Summus Capital balance sheet reaches 427 million EUR in the fourth quarter of 2023

One of Baltics’ leading real estate investment holding companies Summus Capital OÜ has unveiled its preliminary unaudited consolidated financial results for the fourth quarter of 2023, demonstrating among other key indicators a 30% increase in cash balance and a 3.1% increase in sales revenue exceeding 10 mln eur amidst evolving market conditions.

By December 31, 2023, Summus Capital OÜ’s balance sheet reached 427.0 million EUR, showing a slight quarterly increase of 0.6% from the third quarter’s 424.5 million EUR and an annual decrease of 0.5%. The cash balance was 16.2 million EUR, a close to 30% increase from the third quarter’s 12.6 million EUR, primarily attributed to operational income, including returned receivables.

Investment property increased to 401.25 million EUR, mainly due to property revaluations (+2.9 million EUR). Loans and borrowings decreased to 216.5 million EUR, reflecting regular repayment of loan principals. Total liabilities increased to 243.5 million EUR, while total owner’s equity grew to 183.5 million EUR, with 174.6 million EUR attributable to Summus Capital equity holders.

In terms of income, the fourth quarter of 2023 maintained the momentum of regular operational activity. Sales revenue increased by 3.1% to 10.0 million EUR compared to 9.7 million EUR in the third quarter. The preliminary 2023 full year sales revenue was 39.1 million EUR which, despite a 8.3% growth of rental revenues, was in line with 2022 (39.0 million EUR) as the drop in utility prices and achieved energy efficiency decreased income from forwarded utility expenses.

Operating profit in the fourth quarter was 6.4 million EUR, slightly down by 1.1% from the third quarter. However, the total operating profit for 2023 reached 26.1 million EUR. Net profit for the fourth quarter, including one-off items, was slightly positive at 0.4 million EUR. The total net profit for 2023 was 12.2 million EUR.

Financial covenants remained solid, with the consolidated equity to total assets ratio at 41% (exceeding the required 30%) and a consolidated Debt Service Coverage Ratio (DSCR) of 1.41x (above the required 1.2%).

Summus Capital’s activity report highlighted achievements such as an increase in the Weighted Average Unexpired Lease Term (WAULT) of the portfolio and anchor tenants, DEPO building in Imanta obtaining the highly regarded BREEAM sustainability certificate, and Auriga Keskus being chosen as Saare County’s Green Technology Implementer of the Year. Summus Capital continues its support for the development of young Baltic tennis talents, with six players receiving support in 2024.

Aavo Koppel, member of the board of Summus Capital, commented on the results, stating, “Our performance in the fourth quarter underscores our commitment to strategic growth and financial stability. We remain focused on delivering value to our stakeholders and supporting sustainable development initiatives.”