25th Aug 2015 07:46
LONDON (Alliance News) - Russia-focused property developer AFI Development PLC on Tuesday said it was a victim of the depreciating ruble in the first half, as a huge devaluation of its properties caused it to swing a pretax loss.
AFI said its pretax loss in the first half to the end of June was USD34.1 million, compared to a USD5.9 million profit a year earlier, as it booked a USD42.3 million impairment on the valuation of its properties, driven by the downturn in Russia's economy and the depreciation of the ruble against other major currencies.
Also thanks to the ruble's weakness against the dollar, along with the macroeconomic problems in the country which have hit consumer spending power and sentiment, revenue for AFI was down to USD51.1 million from USD76.2 million, with rental and hotel operating income falling 33% and the contribution from its AFIMALL City shopping centre down 32%.
"Amidst a challenging operating environment and in the face of continued macroeconomic uncertainty, our focus during the first half of the year was firmly on managing factors under our control," said Executive Chairman Lev Leviev.
Shares in AFI were untraded on Tuesday, having last traded at 0.233 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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