AFRB.L Share News (AFRB)

LONDON (Alliance News) - Russian real estate developer AFI Developments PLC said Tuesday Executive Director Mark Groysman has resigned, effective December 1, but will continue to serve as chief executive officer of subsidiary AFI RUS LLC.

Groysman will be replaced by former board member Avraham Novogrocki. Novogrocki will become a non-executive director the same day Groysman will step down, December 1.

Novogrocki served on AFI's board from 2012 to 2016. He was, until September 2018, chief executive officer of Tel Avid-listed Africa Israel Investments Ltd.

The company said Groysman's tenure on the board was "planned as an interim measure" and his resignation follows the appoint of Novogrocki.

Shares in AFI Development were down 1.0% Tuesday at USD0.198 each.

Earlier on Tuesday, AFI Development said increased revenue from residential property sales resulted in a sharp rise in earnings for the first nine months of 2018.

For the nine months to September 30, the Russian real estate company recorded pretax profit of USD120.7 million, up from USD12.8 million the year before. Revenue increased 45% to USD207.1 million from USD142.7 million.

Sale of residential properties contributed USD112.4 million to revenue, up from USD57.0 million in the same period a year prior. Income from rent and hotels increased 10% in the period to USD93.9 million.

AFI also said "positive" foreign exchange movements contributed to the spike in profit.

"We are pleased to report that AFI Development has continued to deliver growth in revenue and profits, driven by the performance of our four ongoing residential projects - Odinburg, AFI Residence Paveletskaya, Bolshaya Pochtovaya and Botanic Garden," said Chairman David Tahan.

"As we look ahead to the full year, we remain alert the issues posed by a weaker Russian rouble which could impact the value of our property portfolio and the threat of additional US sanctions. However, we believe that with our high-calibre projects, we are well placed to maintain the positive momentum in our performance into the final quarter."