AFI Europe Romania published the company’s financial results for the first 6 months (H1) of 2018. According to the data, the net operational income (NOI) from income generating properties reached €27 million, registering an increase of 9 percent compared to the first 6 months of the last year (from €24.7 million).
AFI Cotroceni, the largest and most successful shopping mall in Romania, reported a net operational income of €18.1 million, 8.2 percent higher than in H1 2017. The number of the mall’s daily visitors also registered a 9 percent increase. Retailers’ sales increased to €120 million, at a 7.5 percent rate higher than the same period in 2017.
AFI Cotroceni’s market value as of June 30, 2018 was €545.5 million, 9 percent higher than the valuation registered in 2017. The shopping mall occupancy’s rate is 98 percent out of the 90,000 sqm gross leasable area (GLA), hosting some of the largest retail units in the region for retailers such as Zara or P&C.
After another successful year, AFI Ploiești shopping mall, with a GLA of 34,000 sqm, generated a net operational income of €2.4 million in H1 2018, while retailers’ sales increased by 10 percent, reaching €29 million in the first half of this year. With a 99 percent occupancy rate, consistent to the results registered in the same period of last year. The shopping mall reported an increase of footfall by 2.5 percent compared to the same period of last year. According to the valuation report as of 30 June 2018, the market value of the shopping mall is €68.5 million.
Comprising five office buildings in the proximity of AFI Cotroceni, AFI Park 1-5, with a GLA of 70,000 sqm, had a net operational income of €6.5 million, registering an increase of 11 percent compared to H1 2017. Having an occupancy rate of 100 percent, the total market value of the office complex reached €175 million, increasing by 6 percent compared to last year.
“I’m happy to announce that the overall value of the company’s portfolio in Romania is 11 percent higher than in 2017, reaching €818 million. We continue to expand our project’s pipeline by new acquisitions, such as the land plot near AFI Cotroceni and AFI Park, as well as developing our existing land bank with projects like AFI Tech Park and AFI City in Bucharest or throughout the country, like the development of AFI Brașov. We are constantly improving the performance of our yielding properties and look for new growth opportunities to establish our strong market position,” said Doron Klein, CEO AFI Europe Romania.
AFI Tech Park, a new contributor of value to AFI Europe Romania assets, will open its first building, AFI Tech Park 1, in H2 2018. AFI Tech Park already has an occupancy rate of 50 percent, with leading companies in a variety of sectors deciding to relocate their business in the centre of the city. With a 22,000 sqm GLA, the first office building is LEED Platinum pre-certified, and will include gyms, cafeterias and a membership card that offers a wide range of discounts to employees working here. The market value for AFI Tech Park 1 which was completed in June is €29 million.
AFI Brașov, the mixed retail and office project, will be opened in 2019, having an 85 percent occupancy rate. The shopping mall will provide a total 45,000 sqm GLA, with 200 retail units, and two Class A office buildings, with a total 25,000 sqm GLA, which will be integrated in the project.
AFI City, the company’s first residential project in Romania, saw the beginning of construction works earlier this year, and the first phase is scheduled to be finalized in mid-2019. Therefore, the first 190 apartments will be ready in within a year, marking the company’s presence on the local residential market.