Property Fund H1 profit falls 10.3 percent to EUR 116 mln

Newsroom 15/07/2013 | 10:52

The Property Fund (FP) reported a 10.3 percent decrease in profits to RON 514.6 million (EUR 116 million) in the first semester against the same period last year, while its net asset value (NAV) gained 19.2 percent to RON 14.9 billion (EUR 3.36 billion).

The closed-end fund, which is managed by Franklin Templeton Investments, has more than half of its portfolio concentrated in the energy sector. Its holding in OMV Petrom, the oil and gas company, accounts for 30 percent of its NAV.

The fund also has stakes in major state-owned companies, including Hidroelectrica – the hydro power producers – and Romgaz – the gas producers- that should be listed on the local stock exchange, according to government plans.

In June, foreign institutional investors controlled 57 percent of FP’s shares, while Romanian private individuals and institutional investors had 24 percent and 9.5 percent, respectively. Foreign private individuals held 6 percent of the shares.

The largest shareholders are US hedge fund Elliott Associates, with a 14.95 percent stake, City of London Investment Management with 9.7 percent, according to data disclosed last September. RBS decreased its stake in the fund to 3.1 percent in July against 5.39 percent in September.