

Investment estates Other uncurrent assets Current assets

0

20 000

40 000

60 000

55 825 55 825

6 625 6 625

Y2010; 123 352 Y2 009; 133 142

Share capital ReservesFinancial result Non-current liabilitiesCurrent liabilities


Income statement (2 from 4 p.)

27 106

1

29 284

635 1 633

0

10 000

20 000

30 000

40 000

Net revenues from the Financial revenues Costs by econ. Financial costs Net profit

Revenues, Costs, Net profit (in BGN' 000)


1. Financial result as at 31.12. 2010 (Loss) in BGN -2 887 080.71

2. Cost from subswquent evaluations of real estate -3 001 392.94

3. Profits from transactions associated with transferring the ownership on the real

estates 9 056 884.20

4. Positive difference between the sales price and the historical price on the real

estate 9 056 884.20

5. Financial result for distribution ( 1 - 2 - 3 + 4 ) 114 312.23

-23 887

-6 107

-2 887

-25 216

-3 070

-30 000

-20 000

-10 000

Net revenues from the

sale

Financial revenues Costs by econ.

elements

Financial costs Net profit

2010 2009


Cash Flow Statement (3 from 4 p.)

37 49533 710

5 34710 000

20 000

30 000

40 000

50 000

Cash flow Statement (in BGN' 000)


� 11% growth of the proceeds from clients;

� Negative net cash flow from the investment activity for the period;

� 29% increase of the negative cash flow from the financial activity.

-20 028

-96

0

-14 469

337

-23 119

-3 663

5 347

-11 177

1 201

-30 000

-20 000

-10 000

0

10 000

Proceeds from clients Payments to suppliers Purchase of long-term

assets

Proceeds from sale of

long-term assets

Net cash flow from

the financial activity

Cash at the end of the

period

2010 2009


Cash Flow Statement (3 from 4 p.)

49 116

29 763

27 261

47 439 46 596

35 222

30 000

40 000

50 000

60 000

Cash flow from the financial activity (in BGN’000)

Loans repaid


19 353

12 535 11 38811 691

993-844

-10 395

27 261

-3 960

-13 490

-20 000

-10 000

0

10 000

20 000

2008 2009 2010

Utilized loans

Net CF from loans

Net CF from fin. Activity

Credit exposure

FPP – Financials

in BGN 31.12.2010 31.12.2009

Common shares 55 825 370 55 825 370

Total Assets 123 352 000 133 142 000

Net profit (Loss) -2 887 000 1 633 000

Net profit (Loss) LTM -2 887 000 1 633 000

Price per share as at 31.12 0.300 0.47

Market capitalization 16 747 611 26 070 448


Market capitalization 16 747 611 26 070 448

Net Asset Value NAV 70 651 000 74 515 000

Net Asset Value per share NAV per share 1.27 1.33

Price to Book value P/B 0.24 0.35

Net Profit Margin Net Profit Margin - 5.58%

Return on Assets ROA - 1.23%

Return on Equity ROE - 2.19%

Earnings per share EPS - 0.03

Price / Earnings per share P/E - 15.96


Revenues by operations

2.1. Information about total revenues and revenues from the sale of apartments.

(1 from 3 p.)

24 16122 331

15 000

20 000

25 000

30 000

Operating Revenues for 2010 and 2009 (in BGN' 000)


� The main part of revenues is formed by sales of apartments (89%) and the rest is formed by rents and sale of construction right;

� 8% growth of the revenues from the sale of apartments for the period.

305 0

2 640

1394 0

6 559

50

5 000

10 000

Revenues from the sale

of apartments


of goods


of services

Others Financial revenues

2010 2009

2.1. Information about total revenues and the revenues from sales of apartments.


Revenues by operations (2 from 3 p.)

1%10%

Structure of the net revenues from sales, 2010 (%)

4%1% 5%

Structure of the revenues from the sale of production, 2010 (%)


� BGN 23 mln. revenues from the sale of 131 apartments with TBA 10 413 sq.m during 2010;

� The main project in respect of number and total value of sales is the holiday complex Santa

Marina.

89%

Revenues from the sale of production

Revenues from the sale of goods

Other revenues

90%

Santa Marina, Stage 2

Santa Marina, Stage 3

St. Ivan Rilski, Bansko

2. 2. Information about revenues from sales of services (rental revenues), revenues

from management and other revenues.


Revenues by operations (3 from 3 p.)

Revenues from rents (as at 31.12.2010) Revenues from management of projects (as at 31.12.2010)

53%

17%

3% 2% 9%7%


Other revenues: 2 640 000 BGN

Revenues from rents 1 041 100 BGN

Revenues from management of

investment properties 1 496 000 BGN

Revenues from others 4 478 328 BGN

53%

25%

Santa Marina - Stage1,2 and 3_Commercial complexesMarina Hill -HotelMarina Hill - Residential buildingSt. Ivan Rilski-HotelOthers

84%St. Ivan Rilski-HotelApartments, SozopolSt. Ivan Rilski_Apartments


Information about transactions with related parties

3.1. Suppliers 3.2. Clients

Transactions with suppliers as at 31.12.2010 (in BGN’000 ) Transactions with clients as at 31.12.2010 (in BGN’000 )

2 500

3 000

2 000

2 500

1 048

5


0

500

1 000

1 500

2 000

726

1 747

FairPlay Properties Management EOOD FairPlay International AD

Ivan Rilski Properties OOD II Focal Point Investments

Technotrans Global EOOD FairPlay International Travel and Tourisum AD

FairPlay Security EOOD FairPlay Constructions EOOD

0

500

1 000

1 500

2 000

1 227

1 048

FairPlay Properties Management EOOD FairPlay Residential Properties AD

FairPlay International AD


Official forecast and results

4. Information about results realized and preliminary published forecast.

200

250

300

279251

114 103

Forecasts and results realized for 2010

(in BGN' 000)

0.002

0.0025

0.003

0.003

0.002

Dividend per share (in BGN)


� BGN 114 thousand - financial result for distribution as at 31.12.2010

0

50

100

150

Profit for distribution Mimimum 90% dividend

from profit

114 103

Forecast March, 2010 Implementation, December 2010

0

0.0005

0.001

0.0015

0.002

Forcast March, 2010 Implementation, December 2010


Policy about management of financial recourses

( in BGN’ 000)

Shareholders’ Equity 70 651

Bank loans 28 377

Bonds

Other current liabilities

7 816

16 508

8. Capital structure as at 31.12.2010

58%

23%

6%

13%

Shareholders' Equity Bank loans

Capital structure as at 31.12.2010


LIQUIDITY 31.12.2010 31.12.2009

Current Ratio 1.55 2.14

Quick ratio 0.05 0.15

Acid-test ratio 0.008 0.15

Cash Ratio 0.008 0.04

9. Liquidity coefficients for 2010 and 2009

Shareholders' Equity Bank loans

Bonds Other current liabilities


7. Information about price changes of Company’s shares.

Start price – BGN 0.468

The Bulgarian Stock Exchange Code for FairPlay Properties REIT - 6F3

0,45

0,5

FairPlay Properties


Last price – BGN 0.300

Max. price – BGN 0.468

Min. price – BGN 0.267

% Change - 35.90 %

Value Change -0.168

Source: www.bse-sofia.bg BGN 1.95583 = EUR 1

0,2

0,25

0,3

0,35

0,4

0,45

1.2010

12.2010


Capital structure

8. Information about direct and indirect possession of 5 per cents or more voting

rights in the General Meeting of the Company.

Name Direct participation Participation through

connected entities

Note

Number of

shares

%

participa

Number of

shares

%

participa

Date of last change


shares participa

tion

shares participa

tion

1. FairPlay International AD 37 327 224 66,86% 44 914 367 80,46% 30.12.2010

2. Mario Zahariev Zahariev 4 854 193 8,70% 44 914 367 80,46 % 05.11.2010

3. Anna Petrova Zaharieva 2 732 950 4,90% 44 914 367 80,46 % 30.09.2009


9. Information about important events occurred after the annual accounting

completion.

Expectations for sales revenues for 2011 -2013

Concluded agreements not finalized

2011-2013

Number of

apartments sq.m.

Sales price in BGN'000

(exl.VAT)

Santa Marina, Sozopol 131 9 906 23 447 805


�135 unfinished agreements for the sale of apartments as at the end of 2010;

� BGN 23,8 mln. guaranteed sales revenues from finalization of the concluded agreements until the end

of 2013

Santa Marina, Sozopol 131 9 906 23 447 805

2011 84 6 304 14 773 029

2012 45 3 478 8 378 142

2013 2 124 296 634

St. Ivan Rilski, Bansko

2011 4 277 376 662

Total: 135 10 183 23 824 467

FPP – Information

according to Ordinance№2 of FSC about REITs

1. Information about sales or purchases of a new asset exceeding 5 per cents of

the value of secured assets as at 31.12.2010.

Concluded contracts for sales of apartments for 2010

(1 from 2 p.)

Concluded contracts for 2010

Number of

apartments sq.m.

Sales price in

BGN, incl. VAT

BGN/sq.m.

VAT incl.


Concluded contracts for 2010 apartments sq.m. BGN, incl. VAT VAT incl.

Sanata Marina, Sozopol 159 12 640 34 701 473 2 745

Stage 1 2 141 327 602 2 330

Stage 2 9 741 1 871 760 2 526

Stage 3 148 11 759 32 502 112 2 764

St. Ivan Rilski, Bansko 4 317 385 690 1 216

Total: 163 12 958 35 087 162 2 708

2. Performed constructions, repairs and improvements of real estates:

� 2.2.Uncompleted production as at 31.12.2010 in BGN’ 000.

FPP – Information

according to Ordinance№2 of FSC about REITs(2 from 2 p.)

Project Accumulated

costs

Land included in

the costs

Balance value

Project Santa Marina, Stage 3 3 954 5 033 8 987

Project Santa Marina, Stage 4 38 1 917 1 955


Project Santa Marina, Stage 4 38 1 917 1 955

Project Sozopol 10 1 735 1 745

Project Sofia 55 5 947 6 002

Project German 0 6 562 6 562

Project Panichishte 505 1 293 1 798

Project Sandanski 248 1 198 1 446

Project Sapareva banya 21 5 966 5 987

Project Plovdiv 9 0 9

TOTAL: 4 840 29 651 34 491

Thank you for attention!


Contacts:

Cherni vrach 51B, blvd.

Sofia 1407

tel.: +3592 8 199 103

Fax: +3592 962 1322

E-mail: [email protected]

www.fpp.bg

fpp annual report 2010 en.pptfpp.bg/files/documents/articles/51d16b2291a3b0e4db... · award in 2009...

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