Summus Capital achieves resilient performance in 2023: audited financial statements unveiled

Summus Capital OÜ, a leading Baltic real estate investment company, presented its financial results for the fiscal year ending December 31, 2023. Despite confronting the complexities of the economic landscape, Summus Capital has demonstrated robust performance, showcased by the release of its audited financial statements.

In 2023, Summus Capital experienced stable position, with its consolidated balance sheet staying at 425.9 million EUR (2022: 429.1 million EUR). The Group’s cash balance stood at 15.9 million EUR, providing a solid foundation for continued operations and potential new investments if opportunities arise. Investment property surged to 401.2 million EUR (2022: 397.7 million EUR), attributable to property revaluations. Total liabilities decreased to 246.1 million EUR (2022: 249.7 million EUR), reflecting mainly regular repayment of loan principals.

Summus Group’s consolidated full-year sales revenue remained consistent with the previous year, totalling 39.1 million EUR (2022: 39.0 million EUR). The Group achieved notable 7.8% growth in net rental revenues, while the achieved energy efficiency coupled with drop in utility prices decreased income from utility expenses forwarded to clients. Summus Group maintained a strong operating profit of 23.7 million EUR (2022: 9.4 million EUR), resulting in a net profit of 8.5 million EUR (2022: 14.5 million EUR).

Aavo Koppel, Summus Capital OÜ member of the board, commented on the company’s financial performance: “We are gratified by the resilience displayed in our 2023 audited financial statements. Despite the economic headwinds, Summus Capital has steadfastly commited to stability and prudent financial management. Our focus on sustainability and the forward-looking direction chosen years ago to hedge interest rates have positively impacted the company’s financial results..”

Stable own capital base and resilient portfolio

Summus Group’s robust financial position is underpinned by a stable own capital base, boasting total owner’s equity of 179.8 million EUR (2022: 179.4 million EUR) and an equity-to-assets ratio of 42%.

The Group’s real estate investments continue to yield optimal returns and efficient management. Furthermore, Summus Group’s commercial real estate portfolio, comprising 14 properties across retail, office, logistics and medical segments, remains resilient and diversified. With over 420 tenants, including established regional names, Summus Group has maintained a high and stable occupancy rate of above 96% in recent years. The Weighted Average Unexpired Lease Term (WAULT) of 4.3 years ensures relatively stable and predictable cash flows.

In September 2021, the international rating agency Scope assigned a first-time issuer rating of BB/Stable to Summus Capital, making it the first Baltic company to obtain a Scope rating. The rating has since been re-affirmed by the agency for two following consecutive years, most recently in September 2023.

Commitment to sustainability and new bond issue

Summus Capital’s commitment to sustainability is underscored by its ongoing efforts to obtain certifications such as BREEAM or LEED, contributing to a greener and more sustainable future. The company’s activity report for 2023 highlighted achievements such as an increase in the Weighted Average Unexpired Lease Term of the portfolio and anchor tenants, along with notable recognitions for sustainability efforts.

“Our 2023 activity report highlights significant achievements, including sustainable lease management, reflected in an attractive WAULT level and low vacancy rates. This is supported by growth in rental income across all sectors and increased footfall in our retail spaces. A testament to our portfolio quality is the sustainability certifications awarded, covering nearly 90% of our portfolio. These accomplishments confirm the effectiveness of our diversified portfolio strategy, which we continue to consider essential,” said Hannes Pihl, a board member of Summus Capital.

Earlier in April 2024, Summus Capital announced that it is preparing to issue new bonds. Subject to market conditions bonds are to be issued in the 2nd quarter of 2024 through a private placement with an issue size of up to 15 million euros. New funding is expected to be used for refinancing existing bond obligations and to support business growth.

“Looking ahead to 2024 and beyond, Summus Capital remains committed to sustainable growth and delivering value to its stakeholders. Despite the prevailing economic challenges, the company is optimistic about the new investment opportunities and is confident in its ability to navigate uncertainties effectively. The results for 2023, which were primarily a year of strengthening and stabilizing the existing portfolio, have provided a good foundation for this.” Pihl concluded.

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