18th Mar 2014 11:08
LONDON (Alliance News) - Property developer AFI Development PLC Tuesday said it swung to profit in 2013, after last year's results where hit by valuation losses.
The Russia-focused property company posted pretax profit of USD153.3 million in 2013 compared with a loss of USD291.8 million, as revenue rose 61% to USD202.3 million from USD125.5 million a year earlier.
AFI benefited from a valuation gain on properties of USD106.2 million, compared with a USD265.9 million loss in 2012.
The company also attributed its improved performance to higher rental income and the sale of 643 parking spaces at AFIMALL City to VTB Bank JSC for USD54.5 million.
AFIMALL City, a shopping centre in Moscow, contributed USD104.1 million compared with USD81.4 million in 2012, a 28% increase-year-year.
Overall rental income and income from hotel operations across AFI's portfolio increased 24% year-on-year to USD144.7 million, compared with USD117.1 million for 2012.
During the period, the company sold Building 1 in the Aquamarine III office complex in Moscow to Russian diamond miner Alrosa in a deal worth USD91.5 million. AFI said the sale contributed to the increase in its cash balance to USD203.3 million from USD174.8 million in December 2012.
On the back of a strong performance, the company said it is looking to the rest of 2014 with confidence.
"Despite a slowdown in Russia's overall economic growth during 2013, retail trade and the consumer market has recorded above average growth and we expect this to have a positive impact on footfall at AFIMALL City during 2014," Executive Chairman Lev Leviev said in a statement.
"We also look forward to progressing with our new developments and will continue to seek opportunities for AFI Development to increase its cash flow and to enhance its position in the Moscow real estate market", he added.
The company said it will not pay a dividend.
The stock was trading at 0.800 pence Tuesday morning, up 0.028 pence or 3.6%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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