News
Summus Capital OÜ Achieves Record-High Balance Sheet in Second Quarter of 2024
12:23 7.08.2024
Summus Capital OÜ has announced its consolidated financial results for the second quarter of 2024, marking an all-time high in its balance sheet amidst stable operational activities and sizable refinancing of obligations.
During 2Q2024, Summus Capital Group successfully refinanced several bank loans leaving only three loans maturing before five years. Estonian properties’ loans were transferred from Luminor Bank to LHV Bank, resulting in a total principal amount for Estonian loan portfolio of EUR 44.6 million, maturing in April 2029. Additionally, loans for the Nordika Shopping Centre, Park Town properties and Riga Plaza Shopping Centre were refinanced and cross-pledged, reaching a total principal of EUR 134.4 million, maturing in April, May and October 2029.
In June, Summus Capital successfully placed a new bond offering of EUR 15 million, with a fixed coupon rate of 9.5% and a three-year maturity. The offering was oversubscribed by 1.3 times, attracting nearly EUR 20 million in total demand from over 100 investors. The proceeds were partly used to refinance the previous EUR 10 million bond, with the remainder designated for general corporate purposes, including the acquisition of new investment properties.
These refinancings have fortified Summus Capital’s cash balance, enabling further acquisitions in 2024. As a result of these refinancing activities, the consolidated cash balance increased to EUR 41.6 million as of end of 2Q2024, awaiting deployment in new projects later during the year. The consolidated loan balance rose by EUR 25.7 million to EUR 240.2 million. The consolidated balance sheet reached EUR 451.7 million, up from EUR 426.4 million in 1Q2024. Total consolidated liabilities increased to EUR 269.6 million from EUR 243.4 million. Total consolidated owner’s equity was EUR 182.1 million, slightly down from EUR 183.0 million, with EUR 172.7 million attributable to Summus Capital OÜ equity holders.
Sales revenue for 2Q2024 decreased slightly by 2.2% to EUR 10.0 million, mainly due to a reduction in recharged utility costs. The cost of goods, raw materials and services decreased correspondingly. Refinancing activities significantly influenced the cost side, resulting in one-off expenses recorded under other expenses. These, along with higher seasonal fees and costs related to future expansion, brought the consolidated operating profit to EUR 5.1 million (EUR 6.7 million adjusted for one-off expenses), compared to EUR 7.0 million in 1Q2024. Net profit was EUR 1.7 million (EUR 3.2 million adjusted for one-off expenses), down from EUR 4.2 million in 1Q2024, with EUR 1.5 million attributable to Summus Capital OÜ equity holders.
The company’s financial covenants remain strong. As of 2Q2024, the consolidated equity to total assets ratio stood at 40%, exceeding the bond terms’ minimum requirement of 30%. The consolidated Debt Service Coverage Ratio (DSCR) on a trailing 12-month basis was 1.38x, surpassing the bond terms’ requirement of 1.2x.
Aavo Koppel, a member of the board, stated, “The successful refinancing and bond issuance in the second quarter demonstrate Summus Capital’s robust financial strategy and commitment to sustainable growth. We are well-positioned to capitalize on new investment opportunities in the coming months. While the bottom line isn’t as strong this quarter due to one-off costs, these expenses should improve our position in the future. The balance sheet is at an all-time high and our core business is operating smoothly.”