AFI Properties, the parent company of AFI Europe, has published its financial reports, registering a sharp increase in profit in the first 9 months of 2014 to €55.4 million compared to €26.5 million first 9 months of 2013. AFI Properties also announced a net operating income (NOI) of €59.8 million for the first 9 months of 2014 representing an increase of 12 percent in comparison first 9 months of 2013, and a NOI of €20.4 million for Q3 2014, an increase of 12 percent in comparison to Q3 2013.
On November 6th AFI Europe has completed the sale of AFI Palace Pardubice shopping mall in the Czech Republic (which was opened in November 2008) for €83 million, resulting in a 28 percent yearly IRR and a cash flow of €22 million.
During Q3, AFI Properties board of directors has distributed dividends of €16 million. This has been the first dividend distribution since 2006. Dividends distribution enables all shareholders to gain income and share the company’s success.
Total income of AFI Properties for the first 9 months of 2014 summed up to €128.5 million.
The total leasable area of the assets based on the proportionate share of AFI Properties is 549,000 sqm. The company’s equity totaled €599 million as of September 30, 2014.
AFI Palace Cotroceni shopping mall in Bucharest, the company’s largest and most important asset continues to show improvement in its performance. The shopping mall was valued as of September 30, 2014 at €401 million, representing an increase of 7 percent compared to last year.
The shopping mall’s net operating income (NOI) totaled €7.4 million for Q3 and a total of €22 million for the first 9 months of 2014, representing an increase of 4 percent compared to the same periods in 2013. Based on first 9 months results, NOI for 2014 is assumed to total close to €30 million.
AFI’s retailer’s sales (Turn-Over) excluding the hypermarket increased by 4.3 percent in Q3, 2014 and a total increase of 3.7 percent during the first 9 months of 2014 compared to the same periods last year. In addition, AFI Palace Cotroceni showed stable results in shoppers’ footfall (visitors to the mall) with an average of 52,000 visitors per day during the first 9 months of 2014 and prior to the 4th quarter footfall results. Current occupancy rate is over 98 percent.
AFI Palace Ploiesti was valued at €66 million as of September 30, 2014, as opposed to €56.5 last year. AFI Palace Ploiesti shoppers’ footfall (visitors to the mall) remains stable at 15,000 visitors per day. Current occupancy of the shopping mall in Ploiesti remains 99 percent.
“AFI Europe Romania is continuing to show improvement in the financial results. The value of our income generating assets, projects under construction and lands bank has grown significantly to €670 million with an average occupancy rate in the income generating assets of 98 percent and a NOI of more than €27 million for the first nine months of 2014. We plan to continue this momentum of development with new office buildings and new shopping malls to be developed in the near future,” said David Hay, CEO AFI Europe Romania.
On the office segment, AFI Park 1 was valued at €28 million, AFI Park 2 was valued at €27.5 million. Currently 3 buildings are under construction including AFI Park 3 which is planned to be completed and handed over to its tenants in December 2014 and AFI 4&5 which are planned to be completed in Q4, 2015.