28th Aug 2018 09:47
LONDON (Alliance News) - Commercial property investment company Raven Property Group Ltd reported on Tuesday it sunk to a loss in the first half of 2018 despite income growth, due to unrealised losses on revaluation and also due to higher costs.
Raven Property Group reported a pretax loss of USD37.1 million for the six months to the end of June, swinging from a profit of USD26.0 million, due to a rise in finance expenses to USD60.0 million from USD48.6 million. There also was an unrealised loss on the revaluation of property at USD35.1 million from a profit of USD13.3 million previously.
However, net rental and related income rose to USD79.3 million from USD70.0 million due to acquisitions and increased letting activity.
Raven Russia is proposing a distribution of 1.25 pence per share through a tender offer buyback of 1 in 44 shares at a price of 55p, compared to 1.00p through a tender offer of 1 in 52 shares at 52p a year before.
Shares in Raven Property Group were up 3.7% at 42.00 pence on Tuesday.
The company said its portfolio as at June 30 comprises 1.8 million square metres of warehouse space and 49,000 square metres of office space.
Warehouse occupancy increased to 86% from 821% as at the end of 2017 and office occupancy stands at 87%.
Raven Property's property valuations fell to USD1.56 billion from USD1.59 billion at the end of 2017.
"Following the recent elections, we have medium term political stability and the successful World Cup has started to show the world the positive side of Russia that we have been going on about for years. However, the weaker rouble means we suffer foreign exchange losses when presenting our results in US dollars," said Chief Executive Officer Glyn Hirsch.
"Our main operational efforts in the period have been focussed on letting space and pursuing income producing acquisitions. These efforts continue to be the best strategy in the current climate. It is producing results," Hirsch added.
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