Etalon Group Limited (“Etalon Group” or “the Company”), one of Russia’s largest and longest-established development and construction companies, announces the updated valuation of its portfolio as of 31 December 2015, conducted by JLL.
The updated valuation shows the open market value of the Company's portfolio remained stable, at RUB 104,384 million on 31 December 2015, compared to valuation of RUB 104,286 million a year earlier. The open market value per share at year-end 2015 was RUB 357. Details of the updated valuation are available on the Company's website: www.etalongroup.com/investors/presentations.
The portfolio includes 581 thousand sqm of completed & available for sale property at projects that are completed or still underway, out of which completed & available for sale apartments account for 321 thousand sqm. JLL estimates potential income from sale of these properties at RUB 44,731 million and RUB 35,142 million, respectively.
Etalon Group President Viacheslav Zarenkov said:
“We significantly outperformed both our own and market expectations in terms of new sales in 2015, which contributed to the decline in unsold NSA from 3.11 million sqm to 2.72 million sqm. At the same time, we made good progress on all of our projects, which was reflected in the year-end 2015 portfolio valuation.
“Etalon Group consciously stayed on the sidelines with regards to new project acquisitions last year, in light of the complex macroeconomic situation. Now, with net debt/LTM EBITDA of just 0.6x* and robust cash collections, we continue to enjoy a very strong financial position; I believe this will enable us to take advantage of the current situation to acquire interesting projects on attractive terms, as we did after the crisis of 2008-2009.
“During 2015 we opened sales for two new projects: we launched Golden Star in Moscow, and 24% of the launched premises have already been sold in just three months, as well as Landyshi in St. Petersburg, with 56% of the launched premises already sold three months later.
“Looking ahead to 2016, I am confident in our ability to increase new sales by over 20% compared to 2015, driven by continued uplift from the new NSA brought to market last year, as well as further expansion and diversification of our sales portfolio with three completely new projects. We plan to launch two new projects in Moscow, and in St. Petersburg we will launch Galactica, the pearl of our portfolio in this city, with total planned NSA of 798 ths sqm on a 38-hectare land plot in a prestigious region near the city centre.”
* Net debt: as of 31 December 2015 (management accounts); LTM EBITDA: 1H 2015 + 2H 2014 EBITDA (IFRS Financial Statements)
This and other recent announcements are available on the Etalon Group website: www.etalongroup.com/investors/news/
Etalon Group IR Team
T: +44 20 8123 1328
T: +44 7554 993 032
T: +7 499 918 3134
About Etalon Group
Founded in 1987 by Viacheslav Zarenkov, Etalon Group has become one of Russia's largest development and construction corporations. The Company focuses on middle class residential real estate in the Moscow and St. Petersburg metropolitan areas, where it operates through Etalon Invest and LenSpetsSMU subsidiaries. With a 28-year history, Etalon Group has one of the longest and most successful track records in the Russian real estate industry.
Since its inception, Etalon Group has commissioned 5 million sqm. Etalon Group's CAGR for deliveries in 2010-2015 was 19%.
Etalon Group's strong reputation among consumers supports its pre-sales business model, which helps the Company to minimise external financing needs for on-going projects while maintaining a secure liquidity position: net debt as of 31 December 2014 was RUB 636 million.
The Company is vertically integrated, which helps it to control costs, quality and timing, as well as to demonstrate best-in-class profitability. Etalon Group employs over 5,000 people, and its nationwide sales and marketing network covers 36 Russian cities.
As of 31 December 2015, Etalon Group's portfolio comprised 28 projects, with a total of 2.72 million sqm of unsold net sellable area. JLL valued this portfolio at RUB 104,384 million.
For the year ended 31 December 2015, Etalon Group's new contract sales totalled 385 ths sqm, or RUB 35,080 million. Deliveries in 2015 totalled 502 ths sqm.
The Company recorded revenue of RUB 51.5 billion and EBITDA of RUB 10.6 billion, with an EBITDA margin of 21% for the year ended 31 December 2014.
Etalon Group Limited's GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011.