The Company continued to pursue its portfolio quality consolidation strategy, by reducing risks and, in the meantime, maintaining satisfactory profitability for its investors. These activities led to the following results:

  • increase in NAV: of 1.2% compared to December 31st, 2019;
  • increase in initial gross rental income: from Euro 37.3 million (as of December 31st, 2019) to Euro 44.4 million as at December 31st, 2020;
  • moderate leverage:: Net Loan to Value equal to 38.3%.

The result of the consolidated financial statements as of December 31st, 2020 attributable to COIMA RES is Euro 15.6 million. In view of the results reported above, the Board of Directors of the Company had the opportunity to propose to the Shareholders' Meeting a dividend of Euro 10.8 million (Euro 0.30 per share), an amount in line with the dividend paid during the previous fiscal years. The dividend was calculated based on the Parent Company's results and current regulations on the listed real estate investment companies (SIIQ).

The Company expects that the portfolio composed and described below may generate positive revenues giving the Company the opportunity to generate profits in subsequent years and to distribute dividends to its shareholders. Considering the current portfolio, the Company estimates it will reach a level of net operating profit (EPRA Earnings) equal to Euro 0.40 per share (approx. Euro 14.4 million) in 2021. The estimate reflects the release by PwC of approximately half of the Monte Rosa property during the first quarter of 2021 and other prudential considerations in light of the persistence of the COVID-19 emergency.

Thus, the Directors have prepared these consolidated financial statements on a going concern basis as they believe that all the elements confirming the Company's ability to continue to operate as a going concern exist.

The COVID-19 epidemic in Italy, did not have significant impacts on the Company’s financial results, because the COIMA RES portfolio is characterized by diversified tenants and mainly composed of multinational companies. During the year, COIMA RES demonstrated its solidity and resilience, maintaining rental income levels in line with the previous year.

Implication of the Covid-19 epidemic on the consolidated financial statements

The sudden spread of the COVID-19 pandemic has precipitated a deep global economic crisis, which is considered by many to be the worst during the last 100 years. The restrictive measures imposed by the national and international authorities have led to an interruption in real estate transactions for many asset classes (hospitality, retail and leisure), because of the sustained closure of these types of businesses has created difficulty in the payment of rents. This in turn has created uncertainty in terms of the valuation of assets by the Independent Experts, risks of non-collectability of receivables and possible requests for concessions by the tenants.

As already underlined, the portfolio of the Company is composed mainly of offices, the most resilient segment, with a limited percentage, about the 5%, of the portfolio concentrated on the hospitality and retail.

At the date of this report, COIMA RES has cashed 99.4% of the rents due in 2020 and the residual amount to be cashed-in is mainly related to deferred payment granted to some tenants and that, almost for the totally of the cases, were be closed during 2021.

It should be noted that, at the date of this report, the Company is not the beneficiary of any of the schemes implemented by the national authorities to tackle the economic crisis. Some of the tenants of the Company are recipients of those schemes which have allowed to them to have the necessary cash liquidity for their activities and to satisfy their obligations.

In terms of valuations, the Independent Experts have expressed some uncertainties in formulating their opinions due to the unprecedented circumstances. The impact that the COVID-19 pandemic will have on the real estate market going forward is difficult to predict with any degree of certainty and so they have underlined the need to constantly monitor property values.

The correction of real estate values (paragraph 15 – Real Estate Investments) has not created problems related to a possible non-compliance with financial covenants which have large margins compared to the forecasted levels of the loan agreements and this would allow to absorb further critical situations that could occur in the medium term (paragraph 26 – Non-current banks borrowing). Furthermore, in almost all of the loans, cure mechanisms are provided on any breaches of the covenants that would allow the Company, considering the relevant cash liquidity position, to avoid the loss of terms benefit. In terms of liquidity, the Group has a solid financial position with a total liquidity amounting to over Euro 48 million. The Group has only one loan, amounting to Euro 22 million (equivalent to the 7% of the total debt), with maturity date in December 2020, which extension has been signed in February 2021.