So, a realized positive cash flow of 15 million was nevertheless achieved from November to November. This is despite 9.4 million being paid out in profit distributions along the way. And 15 million is a quite significant sum considering the payment of redemptions.
If the December sales recognized a 10% capital gain relative to the acquisition cost, it means a 2.5 million larger profit distribution for shareholders. Nothing more than that. And the properties were sold below book value, which would support a moderate capital gain.
If the aforementioned cash flow is based on Hoiva’s operations rather than new subscriptions, I suspect Hoiva’s interest expenses are significantly lower than expected.
When considering Hoiva’s future prospects for success, I wouldn’t see a 2.5 million larger profit distribution as a negative thing. And as valkoinen peura (white deer) aptly pointed out, perhaps a good chunk of that sum will return to Hoiva’s equity in the form of new subscriptions.