Performance continues to improve as positive momentum is maintained 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 2018.
Q1 2018 financial highlights
· Revenue for Q1 2018 increased by 4% year-on-year to US$49.4 million, including proceeds from the sale of trading properties:
- Rental and hotel operating income increased by 22% year-on-year to US$31.2 million
- AFIMALL City contribution stood at US$22.1 million (Q1 2017: US$19.5 million), a 13% improvement year-on-year
- Sale of residential properties contributed US$17.9 million to total revenue
· Gross profit decreased slightly to US$15.8 million (Q1 2017: US$16.1 million)
· Net profit for Q1 2018 amounted to US$5.1 million, compared to US$1.0 million in Q1 2017
· Total gross value of portfolio of properties was unchanged at US$1.42 billion
· Cash, cash equivalents and marketable securities as of 31 March 2018 grew to US$118.5 million (vs. US$106.0 million at end-2017)
Q1 2018 operational highlights
· The delivery of apartments to customers commenced at AFI Residence Paveletskaya. Progress was made in the marketing of the properties with 421 residential unit pre-sale contracts (67% of units under pre-sales) signed as of 21 May 2018
· At Odinburg, construction works and pre-sales continue at Building 3 (phase I) and Building 6 (phase II). The last remaining apartments in Building 2 are in the process of being sold. As of 21 May 2018, the number of signed sale contracts stood at 677 (96% of total) in Building 2, 179 (19% of total) in Building 3 and 153 (68% of total) in Building 6
· At Bolshaya Pochtovaya, construction and pre-sale is progressing as planned. As of 21 May 2018, 115 apartments (61% of Phase I) have been pre-sold at Bolshaya Pochtovaya
· The construction and pre-sale of properties at Botanic Garden remains on track. As of 21 May 2018, 162 apartments (21% of Phase I) have been pre-sold to customers
· AFIMALL City continues to record solid NOI growth, reaching US$16.8 million in Q1 2018, up from US$14.3 million in Q1 2017 (a 17% increase year-on-year)
Commenting on today’s announcement, Lev Leviev, Executive Chairman of AFI Development, said:
“We are pleased to confirm that the positive momentum of the previous year was maintained throughout the first quarter of 2018, leading to a solid set of financial results for the period. Our flagship AFIMALL City project continues to perform strongly and has contributed greatly to revenue and profit. We are confident this strong set of results leaves us well positioned to meet any potential challenges in the year ahead as we continue to advance our pipeline of projects under development.”
 The financial results for Q1 2018 reported in this publication are based on the Unaudited summary of financial results prepared by the Company. The results were not reviewed by the auditors.
 The Group has adopted IFRS 15 Revenue from Contracts with Customers from 1 January 2018. The “sale of residential properties” figure includes the revenue from sales of residential properties transferred over time calculated under IFRS 15.