AFI Development residential sales affected by ‘challenging’ market

AFI Development residential sales affected by ‘challenging’ market

Russia-focused real estate development company AFI Development (LON: AFRB) posted underwhelming results for the first nine months of the year, in what it described as ‘challenging market conditions’.

The Company were able to report some areas of progress. For instance, they celebrated year-on-year revenue growth for the nine month period, from $207.1 million to $254.4 million, alongside a narrowing of total expenses from $137.2 million, to $119.1 million.

However, this progress was somewhat jolted by the ‘volatile’ Russian economy, and in turn, the Company saw total profit for the period narrow from $96.6 million to $77.1 million on-year for the same period. Concurrently, basic and diluted EPS fell from 9.21 to 7.34 cents.

Elsewhere in the property sector; Schroder Real Estate Investment Trust (LON: SREI) adjusted its strategy, Land Securities Group plc (LON: LAND) posted underwhelming financial results, Shaftesbury plc (LON: SHB) booked robust leasing activity and Berkeley Group Holdings Ltd (LON: BKG) restated its confidence in the South-East market.

AFI Development comments

Eli Avrahampour, Chairman, offered the following response to the Company’s update,

“I report that, despite a slowdown in residential sales in the third quarter, we delivered another solid set of results for the first nine months of 2019.”

“The positive momentum in our revenues and gross profit is largely attributable to the recognition of residential pre-sales and the stable performance of the yielding portfolio.”

“Looking ahead, the pace of sales across our residential portfolio remains subject to volatile market conditions with continuing uncertainty around the outlook for the Russian economy and, in turn, its real estate sector.”

Investor notes

The Company’s shares dipped 0.68% or 0.002 USD to 0.29 USD per share 26/11/19 16:30 GMT. AFI Development’s p/e ratio is 0.10 and their dividend yield is currently unavailable. The Group’s market cap stands at $308.02 million.