Fondul Proprietatea's shares trade closer to NAV amid strong results in 2021

Fondul Proprietatea (BVB: FP), an investment fund listed on the Bucharest Stock Exchange with a portfolio of companies of strategic importance for the Romanian economy, ended 2021 with a net profit of RON 5 bln, compared to the net loss of RON 103 mln in 2020, according to the audited annual financial resultsof the fund released under IFRS to investors.

Amid strong performances, FP reported that its shares trade closer to their Net Assets Value (NAV) in 2021 and, for the first time, at a premium. On BVB, the share price traded between a discount to the NAV of 19.76% and a premium to the NAV of 5.25%.

As at the end of the year, the share price was trading at a discount of 3.83%. On LSE, the GDR traded between a discount of 19.31% and a premium of 4.46%, ending the year at a 4.22% discount.

The average annual discount for ordinary shares was 5.69%, while for GDRs was 7.63%.

The main element that contributed to FP's profit was the rise of the value of some companies in its portfolio: notably, the stake held by FP at OMV Petrom increased by RON 537 mln, and the stake at Hidroelectrica surged by RON 3.9 bln, FP reported.

Overall, the appreciation of the value of the companies in FP's portfolio summed up to RON 4.6 bln.

In 2021, a number of 13 companies in the fund's portfolio declared dividends, most of which related to the financial year ended December 31, 2020.

The total value of the gross dividend income registered by the fund in 2021 is RON 655.1 million, and the most important amounts are related to Hidroelectrica, the companies E-Distribuţie and OMV Petrom.

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