Mirland Development Corporation’s total revenues increased by 95 per cent from USD23.8 million to USD46.3 million for the six months ended 30 June 2014.
The rise is due to the additional recognition of revenues from the Triumph Park project and full consolidation of the Vernissage Mall in Yaroslavl following the acquisition of its partner’s share providing Mirland with 100 per cent control over the asset.
Net operating income (NOI) from investment properties (company's share) is up 28 per cent for the period to USD19.9 million (30 June 2013: USD15.6 million), while gross profit increased 58 per cent to USD21.0 million (30 June 2013: USD13.3 million).
Net profit totalled USD0.3 million (30 June 2013: USD4.0 million) due to net foreign exchange losses of approximately USD5.3 million, which were offset by increased operational profitability, recognition of revenues in residential projects, fair value adjustments of investment properties and gain from the acquisition of the remaining 49.5 per cent share in Vernissage Mall.
Total assets increased 15 per cent to USD1,031.7 million, of which 89 per cent are property and land assets, surpassing USD1 billion for the first time (31 December 2013: USD893.2 million), while total equity of USD326.6 million (31 December 2013: USD331.7 million), equating to 32 per cent of total assets.
Nigel Wright, chairman, says: “We have made excellent operational progress and we are particularly pleased to have dramatically increased both revenues and gross profit despite an uncertain economic environment in Russia. Our net profit was down on the previous period, however our strong operational profitability partially offset the effect of a net foreign exchange loss.
“Our investment and development portfolios continue to perform well. We continue to achieve high occupancy rates across our commercial portfolio and higher sales prices at our Triumph Park development in St. Petersburg. Consumer confidence in Russia remains high and we are confident that we will continue to achieve strong sales at Triumph Park.
“The Russian economy remains challenging and the situation in the Ukraine remains unresolved, whilst a weakening Rouble has the potential to have a further impact despite the continued excellent performance of the underlying business. However, we continue to monitor the situation and our three new refinancings during the period have been agreed on attractive terms, ensuring that we remain strongly positioned to generate further value for shareholders.”