March 2 (SeeNews) - Romanian real estate developer Meta Estate Trust [BSE:MET] said that it booked a net profit of 6.5 million lei ($1.4 million/1.3 million euro) in 2022, compared to a net loss of 2.4 million lei in the previous year.
Meta Estate’s net turnover soared to 10.4 million lei in 2022 from 1.9 million lei in 2021, it said in a preliminary annual financial report filed with the Bucharest Stock Exchange, BVB, on Tuesday.
The company’s operating income rose to 18.5 million lei in 2022 from 3.1 million lei a year earlier, whereas general operating expenses increased by 26% to 4.4 million lei.
The company's total assets amounted to 98.6 million lei at the end of 2022, up by 28% on the year, while total liabilities and provisions fell by an annual 23% to 975,000 lei.
Inflationary pressures coupled with rising financing costs are expected to erode purchasing power and access to mortgages and the company expects a decline in the volume of real estate transactions over the next period, it said. The premium residential market is expected to be more resilient, while the lower-value market will see a significant drop, leading to possible price reductions and a buyer’s market.
In 2023, Meta Estate aims to increase its profit by 20% and prepare itself for a transition to the BVB's main market in 2024. The company was listed on the AeRO market of the BVB in late August 2022.
Meta Estate, established in 2021, has so far invested over 24 million euro ($25.5 million) in 25 real estate projects.
Meta Estate trust shares traded flat at 0.95 lei as at 1538 on Thursday on the BVB.
(1 euro=4.9218 lei)