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Raven Russia reports small drop in NAV for 2016

Raven Russia says that its diluted NAV per share rose to 71 cents from 70 cents over the course of 2016. Underlying earnings per share fell to 7.2 cents from 8.2 cents. They intend to distribute 2p by way of a tender offer buy back of 1 share in every 26 at 52p, making 2.5p for the year.

Rents that used to be charged in US dollars are increasingly being charged in roubles. They are ensuring all new rouble rents benefit from attractive annual indexation which varies between 5-7% per annum. In 2016 they let 167,000sqm of space and the average vacancy rate ran at 19%. A £109m convertible preference issue during the year has, in part, been used to reorganise the Group’s banking arrangements. Maturities have been extended, amortisation reduced and covenants adjusted. All this whilst maintaining an average cost of debt of 7.5% (2015: 7.3%) for the Group. They sold a small land plot in St Petersburg for a profit of $3.8 million.

They are in the process of investing $83 million to buy a portfolio of income producing properties on a passing yield of 16% and at a price that’s below the replacement cost of the assets. The additional annual income of $13 million will flow straight to the bottom line.

RUS : Raven Russia reports small drop in NAV for 2016

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