27th Aug 2019 08:01
(Alliance News) - Raven Property Group Ltd on Tuesday said it swung to a profit in the first half of 2019, thanks to currency movements and property revaluation gains.
The property investment company, specialising in commercial real estate in Russia, said average occupancy in its warehouse portfolio ran at 90% in the six months to the end of June compared to 84% last year, boosting net rental and related income, which grew 12% to GBP64.3 million.
The company swung to a pretax profit of GBP33.6 million compared to a GBP25.9 million loss a year earlier. Raven recorded a GBP18.9 million gain on foreign currency exchange movements, compared to a GBP4.2 million loss last year.
There was also a GBP18.1 million gain on revaluation of investment property versus a GBP26.5 million loss the year before.
Raven let 115,002 square meters of space in the first half of 2019 at "steadily" improving rents. As at June 30, the company's warehouse portfolio comprised 1.89 million square meters and its office portfolio had 49,000 square meters of space.
Diluted net asset value per share of 67 pence at June 30 was a 40% increase on the 2018-end value of 48p.
Raven proposed a shareholder return equivalent to 1.25p per share, in a buyback of 1 in 44 shares at 55p.
"We are pleased with these results which reflect steadily improving market conditions and finally, some currency movements working in our favour," said Chief Executive Glyn Hirsch.
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