24th Nov 2015 12:24
LONDON (Alliance News) - Russia focused property developer AFI Development PLC Tuesday reported a fall in pretax profit for its third quarter, citing continued challenging macroeconomic conditions in the country.
For the three months to end-September the company reported a pretax profit of USD18.6 million, down from USD34.2 million, as revenue fell to USD21.1 million from USD35.3 million.
This takes it to a pretax loss of USD15.5 million for the first nine months of 2015, swung from a pretax profit of USD40.1 million in the previous year, mostly due to a fall in revenue to USD72.2 million from USD111.5 million and a lower valuation gain on its properties.
The total gross value of its portfolio of properties decreased "marginally" to USD1.97 billion at the end of the quarter, compared to USD1.98 billion at the end of the second quarter.
"The real estate market across Russia remains under pressure from continued challenging macroeconomic conditions and lack of visibility with respect to future economic recovery. In such an environment, we maintain our cautious approach focused on improving our profitability, enhancing operational efficiency of existing projects and preparing selected new projects for development. We are pleased to report a return to profitability in the third quarter of 2015 and hope to build on this positive development going forward," said Executive Chairman Lev Leviev in a statement.
Shares in AFI Development were down 3.7% at 0.162 pence Tuesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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