Mirland posts losses of $63 mln in 2014 due to portfolio revaluation
MOSCOW. March 18 (Interfax) - Mirland Development Corporation plc posted net loss of $62.9 million in 2014 due to a revaluation of the company's real estate portfolio brought about by fewer dollar-denominated rent payments.
"The value of MirLand's portfolio (company's share) decreased by approximately 33.1% to $589.5 million as of December 31, 2014 (December 31, 2013: $880.7 million). Adjusted NAV, based on Cushman & Wakefield's valuation, was $164.6 million (December 31, 2013: $556.7 million), a decrease of 70.4%," the company said.
Rental income and fees from investment properties grew 18% to $56.5 million. The company maintained 98% occupancy at Saratov's Triumph Mall and the Vernissage mall in Yaroslavl. In addition, Mirland also had revenues from the second phase construction of Triumph Park in St. Petersburg.
Gross profit was unchanged from last year at around $39 million, while earnings before taxes, depreciation, and amortization (EBITDA) fell 8% to $22.9 million.
Operating profit grew 12% to $37.3 million.
Mirland CEO Roman Rozental is quoted in the statement as saying that the Russian real estate market was still prospective for the company. Rozental said he was certain that there might be signs of stabilization in the medium term.
Mirland Development Corporation is part of Israel's Fishman Group, which is controlled by businessman Eliezer Fishman and his wife Tove Fishman. The company implements commercial and housing construction projects in Russia.