Can't find what you are looking for? Usethe advanced search
18Sep2014
Advance Terrafund Corporate Update September 2014
Advance Terrafund REIT (ATERA) sold a total of 23 360 da (2 336 ha) of farmland in the seven months through August, quickly approaching our full-year estimate of 30 000 da (3 000 ha). Furthermore, the average selling price increased by 7% compared to 2013 to BGN 1 146 per da (EUR 5 859 per ha). All of these imply that the company is on its way to deliver a generous cash payout to shareholders for a fourth year in a row.
On the other hand, adverse weather conditions couldstill hamper farmers' demand for land through the end of the year. Thus, we maintain our 30 000 da sales volume forecast for 2014 but increase the average estimated selling price to BGN 1 100 per da from BGN 1 000 previously, in line with increased prices at which ATERA has been selling land through August. Thus, our gross dividend estimate comes at BGN 0.24 per share (up from previously expected BGN 0.23), which delivers a dividend yield of 9.8% on recent prices.
