AFI Development, a leading real estate company focused on developing property in Russia, has today announced its financial results for the three months ended 31 March 2014.
Q1 2014 financial highlights
• Revenues up 10% year-on-year to US$36.7 million
o Rental income up 11% year-on-year to US$36.7 million
o AFIMALL City contribution at US$28.0 million
• The weakening of the Russian rouble against the US dollar in Q1 2014 reflected in a US$72.9 million fair value adjustment gain, partially offset by a forex loss of US$37.9 million
• Net profit up 56% to US$24.3 million compared to Q1 2013
• Cash, cash equivalents and marketable securities of US$148.7 million, maintaining the Company's strong cash position
Q1 2014 operational highlights
• AFIMALL City operations continue to demonstrate steady progress resulting in a 20% rise in revenues year-on-year to US$28.0 million
o NOI was US$16.3 million for the quarter, 11% growth year-on-year
o Occupancy levels increased to 83% of total leasable area (compared to 79% at the end of 2013)
o Average monthly footfall up 26% year-on-year in March 2014
• Sales of apartments underway at Odinburg as construction progresses
• Preparations for start of construction at Tverskaya Plaza Ic in progress, following obtainment of construction permit
Commenting on today's announcement, Mark Groysman, Executive Director of AFI Development, said:
"The progress we made during 2013 across our performing assets and development projects continued in the first quarter of 2014. With growing footfall and rental income, AFIMALL City, our flagship retail development, remains a key driver of our total revenues. To further strengthen our market position and capitalise on robust demand for residential and commercial space in Moscow, we are also making great headway with our development projects. Construction at our Odinburg residential development started in October 2013, whilst Tverskaya Plaza Ic will soon follow. At the same time, our focus on generating returns from our assets remains in place, as reflected in our robust financial position."
