Summus Capital

Summus Capital buys from Echo Investment Group #React in Łódź. Summus Capital (www.summus.ee) and Echo Investment Group (www.echo.com.pl) signed a conditional sale agreement for React, the office building at 24 Piłsudskiego Avenue in Łódź. Upon conclusion of the deal, the React building will be acquired by Summus Capital, an Estonian-based investment company. The transaction value is EUR 32.5 million. React is an office building in central Łódź that offers more than 15 000 sqm of comfortable workspace. It is fully leased to many reputable tenants such as Alorica Inc. and Bank Pekao S.A. Group, as well as Enel-Med medical centre. – We are thrilled to enter a new market in Łódź with the purchase of the React office building. The excellent quality of the asset, its strong tenant base with long-term leases, high ESG compliance, and the seller’s proven track record were key factors in our decision to invest in this development. In our opinion, the project's returns outweigh the risks associated with both the region and the property, offering sustainable growth. It is well-suited for one of our first investments in Poland, –  comments Hannes Pihl, board member of Summus Capital and managing partner of Zenith Family Office, the strategic asset and investment management partner of Summus. – The successful divestment of React proves that office projects in great locations with exceptional ESG credentials and a guarantee of good revenues continue to attract reputable international investors. The deal with Summus Capital also confirms the lasting potential of our fully leased office developments in Polish regional markets, – says Judyta Sawicka, Head of Investment and Divestment at Echo Investment Group (www.echo.com.pl). Summus Capital (www.summus.ee) is a real estate investment holding group established to invest in commercial real estate across all three Baltic countries and has decided to expand its portfolio to other CEE  countries. The well-diversified portfolio includes retail, office, logistics, and medical properties. Scope Ratings GmbH has affirmed its BB/Stable issuer rating for Summus Capital. React is a building with timeless design covered in a white façade, that harmoniously fits into the surrounding urban landscape. Its spacious lobby is also ideal for informal meetings and workshops. Relaxation zones are covered with lush greenery. React uses energy-saving solutions, optimized lighting and non-toxic materials that have been recognised with a BREEAM certificate at the Excellent level. It is also certified with WELL Health and Safety rating. Cycling enthusiasts can appreciate its bicycle infrastructure including parking, showers and changing rooms. CBRE Poland and Greenberg Traurig Poland advised the seller in the transaction, while Penteris advised the buyer on the deal.

On November 7, 2024, the best in #tennis in Estonia for the year were announced. At the Estonian Tennis Association’s (ETA) awards gala held on November 7 at the Nero restaurant in the Tallink Spa & Conference Hotel in Tallinn, the top achievements of the 2024 #tennis season were recognized across various categories, and awards were presented to the winners. The awards were presented by ETA President Enn Pant, Vice President Paavo Nõgene, and former Estonian tennis stars ETA board member Maret Ani, as well as ETA honorary members Talvi Märja and Helen Holter-Mahlapuu. Summus Capital (www.summus.ee) also received a supporter award. We are grateful for the recognition of our contribution. And we wish a very good luck to our young sportsmen Ken Ink and Grete Gull, supported by Summus Capital.

Summus Capital OÜ Reaches Record-High Balance Sheet in Third Quarter of 2024 Summus Capital OÜ has released its consolidated financial results for the third quarter of 2024, marking a new record in its balance sheet. By the end of 3Q2024, the balance sheet totaled EUR 452.2 million, an increase from EUR 451.7 million in the previous quarter, reflecting the company’s continued strong performance. The consolidated cash balance was EUR 42.0 million, ready to be invested in new projects. Consolidated loans and borrowings from financial institutions and bonds stood at EUR 238.4 million, showing steady loan principal repayments. Total consolidated liabilities decreased to EUR 267.5 million, while total consolidated owner’s equity rose to EUR 184.7 million, with EUR 175.1 million attributable to Summus Capital equity holders. In 3Q2024, consolidated sales revenue increased by 2.1% to EUR 10.2 million, reflecting steady business operations. The increase in interest expenses related to recent refinancing were partially offset by a decrease in Euribor rates. Consolidated operating profit was EUR 6.6 million, comparable to the adjusted EUR 6.7 million in the prior quarter. Net profit was stable at EUR 3.2 million, with EUR 3.0 million attributable to Summus Capital equity holders. Summus Capital maintained compliance with all financial covenants under its bond terms. The equity-to-total-assets ratio was 41%, exceeding the minimum bond requirement of 30%, and the Debt Service Coverage Ratio (DSCR) on a trailing 12-month basis was 1.31x, comfortably above the bond terms’ requirement of 1.2x. In September, Scope Ratings GmbH reaffirmed its BB/Stable issuer rating for Summus Capital OÜ and maintained the BB rating for its senior unsecured debt, highlighting Summus’ stable income-generating property portfolio as a key strength. Aavo Koppel, a member of the board, said, “We’re pleased with our performance and the positive rating from Scope in September, which reinforces our financial stability. Our refinancing efforts and bond issuance reflect our commitment to sustainable growth. With a record-high balance sheet and strong cash reserves, we’re in a great position to pursue new investments in the coming months.”

Scope Affirms Summus Capital OÜ's Issuer Rating at BB/Stable Scope Ratings GmbH (Scope) has affirmed its BB/Stable issuer rating for Summus Capital OÜ (Summus) and maintained the BB rating for its senior unsecured debt. The affirmation reflects Scope's expectation that Summus' property portfolio will continue to generate stable income despite economic challenges. Summus’ portfolio produced EUR 30 million in net annual rental income in 2023, an 8% increase year-over-year. The portfolio's occupancy rate remained strong at 97% as of June 2024, supported by high-quality, environmentally certified office and retail properties. The company plans to invest approximately EUR 100 million in new acquisitions over the next year, which is expected to enhance income generation, though it may temporarily increase leverage. The company's EBITDA margin remained solid at over 85% as of June 2024, driven by successful energy efficiency initiatives and the ability to pass on utility costs to tenants. Scope anticipates that Summus' leverage will stabilize around 55% from 2026, with debt protection metrics remaining above 2x. “We are pleased to maintain our BB rating over the years despite the constantly challenging economic environment,” said Aavo Koppel, member of the management board of Summus Capital. “This stability underscores our commitment to delivering consistent value to our stakeholders.” The outlook remains Stable, reflecting Scope's expectation of continued stable cash flow and portfolio performance. Please see more in detail here: https://lnkd.in/djWjJsd8. About Scope Scope (www.scoperatings.com) is a privately-held rating agency based in Berlin, with offices in in Frankfurt, London, Madrid, Milan, Oslo and Paris. Scope specialises in the analysis and ratings of financial institutions, corporates, structured finance, project finance and public finance. Scope Ratings is a credit rating agency registered in accordance with the EU rating regulation and operating in the European Union with ECAI status. About Summus Capital Summus Capital (www.summus.ee) is a real estate investment holding company founded in 2013. The group owns a portfolio of 14 properties in the three Baltic countries, which includes buildings in the retail, office, logistics and medical sectors with a total rental area of more than 218,000 square meters and a value of about 400 million euros. The asset portfolio and ESG for Summus Capital is managed by Green Formula Capital.

Summus Capital OÜ Achieves Record-High Balance Sheet in Second Quarter of 2024 Summus Capital OÜ has announced its consolidated financial results for the second quarter of 2024, marking an all-time high in its balance sheet amidst stable operational activities and sizable refinancing of obligations. During 2Q2024, Summus Capital Group successfully refinanced several bank loans leaving only three loans maturing before five years. Estonian properties' loans were transferred from Luminor Bank to LHV Bank, resulting in a total principal amount for Estonian loan portfolio of EUR 44.6 mln, maturing in April 2029. Additionally, loans for the Nordika Shopping Centre, Park Town properties and Riga Plaza Shopping Centre were refinanced and cross-pledged, reaching a total principal of EUR 134.4 mln, maturing in April, May and October 2029.  In June, Summus Capital successfully placed a new bond offering of EUR 15 mln, with a fixed coupon rate of 9.5% and a three-year maturity. The offering was oversubscribed by 1.3 times, attracting nearly EUR 20 mln in total demand from over 100 investors. The proceeds were partly used to refinance the previous EUR 10 mln bond, with the remainder designated for general corporate purposes, including the acquisition of new investment properties. These refinancings have fortified Summus Capital's cash balance, enabling further acquisitions in 2024. As a result of these refinancing activities, the consolidated cash balance increased to EUR 41.6 mln as of end of 2Q2024, awaiting deployment in new projects later during the year. The consolidated loan balance rose by EUR 25.7 mln to EUR 240.2 mln. The consolidated balance sheet reached EUR 451.7 mln, up from EUR 426.4 mln in 1Q2024. Total consolidated liabilities increased to EUR 269.6 mln from EUR 243.4 million. Total consolidated owner's equity was EUR 182.1 mln, slightly down from EUR 183.0 mln, with EUR 172.7 mln attributable to Summus Capital OÜ equity holders. Sales revenue for 2Q2024 decreased slightly by 2.2% to EUR 10.0 mln, mainly due to a reduction in recharged utility costs. The cost of goods, raw materials and services decreased correspondingly. Refinancing activities significantly influenced the cost side, resulting in one-off expenses recorded under other expenses. These, along with higher seasonal fees and costs related to future expansion, brought the consolidated operating profit to EUR 5.1 mln(EUR 6.7 million adjusted for one-off expenses), compared to EUR 7.0 mln in 1Q2024. Net profit was EUR 1.7 mln(EUR 3.2 mln adjusted for one-off expenses), down from EUR 4.2 mln in 1Q2024, with EUR 1.5 mln attributable to Summus Capital OÜ equity holders. The company's financial covenants remain strong. As of 2Q2024, the consolidated equity to total assets ratio stood at 40%, exceeding the bond terms' minimum requirement of 30%. The consolidated Debt Service Coverage Ratio (DSCR) on a trailing 12-month basis was 1.38x, surpassing the bond terms' requirement of 1.2x. 

Summus Capital (www.summus.ee) is cooperating with Estonian, Latvian and Lithuanian #tennis Associations. We are providing financial support for the purpose of development of young #tennis talents and for their participation in tournaments and camps. We would like to introduce you our new athlete in Estonia- Ken Ink! - Estonian Champion 2023 - U14 best young player 2023 - European MV silver medal in doubles

Luminor Bank Lends Nearly 38 Million Euros to Nordika's Manager for Expansion Projects Luminor Bank has extended a loan of EUR 37.7 million to Nordika Prekybos Slėnis, the company that manages the Nordika shopping valley located in Vilnius, Lithuania. This substantial financial support will help refinance the company's previous obligations of nearly EUR 10 million to another credit institution and fund the development of new projects. Nordika Prekybos Slėnis is part of Summus Capital, an Estonian real estate holding that oversees 14 commercial real estate properties across Lithuania, Latvia, and Estonia. These properties span a total area of 218,000 square meters, with Summus Capital's managed assets valued at EUR 429 million. "We have a long-term partnership with Nordika, which allows us to understand each other's capabilities and preferences very well," said Vytis Žegužauskas, Head of Business Banking at Luminor. "Nordika's well-thought-out concept, based on its convenient location and unique attractions like IKEA and Decathlon, sets it apart. The city's development further enhances Nordika's appeal, creating a unique ecosystem with the bypass, reconstructed airport, and the newly established AeroCity town. This environment fosters not only business and work opportunities but also high-quality living. We are proud to support the development of this significant project." Evaldas Čepulis, a member of the board of Summus Capital, expressed satisfaction with the growing collaboration with Luminor. "Additional financing will contribute to both the group's development and the transformation of the Nordika shopping center, which will feature new and renovated stores this year," he stated. Opened in 2015, Nordika shopping valley is strategically located near Vilnius International Airport. The shopping center spans approximately 38,000 square meters and hosts over 60 stores, offering a variety of products and services. About Luminor Luminor is the leading independent bank in the Baltic States and the third-largest provider of financial services in the region. We cater to the financial needs of individuals, families, and businesses. Like our home markets—Estonia, Latvia, and Lithuania—we are young, dynamic, and forward-looking.

Summus Capital successfully completed a EUR 15 million private bond placement with a maturity of 3 years and a fixed interest rate of 9.5%. The bonds are set to be listed on the Nasdaq Riga First North Bond List. Congratulation to Boris Skvortsov, Aavo Koppel, Hannes Pihl, Kristel Meos, and the entire Summus Capital Team! Signet Bank took the leading role in the bond offering, while LHV acted as the sales agent in this transaction.

Leading Baltic real estate investment company Summus Capital OÜ successfully raised EUR 15 mln in a private bond placement with a fixed coupon rate of 9.5% and maturity of 3 years. Total demand for the bonds reached nearly EUR 20 mln, with more than 100 investors participating in the bond offering and the offering of EUR 15 mln was oversubscribed 1.3 times. Latvian investors accounted for 75% of the total demand, while Estonian investors contributed with 11%. Aavo Koppel, Member of the Board of Summus Capital: "New bond issue has been a notable success, attracting significant interest from both private and institutional investors. The Group values the benefits from its presence in the capital markets and a broad and diverse investor base. The new bond issue of EUR 15 mln will be used to refinance the Group’s existing bonds in the amount of EUR 10 mln and to finance other general purposes of the Group – primarily, acquisitions of new investment properties. The Group appreciated the continued trust of existing investors who participated in the exchange offer. Overall, nearly EUR 5 mln of demand came from existing investors, while EUR 14.8 mln was contributed by 68 new investors.”  “The strong track record of recent Baltic bond issues demonstrates that local investors are keen to invest in the bonds of well-established and financially stable industry leaders, explaining the success of Summus Capital bond issue. We are particularly pleased that more than 75% of the demand came from investors from Latvia,” says Kristiāna Janvare, the Managing Director of Investment Banking of Signet Bank. Due to considerable oversubscription, the bonds were allocated to investors, observing the following principles: all existing bondholders who participated in the exchange offer received a full allocation; second, all investors were allocated a minimum amount of EUR 100,000; third, the remaining bonds were allocated observing the proportionality principle to the extent possible with the goal to create a solid and diversified investor base. During the offering, Summus Capital OÜ offered its existing bondholders of bonds maturing on 18 June 2024 (ISIN LV0000802478) to exchange their bonds for the new bonds. Approximately 50% of the existing bondholders, holding bonds in the amount of EUR 4 953 000, decided to participate in the exchange offer, as a result of which the issue size of LV0000802478 bonds will be reduced to EUR 5 047 000, and the respective bonds will be redeemed at maturity. Summus Capital OÜ plans to request admission to trading of the bonds on Nasdaq Riga First North Bond List shortly after the issue date.  Summus Capital OÜ bonds have a maturity of three years with a fixed interest rate of 9.5%. The first settlement date of the bonds is 11.06.2024 and bondholders will receive a quarterly coupon payment with the first coupon payment on 11.09.2024. Signet Bank acted as the Arranger of the bond offering, while LHV Pank acted as the sales agent in Estonia.

Summus Capital registers new unsecured notes.