17 Jul 2012 12:03
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PIK GROUP ("The Group" or "PIK")
2Q2012 Trading update
PIK REPORTS HIGHER CASH FLOW IN FIRST HALF 2012, DRIVEN BY INCREASED DEMAND AND RISING PROPERTY PRICES
(LONDON, July 17 2012) - PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, is pleased to publish today a trading update for the six months ended June 30, 2012, based upon management accounts.
1H2012 key highlights:
·; Total net cash collections up by 26.3% to RUB 25.3 billion (1H11: RUB 20.0 billion);
- Cash collections from sales of apartments to individuals surged 52.6% to RUB 17.8 billion (1H11: RUB 11.7 billion), driven by increases in both sales volumes and property prices;
- Cash collections from construction services remained flat at RUB 5.7 billion (1H11:RUB 5.8 billion);
·; PIK launched 20 new projects (1H11: 15), 16 of which are located in its core Moscow Metropolitan Area (MMA);
·; Total new sales contracts represented to 270,000 square metres, an increase of 17.9% yoy;
- New sales contracts with retail customers increased by 49.5% yoy to 235,000 square metres;
·; Mortgage backed sales in 2Q12 decreased slightly to 27.3% of total sales, but increased by 8% yoy;
·; Compared to the same period of 2011, the average realised sales price in 1H12 for PIK's properties increased by 16%.
Table 1 - Cash collections summary(1)
(in RUB MM)
| 2Q2012 | 2Q2011 | Change, % | 1H2012 | 1H2011 | Change, % | ||
TOTAL GROSS CASH(2) COLLECTIONS | 13 152 | 15 261 | -13.8% | 25 669 | 23 333 | +10.0% | ||
TOTAL NET CASH COLLECTIONS(3) | 13 752 | 12 784 | +7.6% | 25 258 | 20 003 | +26.3% | ||
including: Cash collections from residential real estate sales activities comprising: | 10 317 | 8 889 | +16.1% | 19 533 | 14 182 | +37.7% | ||
- Cash collections from retail real estate sales | 8 486 | 6 763 | +25.5% | 17 842 | 11 690 | +52.6% | ||
- Cash collections from wholesale real estate sales | 1 831 | 2 126 | -13.9% | 1 691 | 2 492 | -32.1% | ||
Cash collections from construction services activities and others | 3 435 | 3 893 | -11.8% | 5 725 | 5 818 | -1.6% |
Note:(1) In line with PIK's accounting standards, these cash collections will be recognized as sales revenue once the residential real estate properties have been completed and third party acceptance acts (formal building certification provided by authorities) are received upon the completed unit
(2) Including offsets with suppliers
(3) Excluding offsets with suppliers
Source: Management accounts
Table 2 - New sales contracts to customers
000' sqm | 1H2012 | 1H2011 | Change, % |
Total new real estate sales contracts to customers(1) | 270 | 229 | +17.9% |
Note: (1) including contracted retail and wholesales
Source: Management accounts
Table 3 - 1H2012 pre-sales launches summary
Project | Location | Start of sales |
"Novoperedelkino" | Moscow | |
- bldg 9a | June 2012 | |
"Grand Kuskovo" | Moscow | |
-bldg 5 | June 2012 | |
- bldg 6 | July 2012 | |
Khimki, 'Novokurkino' | Moscow region | |
- bldg 9 | March 2012 | |
- bldg 7 | June 2012 | |
- bldg 19 | June 2012 | |
Mytischi 'Yaroslavsky' | Moscow region | |
- bldg 22 | March 2012 | |
- bldg 23 | March 2012 | |
- bldg 38 | June 2012 | |
- bldg 40 | June 2012 | |
Lubertsy | Moscow region | |
- bldg 7 | February 2012 | |
- bldg 37 | February 2012 | |
- bldg 9 | June 2012 | |
Pykhtino | Moscow region | |
- bldg 24 | March 2012 | |
- bldg 25 | March 2012 | |
- bldg 26a | March 2012 | |
Obninsk | Central Russia | |
- mkr. 55, bldg 1a | January 2012 | |
Yaroslavl | Central Russia | |
- Krivova str. | June 2012 | |
- "Bragino", bldg 5-5a | April 2012 | |
Perm | Central Russia | |
- "Griboedovsky", bldg 31 | May 2012 |
Table 4 - Share of mortgage funded retail sales
000' sqm | 1Q11 | 2Q11 | 3Q11 | 4Q11 | 1Q12 | 2Q12 | |
Share of sales funded by mortgages (1) | 12.4% | 25.3% | 29.5% | 29.7% | 28.5% | 27.3% |
Note: (1) based upon retail sales, calculated as per flats
Source: Management accounts
Table 5 - New sales contracts to retail customers (contracted retail volume)
New sales contracts to customers | 2Q2012 | 2Q2011 | Change % | 1H2012 | 1H2011 | Change % |
| |||||||
Value, apartments and ground floors (in RUB MM)* | 9,589 | 7,418 | 29.3% | 18,724 | 12,920 | 44.9% | ||||||||
size (in thousand sqm)** | 114,309 | 91,200 | 25.3% | 234,963 | 157,201 | 49.5% | ||||||||
Note:* unit is equivalent to aggregated amount of flats, ground floors and parking lots
Source: Management accounts
** size is taken for flats and ground floors
Enquiries:
PIK Group
Investors
Viktor Szalkay Tel: +7 495 505 97 33 ext. 1358 / 1315
Media
Natalia Ivanova Tel: +7 495 505 97 33 ext. 1010 /1014