Raven Russia: Robust Performance And Financial Strength
Edison | Sep 01, 2016 01:18AM ET
Market conditions, echoing economic developments, show signs of stabilising and occupancy levels have held at 82% over the period, in line with our forecast. The company’s active leasing efforts, aimed at defending income and cash flow, have dealt with the majority of the 2016 lease maturities. Costs are being contained and the cash balance has remained strong even before July’s £109m issue of convertible preference shares. Raven Russia Ltd (LON:RUS) is well placed to navigate current market conditions and seize opportunities in an upturn.
Strategy on track in H116
H1 net operating income of $77.0m is only slightly down on the $78.7m of H215. Of the 228k sqm of 2016 maturities at 1 January, just 75k sqm remains to be dealt with, while occupancy has been maintained. Costs have fallen and FX movements were a positive $10.5m, limiting the decline in underlying PBT, $34.6m versus $39.9m in H115. Property revaluation generated only a small negative adjustment and adjusted NAV was stable at $0.70 versus year end. An interim distribution of 1p by way of a tender offer is proposed. The healthy half-year cash balance of $183m has been strengthened further by July’s £109m convertible preference issue, providing additional financial flexibility. Having entered the Russian economic and currency crisis in good shape, Raven’s cautious strategy, aimed at maximising cash flow and paying down debt, positions it well for a turn in the market.
To read the entire report Please click on the pdf File Below
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.