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Introduction & Market Context
Fondul Proprietatea (BVB:FP) presented its H1 2025 results on August 29, 2025, revealing a mixed financial performance with NAV growth but declining profits compared to the same period last year. The Romanian closed-end fund, which primarily invests in Romanian state-owned enterprises, continues to trade at a significant discount to its net asset value despite recent share price appreciation.
As of August 28, 2025, Fondul Proprietatea’s shares were trading at RON 0.4195, representing a 40.42% discount to its NAV per share of RON 0.7039. The fund’s market capitalization stood at RON 1.27 billion (USD 0.29 billion).
Executive Summary
Fondul Proprietatea reported a NAV increase of 5.6% for H1 2025 and 6.5% year-to-date, while its share price rose by 27.6% in H1 2025. However, the fund’s profit declined to RON 140.6 million in H1 2025 from RON 212.9 million in the same period of 2024, primarily due to a net loss from equity investments compared to a gain in the previous year.
The fund’s portfolio remains heavily weighted toward unlisted assets (82.7% of NAV), with significant concentration in the power utilities sector (67.8%). Its largest holdings include Bucharest Airports (49.9% of NAV), Constanta Port (16.8%), and Salrom (12.2%).
As shown in the following chart of key facts and adjusted share price:
Detailed Financial Analysis
Fondul Proprietatea’s financial results for H1 2025 show a decrease in net operating income to RON 159.1 million from RON 232.7 million in H1 2024. This decline was primarily driven by a net loss from equity investments of RON 7.4 million, compared to a net gain of RON 66.9 million in the previous year.
On the positive side, gross dividend income increased to RON 155.4 million from RON 145.3 million, while operating expenses decreased to RON 18.0 million from RON 18.9 million. The fund’s total assets stood at RON 2,424.7 million as of June 30, 2025, slightly down from RON 2,453.2 million at the end of 2024.
The fund’s comprehensive income statement highlights these performance trends:
The statement of financial position shows a solid balance sheet with minimal liabilities relative to assets:
Portfolio Performance
Fondul Proprietatea’s portfolio consists of 23 companies (5 listed and 18 unlisted), with a significant concentration in infrastructure assets. The portfolio structure by sector and listing status is illustrated below:
The fund’s largest holdings by NAV as of July 31, 2025, show the dominant position of Bucharest Airports and other infrastructure assets:
Performance of key holdings was mixed in H1 2025. Bucharest Airports showed strong results with a 9% year-over-year increase in passenger traffic, reaching 8.05 million passengers, and net income of RON 353.5 million. However, Constanta Port experienced a 23% decline in traffic, though it still managed to generate RON 87.5 million in net income. Salrom faced operational challenges due to flooding at the Praid Salt Mine, which caused suspension of mining and tourist activities.
Shareholder Returns
Despite the mixed operational performance, Fondul Proprietatea continues to focus on returning capital to shareholders through dividends and share buy-back programs. The fund reported dividend yields of 11.72% for the RON 0.0409 dividend and 2.93% for the RON 0.0123 dividend.
The historical distribution to shareholders shows the fund’s consistent focus on shareholder returns:
The fund has completed its 15th buy-back program and is currently executing its 16th program, as detailed below:
Forward-Looking Statements
Fondul Proprietatea has scheduled several important events for the remainder of 2025, including a General Shareholders Meeting on September 29, 2025. Key agenda items include the approval of amendments to the Constitutive Act, approvals related to the cancellation of the current AIFM and the beginning of a new selection process, and the distribution of dividends in the gross amount of RON 37,200,000 from the fund’s 2024 unallocated retained earnings.
The fund continues to engage with the majority shareholder of Salrom regarding preparations for a potential IPO, which could provide an exit opportunity for this significant holding. Additionally, the Board selection process for Constanta Port is ongoing, and the company has received approval to submit a binding offer for the purchase of ICS Danube Logistics SRL (Giurgiulesti Port).
The fund’s historical performance metrics provide context for evaluating its long-term trajectory:
In conclusion, while Fondul Proprietatea faces challenges with its profit performance and continues to trade at a significant discount to NAV, the fund maintains a strong focus on shareholder returns through dividends and buy-backs. The performance of its key infrastructure holdings will remain critical to its future success, as will the outcome of strategic initiatives like the potential Salrom IPO.
Full presentation:
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