(Alliance News) - NEXT RE SIIQ Spa announced Thursday that its board of directors has approved the condensed half-year financial report as of June 30, which showed a loss of EUR6.1 million, compared with a profit of EUR160,000 as of June 30, 2022.

The figure, the company points out, "incorporates the impacts arising from the main events that occurred in the half year." As of June 30, in fact, "in addition to the economic effects, amounting to approximately EUR2.2 million, of the settlement agreements with top management, resolved by the board of directors on March 21, and concerning the terms and conditions of the consensual early termination of the executive employment relationships of the general manager and the Chief Investment Officer as well as the early termination from the offices of the chairman and CEO, there was also a different balancing of the costs of the governance and managerial structure put in place with the objective of streamlining and economic-financial rationalization."

Also contributing to the negative result for the first half of the year was the net change in the fair value of assets in the portfolio, which was negative by a total of EUR3 million, following the adjustment of asset values as estimated by the independent expert.

Consolidated EBITDA for the first half of the year is negative EUR1.9 million compared to negative EUR500,000 in the first half of 2022.

Consolidated shareholders' equity is EUR79.8 million compared to EUR85.9 million as of December 31, 2022.

Total consolidated financial debt is EUR58.3 million, compared to EUR53.2 million as of December 31, 2022.

Consistent with what is declined in the "Industrial Plan 2023 - 2026," approved on Feb. 6, Next Re has achieved in the first half of 2023 a significant reduction in corporate costs, functional to the effective pursuit of the objectives of efficiency and stabilization of operating cash flows and economic results of the company, the note says.

Also consistent with the Plan's guidelines, the company has finalized the early repayment of almost all of its exposure to credit institutions in order to rationalize its financial structure.

In this context, the statement said, "the foreseeable evolution of management continues to be guided by the assessments expressed by the controlling shareholder CPI Property Group SA, in the exercise of its management and coordination activities, inrelation to the downsizing of Next Re's growth prospects."

"The management, having acquired the stabilization of operating cash flows, will therefore move toward increasing the profitability of the real estate portfolio, including through the implementation of the process of valorization and rotation of the latter," the statement further reads.

NEXT RE SIIQ's stock closed up 2.4 percent at EUR3.38 per share.

By Chiara Bruschi, Alliance News reporter

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