ROM ProShares Ultra Technology

Net Asset Value (NAV)

• Net Asset value was EUR 0.48 (NOK 4.71) per share, 0.8 per cent lower compared to quarter 4 2017. The year-end 2017 valuation was concluded by Knight Frank 15 February 2018, therefore there were no further changes made to the value of the investment properties during the quarter. 

Operational highlights

• Hospital Plot: The Company is progressing the procedure for obtaining the necessary authorisation for demolition of the buildings which is expected before year-end 2018. The property is actively marketed for sale.
   
• Farmland plot: 864,534 sqm. Pre-sale agreement entered 26 January 2018 for a total price of EUR 625,060 (vs EUR 389,000 as per independent valuation). The transaction is being closed in tranches and as of today EUR 420,000 remain to be collected with last payment expected by end of Q2 2018.
• Carrefour Plot: 15,000 sqm. Sold and total price of EUR 65,000 has been paid by the buyer.
• Balada Market. The property is actively marketed for sale.
• In order to simplify and optimize the Romanian sub-holding structure, several inter-company mergers have been concluded and are on-going.

Financial Results

• Net Result for the quarter was EUR 148,000 loss compared to a EUR 284,000 loss in 1Q 2017. Operating cash flow for the quarter was a negative EUR 181,000 compared to minus EUR 172,000 in the same period last year.
• By the end of the quarter, the Company has a cash position of EUR 3.8 million plus a total of EUR 419,974 in outstanding payments related to binding sales agreements, totalling at about EUR 4.2 million or about EUR 0.1 per share.

Macro and real estate market highlights

• Romania's GDP remained flat in the first quarter of this year compared to the last quarter of 2017. However, it was 4 percent higher than the same period last year, according to flash estimates of the National Institute of Statistics.
• Flash estimate data do not disclose the reasons for this economic slowdown, but some analysts pointed out that the weak retail sales in March and an extraordinary increase in activity last year due to the VAT reduction and public-sector wage increases.
• According to the online real estate platform immobiliare.ro, asking prices in Romania continued to go up in the first quarter of 2018 from EUR 1,164/sqm at the end of 2017 to EUR 1,200 /sqm at the end of March 2018. Prices in Constanta have reached in April 2018 EUR 1,123 /sqm, a 10.9% increase year on year.

A recorded investor presentation webinar will be made available by Thursday 24 May at www.romreal.com