Arricano Real Estate Plc (Cyprus), a managing company and developer of some shopping and leisure centers in Ukraine, in January-June 2018 saw $13.9 million in net profit, which is 12.6% less than in H1 2017.
According to a company report on the London Stock Exchange (LSE) on Thursday, revenue grew by 14.5%, to $14.8 million.
According to the document, the decline in profit was linked with less gain on revaluation of investment property: $9.77 million in H1 2018 compared with $15.63 million in H1 2017.
Total profit over the period grew by 4.6%, to $22.13 million.
Pre-tax profit as of June 30, 2018 fell by 12.2%, reaching $16.2 million compared with $18.4 million a year ago.
Total fair valuation of the company’s portfolio increased by $19.1 million to $240.4 million and occupancy increased to 99.7% as at June 30, 2018 (June 30, 2017: 98.8%). The company signed 68 new lease agreements during H1 2018 compared to 52 in H1 2017.
According to the company’s report, this was a good performance increasing occupancy and achieving an average rental rate (excluding hypermarkets) of $18.5 per sq.m.
Net asset value totaled $74.3 million (December 31, 2017: $52.2 million).
Bank debt at the half-year end was $39.5 million, with the majority of borrowings at the project level at an average rate of 11.5% (in H1 2017 11.1%).
In addition, the company had $4 million of cash and cash equivalents, and non-bank loans of $57.8 million as at June 30, 2018.
The three development sites covering 14 ha in Lukianivka (Kyiv), Petrivka (Kyiv), and Rozumovska (Odesa) continue to be progressed, the company said.
