CPI PROPERTY GROUP - Profit and Credit Estimates for 2020
Acquisition of NOVA RE
On 26 January 2021, CPIPG announced the conclusion of a mandatory takeover offer for Nova RE. The Group currently owns about 92.62% of NOVA RE shares; CPIPG continues to see NOVA RE as a platform for the Group's future investments and partnerships in Italy.
CPIPG's policy is to retain at least about 50% of the Group's annual FFO. The Group intends to make distributions primarily via share repurchase.
In 2019, the Group distributed 50% of FFO through share repurchases. In 2020, the Group did not conduct any share repurchases given the uncertainties around COVID-19. With a more confident backdrop in 2021, the Group expects to shortly announce a repurchase of up to 650 million shares. The effect of the repurchase will be primarily non-cash: Radovan Vitek is expected to tender shares and will apply cash received towards repayment of shareholder loans. The total distribution to Mr. Vitek plus any third parties would be less than 50% of the Group's expected FFO for 2020 and 2021. The Group's subsidiary, CPI FIM SA, also holds shares and may participate in the offer, which would also be non-cash for the Group and continues to simplify the overall capital structure. The offer will be open to all shareholders.
Further information and analysis will be disclosed in the Group's 2020 Annual Report, which will be published on 31 March 2021. An investor webcast will also be conducted on 6 April 2021, with details to be provided in due course.
CPI PROPERTY GROUP's 2021 financial calendar Publication of 2020 annual results - 31 March 2021 Annual general meeting - 28 May 2021 Publication of 2021 first quarter results - 31 May 2021 Publication of 2021 half year results - 31 August 2021 Publication of 2021 third quarter results - 30 November 2021 Publication of 2021 annual results - 31 March 2022
DISCLAIMER: BASIS OF PREPARATION OF ESTIMATES: THE GROUP HAS BEEN PREPARING ITS CONSOLIDATED FINANCIAL STATEMENTS IN ACCORDANCE WITH IFRS AS ADOPTED BY THE EU. THE SAME ACCOUNTING POLICIES, EXCEPT WITH RESPECT TO NEWLY ADOPTED IFRS MEASURES, AND METHODS OF COMPUTATION HAVE BEEN FOLLOWED IN THE PROPER PREPARATION OF THE ESTIMATES CONTAINED IN THIS PRESS RELEASE.
THE GROUP'S OBJECTIVES AND POLICIES FOR MANAGING CAPITAL, CREDIT RISK AND LIQUIDITY RISK WERE THE SAME AS THOSE THAT APPLIED TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019. THESE ESTIMATES HAVE BEEN PREPARED ON A BASIS COMPARABLE WITH THE BASIS UPON WHICH THE HISTORICAL FINANCIAL INFORMATION OF THE GROUP HAS BEEN PREPARED. THESE ESTIMATES HAVE NOT BEEN AUDITED.FACTORS AND ASSUMPTIONS - WITHIN THE CONTROL OF MANAGEMENT: THE PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS AS WELL AS THESE ESTIMATES REQUIRES MANAGEMENT TO MAKE JUDGEMENTS, ESTIMATES AND ASSUMPTIONS THAT AFFECT THE APPLICATION OF ACCOUNTING POLICIES AND THE REPORTED AMOUNTS OF ASSETS AND LIABILITIES, INCOME AND EXPENSES. THE ESTIMATES AND ASSOCIATED ASSUMPTIONS ARE BASED ON HISTORICAL EXPERIENCE, INTERNAL CALCULATIONS AND VARIOUS OTHER FACTORS THAT MANAGEMENT BELIEVES TO BE REASONABLE UNDER THE CIRCUMSTANCES, THE RESULTS OF WHICH FORM THE BASIS OF JUDGEMENTS ABOUT THE CARRYING VALUES OF ASSETS AND LIABILITIES THAT ARE NOT READILY APPARENT FROM OTHER SOURCES. THE ACTUAL RESULTS MAY DIFFER FROM THESE ESTIMATES. IN PREPARING THESE ESTIMATES, THE SIGNIFICANT JUDGEMENTS MADE BY MANAGEMENT IN APPLYING THE GROUP'S ACCOUNTING POLICIES AND THE KEY SOURCES OF ESTIMATION UNCERTAINTY WERE THE SAME AS THOSE THAT APPLIED TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019.
FACTORS AND ASSUMPTIONS - OUTSIDE THE INFLUENCE OF MANAGEMENT: ASIDE FROM THE ABOVE FACTORS, THE GROUP CANNOT EXCLUDE CERTAIN OMISSIONS OR ERRORS OCCURRING DURING THE COLLECTION, CONSOLIDATION AND ACCOUNTING OF DATA THAT WERE THE SOURCE OF THE PRESENT ESTIMATES. IF SUCH OMISSIONS OR ERRORS OCCUR, IT CAN HAVE AN IMPACT ON THE FINAL CONSOLIDATED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020.
AS THESE ESTIMATES RELATE TO FINANCIAL INFORMATION NOT YET AUDITED AND HAVE BEEN PREPARED ON THE BASIS OF ASSUMPTIONS ABOUT ACCOUNTING POLICIES AND FINANCIAL FIGURES, IT NATURALLY ENTAILS SUBSTANTIAL UNCERTAINTIES. DUE TO THESE UNCERTAINTIES, IT IS POSSIBLE THAT THE GROUP'S ACTUAL RESULTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 MAY DIFFER MATERIALLY FROM THESE ESTIMATES.
ALL DATA CONTAINED IN THIS RELEASE ARE UNAUDITED BEST ESTIMATES, SOLELY FOR INFORMATION PURPOSES. CPIPG MAKES NO REPRESENTATION OR WARRANTY AS TO THE ACCURACY, FAIRNESS OR INTEGRITY OF THIS INFORMATION AND SHALL, IN THIS RESPECT, HAVE NO LIABILITY. THE FINAL AUDITED 2020 ANNUAL RESULTS WILL BE IN THE COMPANY'S FULL AUDITED ANNUAL FINANCIAL REPORT, WHICH IS EXPECTED TO BE PUBLISHED ON 31 MARCH 2021.
For more on CPI PROPERTY GROUP, visit our website: www.cpipg.com
For further information please contact:
CPI PROPERTY GROUP David Greenbaum Chief Financial Officer firstname.lastname@example.org
CPI PROPERTY GROUP Joe Weaver Director of Capital Markets email@example.com?
15.02.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: CPI PROPERTY GROUP 40, rue de la Vall?e L-2661 Luxembourg
Luxemburg Phone: +352 264 767 1 Fax: +352 264 767 67 E-mail: firstname.lastname@example.org Internet: www.cpipg.com ISIN: LU0251710041 WKN: A0JL4D Listed: Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Dusseldorf, Stuttgart EQS News ID: 1168490 ? End of News DGAP News Service