AFI Europe Romania reports results of Q3 and first 9 months of 2015

AFI Europe Romania published its Q3 and first 9 months of 2015 financial results, generated a Net Operating Income (NOI) of EUR 10.2 million in Q3 and close to EUR 30 million in the first 9 months of 2015, representing 8.2 per cent higher results compared to the same periods in 2014.

2015-11-23 14:21:55

Total value of the completed projects, shopping malls AFI Palace Cotroceni, AFI Palace Ploiesti and the first 3 office buildings of AFI Park, increased to close to EUR 600 million, as of September 30, 2015.
AFI Palace Cotroceni Shopping Mall in Bucharest, the company's largest and most important asset, generated a Net Operating Income (NOI) of EUR 7.7 million in Q3 2015, representing 3.3 per cent higher results than 2014 and EUR 23 million in the first 9 months of 2015, representing 4 per cent higher results compared to the same period in 2014.

The shopping mall was valued as of September 30, 2015 at EUR 434 million, representing an increase of 8.2 per cent compared to last year.

AFI Palace Cotroceni retailer's sales (Turn-Over) excluding the hypermarket increased by 7.3 per cent in Q3 and by 7.4 per cent in the first 9 months of 2015, compared to the same periods in 2014.
AFI Palace Ploiesti shopping mall net operating income (NOI) resulted in EUR 3.2 million for the first 9 months of 2015 representing a 7 per cent increase compared to the same period last year.

AFI Palace Ploiesti results show significant increase in retailer's sales (Turn-Over) which was increased in Q3, 2015 by 28 per cent and by 23 per cent in the first 9 months of 2015, compared to the same periods in 2014. Current occupancy rate of the shopping mall in Ploiesti exceeds 99 per cent.
AFI Palace Ploiesti was valued at EUR 67.7 million as of September 30, 2015, as opposed to EUR 66 million last year.

"AFI Europe Romania has concluded Q3 and the first 9 months of 2015 with excellent operational and financial results as shown by the growth in NOI (Net Operating Income) of our income generating assets in Romania by 8.2 per cent and by the valuation of our existing assets, 2 shopping malls and 3 office buildings, rising to a value close to EUR 600 million. Currently the portfolio in Romania consists of 150,000 sqm of leasable areas with an average occupancy rate in all income producing assets of over 98 per cent. Additional 32,000 sqm of GLA are to be added to the portfolio upon the completion of AFI Park 4&5 in January 2016. The good financial results coupled with positive microeconomic numbers of Romania encourage us to start more projects during next year such as: The new shopping Mall to be developed in Brasov (45,000 sqm GLA) and the Office Park to be developed on Progresului Boulevard in Bucharest (50,000 sqm GLA), which are planned to commence construction in 2016", commented David Hay, CEO AFI Europe Romania.

AFI Europe, 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.
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.

AFI Europe operates in Romania since 2005. The company has developed and is managing "AFI Palace Cotroceni", the largest and most dominant shopping mall in Romania and among the leading shopping malls in the CEE region. The project spreads over a leasable area of more 82,000 sqm (GLA) 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 52,000 customers per day.

In October 2013, AFI Europe inaugurated AFI Palace 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 Palace Cotroceni shopping mall, AFI Europe Romania is currently developing AFI Park, Bucharest's newest and most advanced Class A business Park, which has achieved 98 per cent occupancy rate. AFI Park offers 70,000 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 per cent leased. In April 2014 AFI Europe inaugurated "AFI Park 2" with 12,200 sqm of GLA and is 100 per cent leased, while "AFI Park 3", delivered in December 2014, is 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 January 2016.