20 Oct 2011 07:00
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND
NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR
INDIRECTLY IN THE UNITED STATES OF AMERICA
PIK GROUP ("The Group" or "PIK")
PIK SHOWS SUSTAINABLE GROWTH IN 3Q11
AND REITERATES FY11 GUIDANCE
(LONDON, October 20 2011) - PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, is pleased to publish today a trading update for the 9 months ended September 30, 2011 based upon management accounts.
Key highlights:
·; In 9M11 cash collections from sale of apartments surged 55% to RUB 22.4 billion (9M10: RUB 14.4 billion) driven by higher volume and residential selling prices in the corresponding period;
·; Total gross cash collections for 9M11 showed continuing growth of the Group's operations and increased by 32% reaching RUB 35.1 billion (9M10: RUB 26.6 billion);
·; 9M11 new sales contracts to customers showed 29.9% growth up to 343 thousand sq meters compared to the same period of 2010 upon continuing market growth and diversification of product offering.
·; In 2011 year-to-date PIK continued aggressively launching new projects as the market continued to grow. In total 31 new projects were put on sale, of which 21 projects came from Moscow Metropolitan area. The rest was attributed to Russian regions.
·; 3Q11 sales funded by mortgages continued growing, reaching 29.5% as a result of PIK's initiative to introduce various mortgage partnership programs;
·; Cash collections from construction services declined by 7.7% to RUB 8.9 billion (9M10: RUB 9.7 billion);
·; FY2011 guidance on new sales contracts to customers of 520 000 square meters is reiterated together with total gross cash collections of RUB 50-55 billion (RUB 40-45 billion of which are expected to come from or sales of apartments)
Cash collections summary (1)
(in RUB MM) | 3Q2010 | 9M2010 | 3Q2011 | 9M2011 | Change, % (3Q11/3Q10) | Change, % (9M11/9M10) | |
| |||||||
TOTAL GROSS CASH COLLECTIONS (2) | 11,683 | 26,581 | 11,744 | 35,077 | 0.5% | 32.0% | |
TOTAL NET CASH COLLECTIONS(3) | 11,326 | 24,163 | 11,402 | 31,405 | 0.7% | 30.0% | |
including: | |||||||
Cash collections from residential real estate sales activities | 5,770 | 14,453 | 8,260 | 22,442 | 43.1% | 55.3% | |
Including: | |||||||
- Cash collections from retail real estate sales | 4,383 | 10,393 | 7,854 | 19,544 | 79.1% | 88.0% | |
Cash collections from construction services activities and others | 5,556 | 9,710 | 3,145 | 8,963 | -43.4% | -7.7% |
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
9M11 total gross cash collections reached RUB35.1billion, up by 32%. With a recovery in consumer confidence, mortgage accessibility and property price growth in place, PIK saw a 55% year-on-year growth in 9M11 residential real estate sales, which came to RUB 22.4 billion (9M10: RUB 14.4 billion). This was driven by retail sales which accounted for 87% of the total residential real estate sales.
Pre-sales launches summary (2011 YTD)
Project | Location | Start of sales |
South Chertanovo, mcr.17, 18 | Moscow | |
"Chertanovsky", bldg. 40A | February 2011 | |
"Chertanovsky", bldg. 40B (parking) | July 2011 | |
"Chertanovsky", bldg. 40 | September 2011 | |
"Chertanovsky", 2 (parking) | October 2011 | |
Mytnaya (English Town) | Moscow | |
parking | September 2011 | |
Khimki, 'Novokurkino' | Moscow region | |
- bldg 10 | April 2011 | |
- bldg 11 | April 2011 | |
- 4G (parking) | June 2011 | |
- bldg 8 | July 2011 | |
Khimki, 'Levoberezny' | Moscow region | |
- bldg 18 | April 2011 | |
- bldg 2 | March 2011 | |
- bldg 5 | October 2011 | |
Khimki, 'Sovhoznaya' | Moscow region | |
- bldg 3 | July 2011 | |
Khimki, 'Yubileiniy' | Moscow region | |
- bldg 8a | February 2011 | |
- bldg 10 | July 2011 | |
Mytischi 'Yaroslavsky' | Moscow region | |
- bldg 13 | February 2011 | |
- bldg 14 | February 2011 | |
- 64 (parking) | June 2011 | |
- bldg 8 | September 2011 | |
Lubertsy, Krasnaya gorka | Moscow region | |
- bldg 43 | October 2011 | |
- bldg 44 | October 2011 | |
Obninsk | Central Russia | |
- mkr. 38, bldg 5 | January 2011 | |
- mkr. 55, bldg 2A | March 2011 | |
- mkr. 38, bldg 9 | September 2011 | |
Perm, Industrial dst., Mira st. | Central Russia | |
- bldg 136 | August 2011 | |
- bldg 136/1 | August 2011 | |
Yaroslavl, microdistrict 7a | Central Russia | |
- bldg 7 | August 2011 | |
Kaliningrad 'Selma-2' | Western Russia | |
- bldg 11 | January 2011 | |
Roston-on-Don | Southern Russia | |
- Grecheskogo str. | March 2011 | |
- Orbitalnaya str., Nord | April 2011 | |
Novorossiysk, micr. 15 | Southern Russia | |
- bldg 7 | September 2011 | |
Source: Management accounts
In 2011 year-to-date PIK continued aggressively launching new projects as the market continued to grow. In total 31 new projects were put on sale, of which 21 projects came from Moscow Metropolitan area (in 2010 PIK launched 25 projects, 19 of which came from MMA).
New sales contracts to customers
000' sqm | 1H10 | 2H10 | 1H11 | 9M10 | 9M11 | Change, % | ||
Total new real estate sales contracts to customers (1) | 159 | 233 | 229 | 264 | 343 | 29.9% |
Note: (1) including contracted retail and wholesales and others
Source: Management accounts
Total new sales to customers in 9M11 reached 343 thousand sq meters, of which 260 thousand sq meters came from sales to retail customers. 9M11 total sales to customers showed a 29.9% increased compared to the same period of last year. The Moscow Metropolitan area contributed 80% of total new sales to customers. Following recovery in 2010 and growth in 2011 in the Moscow Metropolitan area, Russia's other regions started to recover in 2011, 1 year behind the MMA.
Share of mortgage funded retail sales
000' sqm | 1Q10 | 2Q10 | 3Q10 | 4Q10 | 1Q11 | 2Q11 | 3Q11 | |
Share of sales funded by mortgages (1) | 3.1% | 6.4% | 9.3% | 7.5% | 12.4% | 25.3% | 29.5% |
Note: (1) based upon retail sales, calculated as per flats
Source: Management accounts
Following introduction and extension of partnership programs with commercial banks, the share of mortgage funded sales continued to grow, reaching 29.5% in 3Q11 (September alone was 31.2%).
New apartment sales contracts with individuals
New unit sales contracts with individuals * | 9M2010 | 9M2011 | Change, % | ||
Value (in RUB MM)* | 12,067 | 21,251 | 76,1% | ||
size (in sqm)** | 163,305 | 260,281 | 59,4% |
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
New unit sales contracts with individuals* | 3Q2010 | 3Q2011 | Change,% | 6M2010 | 6M2011 | Change, % | |||||
Value (in RUB MM)* | 5,110 | 8,331 | 63,0% | 6,957 | 12,920 | 85,7% | |||||
size (in sqm)** | 69,098 | 103,080 | 49,2% | 94,207 | 157,201 | 66,9% |
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
New apartment sales contracts with individuals continued growing in 3Q2010, showing a 63% year-on-year increase. This advance in volumes was driven by a number of new launches in affordable housing projects, the extension of mortgage programmes with Russia's leading state-owned banks and growing consumer confidence.
Enquiries:
Investors
PIK Group Tel: +7 495 505 97 33 ext. 1358 / 1315
Viktor Szalkay
Media
Natalia Ivanova Tel: +7 495 505 97 33 ext. 1010 /1014
Citigate Dewe Rogerson Tel: +44 20 7638 9571
Tom Baldock
Priscilla Garcia