12th Nov 2014 11:33
LONDON (Alliance News) - MirLand Development Corporation PLC Wednesday expressed optimism for its core business going forward as it saw pretax profit rise for nine months to end-September, although the ongoing devaluation of the rouble is likely to hit its current quarter and into 2015.
The Russian residential and commercial property developer posted a pretax profit of USD30.4 million in the period, compared to USD7.9 million a year before, as revenues rose to USD61.8 million from USD46.3 million, and it saw a USD82.9 million boost from a fair value adjustment on its investment properties.
During the period the company continued to make progress on the pre-sale, build and delivery of its Triumph Park site in St Petersburg, with the second phase of construction completed ahead of schedule. 95% of the flats have been pre-sold, and delivery is expect to start this month.
MirLand said sales have continued to be strong in phase three of the scheme, with a further 128 apartments sold since its half year. The construction of phase four of the project began in the third quarter, and it expects to launch the sales programme in the first quarter of 2015.
MirLand said that whilst its performance in its third quarter are highly encouraging "extraneous factors over which we have no control are again likely to have some adverse impact on the current quarter and into 2015." It cited the devaluation of the rouble as having an "adverse effect" on some of its tenants, and also noted that it could not "ignore the possible effects of continuing sanctions and low oil prices on the Russian economy as a whole."
The rouble has weakened by more than 30% since the start of the year. The company said falling oil prices have had "a major impact" as oil revenue makes up about half of the Russian state budget revenue, and sanctions imposed by the west have " almost shut the global financial markets to Russian companies."
Shares in MirLand are trading down 3.9% at 185.00 Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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