Hili Properties plc has registered an operating profit of €4.4 million for the year ended December 31, 2017, up from €3 million the previous year, following a 31% increase in revenue, the company said in a statement.

Hili Properties, part of Hili Ventures, holds and manages a strategic collection of commercial property for lease in Latvia, Lithuania, Estonia, Malta and Romania. Its diverse portfolio, valued at €100 million, includes four dedicated business blocks,nineshopping centres, and nine properties housing McDonald’s restaurants. The restaurants are part of Premier Capital plc, also a part of Hili Ventures.

Since late last year, the group embarked on development activity in Latvia and Romania as it pursues a strategy to diversify its revenue pipeline.

In 2017, revenue growth was primarily achieved as a result of the income generated from the acquisition of the ART Business Centre in Bucharest in May 2017.The Romanian acquisition also contributed significantly to net asset growth from €28.2 million in 2016 to €38.4 million last year. Earnings for the year amounted to €4.5 million, up 48% from 2016.

The group closed the year with a pre-tax profit of €2 million (2016: €2.8 million), the company said.

In 2017, property occupancy remained stable at 95%. The weighted average lease term for the group’s entire portfolio rose to 9.2 years from 7.6 years in 2016.

“We succeeded in meeting our objective to increase revenue and net asset growth in 2017,” Hili Properties Managing Director Sandra Murniece said. “We will continue our efforts to enhance these further this year. We have embarked on a strategy to upgrade some of our existing properties, review our portfolio and focus on effective cost management. Additionally, we are examining a pipeline of potential acquisitions to identify opportunities to grow our portfolio. This year, we will also support our sister company Premier Capital with its development plans for the Romanian and Latvian markets.”

Through a new company Premier Assets SRL, Hili Properties will develop customised property for the McDonald’s operator which plans to open two new restaurants annually for the next three years in Romania. A total investment of€10 million has been earmarked for these projects. Hili Properties will also undertake to develop the property to house Latvia’s newest €1.5 million McDonald’s restaurant.

Meanwhile, Hili Properties has demolished the shopping centre it owns on Dzelzevas Street in Latvia’s capital Riga in order to reconstruct the property and triple leasable area to 3,700 square metres and increase annual income to €470,000. Agreements for 10-year-plus leases have been secured for 89% of the new building’s leasable area. The shopping centre is expected to re-open in December.

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