LSR Group, one of the leading real estate developers and building materials producers in Russia (LSE: LSRG, MICEX, RTS: LSRG), today announces its sales results for the 9 months of 2008.
REAL ESTATE DEVELOPMENT AND CONSTRUCTION
|
Elite Residential Real Estate |
9m 2007
YTD |
9m 2008
YTD |
Change, % |
|
Completed |
|
|
|
|
net sellable area (th m2) |
6 |
11 |
73% |
|
New contract sales |
|
|
|
|
net sellable area (th m2) |
13 |
26 |
111% |
|
Transferred to customers |
|
|
|
|
net sellable area (th m2) |
30 |
14 |
-52% |
|
|
|
|
|
|
Mass Market Residential Real Estate |
9m 2007
YTD |
9m 2008
YTD |
Change, % |
|
Completed |
|
|
|
|
net sellable area (th m2) |
30 |
31 |
4% |
|
New contract sales |
|
|
|
|
net sellable area (th m2) |
84 |
137 |
62% |
|
Transferred to customers |
|
|
|
|
net sellable area (th m2) |
105 |
63 |
-40% |
|
|
|
|
|
|
Prefabricated Panel Construction |
9m 2007
YTD |
9m 2008
YTD |
Change, % |
|
Completed and transferred to customers (th m2) |
223 |
335 |
50% |
|
Sales of panels for panel housing construction (th m3) from 1 April 2008 |
|
50 |
|
Elite Residential Real Estate
In the 9 months of 2008 LSR Group signed the new sales contracts with the buyers for 26 th m2 of net sellable area worth US$ 278m, 158% more than in the 9 months of 2007, in elite residential houses in St Petersburg.
In the 1st quarter of 2008 the company completed the development of the second and third phases of elite residential complex &ldquoDom u Morya&rdquo (&ldquoSeaside House&rdquo) of net sellable area of 11 th m2.
Mass Market Residential Real Estate
In the 9 months of 2008 LSR Group signed the new sales contracts with the buyers for 137 th m2 of net sellable area (including 8 th m2 in Yekaterinburg by the development company ZAO Nova Stroy acquired by LSR Group and consolidated starting from 1 September 2008) worth US$ 434m, 132% more than in the 9 months of 2007, in mass market residential houses.
63 th m2 of net sellable area in the completed projects were transferred to the customers (including 7.4 th m2 in Yekaterinburg by the development company ZAO Nova Story acquired by LSR Group and consolidated starting from 1 September 2008). The decrease of the volumes transferred to customers against the previous year was determined by the construction schedule.
In the 3rd quarter of 2008 the company completed the development of the fifth phase of mass market residential complex &ldquoPulkovsky Posad&rdquoof net sellable area of 17 th m2 in St Petersburg and the two residential houses in Yekaterinburg of net sellable area of 13.6 th m2.
Commercial Real Estate
The occupancy rates of LSR Group&rsquos three operating office centres Apollo, Gelios and Litera remained unchanged throughout the 9 months of 2008 and stood at 99%.
In the 3rd quarter of 2008 the company completed the development of the three new office buildings of 10.6 th m2 total net lettablearea. All the three building are the part of &ldquoParadny Quarter&rdquo project. LSR Group sold out one of the buildings of 3.6 th m2 of net lettable area. The amount of the deal has not been disclosed.
Gated Communities and Moscow Real Estate Business Units
In the 9 months of 2008 LSR Group Gated Communities and Moscow Real Estate Business Units signed new contracts with the buyers for sales of real estate worth US$33m.
Prefabricated Panel Construction
BUILDING MATERIALS, AGGREGATES AND CONSTRUCTION SERVICES
|
Product |
9m 2007
YTD |
9m 2008
YTD |
Change, % |
|
Reinforced concrete (th m3) |
420 |
494 |
18% |
|
Ready-mix concrete (th m3) |
1, 229 |
1, 198 |
-3% |
|
Bricks(mn units) |
218 |
215 |
-2% |
|
Aerated concrete (th m3) |
438 |
742 |
69% |
|
Sand(th m3) |
9, 779 |
13, 470 |
38% |
|
Crushed granite (th m3) |
3, 080 |
4, 072 |
32% |
Building Materials
In the 9 months of 2008 LSR Group sold 494 th m3 of reinforced concrete products (including 57 th m3 sold in Yekaterinburg) which is 18% more than in the 9 months of 2007. For aerated concrete the quantity sold was 742 th m3 (incliding 63 th m3 sold in Yekaterinburg), 69% increase against the 9 months of 2007. The increase of sales was driven by high demand, acquisition of the production assets in Yekaterinburg in April 2008 and extra sales via distribution contracts (including those in Ukraine) where LSR Group acted as a dealer of the 3rd party product. The sales volume of 3rd party aerated concrete was 184 th m3 in the 9 months of 2008 (included in the data in the table above).
The sales volume of the ready-mix concrete was 1,198 th m, 3 % less than in the 9 months of 2007. The decrease of sales was mainly driven by the decline of demand in Moscow in 3rd quarter of 2008.
The sales volume of bricks was 215 mn units which is 2% less than in the 9 months 2007. The decrease of sales of bricks occurred in the 3rd quarter of 2008 and was driven by the delays of the start of the number of new construction projects in residential and commercial real estate segments in St Petersburg and Moscow.
Aggregates
In the 9 months of 2009 LSR Group sold 13.5 mn m3 of sand which is 38% more than in the 9 months of 2007 and over 4 mn m3 of crushed granite which is 32% more than in the 9 months of 2007.
The growth of sales was driven by high demand in infrastructure sector and the increase of production capacity: the Sand BU increased capacity by modernization and addition of the equipment to the quarries and started the extraction works in two new deposits the Crushed Granite BU put into operation the new mobile crushing plant with annual capacity of 600 th m3, the new crushed granite deposit and opened the extra storage and distribution facilities in St Petersburg. Also in August 2008 LSR Group consolidated control over the crushed granite producer in Yekaterinburg which sold 43 th m3 of crushed granite from 1 August to 30 September.
Construction Services
LSR Group increased its sales volume in the construction services segment. The volume of tower cranes services provided in the 9 months of 2008 grew by 20% compared to the same period last year.
______________________________________________________________________
Notes:
1.The sales volumes in this press release has been rounded to the nearest thousand while percentage changes in them has been calculated using data in units.
2.LSR Group&rsquos functional currency is the Russian Rouble. The financial data in this press-release has been convertered into the US Dollars at the average RUR/US$ exchange rate for 9 months 2008, which is 24.0419.
3.The sales volumes in Yekaterinburg are included in the tables above starting from the month in which LSR Group consolidated control over the acquired business units in Yekaterinburg in 2008 namely:
- panels for panel housing construction, reinforced concrete products, ready-mix concrete , aerated
concrete: starting from 1 April 2008
-crushed granite: starting from 1 August 2008
-real estate development: starting from 1 September 2008.
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