17th Mar 2015 12:56
LONDON (Alliance News) - AFI Development PLC Tuesday said it swung to a pretax loss in 2014, hit by a "challenging" year for the company and the broader Russian market.
The real estate company, which focuses on developing property in Russia, said it made a USD323.3 million pretax loss in 2014, compared with a USD135.3 million pretax profit in 2013, as operating results were hampered by lower revenue, higher expenses and a valuation loss of USD85.9 million on its properties to a gain of USD106.2 million in 2013.
"Macroeconomic headwinds and difficult geopolitical situation have inevitably affected demand for real estate assets across the country, including our core market of Moscow," Lev Leviev, Executive Chairman, said in a statement.
"Our results reflect the negative adjustments to the valuation of our portfolio caused by macroeconomic trends and the deteriorating risk profile of the country as a whole. Operationally, however, our results remain solid driven by our unwavering commitment to the highest standards of design, construction and quality of customer service. Although we remain confident in the long-term opportunities in our market, we expect operating conditions to remain challenging throughout 2015," Leviev said.
AFI shares were untraded on Tuesday, having last traded at 0.255 pence.
By Samuel Agini; [email protected]; @samuelagini
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