News

AFI Europe Romania reports Q4 2014 and 2014 financial results

Bucharest, 10.03.2015:

“AFI Cotroceni” shopping mall in Bucharest, the company’s largest and most important asset, summarizes 2014 with record results generating a total income of EUR 37.5 million out of which approximately EUR 30 million is the Net Operating Income (NOI), representing 4% higher results than 2013. The shopping mall’s net operating income (NOI) for Q4 2014 totaled EUR 7.7 million as opposed to EUR 7.5 million in Q4 2013.

The shopping mall is valued as of September 30, 2014 at EUR 401 million, representing an increase of 7% compared to 2013.

AFI’s retailer’s sales (Turn-Over) excluding the hypermarket increased by 9% in Q4, and a total increase of 5% during 2014, compared to the same periods of 2013.“AFI Cotroceni” showed stable results in shoppers’ footfall (visitors to the mall) with an average of 52,000 visitors per day. Current occupancy rate is over 98%.

AFI Ploiesti net operating income (NOI) resulted in more than EUR 4 million for 2014 and is valued at EUR 66 million as of September 30, 2014, as opposed to EUR 56.5 million registered in 2013. AFI Ploiesti shoppers’ footfall (visitors to the mall) remains stable at 15,000 visitors per day. Current occupancy of the shopping mall in Ploiesti is 99%.

“AFI Europe Romania has concluded 2014 with excellent operational and financial results. The NOI (net operating income) of our income generating assets in Romania grew by 20% to more than EUR 37 million and the projects and land bank are valued at EUR 670 million with an average occupancy rate of 98%. We plan to continue this momentum of development with new quality office buildings and new shopping malls
currently planned to be developed in Bucharest and outside of the Capital” said David Hay, CEO AFI Europe Romania.

On the office segment, “AFI Park 3” was delivered at the end of the year while the first 2 office buildings in AFI Park (AFI Park 1, AFI Park 2) generated more than EUR 3.5 million of NOI (net operating income).
Currently “AFI Park 4&5”, office buildings of 32,000 sqm of GLA, are under construction and are planned to be completed in Q4 2015.

AFI Properties results:

“AFI Properties“, the parent company of “AFI Europe“, has published today its 2014 financial reports, registering a sharp increase in profit of 85% (in euro currency), resulting close to EUR 60 million compared to EUR 32 million 2013. AFI Properties also announced a net operating income (NOI) of EUR 80 million for 2014 representing an increase of 9.4% (in euro currency) in comparison to 2013.

The total income summed up to more than EUR 85 million an 11% increase (in euro currency) compared to 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 (Internal rate of return) and a cash flow of EUR 22 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.