AFI Development posts 3Q 2009 Net Profit of $1.9 million

Russian property developer, AFI Development, has posted a 3Q 2009 Net Profit of $1.9 million under IFRS.

The bottom line compares with a 3Q 2008 Net Loss of $69.1 million, with 3Q 2009 pre tax profit of $7.8 million, compared to a pre tax loss of $74.1 million a year earlier, as 3Q Revenues increased 48% year on year to $17.2 million.

The 3Q posting made for a 9M 2009 Net Profit of $217.1 million, up from $28 million a year earlier, with 9M 2009 pre tax profit of $285 million, up from $28 million a year earlier.

The company attributed the result to the revaluation of its property portfolio, coupled with the stabilization of property prices in the Moscow real estate market and easing liquidity restraints.

Chief Executive, Alexander Khaldey, also noted the refinancing of the company’s Four winds office building, and progress in leasing the Mall of Russia development.

“Although our market environment remains difficult, we are pleased to see some signs of stabilization across all asset classes, as well as some improvement in access to liquidity for the real estate companies in Russia. Our ability to secure refinancing totaling US$150 million for our Four Winds project demonstrates the continued confidence from financial institutions in our ability to successfully execute our strategy.”