30 May 2017


Better performance supported by rouble appreciation

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 2017.

Q1 2017 financial highlights

  • Revenue for Q1 2017 increased by 74% year-on-year to US$47.5 million, including proceeds from the sale of trading properties:

          -   Rental and hotel operating income increased by 27% year-on-year to US$25.5 million

          -   AFIMALL City contribution stood at US$19.5 million (Q1 2016: US$16.0 million), a 22% growth year-on-year

          -   Sale of residential properties contributed US$21.9 million to total revenue

  • Gross profit increased by 7% year-on-year to US$16.1 million (Q1 2016: US$15.1 million)
  • Net profit for Q1 2017 amounted to US$1.0 million, compared to a loss of US$31.9 million in Q1 2016
  • Total gross value of portfolio of properties increased to US$1.49 billion (vs. US$1.44 billion at end-2016) mainly due to purchase of 50% share in the Plaza Spa Kislovodsk project
  • Cash, cash equivalents and marketable securities as of 31 March 2017 grew to US$29.6 million (vs. US$16.7 million at end-2016)

Q1 2017 operational highlights

  • The construction and pre-sales of two additional residential projects in Moscow were launched in Q1 2017: Bolshaya Pochtovaya and Botanic Garden
  • At Odinburg, marketing activities were focused on Building 2, where the delivery of apartments started in March 2017. The number of sale contracts signed amounted to 716 (99% of total) in Building 1 and 534 (76% of total) in Building 2 as of 26 May 2017
  • At the AFI Residence Paveletskaya residential development, construction works and pre-sale of apartments continue to plan; 210 residential units have been pre-sold to date
  • AFIMALL City has demonstrated strong NOI, reflecting macroeconomic stabilisation and a stronger rouble:

          -  NOI grew to US$14.3 million in Q1 2017, from US$13.6 million in Q1 2016

Commenting on today’s announcement, Lev Leviev, Executive Chairman of AFI Development, said:

“The first quarter of 2017 saw a marked improvement on the previous year, supported by strong performance at AFIMALL City and a positive effect of rouble appreciation during the period. In line with our strategy, we continued to deliver our development pipeline with construction and sales of our key projects progressing to plan. We are particularly pleased to have launched active construction of two important projects, Bolshaya Pochtovaya and Botanic Garden, which will further strengthen our position in the market and support our performance going forward.”

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