KEDIPES reports €144 million revenue in Q1, state aid repayment reaches €1.3 billion

Kedipes, a state-owned asset management firm, disclosed on Thursday that it had cash inflows of €144 million in the first quarter 2024. The company also made a record €140 million in state aid repayments, increasing the total amount to €1.3 billion.

In their Q1 2024 management results, Kedipes predicted even higher cash flows for the second quarter. The company intends to return another €60 million in state aid by the end of June.

Chairman Lambros Papadopoulos linked the strong inflows to the sale of a loan portfolio to the Bank of Cyprus and a high-value property. He reported an 11% rise in Q1 cash inflows compared to the previous quarter and a 35% increase compared to Q1 2023. Excluding these big transactions, normal cash flows were €80.7 million, in line with Q1 2023 levels.

Since beginning operations on September 1, 2018, Kedipes has earned a total cash inflow of €2.24 billion. Loan and property management receipts totaled €2.12 billion, accounting for 26.3% of the starting loan and property portfolio's nominal value of €8.05 billion.

In addition, the management company doValue handled €94.3 million in restructuring and recovery solutions in the first quarter of 2024. This compares with €231.7 million in Q4 2023 and €92.7 million in Q1 2023. Overall, from the beginning of operations until the first quarter of 2024, total solutions totaled €4.01 billion, accounting for 54.5% of the original €7.37 billion loan balance.

Operating expenditures and asset management costs for Q1 2024 totaled €27.6 million, down 11.3% from €31.1 million in Q4 2023 but up 2.6% from €26.9 million in Q1 2023. Net cash flows after costs and commitments was €109 million, up 32% from €82.6 million in Q4 2023 and 39.2% from €78.3 million in Q1 2023. Net cash flows after costs have totaled €1.35 billion since operations began.

The nominal value of grants fell to €5.82 billion by the end of Q1 2024, from €5.89 billion at the end of Q4 2023 and €6.127 billion at the end of Q1 2023. Since its beginning, total deleveraging has reached 21%, accounting for 42.3% of the market excluding contractual loan interest.

Kedipes' total assets at the end of the first quarter were €6.42 billion, which included €133 million in cash, €427 million in real estate, and €657 million in performing loans. Under Hellenic Bank's Asset Protection Scheme (APS), the contractual value of protected assets was €1.33 billion as of December 31, 2023, down from €2.60 billion at the scheme's start, representing a 49% decline.

Hellenic Bank made claims totaling €100.2 million between September 1, 2018, and December 31, 2023, with the most recent Q4 2023 claim being €61,000. Hellenic Bank has paid the Republic of Cyprus a total of €44.1 million under the scheme.

Furthermore, Kedipes, which handles the mortgage-to-rent plan, has received around 2,000 applications thus far. Of these, 1,382 passed the initial eligibility check, and technical due diligence is currently proceeding for these properties. Applicants who did not satisfy the requirements are being contacted. The business has set aside €60 million for future property purchases under the initiative.

Finally, Kedipes' voluntary leave plan, which ran from October 2023 to March 2024, resulted in 27 employee departures, in line with the company's steady reduction targets. Currently, Kedipes employs 313 people.