LSR Group Reports 3Q and 9M 2016 Operating Results
LSR Group (LSE: LSRG; MOEX: LSRG), one of the leading real estate developers and building materials producers in Russia, is publishing the operating results for the third quarter and the first nine months of 2016.
Highlights for the third quarter and the first nine months of 2016:
· 9M new contract sales reached 509 th m2 (+33% y/y). Value of the contracts was RUB 53.1bn (+51% y/y)
· 3Q new contract sales increased by 12% y/y in value and declined by 8% y/y in volume
· Average selling price grew by 22% y/y to RUB 107 th in 3Q
· In 9M, 507 th m2 of NSA was launched to the market
· The share of mortgage sales stood at 36% over the 9M and reached 42% in 3Q
· We reiterate our full year guidance for real estate development, construction and building materials
Yury Ilyin, CCO, comments:
In the first nine months of 2016 we managed to deliver robust results, which were supported by increasing housing affordability, favorable interest rate environment and strong interest to our newest large-scale residential projects. As a number one real estate developer in Russia, with one of the longest and reputable track records in the industry, we continue to capitalize on the ongoing market consolidation by expanding our sales' network and broadening our offering.
LSR Group's new financial strategy focuses on delivering predictable, sustainable growth of earnings over the long term. Within this strategy, since the beginning of the year our sales' functions have undergone a number of important changes. Centralization of sales, focus on direct sales channels' expansion and implementation of innovative pricing strategies allowed us to achieve better inventories management and maximization of margins.
We remain on track to meet our full year operating guidance and are committed to enhancing shareholder value through the constant upgrade of our sales force and project portfolio.
Full version of the press release is available in pdf-format.
Notes to editors:
PJSC LSR Group is one of the leading real estate developers in Russia. Its core business areas are real estate development, prefab construction and production of building materials. Its main operations are located in St. Petersburg, Moscow and Yekaterinburg. As of 31 December, 2015 (according to Knight Frank), the net sellable area of the projects in LSR Group's real estate portfolio is equal to 9.3mn m2 with the market value of RUB 136bn. In 2015, the sales revenue of LSR Group amounted to RUB 86.8bn. LSR Group is a public company, with its GDRs traded on LSE and its ordinary shares traded on MOEX.
For more information please contact:
Elena Trofimova, CFA, Head of Capital Markets and Investor Relations
Tel.: +7 (812) 326 93 03 ext. 6433
This information is provided by RNS