LSR Group reports its operating results for the first half of 2019

 

New contract sales up 6% YoY in RUB terms

with an 18% YoY increase in average price per sqm

 

 

St. Petersburg, Russia - 17 July 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 second quarter and the first half ended 30 June 2019.

1H 2019 Highlights:

• New contract sales reached RUB 38 billion, up 6% year-on-year, or 368 th. sqm;
• Average price per sqm increased by 18% year-on-year reaching RUB 114,000.;
• Share of mortgage sales amounted to 48%;
• Completions reached 160 th. sqm of net sellable area, up 31% year-on-year, in line with the project schedule;
• New 603 th. sqm of net sellable area launched in the reporting period;
• In line with LSR's strategy to diversify its development assets in the Moscow region, the Company sold a 50% stake in its ZILYUG redevelopment project;
• Launched sale of apartments in a new business-class residential estate 'Morskaya Naberezhnaya' in St. Petersburg. Located in a 34-hectare land plot, the residential complex has a total area of 886 th. sqm, with a living space of just over 503 th. sqm;
• Signed a strategic partnership agreement with PJSC Rostelecom to promote smart information services in the construction industry.

 

Andrey Molchanov, CEO of PJSC LSR Group, commented:

"LSR Group has delivered strong set of results in the first six months of 2019 underlying strengths of our businesses and product offering.

In the reporting period, our new contract sales increased by 6% year-on-year to RUB 38 billion or 368 thousand square meters. This mainly reflects the success of our Moscow business and our well-structured offer that meets customer demand.

A great deal of forward planning has been carried out since the new housing legislation was introduced last year and LSR has successfully risen to the challenge and responded to its demands. As a result of these efforts, LSR is well placed for a smooth transition to operate in the new regulatory environment. 

Looking ahead, we believe we are well positioned to execute on our strategy and maintain our leading market positions in key regions."

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The Company's operating results for the first six months of 2019 will be discussed during the conference call in August 2019. Dial in details will be provided prior to the call.

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Full version of the press release is available in PDF-format (link below) and on

 

For more information please contact:

 

Igor Tsoy

Director of Investor Relations and Sustainable Development

E-mail:

About LSR Group:

PJSC LSR Group is one of Russia's leading residential real estate developers and building materials producers. Founded in 1993, the business of LSR Group is concentrated in the three largest regions of Russia - Moscow, St. Petersburg and Yekaterinburg. The main business areas of the Company are real estate development and construction and production of building materials. LSR Group carries out projects in all segments of residential real estate market: mass market, business and elite.

In accordance with its audited IFRS consolidated financial statements for 2018, LSR Group had revenue of RUB146.4 billion, Adjusted EBITDA of RUB36.4 billion and Net Profit of RUB16.2 billion. As of 31 December 2018 (according to Knight Frank), the net sellable area of projects in LSR Group's real estate portfolio amounted to 7.8 million m2 with a market value of RUB186 billion.

Ordinary shares of the Company are traded on the Moscow Exchange (MOEX: LSRG) and GDRs representing its ordinary shares are traded on the London Stock Exchange (LSE: LSRG).