In 2019, Fondul recorded the net unrealized gain from equity investments at fair value through profit or loss in 2019 of RON 2.26bn compared to RON 225.3m in 2018. 

Fondul Proprietatea published their FY 2019 report, according to which the net unrealized gain from equity investments at fair value through profit or loss in 2019 of RON 2.26bn, compared to RON 225.3m in 2018. Such a high increase could be mainly attributed to Hidroelectrica (RON 1.0bn, increase in fair value of 25.8% as a result of the company’s strong performance) and OMV Petrom (RON 838.2m, increase in share price of 49.5%).

During 2019, 13 companies in Fondul’s portfolio declared dividends for the 2018 financial year. In addition, 6 companies declared special dividends during 2019. The total amount of gross dividend income recorded by the Fund in 2019 was RON 942.9m, representing an increase of 21.5%. Of that, the dividend income earned came mainly from Hidroelectrica (RON 558.2m), OMV Petrom  (RON 152.9m), and CN Aeroporturi Bucuresti  (RON 93.0m). From the total gross dividend income for 2019 a total amount of RON 259.3m represented special cash distributions.

As a result of the above mentioned, net operating income stood at RON 3.21bn, compared to RON 1.02bn in 2018.

When observing operating expenses, they amounted to RON 75.9m, which is an increase of 3.5%.  Such an increase mostly came as a result of higher administration fees.

Net profit in 2019 amounted to RON 3.13bn, which is by RON 2.2bn higher compared to 2018.

Turning our attention to the company’s NAV, the company reported a total NAV of RON 11.87bn (EUR 2.48bn) (+23% YoY). During the last quarter of 2019 the NAV per share increased by 11.4%, mainly due to the update of the unlisted portfolio companies’ valuation (revalorization of their largest holding – Hidroelectrica).

In 2019, the Fund’s NAV per share total return was 31.23% and the Fund’s share price cumulative performance was 49.05%. The discount of the Fund’s share price to the NAV ranged between 43.24% and 18.68%, while it ended the year at 23.05%.

Since then, Fondul has published their January 2020 NAV, which you can read about here.

As a reminder, Fondul recently proposed RON 0.0642 DPS (dividend yield of 4.8%). To read more about it, click here.