25 Aug 2009 09:22
25 August 2009
DRAGON - Ukrainian Properties & Development PLC
("DUPD" or the "Company"
and together with its subsidiaries, the "Group")
1H 2009 NAV Announcement and Trading Update
Dragon - Ukrainian Properties & Development plc, a leading investor in the real estate sector in Ukraine announces its NAV as at 30 June 2009 and provides an update on operations ahead of the full interim financial statements for the period ending June 30, 2009 to be released on Tuesday 1 September 2009.
Financial Highlights:
NAV per share at 30 June 2009, before and after deferred income tax liabilities ("DITL") grew to $2.65 and $2.51, respectively from $2.47 and $2.35 as at 31 December 2008, mainly as a result of continuing share buyback program. During the first half of 2009, ca 15.7 million shares have been purchased and subsequently cancelled.
Balance sheet remains robust:
Group NAV at 30 June 2009 before and after DITL was $311.4 million and $295.3 million, respectively, down slightly from $329.2 million and $313.2 million as at 31 December 2008, reflecting a very conservative valuation policy with more than half of the investment portfolio valued at acquisition cost basis, while the rest does not account for substantial permitting advancement achieved during the period.
Cash in deposits, held in several leading European banks with highest ratings, was $88.5 million as at June 31 2009.
No bank debt at Company, or Group level.
Market capitalisation as at 30 June 2009 was £45.3 million ($74.9 million) which, despite a very conservative valuation policy adopted by the Company, represents a 76% discount to NAV, thereby creating strong prospects for share price improvement as the global real estate market recovers in the future.
Operational Highlights since 31 December 2008:
On March 5, Kyiv District Architectural Council approved the new master plan of Green Hills cottage community (www.green-hills.com.ua);
On April 6, the State Expertise Authority issued the Positive Conclusion for the project documentation of Mykolaiv retail centre (Henryland project)
On April, 10, a total of 38 individual property acts were received for each of the properties in the Sadok Vishnevyj residential community;
On April 30, Kyiv Architectural Administration approved the project documentation of the "Avenue" shopping mall (Komarova Project);
On May 18, concept design has been developed by Colliers International (Moscow) for the shopping centre in Kremenchug (Glangate project);
On May 25, Kyiv Council approved land rezoning for Obolon Residential Towers;
On May 26, the State Expertise Authority issued the Positive Conclusion for the project documentation of Sevastopol retail centre (Glangate project);
On May 29, project works on the part of social infrastructure for Riviera Villas community (www.r-v.com.ua) have been completed;
On June 12, a total of 178 individual state acts were obtained as per newly approved master plan of the Green Hills community;
On June, 24 the State Expertise Authority issued the Positive Conclusion for the project documentation of Vinnitsa retail centre (Henryland project);
On June 28, construction works on the three show homes at Riviera Villas community have been completed, with interior renovation works currently in progress;
On June 30, all works for installing communication lines in the Green Hills community were completed as well as construction of the first 4 showcase homes;
On June, 30 all works connecting utilities to the show homes at Riviera Villas community as well as construction of access road to the community were completed;
Investment Activity:
In line with the Company's announced investment policy to pursue investments and acquisitions on a highly selective basis, DUPD invested $13.1 million to secure the rights of a completed residential community "Sadok Vishnevyj" near the borders of Kyiv, previously owned by a distressed developer.
Chris Kamtsios, Senior Partner & Managing Director of Dragon Capital Partners ltd ("DCP or the "Investment Manager") commented:
"DUPD is one of the very few real estate investment companies worldwide that enjoys a privileged status today, being completely debt-free and with ample cash resources to fund the ongoing development of its portfolio projects and consider new investments in distressed assets, on a highly selective basis. While the negative effects of the market downturn, since the beginning of 2008, have resulted in significant share price reduction and lower NAV in absolute terms, projects continue to develop uninterrupted with significant permitting advancement being achieved which will allow the Company to bring them to the market in a phased manner, when market conditions improve.
We keep raising the bar on quality in all of our development projects which allows them a unique status and enhanced marketability over competing offering in the marketplace. Riviera Villas, being the first exclusive residence club in Ukraine, Green Hills, being the first North American style suburban community with extensive social infrastructure and Obolon Residential Towers, designed by renowned British architects, are some of the examples of the quality and unique character of our portfolio projects.
Our key focus remains on maximizing shareholder value. While we have achieved that to a great extend via the results of our share buyback program, launched in July 2008, on the operations side we strive to ensure that all projects are well positioned in terms of concept, design and cost, and continue to obtain permitting to complete developments without delay in order to take advantage of the future market recovery."
Enquiries:
For further information, please contact:
Dragon Ukrainian Properties & Development Plc (www.dragon-upd.com)
Tomas Fiala
+380 44 490 7120
Dragon Capital Partners Limited (Investment Manager)
Chris Kamtsios
+ 380 44 490 7120
KBC Peel Hunt Ltd (Nominated Adviser and Broker)
Capel Irwin
+ 44 20 7418 8900