17th May 2016 17:37
LONDON (Alliance News) - Russian property company AFI Development PLC on Tuesday said it swung to a net loss in the first quarter of 2016, primarily due to a valuation loss on its portfolio, while rental income also declined.
AFI said its net loss for the three months to the end of March was USD31.9 million, compared to a USD6.0 million profit made a year earlier due to declines in the valuation of its portfolio.
Rental income and income from the company's hotel operations declined to USD20.0 million from USD24.4 million a year earlier, which AFI blamed on the tough macroeconomic environment.
AFI also said it is in talks with lender VTB Bank on reaching an agreement to release AFI from both loans the property company currently owes the Russian bank. Those negotiations are anticipated to complete no later than the end of March, AFI said.
"Ongoing macroeconomic difficulties continued to affect our results in the first quarter of 2016. At the same time, the company is committed to continue the development of our existing projects," said Executive Chairman Lev Leviev.
AFI shares closed flat at USD0.12 on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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