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Rouble weakness weighs down Raven Property’s sterling returns

Raven property RAV

Rouble weakness weighs down Raven Property’s sterling returns – Russia-focused Raven Property (RAV) made note of improving fundamentals in its year-end results to December 31, 2018, which saw vacancy rates shift down and rents increase as the wider economy strengthened. However, while the rouble valuation of the investment portfolio was up 8%, it was down 10% in sterling terms.

The company posted a loss on property revaluations of £121.0m, while rental income fell to £118.3m, from £129.7m

Key notes

  • Pre-tax losses for the year through December amounted to £114.9m
  • The company reported a loss on property revaluations of £121.0m, while rental income fell to £118.3m, from £129.7m
  • Occupancy up from 81% to 89% at 31 December 2018 and 90% today
  • Portfolio valuation yields were between 11% and 12.5% at the year end
  • Rouble valuation of the investment portfolio up 8% but falling by 10% after currency exchange losses
  • Two warehouse acquisitions completed in the second half of the year totalling 123,200sqm, for Roubles 5.3 billion, which the fund believes will generate an additional Roubles 580 million of income per annum. Since April 2017, RAV has acquired Roubles 14.6 billion of new assets
  • Secured debt facilities moving to Roubles as the fund continues to reduce its debt exposure to USD

About RAV

RAV was founded in 2005 and describes itself as being focused on the acquisition and development of high-quality class A warehouse complexes in the major cities across Russia, and their subsequent leasing to Russian and international tenants. The trust has an investment portfolio of circa 1.9 million square metres of Grade “A” warehouses in Moscow, St Petersburg, Rostov-on-Don, Novosibirsk and Nizhny Novgorod and 49,000 square metres of commercial office space in St Petersburg.

RAV: Rouble weakness weighs down Raven Property’s sterling returns

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