“AFI Cotroceni” shopping mall in Bucharest, the company’s largest and most important asset, continues to show improvement in its performance. The shopping mall was valued as of September 30, 2014 at EUR 401 million, representing an increase of 7% compared to last year.
The shopping mall’s net operating income (NOI) totaled EUR 7.4 million for Q3 and a total of EUR 22 million for the first 9 months of 2014, representing an increase of 4% compared to the same periods in 2013. Based on first 9 months results, NOI for 2014 is assumed to total close to EUR 30 million.
AFI’s retailer’s sales (Turn-Over) excluding the hypermarket increased by 4.3% in Q3, 2014 and a total increase of 3.7% during the first 9 months of 2014 compared to the same periods last year. In addition, “AFI Cotroceni” showed stable results in shoppers’ footfall (visitors to the mall) with an average of 52,000 visitors per day during the first 9 months of 2014 and prior to the 4th quarter footfall results. Current occupancy rate is over 98%.
AFI Ploiesti was valued at EUR 66 million as of September 30, 2014, as opposed to EUR 56.5 last year. AFI Ploiesti shoppers’ footfall (visitors to the mall) remains stable at 15,000 visitors per day. Current occupancy of the shopping mall in Ploiesti remains 99%.
“AFI Europe Romania is continuing to show improvement in the financial results. The value of our income generating assets, projects under construction and lands bank has grown significantly to EUR 670 million with an average occupancy rate in the income generating assets of 98% and a NOI of more than EUR 27 million for the first nine
months of 2014. We plan to continue this momentum of development with new office buildings and new shopping malls to be developed in the near future” said David Hay, CEO AFI Europe Romania.
On the office segment, AFI Park 1 was valued at EUR 28 million, AFI Park 2 was valued at EUR 27.5 million.
Currently 3 buildings are under construction including AFI Park 3 which is planned to be completed and handed over to its tenants in December 2014 and AFI 4&5 which are planned to be completed in Q4, 2015.
AFI Properties results:
“AFI Properties“, the parent company of “AFI Europe“, has published its financial reports, registering a sharp increase in profit in the first 9 months of 2014 to EUR 55.4 million compared to EUR 26.5 million first 9 months of 2013. AFI Properties also announced a net operating income (NOI) of EUR 59.8 million for the first 9 months of 2014 representing an increase of 12% in comparison first 9 months of 2013, and a NOI of EUR 20.4 million for Q3 2014, an increase of 12% in comparison to Q3 2013.
On November 6th, AFI Europe has completed the sale of AFI Pardubice shopping mall in the Czech Republic (which was opened in November 2008) for EUR 83 million, resulting in a 28% yearly IRR and a cash flow of EUR 22 million.
During Q3, AFI Properties board of directors has distributed dividends of EUR 16 million. This has been the first dividend distribution since 2006. Dividends distribution enables all shareholders to gain income and share the company’s success.
Total income of AFI Properties for the first 9 months of 2014 summed up to EUR 128.5 million.
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.