(Alliance News) - Ukraine-based real estate developer Arricano Real Estate PLC on Thursday reported a revenue increase, but its half-year profit fell as it booked losses on investment property revaluations.
In the six months to June 30, Arricano generated revenue of USD17.3 million, 17% higher than the USD14.8 million achieved in the first half of 2018.
Pretax profit fell by almost half year-on-year to USD8.8 million from USD16.2 million, attributed to a USD991 loss on revaluation of its investment property, compared to a USD9.8 million gain last year.
Excluding revaluation gains or losses, pretax profit rose by 53% to USD9.8 million from USD6.4 million, largely due to a foreign exchange gain of USD4.6 million in the recent half, compared with a gain of USD1.6 million in the first half of 2018.
The company's property value rose 8.8% to USD281.3 million in June from USD258.5 million in December.
During the half-year, Arricano signed 82 new lease agreements compared with 68 in the first half of last year.
Arricano said: "The market environment continues to be challenging as it has been since 2012; however, Arricano has consistently shown that it is able to continue to grow in these market conditions.
"Key to the company's success has been a relentless focus on enhancing the appeal of all of the company's shopping and entertainment centres. It is noteworthy that the average vacancy level across all malls in Kiev is 5.5% which compares starkly to the current vacancy rate of the Arricano portfolio of 0.1%."
Looking ahead to the second half, Arricano reported that trading is currently in line with expectations.
The company's stock was untraded in London on Thursday afternoon, last closing at USD0.53.
By Eric Cunha; ericcunha@alliancenews.com
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