Summus Capital OÜ’s net profit increased yearly by 5.2% and reached EUR 4.2 million for 1Q2024

12:12 20.05.2024

Summus Capital OÜ has announced its consolidated financial results for the first quarter of 2024, showcasing stable growth and robust financial position. Consolidated sales revenue for 1Q2024 increased by 2.0% to EUR 10.2 million compared to 4Q2023, consolidated operating profit rose to EUR 7.0 million and net profit reached EUR 4.2 million.

As of the end of 1Q2024, the company’s consolidated balance sheet reflected a stable position at EUR 426.4 million, compared to EUR 425.9 million at the end of 4Q2023. Summus Capital’s consolidated cash balance was EUR 15.7 million, showing a slight decrease from EUR 15.9 million at the end of 2023. The company reported consolidated loans and borrowings from financial institutions at EUR 204.5 million, a decrease from EUR 206.4 million in 4Q2023, primarily due to regular servicing of loan principal. Total consolidated liabilities decreased to EUR 243.4 million from EUR 246.1 million at the end of 2023, while total consolidated owner’s equity increased to EUR 183.0 million from EUR 179.8 million, with EUR 173.7 million attributable to Summus Capital equity holders.

In terms of income statement, consolidated sales revenue for 1Q2024 increased by 2.0% to EUR 10.2 million compared to 4Q2023. This increase was mainly driven by a rise in the recharged cost of utilities, with rental income also increasing by 1.6%. Consolidated operating profit rose to EUR 7.0 million in 1Q2024, an 8% increase compared to the normalized 4Q2023. Along with a decrease in interest costs (due to periodisation), this led to a 19% increase in net profit compared 4Q2023, reaching EUR 4.2 million for 1Q2024, with EUR 4.0 million attributable to Summus Capital equity holders.

Summus Capital continues to maintain strong financial health, with a consolidated equity to total assets ratio of 41%, well above the bond terms requirement of at least 30%. Additionally, the consolidated Debt Service Coverage Ratio (DSCR) on a trailing 12-month basis was 1.40x, exceeding the bond terms requirement of at least 1.2x. All financial covenants set forth in the Bond Terms were met as of the first quarter of 2024.

Pioneering green leases signing

The company’s activity report highlights several key initiatives and achievements. “Summus Capital began signing green leases at the end of 2023, becoming one of the pioneers in Estonia to adopt this sustainable practice. Currently, our company has an estimated 8,800 square meters of green leasable space, representing 4% of the total portfolio, with plans for all future leases to be driven by sustainable objectives. Notable among these is the green lease signed with SYNLAB Estonia, the anchor tenant of the Veerenni Health Centre,” said Summus Capital’s member of the board Aavo Koppel. He also added that the company’s portfolio vacancy has decreased with the handing over of 1,954 square meters of leased space to HalfPrice in Riga Plaza shopping centre and the expansion of Weekend and DenimDream in Auriga shopping centre.

Summus Capital is also preparing to issue new bonds in the second quarter of 2024, subject to market conditions, through a private placement with an issue size of up to EUR 15 million. The company recently presented its audited financial results for the fiscal year ending December 31, 2023, demonstrating resilience and robust performance despite the challenging economic environment.

Aavo Koppel stated, “Summus Capital’s continued financial stability and growth underscore our commitment to sustainable practices and strategic investments. We are confident in our ability to maintain this momentum and deliver value to our stakeholders.”