The Group has recently purchased properties which they hope will boost H2 numbers.
Companies: Raven Property Group Limited
Raven Russia (LON: RUS) has released its half-year report this morning, which outlines a 9% YoY fall in Net Operating Income (NOI) resulting from a continued decline in rents in their commercial properties across Russia. Underlying operating profits also declined to $61m from $75m in H1 16 due to much lower currency gains.
These figures were offset, however, with an initial $3m NOI contribution from three properties acquired in St Petersburg in April this year, with increased interest from prospective tenants also expected to favorably impact H2 results, according to Singers note today.
Management today said that they have...
"Declared an interim shareholder distribution of the equivalent of 1p per share to be effected by a tender offer buyback of 1 share for 52 at 52p. This is double the amount distributed this time last year."
The Group has emphasized its cash balance of $237 in which they are using to " actively pursue the acquisition of income producing assets", giving them "plenty of fire power to invest further", CEO Glyn Hirsch said.
Shares are trading up around 3% after the announcement today.
Equity developments also released a note commenting on the H1 17 results and portfolio change, with their estimates saying:
"Total group NOI should hold up pretty well because of a better performance for Roslogistics, but, as we assume zero revenue from forex in the second half of this year, we expect a fall of about 10% at the pre-interest level which, with higher tax and Conv Pref costs, converts to a bigger fall this year at the net level, stabilising in 2018 and 2019."
Raven Russia's market cap is currently £312m, trading a 9x PE ratio versus an industry median of 14x. CAGR for the Group's revenue is fairly static at 3.7%, whilst profit margins have been very wavey.
Due to the nature of the business IFRS earnings can show a very different picture to the operating figures, as was the case in 2015 when the value of properties in their portfolio fell significantly whilst operating figures were healthy.