Arricano Real Estate PLC - developer and shopping mall operator in Ukraine - Revenue for 2020 falls 13% to USD32.3 million from USD37.3 million in 2019, though pretax profit shoots up to USD24.8 million from USD8.9 million. Reports gain of USD24.9 million on revaluation of investment property, after loss of USD12.2 million the year before.
Says revenue decline a result of virus restrictions which interrupted trading. The total fair valuation of the group's portfolio decreased to USD275.5 million from USD289.3 million in 2019, "primarily due to uncertainty in the overall situation in retail due to Covid-19 challenges that resulted in an increase in capitalization rates used in valuation of properties."
Chief Executive Ganna Chubotina says: "During 2020, the government in Ukraine put in place restrictions to reduce human interaction to combat the Covid-19 pandemic. These measures resulted in the partial closure of the Arricano shopping malls for between 52-81 days (depending on region), restricting visitor access to essential stores. However, despite the temporary closure of retail stores and reduced access, the occupancy rate across the Arricano portfolio remained at 99%, the same level it has been since 2018 and revenue decreased by just 13% reflecting, we believe, a very resilient performance by the group as a whole."
Current stock price: USD0.325
Year-to-date change: up 0.3%
By Lucy Heming; lucyheming@alliancenews.com
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