LONDON (Alliance News) - MirLand Development Corp PLC Tuesday said it expects to report a decrease in the value of its portfolio during the second quarter of 2015 due to difficulties for the Russian economy and said the outlook for Russia remains challenging.
The Russian property developer said that the value of its portfolio of investment properties and investment properties under development will fall in the three months ended June 30 by USD32 million.
MirLand said that the devaluation of the rouble continued against the dollar, which alongside a decrease in oil prices and the recent downgrades of the Russian Federation sovereign credit rating by Standard & Poor's and Moody's, means that the outlook for Russia remains both challenging and uncertain.
MirLand also expects the second-quarter results to be hit by an equity reduction of approximately USD42 million and an equity attributed to shareholders reduction of around USD40 million. It also expects the gross value of the portfolio to decrease to USD506 million from USD571 million as at March 31.
"Despite the difficult market conditions, MirLand has maintained a generally positive operating performance in rouble terms and has seen a relatively high average occupancy of approximately 85% in its yielding assets. In addition, sales at the company's flagship Triumph Park residential development have continued at a moderate pace, with 345 units sold since the beginning of the 2015 financial year," the company said in a statement.
"The company is continuing its discussions with the trustees of the Series A-F bondholders to agree a restructuring of its debt and will update the market in due course," it added.
MirLand will announce its half-year results to June 30 on August 19.
The stock was quoted up 3.7% at 53.00 pence midday Tuesday.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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