STRONG CASH GENERATION AND FURTHER
STRENGTHENING OF FINANCIAL POSITION
FULL-YEAR TRADING RESULTS BEAT GUIDANCE FOR THE YEAR
(LONDON, January 23 2013) - PIK Group (LSE: PIK), one of Russia’s leading residential real estate developers, is pleased to publish today a trading update for the twelve months ended December 31, 2012 based upon management accounts.
12M2012 key operational highlights:
· On the back of a healthy housing market, PIK delivered a year of solid growth, exceeding management expectations and previous guidance to the market;
· Total gross cash collections grew by 29.6% to RUB67.5 billion (12M11: RUB52.0 billion);
- Cash collections from sales to individuals rose by 47.3% to RUB44.8 billion (12M11: RUB30.4 billion) driven by volume and sales price growth;
- Cash collections from construction services were up by 11.5% to RUB14.4 billion (12M11:RUB12.9 billion);
· PIK launched 49 new projects (12M11: 41) of which 36 were in the Moscow Metropolitan Area (MMA);
· New sales contracts to customers grew by 29.0% to 658,000 sq. meters (12M11: 510,000 sq. meters), driven by fundamental demand for affordable housing in Russia;
- In 4Q12 alone new sales contracts to customers reached 219,000 sq. meters, 31.1% higher than in the previous year and 29.6% higher than in 3Q12;
- In December 2012 alone, PIK sold over 118,000 sq. meters to its customers;
· Mortgage backed sales were stable during the year despite interest rate increases for individual mortgages in the range of 50-100bps;
- 4Q12 mortgage backed sales amounted to 29.2% of total sales;
· 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 RUB41.8 billion.
· Compared to December 31 2011, net debt decreased by RUB5.8billion and totaled RUB37.1 billion as of December 31 2012.
2013 Outlook
· Fundamentals for residential mass market housing remain strong. PIK provides the following annual guidance for 2013:
- Total new sales to customers between the range of 660,000-700,000 sq. meters, with total gross cash collections of RUB69-73billion.
Table 1- Cash collections summary (1)
(in RUB MM) |
|
4Q2011 |
12M2011 |
4Q2012 |
12M2012 |
Change, % (4Q12/4Q11) |
Change, % (FY12/FY11) |
|
|
|
|
|
|
|
|
TOTAL GROSS CASH COLLECTIONS (2) |
|
16,986 |
52,063 |
25,513 |
67,475 |
+50.2% |
+29.6% |
TOTAL NET CASH COLLECTIONS(3) |
|
16,471 |
47,876 |
25,141 |
66,691 |
+52.6% |
+39.3% |
including: |
|
|
|
|
|
|
|
Cash collections from residential real estate sales activities |
|
12,532 |
34,974 |
19,961 |
52,296 |
+59.3% |
+49.5% |
including: |
|
|
|
|
|
|
|
- Cash collections from retail real estate sales |
|
10,894 |
30,438 |
15,470 |
44,839 |
+42.0% |
+47.3% |
Cash collections from construction services activities and others |
|
3,939 |
12,902 |
5,180 |
14,395 |
+31.5% |
+11.5% |
Note:(1) In line with PIK’s accounting standards, these cash collections will be recognized as sales revenue once the residential real estate properties have been completed and third party acceptance acts (formal building certification provided by authorities) are received upon the completed unit
(2) Including offsets with suppliers
(3) Excluding offsets with suppliers
Source: Management accounts
Table 2 – New sales contracts to customers
000’ sq. meters |
1Q |
2Q |
3Q |
4Q |
|
YTD |
Change
4Q/3Q |
2012 |
128 |
142 |
169 |
219 |
|
658 |
+29.6% |
2011 |
81 |
148 |
114 |
167 |
|
510 |
+46.5% |
|
|
|
|
|
|
|
|
change, y-o-y, % |
58% |
-4% |
48% |
31% |
|
29.0% |
|
Note: including contracted retail and wholesales
Source: Management accounts
Table 3 – Pre-sales launches summary table
No. of buildings |
2011 |
2012 |
|
Change |
Number of projects launched on sales |
41 |
49 |
|
+8 |
Source: Management accounts
Table 4 – 12M2012 pre-sales launches detailed summary
Project |
Location |
Start of sales |
“Novoperedelkino” |
Moscow |
|
- bldg 9a |
|
June 2012 |
- bldg 13ab |
|
July 2012 |
“Chertanovsky” |
|
|
- bldg 4 |
|
November 2012 |
- bllg 40 (parking) |
|
November 2012 |
“Grand Kuskovo” |
Moscow |
|
- bldg 5 |
|
July 2012 |
- bldg 6 |
|
June 2012 |
- bldg 4 |
|
October 2012 |
- bldg 7 |
|
October 2012 |
“2nd Maryina Roscha str.” |
Moscow |
|
- bldg 1 |
|
December 2012 |
“Michurinsky” |
Moscow |
|
- bldg 20a |
|
July 2012 |
- bldg 21-22 |
|
October 2012 |
“Mironovsky” |
Moscow |
|
- bldg 1 |
|
November 2012 |
- bllg 2 |
|
December 2012 |
“Drozhino” |
Moscowregion |
|
- bldg 2 |
|
August 2012 |
- bldg 5-1 |
|
August 2012 |
- bldg 6 |
|
August 2012 |
Khimki, “Novokurkino” |
Moscow region |
|
- bldg 9 |
|
March 2012 |
- bldg 7 |
|
June 2012 |
- bldg 19 |
|
June 2012 |
- bldg 12 |
|
October 2012 |
Khimki,“Levoberegny” |
Moscowregion |
|
- bldg 8 |
|
August 2012 |
Mytischi “Yaroslavsky” |
Moscow region |
|
- bldg 22 |
|
March 2012 |
- bldg 23 |
|
March 2012 |
- bldg 38 |
|
June 2012 |
- bldg 40 |
|
June 2012 |
Lubertsy, “Krasnaya Gorka” |
Moscow region |
|
- bldg 7 |
|
February 2012 |
- bldg 37 |
|
February 2012 |
- bldg 9 |
|
June 2012 |
- bldg 53a |
|
September 2012 |
- bldg 53b |
|
September 2012 |
- bldg 39 |
|
December 2012 |
Pykhtino |
Moscow |
|
- bldg 24 |
|
March 2012 |
- bldg 25 |
|
March 2012 |
- bldg 26a |
|
March 2012 |
Lobnya |
Moscow region |
|
- bldg 6 |
|
December 2012 |
Zheleznodorogny |
Moscow region |
|
- bldg 313 |
|
December 2012 |
Kaluga |
Central Russia |
|
- Dmitrova str, bldg 2 |
|
October 2012 |
Novorossiysk |
Central Russia |
|
- mkr. 16, bldg 2 |
|
November 2012 |
N. Novgorod |
Central Russia |
|
- “Mescherskoe ozero”, bldg 1 |
|
September 2012 |
Rostov-on-Don |
Central Russia |
|
- “Nord”, bldg 1 |
|
October 2012 |
Obninsk |
Central Russia |
|
- mkr. 55, bldg 1a |
|
January 2012 |
- mkr. 55, bldg 1b |
|
April 2012 |
- mkr. 55, bldg 2b |
|
October 2012 |
Yaroslavl |
Central Russia |
|
- Krivova str. |
|
June 2012 |
- “Bragino”, bldg 5-5a |
|
April 2012 |
- “Bragino”, bldg 2 |
|
December 2012 |
- “Sokol”, bldg 5 |
|
July 2012 |
Perm |
Central Russia |
|
- “Griboedovsky”, bldg 31 |
|
May 2012 |
- “Griboedovsky”, bldg 29 |
|
December 2012 |
Source: Management accounts
Table 5 - Share of mortgage funded retail sales
000’ sqm |
|
1Q11 |
2Q11 |
3Q11 |
4Q11 |
1Q12 |
2Q12 |
3Q2012 |
4Q2012 |
|
|
|
|
|
|
|
|
|
|
Share of sales funded by mortgages (1) |
|
12.4% |
25.3% |
29.5% |
29.7% |
28.5% |
27.3% |
29.0% |
29.2% |
Note: (1) monthly averaged data based upon retail sales, calculated as per flats
Source: Management accounts
Table 6 - New sales contracts to retail customers (contracted retail volume)
New sales contracts to customers |
4Q2012 |
|
4Q2011 |
|
Change % |
|
12M2012 |
|
12M2011 |
|
Change % |
Value, apartments and ground floors (in RUB MM)(1) |
13,582 |
|
10,558 |
|
28,6% |
|
44,666 |
|
31,809 |
|
40,4% |
size (in thousand sqm)(2) |
154,480 |
|
135,222 |
|
14,2% |
|
531,459 |
|
395,503 |
|
34,4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: (1) unit is equivalent to aggregated amount of flats, ground floors and parking lots
(2) size is taken for flats and ground floors
Source: Management accounts
Enquiries:
PIK Group
Investors
Viktor Szalkay Tel: +7 495 505 97 33 ext. 1358 / 1315
Media
Natalia Ivanova Tel: +7 495 505 97 33 ext. 1010 /1014
Priscilla Garcia
Account Executive
Citigate Dewe Rogerson
3 London Wall Buildings
LondonWall
LondonEC2M 5SY
Tel: +44 (0)20 7282 1075
Mob: +44 (0)7714 306525
priscilla.garcia@citigatedr.co.uk
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