EPH Group expects a profit for the year ended 2019 and announces the issuance of subordinated notes in the amount of EUR 204.7 million to its major shareholders - Seite 2

The Company would like to emphasise that from an operating standpoint, the Company’s income-generating properties continue to demonstrate stable profitability and generate sufficient cash to cover the Company’s operating expenses, including payment of interest on the bonds issued by the Company.

The above stated figures in relation to 2019 are preliminary and are still subject to finalisation of the Company’s financials. The audited results for the year ended 31 December 2019 will be published by 30 April 2020. No further information on the Group’s business performance will be released until then.

Issuance of subordinated notes to the Company’s shareholders
As of today, Eastern Property Holdings Ltd. has received EUR 204.7 million by issuance of subordinated notes to its two largest shareholders at an interest rate of 3.5% p.a. Unless previously redeemed, EPH undertakes to repay all outstanding notes at par of their aggregate principal amount, without further notice on 23 March 2023. At any time on or after 15 March 2020, the Issuer may redeem all but not only some of the Notes for the time being outstanding at par with interest accrued to the day of redemption.
Eastern Property Holdings Ltd. intends to use the funds for the acquisition of properties in Western Europe in order to further strengthen the Group’s business and follow its strategy to invest in premium quality income producing commercial property assets in Europe.

Possible Effects of COVID-19
Starting from early 2020, a new coronavirus disease (COVID-19) has begun rapidly spreading all over the world, resulting in the announcement of pandemic status by the World Health Organization in March 2020. Responses put in place by many countries to contain the spread of COVID-19 are resulting in significant operational disruption for many companies and are having a significant impact on global financial markets. As the situation is rapidly evolving, it may have a significant effect on the business of many companies across a wide range of sectors, including, but not limited to such impacts as disruption of business operations as a result of interruption of production or closure of facilities, supply chain disruptions, quarantines of personnel, reduced demand and difficulties in raising financing. In addition, the Group may face the increasingly broad effects of COVID-19 as a result of its negative impact on the global economy and major financial markets. The significance of the effect of COVID-19 on the Group’s business largely depends on the duration and the incidence of the pandemic effects on the global economy.