LONDON (Alliance News) - Dragon-Ukrainian Properties & Development PLC saw its net asset value per share decline in 2013, and saw a widened pretax loss due to impairment costs.
The Ukraine focused real estate investment company posted a net asset value per share of USD1.48 as at December 31, down 10.3% from USD1.65 as at June 30, 2013.
The company said that the main driver of this decline was the reduced value of its land bank investment.
The company posted a pretax loss of USD38.9 million, widened from USD16.3 million in the previous year. Performance was hit by an impairment on prepayment for land of USD13.3 million, a loss on investment properties and properties under construction of USD7.0 million and inventory write downs of USD14.0 million.
Dragon-Ukrainian said it was invested in 10 projects, six of which are cash generating.
The company has switched its focus to existing projects rather than making new investments, and said that it believes this alignment will help it to weather "the current political and economic storms" to generate cash from its residential portfolio.
Tensions between Russia and Crimea continue to impact Ukraine's gross domestic product, the company said, and continue to run high following the annexation of Crimea in March.
However, the International Monetary Fund's recently agreed USD17 billion stand-by loan programme provides support for the government and central bank, the company said, which should improve the investment climate in the medium term.
Dragon-Ukrainian said it was "encouraged" by political developments in conflict stricken Ukraine over the past few months, and that it was awaiting further political stabilisation.
It expects Arricano Real Estate to open another shopping mall in Kiev in 2014, and said it will focus on the stock's performance closely during the year.
Shares in the company closed at 30.62 pence Monday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @hanassallnews
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