Russian property developer Mirland Development Corporation saw pre-tax losses narrow to $16.4 mln (EUR 11 mln) for the first nine months of 2009, compared to a loss of $37.1 mln in the same period a year before. Rental income dropped by 18% year-on-year to $11.1 mln in the first nine months of 2009, from $13.5 mln registered in the same period a year before. The reduction was largely attributable to a decrease in occupancy levels and rents, Mirland said.
Russian property developer Mirland Development Corporation saw pre-tax losses narrow to $16.4 mln (EUR 11 mln) for the first nine months of 2009, compared to a loss of $37.1 mln in the same period a year before. Rental income dropped by 18% year-on-year to $11.1 mln in the first nine months of 2009, from $13.5 mln registered in the same period a year before. The reduction was largely attributable to a decrease in occupancy levels and rents, Mirland said.
The company, with a loan-to-value ratio of 38%, said that its total debt rose to $226.7 mln at end-September 2009, from $151 mln at year-end 2008. The increase is mostly attributable to the loan for the Triumph Mall in Saratov and shareholder loans received which are enabling the company to continue to develop its key portfolio assets. Mirland, with a total portfolio of $590 mln, said that construction of the Triumph Mall in Saratov is 'on track to be completed during the first quarter of 2010', with pre-leases and commercial term sheets having been signed for 82% of its lettable area.
Additionally, Mirland said it has appointed Roman Rozental, currently CFO of the company, to the position of Chief Executive Officer, effective from 1 January 2011. He will succeed the current CEO, Moshe Morag, who is retiring on 31 December 2010.
'Whilst we saw some improvement in macroeconomic indicators in Russia during the reporting period, we are still to see signs of a sustained recovery in the real estate market,' said chairman Nigel Wright. 'It is too soon to forecast a thaw in financial market conditions but we remain cautiously optimistic for the long term.'
He added: 'We are also coming to the end of a successful programme of implementing cost reductions, and have taken all feasible steps to position the company for future economic recovery.'
During the third quarter the company's main shareholders agreed to extend the terms of their $22 mln loan and interest accrued thereon, due for repayment on 31 March 2010, until 31 March 2011.
