AFRB.L Share News (AFRB)

(Sharecast News) - Russia-focussed real estate development company AFI Development released its results for the nine months ended 30 September on Tuesday, reporting revenue of $254.4m, including proceeds from the sale of trading properties.
The London-listed firm said rental and hotel operating income was up "marginally" to $94.9m, including a contribution from AFIMALL City of $67.3m.

It said the sale of residential properties contributed $156.5m to total revenue.

Gross profit for the nine-month period was $138.1m, and net profit amounted to $77.1m, while the total gross value of portfolio of properties stood at $1.25bn, which was "broadly unchanged" since the end of the first half of the 2019 financial year.

Cash, cash equivalents and marketable securities as at 30 September amounted to $109.6m.

On the operational front, following the delivery of Building 6 at Odinburg in May, the company recently completed the transfer of pre-sold apartments to customers.

The construction and pre sale of apartments in the first and second phases of Building 3 was also underway.

As at 18 November, the number of signed sales contracts stood at 810, or 88% of the total, in the first phase of Building 3; 150, or 11% of the total, in the second phase if Building 3; and 217, or 97% of the total, in Building 6.

At AFI Residence Paveletskaya, the second phase was delivered in May, and the transfer of apartments was now complete.

The construction and pre sale of apartments in the third phase was continuing, and as at 18 November, 625 contracts for the sales and presales of apartments and 'special units' had been signed, or 78% of the three phases combined.

At Bolshaya Pochtovaya, construction and marketing of the project was progressing to plan.

As at 18 November 2019, 347 apartments, or 55% of the three phases combines, had been pre-sold to customers.

The first phase of Botanic Garden was state-commissioned in September, and transfer of apartments was now ongoing.

AFI said the construction of the second phase was continuing as planned, adding that as at 18 November, 434 apartments, or 54% of the first phase, had been sold or pre-sold to customers.

Construction works at Tverskaya Plaza Ic and Tverskaya Plaza IV were ongoing, the board said, with Both properties located near the Belorussky railway station in a "dynamic and well-developed" office district.

At AFIMALL City, the net operating income for the first nine months was $52.1m.

"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," said chairman Eli Avrahampour.

"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."