PIK Group revenue falls 11% in Q4 2013, to grow 2%-5% in 2014
MOSCOW. Jan 21 (Interfax) - Russian developer OJSC PIK Group saw total net cash collections fall 11.2% to 22.3 billion rubles in the fourth quarter of 2013 compared with the same period of 2012, the company said in a statement.
Cash collections from residential real estate sales fell 3.5% to 19.3 billion rubles, while revenue from retail real estate grew 19.1% to 18.4 billion rubles.
Cash collections from construction services fell 37.9% to 3.2 billion rubles. The company said this drop was caused by a shift in the revenue mix towards an increased share of its own development projects.
In Q4 2013, new sales contracts to customers fell 6.8% year-on-year in Q4 2013 to 204,000 square meters.
Total net cash collections for all of 2013 grew by 11.8% to 74.6 billion rubles. In 2014, the company intends to take in 76 billion-78 billion rubles, which is 1.8%-4.6% higher than last year's level.
"Despite taking a conservative view on any material pricing expansion in 2014, we expect the overall outlook for 2014 to be positive, driven by a continued growth in demand for affordable mass-market residential real estate in Russia," PIK Group President and CEO Pavel Poselenov was quoted as saying.
Cash collections from residential real estate sales activities grew by 20.4% to 63 billion rubles in 2013, including 59.3 billion rubles from retail sales, up 32.3%. Cash collections from construction services fell 19.3% to 11.6 billion rubles.
The company sold 677,000 square meters of real estate in 2013, up 2.9% from 2012. In 2014 the company plans to sell 690,000-710,000 square meters, a growth of 1.9%-4.8%.
The average price of PIK's real estate grew 17% in Moscow to 145,200 rubles per square meter, 21.5% in New Moscow to 94,000 rubles, 1.1% in the Moscow Region to 81,000 rubles and 7.7% in the regions to 47,800 rubles.
Mortgage backed sales increased significantly, reaching a share of 39.0% in 2013 compared to 28.5% in 2012, which was driven by a slight reduction in interest rates and an overall continuing expansion of the mortgage market in Russia.
In 2013, PIK increased the number of new projects it launched to 52 from 49 in 2012.
Net debt fell to 18.1 billion rubles from 38.1 billion rubles due to a stronger operating cash flow and SPO in 2013, the company said.
PIK is one of Russia's biggest developers. The company's IPO in 2006 was the largest in the history of European real estate ($1.85 billion). Declining demand on the real estate market amid the world economic crisis and the subsequent problems with debt servicing led to a plunge in the group's capitalization. In the spring of 2009, Suleiman Kerimov's Nafta Moskva bought into PIK capital with the acquisition of 25% of shares from company founders Yury Zhukov and Kirill Pisarev in exchange for held with debt restructuring. As of the end of 2011, Nafta had 38.3% of the stock.
In June 2013, PIK held an SPO for $330 million. In December, Kerimov sold his stake to Rosbuilding founder Sergey Gordeyev (19.9%) and Alexander Mamut (16.02%. The owner of B&N Bank Mikhail Shishkhanov owns 14.9% of the developer and VTB - 6.6%. The free float is 42.58%.
