“AFI Cotroceni” shopping mall in Bucharest, the company’s largest and most important asset, continues to show improvement in its performance. The shopping mall’s net operating income (NOI) in 2014 totaled EUR 7.3 million for Q2 and EUR 14.6 million for H1, which represents an increase of 2% and 4% respectively compared to the same periods in 2013. Based on H1 results, NOI for 2014 is assumed to pass EUR 29 million.
In addition, “AFI Cotroceni“ showed stable results in shoppers’ footfall (visitors to the mall) with an average of 55,000 visitors per day in H1 2014. Current occupancy rate is over 98%.
“AFI Ploiesti“ shoppers’ footfall (visitors to the mall) remains stable at 15,000 visitors per day. Current occupancy of the shopping mall in Ploiesti was increased to 99%. “AFI Ploiesti“ has inaugurated in Q2 2014 the Cinema City and entertainment complex which enhances the entertainment activities offered in AFI Ploiesti.
On the office segment, following the signing with TELUS International Europe in AFI Park 3, AFI Europe Romania has completed the leasing of its first three office buildings, achieving 100% office occupancy rate.
In Q2 this year, AFI Europe commenced construction of AFI Park 4&5, the 4th phase of the award winning office project, targeted to be finalized in October 2015.
“AFI Europe Romania is continuing to show improvement in the financial results. Following the inauguration of “AFI Ploiesti“ and “AFI Park 2“, AFI Europe Romania’s 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 98% and an NOI of more than EUR 18 million for the first six months of 2014. 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 B.Noi”, the shopping mall to be constructed in Bucure?tii Noi, the retail park in Arad “AFI Arad” and the new office project “AFI Business Park” located in Bucharest on Progresului Boulevard.
AFI Properties results:
“AFI Properties“, the parent company of “AFI Europe“, has published its financial reports for Q2 and H1 2014, registering sharp increase in profit in H1 2014 to EUR 27.5 million compared to EUR 4.3 mil in H1 2013. AFI Properties also announced net operating income of EUR 20.6 million for Q2 2014 representing an increase of 12% in comparison to Q2, 2013, and an NOI of EUR 39.4 million for H1 2014, an increase of 10% in comparison to H1 2013.
The increase in profit is attributed to new projects being finalized and inaugurated, such as the shopping mall AFI Ploiesti and the office building AFI Park 2 in Romania and a refinancing structure to Business Park Varna in Bulgaria.
The board of directors has decided to distribute dividends of EUR 16 million. This shall be the first dividend distribution since 2006.
The total leasable area of the assets based on the proportionate share of “AFI Properties is 544,000 square meters. The company’s equity totaled 589 million Euros as of June 30, 2014.
About AFI Properties
AFI Properties is a member of AFI Group, an international holdings and investments conglomerate with subsidiaries that engage in real estate, construction, infrastructure, industry and hotels (www.afigroup-global.com)
The company is active in the income producing and development property market since 1971. AFI Properties has been listed on the Tel-Aviv stock exchange in 2004. The company has been active in Europe since 1997 through its subsidiary AFI Europe mainly in the CEE markets. AFI Properties is ranked “BBB+ positive” by S&P and “A3 stable” by Midroog (a subsidiary of Moody’s).
About AFI Europe
AFI Europe is a subsidiary of AFI Properties is one of the leading real estate development, management and investment companies, which is operating in Central and Eastern Europe since 1997 and is focusing on the development of large-scale commercial, residential and mixed use projects.
AFI Europe’s diversified portfolio consists of shopping malls and retail properties, business parks and large-scale residential and mixed-use developments. AFI Europe operates in Romania, Czech Republic, Poland, Germany, Bulgaria, Serbia, Hungary and Latvia.
About AFI Europe Romania:
AFI Europe operates in Romania since 2005. The company has developed and is managing “AFI Cotroceni”, the biggest and most dominant shopping mall in Romania and among the biggest shopping malls in the CEE region. The project spreads over a leasable area of more than 80,000 sqm and offers to its visitors a large entertainment area with multiple leisure options and a variety of over 300 shops of local and international brands, visited by 55,000 customers per day.
On October 3rd, 2013 AFI Europe inaugurated AFI Ploiesti, the first and only modern shopping mall developed in the city centre of Ploiesti, following an investment of over EUR 50 million. The shopping mall offers a total gross leasable area (GLA) of 33,000 square meters spreading over two retail floors occupied by 100 national and international brands, including more than 7,000 sqm of entertainment.
Adjacent but fully integrated into AFI Cotroceni shopping mall, AFI Europe Romania is currently developing AFI Park, Bucharest’s newest and most advanced Class A business Park, which has achieved 100% occupancy rate of its office spaces. AFI Park offers more than 65,000 of office leasable area, currently targeted by multinational IT&C corporations. The first office building “AFI Park 1“, with 12,250 sqm of leasable area, is 100% leased. On April 15, 2014 AFI Europe inaugurated “AFI Park 2” with 12,200 sqm of GLA and has is 99.5% leased, while “AFI Park 3“ which is due to be delivered in December 2014 is 100% pre-leased to Endava Romania and TELUS International Europe. In April 2014 AFI Europe Romania has also commenced construction of AFI Park 4 & 5 office building that will offer additional 32,000 sqm of gross leasable area to the project and is planned to be delivered in Q4 2015.
In addition, AFI Europe Romania has two retail projects to be developed in the near future, “AFI Arad”, a 30,000 sqm GLA retail park to be developed in the city centre of Arad, on a land plot of 80,000 sqm and “AFI B.Noi”, a 36,000 sqm GLA Shopping Mall to be developed in Bucure?tii Noi district 1 of Bucharest.
In the office segment, AFI will develop AFI Business Park Bucharest, a 50,000 sqm of GLA class A business park to be located in close proximity to the J.W. Marriott hotel and the Romanian Parliament in Bucharest’s district 5. The business park will comprise of 2 low rise office buildings and one office tower, with ample green areas, a high tech/campus style environment in an urban complex with a central plaza & gardens.