A new contract sales high of RUB 93 bln with a total of over one million sqm in 2018 reflecting a strengthened competitive position and balanced portfolio

 

St. Petersburg, Russia – 28 January 2019 – PJSC LSR Group (“LSR” or the “Company”) (LSE: LSRG; MOEX: LSRG), one of the leading real estate developers and building materials producers in Russia, today announces its operating results for the fourth quarter and twelve months ended 31 December 2018.

FY2018 Highlights:

  • Outperformed guidance by 9.5% on new contract sales – up 44% year-on-year to 1,002 th. sqm, or 920 th. sqm, excluding parking space, reaching RUB 93 billion, up 38% year-on-year, or RUB 90 billion,
  • Average price per sqm of RUB 93,000 (RUB 98,000 excl. parking), reflecting higher sales in the St. Petersburg mass-market real estate
  • 684 th. sqm (620 th. sqm excl. parking) launched across all market
  • Completions of 1,009 th. sqm of net sellable area (888 th. sqm excluding parking).
  • Share of mortgage sales amounted to 53% compared to 47% in
  • Completion of 144 th. sqm (105 th. sqm excl. parking) of the ZILART project in
  • In the fourth quarter, LSR entered the apartment market through the NEOPARK project and the launch of a large-scale mass market project Ruchyi, St.
  • Strong performance by the Building Materials business segment: sales of crushed granite and sand increased by 26% year-on-year and 41% year-on-year, respectively; and a record high sale of 1.1 mln m3  of ready-mix

 

Andrey Molchanov, Chairman of the Board of Directors of PJSC LSR Group, commented:

“LSR Group delivered a solid set of results for 2018, on the back of record high new contract sales across all regions.

New contract sales totalled just over one million square meters during 2018, translating into RUB 93 billion. This is a reflection of the recent adjustments made to the Company’s product offering, which has led to a more competitive proposition. Contract sales were also underpinned by record low mortgage  rates in the first half of the year, and consumer expectations for future price increases in light of recent regulatory changes.

Our building materials business segment continues to perform strongly, with an increase in sales of our crushed granite and sand products, as well as higher shipment volumes of our ready-mix concrete.

Looking ahead, we will maintain our leading market positions by focusing on offering an optimal mix of elite, business and mass-market developments, leaving us well positioned to capitalise on the general increase in market demand for quality real estate.”

 

REAL ESTATE DEVELOPMENT1

 

   

4Q 2018

 

4Q 2017

 

Change

4 Q 2018

(adj.)2

 

2018

 

2017

 

Change

2018

(adj.)

New contract sales,

‘000 sqm

 

300

 

216

 

39%

 

319

 

920

 

640

 

44%

 

1,002

New contract sales,

RUB bn

 

29.7

 

23.6

 

26%

 

30

 

90.3

 

65.3

 

38%

 

93

Average price,

RUB ‘000

 

99

 

109

 

(9%)

 

95

 

98

 

102

 

(4%)

 

93

Completions,

‘000 sqm

 

739

 

690

 

7%

 

818

 

888

 

909

 

(2%)

 

1,009

 

Real Estate in St. Petersburg

   

4Q 2018

 

4Q 2017

 

Change

4 Q 2018

(adj.)

 

2018

 

2017

 

Change

2018

(adj.)

New contract sales,

‘000 sqm

 

193

 

146

 

32%

 

200

 

562

 

407

 

38%

 

599

New contract sales,

RUB bn

 

17.4

 

16.6

 

5%

 

18

 

51.7

 

41.3

 

25%

 

53

Average price,

RUB ‘000

 

90

 

114

 

(20%)

 

88

 

92

 

101

 

(9%)

 

88

Completions,

‘000 sqm

 

550

 

466

 

18%

 

589

 

644

 

607

 

6%

 

715

 

Real Estate in Moscow

   

4Q 2018

 

4Q 2017

 

Change

4 Q 2018

(adj.)

 

2018

 

2017

 

Change

2018

(adj.)

New contract sales,

‘000 sqm

 

64

 

36

 

78%

 

73

 

199

 

122

 

63%

 

236

New contract sales,

RUB bn

 

9.6

 

5.1

 

89%

 

10

 

29.0

 

17.7

 

63%

 

30

Average price,

RUB ‘000

 

151

 

142

 

6%

 

137

 

146

 

145

 

 

129

Completions,

‘000 sqm

 

114

 

182

 

(38%)

 

153

 

114

 

193

 

(41 %)

 

153

 

  • Here and from hereon, the operating results in tables related to Real Estate Development are rounded to whole numbers in thousands square metres, while all the calculations are based on the full
  • Here and from hereon, ADJUSTED figure (‘adj.’) includes parking at a conversion rate of 30 sqm per parking

 

Real Estate in Yekaterinburg

 

   

4Q 2018

 

4Q 2017

 

Change

4 Q 2018

(adj.)

 

2018

 

2017

 

Change

2018

(adj.)

New contract sales,

‘000 sqm

 

44

 

35

 

27%

 

46

 

159

 

110

 

45%

 

167

New contract sales,

RUB bn

 

2.7

 

2.0

 

34%

 

3

 

9.6

 

6.3

 

52%

 

10

Average price,

RUB ‘000

 

61

 

58

 

5 %

 

59

 

60

 

57

 

5%

 

58

Completions,

‘000 sqm

 

76

 

42

 

79%

 

76

 

131

 

109

 

20%

 

140

 

CONSTRUCTION

 

   

4Q 2018

 

4Q 2017

 

Change

 

2018

 

2017

 

Change

Construction

transferred to customers ‘000 sqm

 

133

 

223

 

(40%)

 

528

 

924

 

(43%)

 

St. Petersburg

 

101

 

149

 

(33%)

 

380

 

605

 

(37%)

 

Moscow

 

 

26

 

(100%)

 

19

 

182

 

(90%)

 

Yekaterinburg*

 

32

 

48

 

(32%)

 

129

 

137

 

(6%)

Notes: The operating results in this table are rounded to whole numbers in thousand square metres, while all the calculations are based on the full figures.

*Sales figures in Yekaterinburg include both transfer of completed panel housing to the customers and sales of reinforced concrete for panel construction.