26th Apr 2018 13:17
LONDON (Alliance News) - Arricano Real Estate PLC on Thursday said profit grew in 2017 following a rise in revenue and occupancy levels.
The Ukraine-based real estate developer and shopping centre operator said it made a pretax profit of USD33.6 million in 2017, up from USD29.2 million reported the prior year. This was after revenue rose to UDS27.6 million from USD23.1 million.
Finance expenses grew significantly year-on-year to USD32.6 million from USD17.7 million, as a result of recognized foreign exchange losses.
Arricano highlighted that most of its revenue comes from rental income, which amounted USD27.5 million in 2017 compared with USD23.1 million the year before.
Occupancy rates increased to 99% from 98%, while its net asset value grew to USD52.2 million from USD24.2 million.
The company's portfolio value also rose to USD221.3 million from USD175.7 million the year earlier, following the successful rotations of lessees, increase in rental rates and close control of costs.
Looking ahead, the company said that in 2018 it will focus on environmental credentials improvement. It is evaluating the benefits of eco-friendly energy solutions such as solar panels and solar blinds within the group.
"2017 was a successful year for Arricano and a continuation of the progress made by the company in 2016," said Interim Chairman Philip Scales. "Delivering revenue growth of 19% in the current market reflects well on the management team and the strategies they are pursuing to increase the appeal of the shopping centres to both consumers and tenants."
Shares in Arricano were untraded at 0.45 pence per share on Thursday.
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