Mirland Development Corporation PLC Trading update (1470G)
February 27 2015 - 11:42AM
UK Regulatory
TIDMMLD
RNS Number : 1470G
Mirland Development Corporation PLC
27 February 2015
27 February 2015
MirLand Development Corporation plc
("MirLand" or the "Company")
Trading update
MirLand, one of Russia's leading residential and commercial
property developers, today announces a trading update for the 3
month period to December 31, 2014.
The Company's independent appraiser (Cushman and Wakefield) has
indicated that preliminary valuation of the Company's portfolio of
investment properties and investment properties under development
as of 31 December 2014 will record a decrease during the fourth
quarter of approximately US$162 million (Company's share). The
above mentioned decrease is on a non-cash basis and therefore will
not affect the Company's cash reserves.
As a result of this, Mirland expects the fourth quarter results
to be affected by an equity deduction of circa US$170 million and
an equity attributed to shareholders deduction of circa US$164
million. In addition, the Company expects the gross value of its
portfolio of properties to decrease from circa US$921 million
recorded at end-September 2014 to circa US$590 million (Company's
share) at the year end (31 December 2014).
The decrease in the value of the Company's projects and
investments has occurred due to the ongoing negative impact of the
Russian economy. In particular, Russia has seen a significant and
continued devaluation of the Rouble against the US dollar alongside
the continued negative effect of low oil prices and the recent
downgrades of the Russian Federation sovereign credit rating by
Standard & Poor's and Moody's. The outlook for Russia remains
both challenging and uncertain.
Despite the difficult market conditions, MirLand has maintained
a general positive operating performance in Rouble terms and has
seen a relatively high average occupancy of above 90% in its
yielding assets. In addition, sales at the Company's flagship
Triumph Park development have continued at a moderate pace, with 75
units sold in the first three days of sales of phase four.
The Company is continuing its discussions with the trustees of
the Series A-F bondholders to agree a restructuring of its debt and
will update the market in due course.
It should be noted that the figures presented in this update are
estimates based on preliminary data. The preparation of the
Company's financial statements is currently underway and remains
subject to a final review by the Company's auditor. The figures in
MirLand's final financial statements may differ from the
information stated above.
The Company intends to announce preliminary full year results
for the year to 31 December 2014 on Wednesday 18 March 2015.
MirLand Development Corporation plc
Nigel Wright, Chairman +7 495 787 49 62
Roman Rozental, Chief Executive +44 7909 915999
roman@mirland-development.com +7 499 130 31 09
FTI Consulting
Dido Laurimore / Nick Taylor / Ellie
Sweeney +44 20 3727 1000
Investec Bank plc
Jeremy Ellis / David Anderson +44 20 7597 4000
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTLLFVRFSIDFIE
Mirland (LSE:MLD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Mirland (LSE:MLD)
Historical Stock Chart
From Apr 2023 to Apr 2024