AFI Development, a leading real estate company focused on developing property in Russia, today announces its financial results for the six months ended 30 September 2019.
9M 2019 financial highlights
- Revenue for 9M 2019 totalled US$254.4 million, including proceeds from the sale of trading properties:
- Rental and hotel operating income up marginally to US$94.9 million, including AFIMALL City contribution of US$67.3 million
- Sale of residential properties contributed US$156.5 million to total revenue
- Gross profit for the 9-month period was US$138.1 million
- Net profit for 9M 2019 amounted to US$77.1 million
- Total gross value of portfolio of properties stood at US$1.25 billion, broadly unchanged since the end of H1 2019
- Cash, cash equivalents and marketable securities as of 30 September 2019 amounted to US$109.6 million
9M 2019 operational highlights
- Following the delivery of Building 6 at Odinburg in May 2019, the Company recently completed the transfer of pre-sold apartments to customers. The construction and presale of apartments in Building 3 (Phase I) and Building 3 (Phase II) are also underway. As of 18 November 2019, the number of signed sale contracts stood at 810 (88% of total) in Building 3 (Phase I), 150 (11% of total) in Building 3 (Phase II) and 217 (97% of total) in Building 6
- At AFI Residence Paveletskaya, Phase II was delivered in May 2019 and the transfer of apartments is now complete. The construction and presale of apartments in Phase III continue. As of 18 November 2019, 625 contracts for the sales and presales of apartments and “special units” had been signed (78% of Phase I, Phase II and Phase III combined)
- At Bolshaya Pochtovaya, construction and marketing of the project are progressing to plan. As of 18 November 2019, 347 apartments (55% of Phases I, II and III combined) had been pre-sold to customers
- Phase I Botanic Garden was state-commissioned in September 2019, and transfer of apartments is now ongoing. The construction of Phase II continues as planned. As of 18 November 2019, 434 apartments (54% of Phase I) had been sold or pre-sold to customers
- Construction works at Tverskaya Plaza Ic and Tverskaya Plaza IV are ongoing. Both properties are located near the Belorussky railway station in a dynamic and well-developed office district
- At AFIMALL City, the net operating income (‘NOI’) for 9M 2019 was US$52.1 million
Commenting on today’s announcement, Eli Avrahampour, Chairman of AFI Development, said:
“I report that, despite a slowdown in residential sales in the third quarter, we delivered another solid set of results for the first nine months of 2019.
The positive momentum in our revenues and gross profit is largely attributable to the recognition of residential pre-sales and the stable performance of the yielding portfolio.
Looking ahead, the pace of sales across our residential portfolio remains subject to volatile market conditions with continuing uncertainty around the outlook for the Russian economy and, in turn, its real estate sector.”