July 16 (SeeNews) - Bulgarian Real Estate Fund REIT's [BUL:5BU] net profit rose to 1.88 million levs ($1.1 million/961,200 euro) in the first six months of the year from 1.71 million levs in the same period of 2017, the real estate investment trust said.
BREF's total revenue increased to 3.33 million levs in the first half of 2018, compared to 3.05 million levs in the corresponding period of last year, figures from the REIT's interim financial statement show.
During the review period, BREF signed a five-year extension to a contract with local company Atos IT Solutions and Services for the lease of 2,349 square metres of office space and 12 parking spots in a building in Business Park Sofia.
BREF's Building 1 in Business Park Sofia offers 7,318 sq.m. of office premises and 68 parking places, according to the company's website. The building is currently fully occupied. BREF acquired the building for 7.2 million euro in 2014.
The REIT also signed a five-year deal with Survey Sampling Bulgaria for the lease of 913 sq. m. of office space in its Kambanite Green Offices. Following the deal, some 89% of the building are leased. The building offers a total of 9,356 sq. m. of leasable office area, according to figures from BREF's website.
BREF's operating expenses totalled 1.45 million levs in the first half of the year, up from 1.34 million levs in the prior-year period. Expenses for hired services formed the majority, amounting to 1 million levs in January-June, which compares to 896,000 in the like period of 2017.
During the period under review, BREF decreased its capital to 20.15 million levs from 60.45 million levs by cutting the nominal value of its shares to 1 lev from 3 levs.
The company is currently in the process of increasing its capital under a prospectus approved by the Financial Supervision Commission on June 15.
BREF intends to double its capital to 40.3 million levs through the issuance of 20.15 million shares with a nominal value of 1 lev each. The shares are offered for subscription at a price of 1.9 levs apiece. BREF's last closing price on the Sofia bourse was 1.89 levs per share.
The subscription rights for the capital increase started trading on the Bulgarian Stock Exchange on July 5. A total of 3,738,887 subscription rights have changed hands on the BSE thus far. The final date of trading in rights on the exchange is July 18, while the final date for subscribing shares is August 13.
The capital increase will be considered successful if at least half of the offered shares are subscribed for and paid for.
In April, BREF said it intends to use the proceeds from the capital increase to finance the construction of an office building on the territory of state-owned Sofia Tech Park.
Last year, BREF signed a 9.65 million levs contract for the right to build and operate an office building in Sofia Tech Park.
Under the deal, the company acquired the right to build an office building with a total floorage of 35,000 sq. m. and an underground parking lot on two levels with a total built-up area of 16,000 sq. m.
(1 euro = 1.95583 levs)