Stable operational results despite economic uncertainty

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 2015.

Q1 2015 financial highlights

• Rental income and income from hotel operations declined to US$24.4 million  (from US$36.7 in Q1 2014) as a result of the difficult macroeconomic environment and Russian rouble depreciation

      -  AFIMALL City contribution at US$19.1 million, compared to US$28.0 million in Q1 2014

• Gross profit up 78% to US$11.2 million compared to US$6.3 million in Q1 2014
• Net profit for the quarter amounted to US$6.0 million compared to US$24.3 in Q1 2014
• Cash, cash equivalents and marketable securities of US$74.7 million

Q1 2015 operational highlights

• AFIMALL City  recorded revenue of US$19.1 million for Q1 2015:

       - NOI was US$13.7 million for the quarter, compared to US$16.8 million in Q1 2014

       - Occupancy levels at 83% of total leasable area (no change compared to end of Q1 2014)

• Sales of apartments continue at Odinburg with 627 sale contracts signed (as of 21 May 2015)

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

“Although a weaker rouble and the general economic downturn in Russia have caused a decline in our revenues, AFI Development has continued to demonstrate stable operational results during the first quarter of 2015. Given the recent oil price recovery and encouraging macroeconomic developments since the start of the second quarter, we are cautiously optimistic for the remainder of 2015.”