MirLand returns to full-year profit following strong residential sales
MirLand Development Corporation has reported a net profit of USD6.2m for the 12 months ended 31 December 2013, following a loss of USD42.3m the previous year.
Gross profit is up 542 per cent to USD39.8m (31 December 2012: USD6.2m).
The company’s improved financial performance is due to increased operational profitability, a decrease in general and administrative expenses, recognition of revenues in residential projects and fair value adjustments of investment properties.
Total revenues for the year are up 147.1 per cent to USD103.8m (31 December 2012: USD42.0m) due to the first time partial recognition of revenues from the Triumph Park residential project, 99 per cent occupancy across the investment portfolio and the positive impact of rental indexation.
Total equity increased by 4.5 per cent over the year to USD331.7m (31 December 2012: USD317.3m), equating to 39 per cent of total assets, while net leverage remained low at 41.9 per cent of total assets (31 December 2012: 40.9 per cent).
Nigel Wright, chairman, says: “2013 was a landmark year for MirLand, as the company returned to strong profitability. This was driven by the first recognition of profits from our flagship residential development scheme, Triumph Park in St. Petersburg, where we have achieved excellent sales levels and in the autumn delivered the first finished units from Phase I. Sales have continued at a good rate, and we expect the next phases of the scheme to generate high levels of income over the coming years.
“Our commercial investment portfolio, under the management of our specialist in-house team, has also continued to perform strongly, with very high occupancy rates and good income growth during the year.
“MirLand is now strongly positioned financially and operationally to capitalise on an excellent set of results, and, with a high quality portfolio of assets and a pipeline of development projects in place, I am confident that we will continue to generate value on behalf of our shareholders as we move forward.”
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