AFI Properties, the parent company of AFI Europe, has published its financial reports for Q1 2014, registering total income amounting to €48 million. AFI Properties also announced an increase of 8 percent in the company’s net operating income (NOI) in comparison to Q1, 2013, which totalled €19 million.
The total leasable area of the assets based on the proportionate share of AFI Properties increased to 544,000 sqm. The company’s equity totalled €567 million as of March 31, 2014.
AFI Properties, through its fully owned subsidiary AFI Europe, operates in 7 countries in Central Eastern Europe (CEE) including Czech Republic, Serbia, Germany and Poland. During the last several months AFI Europe has concluded several significant deals in Romania, Poland and Bulgaria.
AFI Palace Cotroceni shopping mall in Bucharest, Romania, the company’s largest and most important asset continues to show improvement in its performance. The shopping mall’s net operating income for Q1, 2014 totalled €7.3 million which represent an increase of 6.7 percent compared to Q1, 2013. Based on Q1 results, NOI for 2014 is assumed to pass €29 million.
In addition, AFI Palace Cotroceni, showed an increase in shoppers’ footfall (visitors to the mall) to an average of 55,000 visitors per day in Q1 2014. Current occupancy increased to over 98 percent.
The value of AFI Palace Cotroceni is €375 million as of 30.09.2013.
AFI Palace Ploiesti, shopping mall in Ploiesti increased its value during the last couple of months by additional €6.2 million to a value of €64.2 million. Shoppers’ footfall remains stable at 15,000 visitors per day. Current occupancy was increased in April to 99 percent. Recently, the project has inaugurated the Cinema City and entertainment complex, which enhances the entertainment activities offered in the centre.
On the office segment, AFI Europe Romania has officially inaugurated on April 15 AFI Park 2 which 100 percent of its office space is leased. The building was delivered on the exact hand-over date and commenced operations. The first office building AFI Park 1, with 12,250 sqm of leasable area, is 100 percent leased while AFI Park 3, which is due to be delivered in December 2014, is already 40 percent pre-leased to UK held IT company Endava Romania.
“AFI Europe Romania is continuing to show improvement in the financial results. Following the inauguration of AFI Palace Ploiesti and AFI Park 2, AFI Europe Romania portfolio of income producing assets has grown significantly to more than 135,000 sqm of gross leasable area with an average occupancy rate in all assets of 97 percent and an NOI in 2013 of more than €31 million. We plan to continue our momentum of developments with additional office buildings and shopping malls,” said David Hay, CEO AFI Europe Romania.
AFI Europe Romania is continuing its strategy of building a strong cash flow and is now focusing on the development of additional retail projects – AFI Palace B.Noi a shopping mall to be constructed in Bucharesti Noi, a retail park in Arad AFI Palace Arad and a new office project AFI Business Park located in Bucharest on Progresului Boulevard.