Real Estate Investment Company Boligo Which was issued on the Tel Aviv Stock Exchange last September, published the first reports since it went public and showed a sharp increase in revenues and profits.
At the end of 2021, Boligo recorded a nearly threefold increase (194%) in revenue, which totaled $ 30.2 million. Net income increased by 170% to $ 13.6 million, compared to a net profit of only about $ 5 million in 2020.
Buligo’s revenue in the past year from management fees, transaction fees and entrepreneurship totaled $ 12.9 million, compared to about $ 7.8 million in 2020. Revenue from success fees jumped to $ 15.5 million in 2021.
As for the current year, Boligo estimates that revenue from success fees will climb to about $ 20.5 million, and that total revenue expected in 2022 (including management fees and transaction and initiation fees) will stand at about $ 45 million, an increase of about 50% compared to 2021.
The company estimates that this year it will invest about $ 1.1 billion in 21 new projects in the United States in the areas of multi-family (about 70%), logistics centers, commercial centers and nursing homes, compared to an investment of about $ 700 million in 2021. At the same time, Boligo is expected to sell 13 assets worth about $ 652 million this year, and it estimates that the expected cash flow to investors will be $ 271 million.
During 2021, Boligo acquired 18 new properties worth $ 694 million, and sold 14 properties for $ 466 million. The realization of these assets resulted in Boligo’s success fee of approximately $ 15 million, as stated, and a high net annual return of 26.6% for private investors. As of March, Buligo’s managed assets stand at $ 793 million. Since the beginning of Buligo’s operations, the average annual return (IRR) for investors has been 23.1%, reflecting a 2-fold increase in capital.
To date, Boligo has acquired 115 US $ 3.1 billion assets, with most of the equity coming from the company’s private investors, with $ 1.1 billion raised, along with bank financing. To date, it has sold about 50 assets that have been processed Improvement in the U.S., and this year for the first time crossed the $ 1 billion mark in realizations, which rose to about $ 1.1 billion.
Boligo completed an IPO in Tel Aviv last September, during which it raised $ 20 million (NIS 64 million), at a value of about NIS 320 million. Since then, the company has soared by about 150% to a market value of NIS 812 million, although it has joined the negative momentum that has prevailed in the market since the beginning of the year and has lost about 15% of its value.
Value overflow in startup Rego
At the same time, Boligo is reporting an increase in the value of its holdings in the fintech startup Reigo, whose founders include Itai Goren, CEO and founder of Boligo. Following the $ 60 million Raigo round raised, Buligo’s holding (20%) increased from $ 2.1 million to $ 12.3 million.
Meanwhile, Rego today reported a $ 100 million deal with one of the world’s largest investment banks, Cantor Fitzgerald. In July 2021, the parties signed a first transaction in the amount of $ 100 million, and in light of the successful performance so far, it was decided to double the amount to $ 200 million.
As part of the deal, Rego will increase the volume of short-term loans it grants to entrepreneurial deals in the U.S. residential market, using the unique technology it has developed that enables intelligent identification, based on advanced statistical models of loan repayment, significantly reducing lending risk and reducing insolvency.