7th Mar 2016 12:08
LONDON (Alliance News) - AFI Development PLC said Monday it expects to record a net valuation loss and book impairments in the fourth quarter, due to a fall in the value of its projects, which have been hit by the "continuously challenging macroeconomic environment" in Russia.
The real estate company, which develops property in Russia, said it expects its net valuation loss on investment properties, investment properties under development and trading property under development for the period from October to December to be around USD522.0 million before taxes. AFI Development said its AFIMALL City valuation had fared particularly badly, and the valuation had decreased to USD686.0 million from USD990.0 million.
AFI Development said estimated loss after tax for the fourth quarter, including foreign exchange loss, will be around USD470.0 million.
"The valuation loss and impairment reflect a decrease in the value of the company's projects due to continuously challenging macroeconomic environment in Russia and respective depressed condition of the real estate market," AFI Development said in a statement, point to the further deterioration of the exchange rate between the rouble and the dollar in the period, as well as the falling oil prices.
AFI Development said it expects the gross value of its portfolio of properties to decrease to around USD1.40 billion at end-December 2015 from around USD1.97 billion recorded at end-September 2015.
Shares in AFI Development were down 15% at USD0.120 on Monday.
By Hannah Boland; [email protected]; @Hannaheboland
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