OREANDA-NEWS. Acme Corporation SIA and its subsidiaries invest in the operation and management of rental real estates (offices and land development) in Latvia. As at 30 June 2016 Acme Corporation was the parent for four Latvian registered limited liability companies .

In both office and retail segments rents have stabilized. Delinquent rents are being well managed at the moment by our property manager. The financial performance of the Group during first half of 2016 was as expected.

Retail

Property at Slokas iela 161 has recently been let to Gym LV SIA doing business as Lemon Gym. With Cita Santehnika and Gym LV the Slokas property appears to be stable. 

Office

The office sector is fully let out. For our offices gross rent has settled to a market rate of €10.00 to €12.00 per square meter per month. There are some historical outliers to the current market rate pulling the offices average below current market.

Land

Management has engaged an architectural firm to prepare the detailed planning for the property. Detailed planning is expected to be complete during 2016. 

Bond

Whilst the bond is listed, it continued to demonstrate a significant level of illiquidity in the first half of 2016. The Group repurchased 73 bonds during first half of 2016 from one of the bondholders. Acme Corporation has made repayment of principal to bondholders of record with the January, April and July 2016 payments. Acme Corporation has made all coupon payments on the bonds to date.

Senior Debt

At the time of writing one month EURIBOR is quoted at approximately minus 0.37%. These rates continue to be unprecedentedly low and have positive effect onto the Group’s cash flow; movements up in interest rates will have negative impact on the Group’s cash flows. Management is considering a seven year interest rate derivative to fix our borrowing base rate. 

The Group is open to consider acquisition of new assets. Nevertheless the key focus is on conservative cash flow management, improvement of operations and paying down bank debt.