Russian residential property company PIK Group said its full-year results will beat guidance, and hiked its forecast for total cash collections in 2013.
"On the back of a healthy housing market, PIK delivered a year of solid growth, exceeding management expectations and previous guidance to the market," it said in a trading update.
Total gross cash collections grew 29.6% to 67.5 billion rubles.
Cash collections from sales to individuals rose 47.3% to 44.8 billion rubles. Cash collections from construction services rose 11.5% to 14.4 billion rubles.
PIK said during the year it launched 49 new projects, of which 36 were in the Moscow Metropolitan Area.
New sales contracts to customers rose 29.0% to 658,000 sq. metres, driven by fundamental demand for affordable housing in Russia.
The company said the average selling prices in 2012 increased by 10% in Moscow and 12% in Moscow region and other regions, significantly higher than Russia's inflation.
"Overall, as a result of the above strong drivers of growth, PIK made a significant step towards deleveraging its balance sheet through cutting its debt burden down to 41.8 billion rubles."
PIK Group's net debt reduced by 5.8billion rubles to 37.1 billion rubles at Dec. 31, 2012.
Looking ahead, the company said the fundamentals for residential mass market housing remained strong.
In 2013, it expects total new sales to customers between the range of 660,000-700,000 sq. meters, with total gross cash collections of 69-73 billion rubles.