12th Mar 2018 13:05
LONDON (Alliance News) - Commercial property investment company Raven Russia Ltd said Monday that its performance for 2017 exceeded expectations, with a lift in profit and revenue.
For the year, pretax profit rose to USD90.6 million from USD22.2 million the year before, primarily due to a swing to profit on the revaluation of investment property to USD42.3 million from a loss of USD40.2 million.
Net rental and related income rose to USD166.7 million on gross revenue of USD228.1 million from USD195.3 million, with substantial growth in the UK property arm Raven Mount and third party logistics operator Roslogstics segments.
Raven Russia noted that its diluted net asset value rose by 13% to USD0.80 per share from USD0.71 the prior year.
During the year Raven Russia completed two acquisition projects in the year, with an office portfolio and a warehouse in St Petersburg in April and a logistics complex in Moscow in November, for a total of USD209.0 million. The two projects are expected to generate a minimum of USD24.0 million in net operating income in the current year.
Raven Russia plans to distribute 3.00 pence per share by way of a tender offer buyback of 1 share for every 17 shares at 52.00 pence, making 4.00 pence for the year.
"Although we will not rely on it, most commentators forecast further improvements in 2018 and beyond. With some fair economic winds and the continued implementation of our strategy of acquisitions, alongside organic growth, we believe that shareholders will be rewarded," said Chief Executive Officer Glyn Hirsch.
Shares in Raven Russia were up 7.8% at 46.40 pence on Monday.
