TIDMECT 
 
   Contact: 
 
 
   Oak Fund Services (Guernsey) Limited 
 
   Company Administrator 
 
   Attn:  Mark Woodall 
 
   Tel:  +44 1481 723450 
 
 
   Eurocastle Releases First Half 2020 Financial Results 
 
   SHY 
 
   Guernsey, 7 August 2020 -- Eurocastle Investment Limited (Euronext 
Amsterdam: ECT) today 
https://www.globenewswire.com/Tracker?data=P5ZKlyIqdgElOtcdIiKIZDMth3yx4WPc_ZnzqH1bej9UF_vjog50SAQzd3QOn2g- 
has released its financial report for the six months ended 30 June 2020. 
 
 
   -- Adjusted Net Asset Value ("NAV") of EUR13.4 million1, or EUR7.26 per 
      share2 up EUR0.48 per share vs. EUR6.78 per share at Q1 2020 (down 
      EUR1.06 per share vs. EUR8.32 per share at Q4 2019) due to: 
 
          1. Valuation movements: 
 
                 -- EUR0.19 per share increase (4%) in Q2 2020 (EUR1.43 per 
                    share decrease in H1 2020) on the remaining three real 
                    estate fund investments 
 
                 -- EUR0.05 per share increase (9%) in Q2 2020 (EUR0.03 per 
                    share decrease in H1 2020) on the remaining three NPL and 
                    other loan interests 
 
          2. Positive reserve and legacy movements of EUR0.24 per share in Q2 
             2020 (EUR0.40 per share increase in H1 2020) 
 
 
   The table below summarises the movements in the Adjusted NAV for the 
quarter: 
 
 
 
 
 
 
 
                                 Q2 Cash           Q2 FV 
                Q1 2020          Movement        Movement        Q2 2020 
             --------------  ---------------  --------------  -------------- 
                       EUR             EUR              EUR             EUR 
               EUR     per     EUR     per      EUR     per     EUR     per 
             million  share  million  share   million  share  million  share 
Real Estate 
 Funds           9.9   5.32      0.1    0.06      0.4   0.19     10.3   5.57 
Italian 
 NPLs & 
 Other 
 Loans           1.0   0.56    (0.0)  (0.01)      0.1   0.05      1.1   0.60 
Net 
 Corporate 
 Cash(3)         1.6   0.90      0.1    0.05      0.5   0.24      2.0   1.09 
Adjusted 
 NAV            12.5   6.78        -       -     1.00   0.48     13.4   7.26 
===========  =======  =====  =======  ======  =======  =====  =======  ===== 
 
 
 
 
 
   The Company's current assets comprise: 
 
 
   -- Interests in two real estate redevelopment funds where construction is 
      fully completed. The units are in the process of being sold but 
      encountering delays due to the coronavirus outbreak. Both developments 
      offer luxury residential apartments with high specification furnishings 
      in Rome. 
 
   -- Interest in a public fund which is in the process of being liquidated and 
      the assets of which predominantly comprise cash. 
 
   -- Residual minority interests in three predominantly secured NPL & Other 
      Loan pools. 
 
 
 
 
 
   H1 2020 INVESTMENT REALISATIONS AND MARKET OUTLOOK 
 
   COVID-19 has had an extraordinary impact across all sectors of the 
economy. The Company's move to realise the majority of its assets in Q4 
2019 and its prudent management of cash reserves have left the Company 
well placed to maximize the value of its remaining assets from a 
position of strength. This has been evidenced in the performance of its 
remaining assets where in the first half of 2020 the Company achieved 
the following milestones: 
 
 
   -- Closed or collected offers under contract on 25% of remaining real estate 
      units available for sale as at 1 January 2020 in Real Estate Fund 
      Investment II and 23% in Real Estate Fund Investment V.  Assuming that 
      all these offers close, only 19% of units in one building in Real Estate 
      Fund Investment II (with the second building already fully sold) and 48% 
      of the units in Real Estate Fund Investment V will remain to be disposed 
      of. Since the end of the lockdown phase in Italy in May 2020 there has 
      been renewed interest in the apartments due to pent-up demand in the 
      market for quality, semi-central residential real estate in Rome. 
 
   -- Following the disposal of all of the assets in Real Estate Fund 
      Investment I in 2019, the Company received EUR1.0 million, or 41% of its 
      Q4 2019 NAV, in the first half of 2020. The fund is in the process of 
      being liquidated and its assets predominantly comprise of cash. The fund 
      is currently trading at a c.10% discount to its last published NAV. 
 
   -- The residual NPL & Other Loan interests, which are predominantly secured, 
      have continued to generate cash proceeds, in spite of the turmoil created 
      by COVID-19. In the first 6 months of the year the pools generated and 
      distributed EUR0.1 million, or 6% of the Q4 2019 NAV. 
 
   -- Following favourable outcomes on certain potential liabilities along with 
      various cost savings, the Company was able to generate a total net 
      reduction on reserves of EUR0.6 million in the first half of the year. 
      Since implementation of the Realisation Plan in 2019, the Company has 
      generated total savings of EUR0.8 million against these reserves. Part of 
      these savings are as a result of the Board of Directors agreeing to 
      reduce their annual remuneration from EUR0.2 million to EUR0.1 million. 
 
   -- The cash received in the first half of the year across the Company's 
      investments, along with the current cash set aside for reserves as part 
      of the Realisation Plan, leave the Company well capitalised and in a 
      strong position to weather the uncertainty that COVID-19 has created. 
 
 
 
   -- 
 
 
 
 
Income Statement for the Six and Three Months ended 
 30 June 2020 (Unaudited)                               H1 2020      Q2 2020 
                                                          EUR          EUR 
                                                       Thousands    Thousands 
----------------------------------------------------  -----------  ----------- 
Portfolio Returns 
---------------------------------------------------- 
    Italian NPLs & Other Loans                               (66)           91 
    Real Estate Funds                                     (2,975)          351 
----------------------------------------------------  -----------  ----------- 
Fair value movement on Italian investments                (3,041)          442 
Fair value movements on residual Legacy entities              207          216 
Other income                                                   16           16 
Loss on foreign currency translation                            -          (3) 
                                                                   ----------- 
Total (loss) / income                                     (2,818)          671 
----------------------------------------------------  -----------  ----------- 
 
Operating Expenses 
---------------------------------------------------- 
Interest expense                                               42           17 
 Manager base and incentive fees                               21          126 
 Remaining operating expenses                               1,047          586 
----------------------------------------------------  -----------  ----------- 
Other Operating expenses                                    1,068          712 
----------------------------------------------------  -----------  ----------- 
Total expenses                                              1,110          729 
----------------------------------------------------  -----------  ----------- 
 
Loss for the period                                       (3,928)         (58) 
EUR per share                                              (2.12)       (0.03) 
----------------------------------------------------  -----------  ----------- 
 
 
 
 
 
 
 
 Balance Sheet and Adjusted NAV Reconciliation as at    Italian Investments      Corporate        Total 
 30 June 2020 (Unaudited)                                  EUR Thousands       EUR Thousands   EUR Thousands 
-----------------------------------------------------   -------------------  ---------------  -------------- 
Assets 
Cash and cash equivalents                                                 -           20,663          20,663 
Other assets                                                              -               47              47 
Investments: 
 Italian NPLs & Other Loans                                           1,120                -           1,120 
 Real Estate Funds                                                   10,315                -          10,315 
Total assets                                                         11,345           20,710          32,145 
 
Liabilities 
Trade and other payables                                                  -            1,547           1,547 
Manager base and incentive fees                                           -              138             138 
Total liabilities                                                         -            1,685           1,685 
 
IFRS NAV                                                             11,435           19,025          30,460 
------------------------------------------------------  -------------------  ---------------  -------------- 
 
Additional Reserves(3)                                                    -         (17,016)        (17,016) 
------------------------------------------------------  -------------------  ---------------  -------------- 
Adjusted NAV                                                         11,435            2,009          13,444 
Adjusted NAV (EUR per share)(4)                                        6.18             1.08            7.26 
------------------------------------------------------  -------------------  ---------------  -------------- 
 
 
   PDMR UPDATE 
 
   The Company issued 1,000 ordinary shares to each of its three 
independent directors as part of their in-place compensation 
arrangements. By reference to its obligations under Article 19 of EU 
Regulation 596/2014, the Company is making public the following details 
of those dealings in its shares by persons discharging managerial 
responsibilities: 
 
 
 
 
Name of the PDMR                                     Financial   Nature of Transaction                                      Date and     Volume and price 
                                                     Instrument                                                             place of     of transaction 
                                                                                                                            transaction 
---------------------------------------------------  ----------  ---------------------------------------------------------  -----------  ------------------ 
Dr. Simon John Thornton                              Ordinary    Acquisition for nil consideration as part of compensation  6 August     1,000 shares 
                                                     Shares       arrangements                                              2020,         Nil consideration 
                                                                                                                            Guernsey 
---------------------------------------------------  ----------  ---------------------------------------------------------  -----------  ------------------ 
Mrs. Claire Elizabeth Ann Whittet                    Ordinary    Acquisition for nil consideration as part of compensation  6 August     1,000 shares 
                                                     Shares       arrangements                                              2020,         Nil consideration 
                                                                                                                            Guernsey 
---------------------------------------------------  ----------  ---------------------------------------------------------  -----------  ------------------ 
Mr. Jason de Beauvoir Sherwill (via Forein Limited,  Ordinary    Acquisition for nil consideration as part of compensation  6 August     1,000 shares 
 Closely Associated Person)                          Shares       arrangements                                              2020,         Nil consideration 
                                                                                                                            Guernsey 
---------------------------------------------------  ----------  ---------------------------------------------------------  -----------  ------------------ 
 
 
   As a consequence of the above: 
 
 
   -- The total number of Ordinary Shares of the Company in issue is 1,854,535; 
      and 
 
   -- The total number of voting rights exercisable by holders of Ordinary 
      Shares of the Company is 1,854,535. 
 
 
   NOTICE: 
 
   This announcement contains inside information for the purposes of the 
Market Abuse Regulation 596/2014. 
 
   ADDITIONAL INFORMATION 
 
   For investment portfolio information, please refer to the Company's most 
recent Financial Report, which is available on the Company's website ( 
https://www.globenewswire.com/Tracker?data=6TMsww3eICsNgdwBa71fQ4D3cFfDvCYLGPCaJKCraA5aZ7Yu4Hkee2ODHYhGDQXngp3z-FcsPGZodiQI5S9239s63Y4wj1u779_mSBJhNrE= 
www.eurocastleinv.com). 
 
   ABOUT EUROCASTLE 
 
   Eurocastle Investment Limited ("Eurocastle" or the "Company") is a 
publicly traded closed-ended investment company, focused on Italian 
performing and non-performing loans, Italian loan servicing platforms 
and other real estate related assets in Italy. On 18 November 2019, the 
Company announced a plan to realise the majority of its assets with the 
aim of accelerating the return of value to shareholders. The Company 
will not currently seek material new investments from the proceeds of 
the realisation but, will continue to support its existing investments 
to the extent required in order to optimise returns and distribute cash 
to shareholders when available (the "Realisation Plan"). For more 
information regarding Eurocastle Investment Limited and to be added to 
our email distribution list, please visit 
https://www.globenewswire.com/Tracker?data=6TMsww3eICsNgdwBa71fQ4D3cFfDvCYLGPCaJKCraA50teO5Ny5qcGWTsQPH6Bw26oUPczw-d-_ow1aJpjFb4S8OmL76oU05OXHv6FeE3zI= 
www.eurocastleinv.com. 
 
   FORWARD LOOKING STATEMENTS 
 
   This release contains statements that constitute forward-looking 
statements. Such forward-looking statements may relate to, among other 
things, future commitments to sell real estate and achievement of 
disposal targets, availability of investment and divestment 
opportunities, timing or certainty of completion of acquisitions and 
disposals, the operating performance of our investments and financing 
needs. Forward-looking statements are generally identifiable by use of 
forward-looking terminology such as "may", "will", "should", "potential", 
"intend", "expect", "endeavor", "seek", "anticipate", "estimate", 
"overestimate", "underestimate", "believe", "could", "project", 
"predict", "project", "continue", "plan", "forecast" or other similar 
words or expressions. Forward-looking statements are based on certain 
assumptions, discuss future expectations, describe future plans and 
strategies, contain projections of results of operations or of financial 
condition or state other forward-looking information. The Company's 
ability to predict results or the actual effect of future plans or 
strategies is limited. Although the Company believes that the 
expectations reflected in such forward-looking statements are based on 
reasonable assumptions, its actual results and performance may differ 
materially from those set forth in the forward-looking statements. These 
forward-looking statements are subject to risks, uncertainties and other 
factors that may cause the Company's actual results in future periods to 
differ materially from forecasted results or stated expectations 
including the risks regarding Eurocastle's ability to declare dividends 
or achieve its targets regarding asset disposals or asset performance. 
 
   (1) In light of the Realisation Plan, the Adjusted NAV as at 30 June 
2020 reflects additional reserves for future costs and potential 
liabilities, which have not been accounted for under the IFRS NAV. The 
IFRS NAV, as at 30 June 2020, is EUR30.5 million, or EUR16.45 per share. 
 
   (2) Per share calculations for Eurocastle throughout this document are 
based on 1.9 million ordinary shares that were in issue throughout H1 
2020. 
 
   (3) Reflects corporate cash net of liabilities and additional reserves. 
 
   (3) In light of the Realisation Plan, the Adjusted NAV as at 30 June 
2020 reflects the additional reserves for future costs and potential 
liabilities of EUR17.0 million, which have not been accounted for under 
the IFRS NAV. 
 
   (4) Amounts per share calculated on 1.9 million outstanding ordinary 
shares. 
 
 
 
 

(END) Dow Jones Newswires

August 07, 2020 09:45 ET (13:45 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.