The net profit of the closed-end Property Fund (FP) rose by 4.2 percent year-on-year to RON 567 million (EUR 129 million), while its total assets added 3.4 percent y/y to RON 15.01 billion (EUR 3.2 billion).
FP’s net asset value (NAV) stood at EUR 3.38 billion in December and its market capitalization amounted to EUR 1.71 billion. Last month, it registered an average daily turnover of EUR 1.18 million.
The gain in NAV was supported by fresh regulation issued from by stock exchange watchdog CNVM. FP was therefore able to include the insolvent Hidroelectrica in the NAV, which was previously valued at nil.
Franklin Templeton, the FP administrator, appointed KPMG to value seven unlisted holdings, including Hidroelectrica, which was valued at RON 2 billion (EUR 455 million). However, the overall gain stood at RON 1.8 billion (EUR 410 million), as some of the unlisted companies saw their value decrease following the KPMG intervention.
More than 40 percent of FP’s portfolio comprised of listed equities, although more than half still accounted for unlisted companies. Some of the largest holdings were in the oil and gas firm OMV Petrom – 32.5 percent of the NAV, state-owned hydroelectricity producer Hidroelectrica – 13.3 percent of the NAV, and state-owned gas producer Romgaz – 8.6 percent of the NAV.
Franklin Templeton boosted the portfolio of government securities by 132 percent to RON 454 million last year. Meanwhile, the bank deposits rose by 7 percent to RON 317 million (EUR 69.4 million).
Foreign institutional investors hold a commanding 53.6 percent in FP, while Romanian private individuals are trailing back at 28.6 percent.
The largest shareholder in FP was the US-based hedge fund Elliott Associates with a 14.95 percent stake, according to September data. City of London Investment Management had 9.7 percent and the Royal Bank of Scotland 5.39 percent.
FP shares rose by 0.08 percent to RON 0.5900 on Tuesday trading on the Bucharest Stock Exchange. The fund plans a secondary listing on the Warsaw Stock Exchange this summer.