THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS RESTRICTED AND
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INDIRECTLY IN THE UNITED STATES OF AMERICA
PIK GROUP ("The Group" or "PIK")
PIK ENDS 2011 WITH GROWING SALES IN THE FINAL QUARTER 2011 AND PROVIDES GUIDANCE FOR 2012
(LONDON, January 23 2012) - PIK Group (LSE: PIK), one of Russia's leading residential real estate developers, is pleased to publish today a trading update for twelve months ended December 31, 2011 based upon management accounts.
2011 Key (NYSE: KEY - news) highlights:
· Total (Other OTC: TTFNF.PK - news) gross cash collections increased by over 30% to RUB52.1billion (FY10: RUB 39.9 billion)
· Cash collections from sale of apartments surged 49.5% to RUB34.9billion (FY10: RUB23.4billion) driven mainly by higher volume sales
· Cash collections from construction services remained stable at RUB12.9billion (FY10:RUB12.3billion)
· New sales contracts to customers showed growth to 510,000 sq. meters due to wider range of available projects by PIK
· PIK launched 41 new projects (FY10: 25) of which 26 in its core Moscow Metropolitan Area (MMA)
· 4Q11 sales figures showed a 30% year-on-year increase, reinforcing management's confidence that growth in PIK's segment of the market is intact and based upon solid and sustainable fundamentals
· 4Q11 mortgage backed sales continued to grow, consolidating at approximately 30% of total sales
2012 Outlook:
· FY2012 guidance on new sales contracts to customers is range of 600-650,000 sq. meters, with total gross cash collections of RUB62-67billion.
Cash collections summary (1)
|
(in RUB MM) |
|
FY2011 |
FY2010 |
Change, % |
4Q2011 |
4Q2010 |
Change, % |
|
|
|
|
|
|
|
|
|
|
TOTAL GROSS CASH COLLECTIONS (2) |
|
52,063 |
39,897 |
30.5% |
16,986 |
13,316 |
27.6% |
|
TOTAL NET CASH COLLECTIONS(3) |
|
47,876 |
35,708 |
34.1% |
16,471 |
11,545 |
42.7% |
|
including: |
|
|
|
|
|
|
|
|
Cash collections from residential real estate sales activities |
|
34,974 |
23,394 |
49.5% |
12,532 |
8,942 |
40.2% |
|
Including: |
|
|
|
|
|
|
|
|
- Cash collections from retail real estate sales
|
|
30,438 |
16,675 |
82.5% |
10,894 |
6,282 |
73.4% |
|
Cash collections from construction services activities and others |
|
12,902 |
12,314 |
4.8% |
3,939 |
2,603 |
51.3% |
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
Total gross cash collections reached RUB52.1billion, up by 30.5% year-on-year. Cash collections from sale of apartments reached RUB34.9billion, of which 87% were retail cash collections from customers.
2011 pre-sales launches summary
|
Project |
Location |
Start of sales |
|
South Chertanovo, mcr.17, 18 |
Moscow |
|
|
"Chertanovsky", bldg. 40A |
|
February 2011 |
|
"Chertanovsky", bldg. 40B (parking) |
July 2011 |
|
|
"Chertanovsky", bldg. 40 |
|
September 2011 |
|
"Chertanovsky", 2 (parking) |
|
October 2011 |
|
Mytnaya (English Town) |
Moscow |
|
|
parking |
|
September 2011 |
|
Khimki, 'Novokurkino' |
Moscow region |
|
|
- bldg 10 |
|
April 2011 |
|
- bldg 11 |
|
April 2011 |
|
- 4G (parking) |
|
June 2011 |
|
- bldg 8 |
|
July 2011 |
|
- bldg 11a |
|
|
|
Khimki, 'Levoberezhny' |
Moscow region |
|
|
- bldg 18 |
|
April 2011 |
|
- bldg 2 |
|
March 2011 |
|
- bldg 5 |
|
October 2011 |
|
Khimki, 'Sovhoznaya' |
Moscow region |
|
|
- bldg 3 |
|
July 2011 |
|
Khimki, 'Yubileiniy' |
Moscow region |
|
|
- bldg 8a |
|
February 2011 |
|
- bldg 10 |
|
July 2011 |
|
Mytischi 'Yaroslavsky' |
Moscow region |
|
|
- bldg 13 |
|
February 2011 |
|
- bldg 14 |
|
February 2011 |
|
- 64 (parking) |
|
June 2011 |
|
- bldg 8 |
|
September 2011 |
|
Lubertsy |
Moscow region |
|
|
- bldg 43 |
|
October 2011 |
|
- bldg 44 |
|
October 2011 |
|
Dmitrov |
Moscow region |
|
|
- bldg 4 |
|
October 2011 |
|
Pykhtino |
Moscow region |
|
|
- bldg 23 |
|
November 2011 |
|
- bldg 26 |
|
November 2011 |
|
Scherbinka |
Moscow region |
|
|
- bldg 10 |
|
November 2011 |
|
Obninsk |
Central Russia |
|
|
- mkr. 38, bldg 5 |
|
January 2011 |
|
- mkr. 55, bldg 2A |
|
March 2011 |
|
- mkr. 38, bldg 9 |
|
September 2011 |
|
- mkr. 38, bldg 6 |
|
November 2011 |
|
Kaluga |
Central Russia |
|
|
- Gen. Popova st. |
|
October 2011 |
|
Perm |
Central Russia |
|
|
- Industrial (Mexico: ST2000.MX - news) dst., Mira st., bldg 136 |
|
August 2011 |
|
- Industrial dst., Mira st. bldg 136/1 |
|
August 2011 |
|
- Iva dst., 4 |
|
October 2011 |
|
Yaroslavl |
Central Russia |
|
|
- microdst. 7a, bldg 7 |
|
August 2011 |
|
- microdst. Sokol, bldg. 11 |
|
December 2011 |
|
Kaliningrad 'Selma-2' |
Western Russia |
|
|
- bldg 11 |
|
January 2011 |
|
Rostov-on-Don |
Southern Russia |
|
|
- Grecheskogo str. |
|
March 2011 |
|
- Orbitalnaya str., Nord |
|
April 2011 |
|
- Ulyanovskaya st., 44/10 |
|
December 2011 |
|
Novorossiysk, micr. 15 |
Southern Russia |
|
|
- bldg 7 |
|
September 2011 |
Source: Management accounts
New launches totaled 41 buildings for 2011, up by 64% compared to the previous year, with 26 launches in the MMA (2010: 25 new launches were made of which 19 were in the MMA). The split of new launched clearly illustrates recovery in Russia's regions.
New sales contracts to customers (1)
|
000' sqm |
1H |
2H |
FY |
|
4Q |
|
2010 |
159 |
233 |
392 |
|
128 |
|
2011 |
229 |
281 |
510 |
|
167 |
|
Change, % |
|
|
30,1% |
|
30,5% |
Note: (1) including contracted retail and wholesales and others
Source: Management accounts
Total new sales to customers reached 510,000 sq meters, representing 30.1% year-on-year growth. 81.1% of new sales to customers came through MMA.
Seasonally the final quarter of the year was as usual the strongest, with new sales rising to167,000 sq. meters, up by 30.5% compared to the corresponding period of last year (4Q10: 128,000 sq. meters).
Share of mortgage funded retail sales
|
000' sqm |
|
1Q10 |
2Q10 |
3Q10 |
4Q10 |
1Q11 |
2Q11 |
3Q11 |
4Q11 |
|
|
|
|
|
|
|
|
|
|
|
|
Share of sales funded by mortgages (1) |
|
3.1% |
6.4% |
9.3% |
7.5% |
12.4% |
25.3% |
29.5% |
29.7% |
Note: (1) based upon retail sales, calculated as per flats
Source: Management accounts
Following early 2011 PIK initiatives to extend the availability of different type of mortgages on all development projects, the share of mortgage driven sales reached a sustainable level at around 30% of total and consolidated in that territory during 3Q-4Q11. In addition to the above, in December alone, PIK enjoyed the same level of mortgages sales as it had in all previous months, showing strong consumer confidence and macroeconomic stability.
New sales contracts with individuals
|
New unit sales contracts with individuals* |
FY2011 |
|
FY2010 |
|
Change,% |
|
4Q2011 |
|
4Q2010 |
|
Change, % |
|
Value (in RUB MM)* |
31,809 |
|
18,158 |
|
75.2% |
|
10,558 |
|
6,091 |
|
73.3% |
|
size (in sqm)** |
395,503 |
|
240,212 |
|
64.6% |
|
135,222 |
|
76,907 |
|
75.8% |
Note:* unit is equivalent to aggregated amount of flats, ground floors and parking lots
Source: Management accounts
** size is taken for flats and ground floors only
New sales contracts showed a 64.6% year-on-year increase in 2011. This advance in volumes was driven by the large number of new launches of affordable housing projects across all cities in Russia, coupled with more affordable mortgages and sustainable consumer confidence.
Average PIK property price dynamics(1)
|
Average property prices(2) (in '000 RUB per square meter) |
FY2011 |
FY2010 |
Change, % |
|
Moscow |
143.1 |
113.8 |
25.7% |
|
Moscow(excl. business-class) (3) |
115.1 |
103.7 |
11.0% |
|
Moscow region |
71.6 |
64.1 |
11.7% |
|
Other regions |
39.5 |
36.4 |
8.5% |
Note: (1) PIK is preselling properties at different stages of construction. Selling prices vary depending on geographic location, size, floor location, stage of construction. Accordingly, average prices per square meters represent blended average price calculations of the above.
(2) Calculated for property under construction on contracts with retail customers
(3) I.e. English Town project, which was launched in 4Q2010
Source: Management accounts
In FY2011 compared to FY2010, PIK's realized real estate prices in Moscow were up by 25.7%, excluding business-class projects (i.e. English Town) they showed 11% growth. At the same time, prices in Moscow region and other regions increased by 11.7% and 8.5%.
Enquiries:
Investors
PIK Group Tel: +7 495 505 97 33 ext. 1358 / 1315
Viktor Szalkay
Media (Frankfurt: 725292 - news)
Natalia Ivanova Tel: +7 495 505 97 33 ext. 1010 /1014
Citigate Dewe Rogerson Tel: +44 20 7638 9571
Tom Baldock
Priscilla Garcia
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