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 2019.

Q1 2019 financial highlights[1]

  • Revenue for Q1 2019 was US$94.0 million, including proceeds from the sale of trading properties:
    • Rental and hotel operating income decreased to US$30.8 million
    • AFIMALL City contribution stood at US$21.7 million
    • Sale of residential properties contributed US$62.5 million to total revenue
  • Gross profit was US$35.2 million
  • Net profit for Q1 2019 amounted to US$6.0 million
  • Total gross value of portfolio of properties was US$1.26 billion
  • Cash, cash equivalents and marketable securities as of 31 March 2019 was US$137.5 million

Q1 2019 operational highlights

  • Building 6 at Odinburg was delivered in May 2019, with the transfer of apartments to customers currently underway. The construction and presale of apartments in Building 3 (Phase I) and Building 3 (Phase II) also continues. As of 20 May 2019, the number of signed sale contracts stood at 719 (78% of total) in Building 3 (Phase I), 26 (2% of total) in Building 3 (Phase II) and 211 (94% of total) in Building 6.
  • At AFI Residence Paveletskaya, Phase II was delivered in May 2019. The transfer of apartments to customers is ongoing. The construction and presale of apartments at Phase III is currently ongoing. As of 20 May 2019, 567 contracts for the sales and pre-sales of apartments and “special units” had been signed (90% of Phase I and Phase II combined).
  • At Bolshaya Pochtovaya, construction and marketing of the project is progressing to plan. In Q1 2019, the Company launched presales of Phase III apartments. As of 20 May 2019, 274 apartments (44% of Phases I, II and III combined) had been pre-sold to customers.
  • The construction and pre-sale of properties at Botanic Garden are ongoing. As of 20 May 2019, 355 apartments (44% of Phase I) had been pre-sold to customers.
  • In Q1 2019, the Company started construction works at the Tverskaya Plaza Ic, with construction works beginning at Tverskaya Plaza IV in Q2 2019. Both projects are grade A office developments in central Moscow.
  • At AFIMALL City, the NOI for Q1 2019 was broadly flat year-on-year at US$16.6 million.

Commenting on today’s announcement, Eli Avrahampour, Chairman of AFI Development, said:

“AFI Development has had a confident start to the year, owing largely to residential presales recognition and stable performance of the yielding portfolio.

At the same time, we remain mindful of the ongoing macroeconomic uncertainty in Russia as well as of potential negative influence of the new escrow schemes and launch of the state-funded housing programme on the Moscow residential development market. These factors are expected to place downward pressure on revenues and profitability of our projects.”

 

[1] - The financial results for Q1 2019 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.

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