Estonia: Summus Capital’s H1 revenue up 6.3 pct on year at EUR 19.3 mln

12:16 18.08.2023

TALLINN, Aug 18, BNS – Summus Capital OU on Friday released its consolidated financial results for the second quarter of 2023, posting a 6.3 percent increase in revenue for the first six months of the year, to 19.3 million euros, and a 4.7 percent quarter-to-quarter growth in cash reserves.

In the second quarter, Summus Capital’s balance sheet remained strong at 423.3 million euros, stable compared with 423.7 million euros at the end of the previous quarter. The company’s cash reserve saw a boost of 4.7 percent to 11.2 million euros from 10.7 million euros at the end of the first quarter of the year.

Aavo Koppel, member of the board of Summus Capital, highlighted the transactions that have contributed to Summus Capital’s performance.

“Our recent financial transactions, including the successful refinancing of Park Town West Hill loan agreement and amendment of the Nordika shopping center loan agreement, have secured our loan portfolio and strengthened our financial position,” he said.

During the second quarter of 2023, Summus Capital continued to maintain a solid financial base. Loans and borrowings from financial institutions decreased to 220.1 million euros from 223.8 million euros in the previous quarter. Total liabilities decreased to 246.8 million euros, while total owner’s equity grew to 176.5 million euros. Out of this, 167.1 million euros was attributable to Summus Capital equity holders.

The income statement for the second quarter of 2023 revealed dynamic revenue trends. Sales revenue amounted to 9.5 million euros, slightly less than the revenue of 9.8 million euros posted for the previous quarter, due to the decrease in utility expenses passed on to clients. The 6.3 percent revenue growth in the first half of the year reflects the portfolio expansion concluded in 2022.

“The quarterly revenue was steady and our long-term growth trajectory remains solid. The successful refinancing of loan portfolio secured our position, however increasing Euribor rate has had its effect on our cost of financing. The influence of Euribor increase is though partial as more than half of our loan portfolio is hedged and has positioned us for continued profitability,” Koppel said.

The first half of 2023 saw a 4.75 percent indexation of portfolio rentals. Summus Capital maintains its focus on optimizing rental income potential, with approximately 12 percent of rental income eligible for indexing.