Sustained turnaround in financial performance,
residential development continues to plan
AFI Development, a leading real estate company focused on developing property in Russia, today announces its financial results for the nine months ended 30 September 2017.
9M 2017 financial highlights
- Revenue for 9M 2017 increased by 25% year-on-year to US$142.7 million, including proceeds from the sale of trading properties:
- - Rental and hotel operating income increased by 39% year-on-year to US$85.5 million
- - Revenue generated from AFIMALL City increased by 23% year-on-year to US$59.2 million (9M 2016: US$48.2 million)
- - Sale of residential properties contributed US$57.0 million to total revenue, up 8% year-on-year
- Gross profit increased by 15% year-on-year to US$44.2 million (9M 2016: US$38.6 million)
- Net profit for 9M 2017 amounted to US$0.6 million, compared to a loss of US$55.7 million in 9M 2016
- Total gross value of portfolio of properties stood at US$1.50 billion at 30 September 2017 (a 1% increase compared to 30 June 2017)
- Cash, cash equivalents and marketable securities amounted to US$67.7 million as of 30 September 2017 (vs. US$25.5 million at 30 June 2017)
9M 2017 operational highlights
- All four of the Company’s major residential projects, namely Odinburg, AFI Residence Paveletskaya, Bolshaya Pochtovaya and Botanic Garden, have progressed to the active construction and sales stages
- Construction and pre-sales at two recently launched projects, Bolshaya Pochtovaya and Botanic Garden, are progressing to plan. As of 14 November 2017, 48 apartments (26% of Phase I) are pre-sold at Bolshaya Pochtovaya and 78 apartments (10% of Phase I) at Botanic Garden.
- At Odinburg, construction and marketing of Building 3 started during Q3 2017. All pre-sold apartments in Building 2 have been delivered to customers. As of 14 November 2017, there were 715 (99% of total) signed sale contracts for Building 1, 641 (91% of total) for Building 2, 45 (20% of total) for Building 6 and 29 (3% of total) for Building 3.
- At AFI Residence Paveletskaya, construction works and pre-sale of apartments continue to plan; 325 (51% of Phases I and II) residential units were pre-sold as of 14 November 2017.
- AFIMALL City continues to demonstrate NOI growth, reaching US$44.4 million in 9M 2017 vs US$37.8 million in 9M 2016.
Commenting on today’s announcement, Lev Leviev, Executive Chairman of AFI Development, said:
“We are pleased to announce that the positive trends in our business established in the first half of this year were sustained in the third quarter. Improvements in revenue and gross profit were observed in the first 9 months of the year, supported largely by AFIMALL City as well as rental and hotel operating income. Meanwhile, our residential sector projects are developing on schedule and as construction progresses, we expect residential sales to provide an increasing contribution to overall revenue generation for the Company”