Macau Property Opportunities Fund Limited announces its results for the year ended 30 June 2018. The Company, which is managed by Sniper Capital Limited, holds strategic property investments in Macau.
MPO’s portfolio value appreciated 2.3% over the year to US$338.4 million.
Adjusted NAV grew 4.5% year-on-year to US$260.6 million, equating to US$3.41 (258 pence ) per share.
IFRS NAV increased by 65.2% year-on-year to US$212.8 million or US$2.78 (211 pence2) per share.
MPO’s share price rose 24% over the year to 194 pence, representing a 25% discount to Adjusted NAV per share.
Consolidated cash balance (including deposits with lenders) as at 30 June 2018 was US$88.2 million.
Overall gross borrowings were reduced to US$148 million and the loan-to-value ratio improved to 35%.
Approximately US$50.5 million (GBP38.2 million) was distributed post year-end to shareholders, by way of a compulsory redemption of shares. This represented 62% of the net profit from the divestment of Senado Square, equivalent to 50 pence per share.
Occupancy rose to c.70%, boosted by 26 new leases and 20 renewals during the period. As at 30 June 2018, the average monthly rent was US$2.78 per square foot, up 22.5% year-on-year.
A 1,640-square-foot apartment was sold in April for US$1.26 million. Architectural plans to reconfigure the villas and duplex units into smaller apartments have been submitted to the authorities for approval.
Estrada da Penha
Periodic enhancement works are being carried out to maintain the property in good condition, amid patience for the right opportunity to unlock the asset value.
Chris Russell, Chairman of Macau Property Opportunities Fund, said, “This year marked an important milestone for MPO, as we made meaningful progress in our asset divestment programme with the disposal of Senado Square.
“The financial security provided by the sale of Senado Square, the continuing recovery in Macau, the Manager’s record of delivering value, and the time afforded by the continuation vote, all place MPO in a strong position to realise its remaining assets and to return capital to shareholders.”
For more information, please visit www.mpofund.com for the Company’s full Annual Report 2018.