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AFI Properties reports Q1 2014 financial results: NOI increased by 8%, to EUR 19 million

AFI Properties“, the parent company of “AFI Europe“, has published its financial reports for Q1 2014, registering total income amounting to EUR 48 million. “AFI Properties” also announced an increase of 8% in the company’s net operating income (NOI) in comparison to Q1, 2013, which totaled EUR 19 million.

The total leasable area of the assets based on the proportionate share of “AFI Properties“ increased to 544,000 square meters. The company’s equity totaled EUR 567 million as of March 31, 2014.

“AFI Properties“, through its fully owned subsidiary AFI Europe, operates in 7 countries in Central Eastern Europe (CEE) including Czech Republic, Serbia, Germany and Poland.

During the last several months AFI Europe has concluded several significant deals in Romania, Poland and Bulgaria.

AFI Europe Romania results:

“AFI Cotroceni” shopping mall in Bucharest, Romania, the company’s largest and most important asset continues to show improvement in its performance. The shopping mall’s net operating income for Q1, 2014 totaled EUR 7.3 million which represent an increase of 6.7% compared to Q1, 2013. Based on Q1 results, NOI for 2014 is assumed to pass EUR 29 million.

In addition, “AFI Cotroceni“, showed an increase in shoppers’ footfall (visitors to the mall) to an average of 55,000 visitors per day in Q1 2014. Current occupancy increased to over 98%.

The value of AFI Cotroceniis EUR 375 million as of 30.09.2013.

AFI Ploiesti“, shopping mall in Ploiesti increased its value during the last couple of months by additional EUR 6.2 million to a value of EUR 64.2 million. Shoppers’ footfall (visitors to the mall) remains stable at 15,000 visitors per day. Current occupancy was increased in April to 99%. “AFI Ploiesti“, has inaugurated lately the Cinema City and entertainment complex which enhances the entertainment activities offered in AFI Ploiesti.

On the office segment, “AFI Europe Romania “has officially inaugurated on April 15 “AFI Park 2” which 100% of its office spaces are leased. The building was delivered on the exact hand-over date and commenced operations. The first office building “AFI Park 1“, with 12,250 sqm of leasable area, is 100% leased while “AFI Park 3“ which is due to be delivered in December 2014 is already 40% pre-leased to UK held IT company Endava Romania.

“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 portfolio of income producing assets has grown significantly to more than 135,000 sqm of gross leasable areas with an average occupancy rate in all assets of 97% and an NOI in 2013 of more than EUR 31 million. 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 Bucharesti Noi ,the retail park in Arad “AFI Arad” and the new office project “AFI Business Park” located in Bucharest on Progresului Boulevard.

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. AFI Park offers more than 65,000 of office leasable area, currently targeted by multinational IT&C corporations. On April 15, 2014 AFI Europe inaugurated “AFI Park 2” with 12,200 sqm of GLA. The first office building “AFI Park 1“, with 12,250 sqm of leasable area, is 100% leased while “AFI Park 3“ which is due to be delivered in December 2014 is already 40% pre-leased to UK held IT company Endava Romania.

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.