Headline figures for Raven Russia's (RUS) don't tell the whole story because pre-tax profit was adjusted for unrealised profits on investment property revaluations - these were lower in 2012 than in the previous year. In fact, net operating income rose 49 per cent to $136.5m (£91.6m) and underlying operating profit jumped 63 per cent to $68.9m.
As a leading provider of warehouse space in several Russian cities, the group continued to benefit from strong demand in an under-supplied market. Operating cash flow grew 48 per cent to $120.7m and some of this was employed to finance a string of warehouse acquisitions in and around Moscow. Further funds were raised through the issue of 48.4m preference of shares at 134p, representing a yield of 9 per cent.
Tenant demand was again strong and the group completed new lettings on 124,000 square metres that will generate an additional $16.4m of annualised rental income. Moreover, as the portfolio becomes more mature, the group has been able to renegotiate leases on 192,000 square metres of existing space to give an annual rental uplift of $3.6m.
Broker N+1 Singer expects adjusted net asset value (NAV) of 138¢ (from 124.9¢ in 2012).
| RAVEN RUSSIA (RUS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 67p | MARKET VALUE: | £395m | |
| TOUCH: | 66-67p | 12-MONTH HIGH: | 70p | LOW: 52p |
| DIVIDEND YIELD: | 5.6% | DEVELOPMENT PROP: | $149m | |
| DISCOUNT TO NAV: | 18% | |||
| INVESTMENT PROP: | $1.5bn | NET DEBT: | 116% | |
| Year to 31 Dec | Net asset value (¢) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p)* |
|---|---|---|---|---|
| 2008 | 143 | 189 | -38.8 | 3.00 |
| 2009 | 114 | -148 | 28.5 | 1.00 |
| 2010 | 116 | 55.7 | 8.41 | 2.00 |
| 2011 | 118 | 129 | 16.7 | 3.00 |
| 2012 | 122 | 62.8 | 5.15 | 3.75 |
| % change | +3 | -51 | -69 | +25 |
Ex-div: na Payment: na *Includes tender offer buy-backs £1=$1.49 | ||||
