16th Mar 2016 10:24
LONDON (Alliance News) - Mirland Development Corp PLC on Wednesday said its net loss widened in 2015, as the weak performance of the rouble and the weak Russian real estate market hit Mirland's portfolio valuation and its net operating income.
The property investor in Russia reported a net loss of USD157.9 million for 2015, compared with the USD62.9 million loss it reported a year earlier, as it booked a negative fair value adjustment of investment properties of approximately USD125.0 million following a decrease in projected net operating income and occupancy rates, down to 94% from 100%.
Mirland said the valuation of its portfolio, calculated by its independent appraiser, Cushman & Wakefield, was down 33% over the year to USD393.5 million at the end of December, from USD589.5 million the previous year.
Mirland booked net foreign exchange losses of USD84.7 million.
"As previously advised to shareholders, Mirland continues to be negatively impacted by the deterioration of the Russian economy which has seen a significant and continued devaluation of the rouble against the US dollar, alongside the continued negative effect of low oil prices," said Chairman Nigel Wright in a statement.
Mirland's net operating income from its share of investment properties fell to USD22.0 million from USD37.3 million, as revenue from the properties was down at USD35.1 million from USD56.5 million, due to negative movement in the Russian real estate market.
Mirland said it determined it "inappropriate to declare a dividend" in light of the challenges facing the company.
Shares in Mirland were untraded on Wednesday, having last traded at 68.00 pence.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
MLD.L