LONDON (Alliance News) - Brack Capital Real Estate Investments NV Friday reported a drop in profit in 2014 as it warned of a continued challenging environment in Russia, one of its key markets.
The company, which listed on the London Stock Exchange in May 2014, reported a net profit of EUR84.4 million in 2014, down from EUR105.4 million in 2013, despite generating a gross profit from the sale of residential units of EUR9.8 million following a loss of EUR0.5 million in 2013.
Revenue from rental income rose to EUR68.0 million from EUR50.1 million, and the net asset value of the company rose to EUR267.3 million from EUR232.3 million, it said.
Brack said its key markets of the US and Germany gave solid performances during the year, with new acquisitions in both territories, but said performance in Russia was volatile due to geopolitical and economic challenges.
"The geopolitical environment in Russia continues to be challenging. Although, the situation in Russia seems to have recently stabilised to a certain extent, we continue to monitor it closely and remain cautious as it can still develop in various directions and magnitudes. However, we believe that our team in Russia with its hands-on approach is well equipped to monitor and react to the various challenges on the ground," Chief Executive Ariel Podrojski said in a statement.
"The successful raising of funds during the period from the listing on the London Stock Exchange, the issuance of bonds and the private placement continues to strengthen the overall financial position of the group. The utilisation of these funds for general corporate purposes, working capital and the funding of current and new projects is expected to further drive the overall growth of the group," Chief Financial Officer Nansia Koutsou added.
Shares in Brack Capital were untraded on Friday morning at EUR1.49.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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