November 3 (SeeNews) - Bulgaria's Advance Terrafund REIT [BUL:ATER] said its standalone net profit plunged to 2.1 million levs ($1.05 million/1.07 million levs) in the first nine months of 2022 from 14.7 million levs in the like period of 2021 as income plummeted.
The company’s revenue in the review period decreased to 5.56 million levs in the period under review from 63.16 million levs a year earlier, Advance Terrafund said in an interim financial statement last week.
According to Advance Terrafund, current high inflation in Bulgaria reduces the real yield from rents under the company’s contracts as well as the interest income from its deposits. However, the rise in land prices has a favourable effect on the value of the company’s portfolio.
Advance Terrafund said its operating expenses dropped to 3.51 million levs in the review period from 48.4 million levs a year earlier. The decline was mainly due to costs of goods sold, which plunged to 630,000 levs from 39.8 million levs.
At the end of September, the company owned 16,819 ha of agricultural land worth 209.1 million levs as well as 6.1 ha of urban land worth 1.02 million levs. Additionally, the firm held 1,659 ha of agricultural land for sale worth 19.5 million levs.
As at 1335 CET on Thursday, shares in Advance Terrafund traded 0.68% lower at 2.94 levs on the Bulgarian Stock Exchange.
(1 euro = 1.95583 levs)