Raven Russia, which builds and rents warehouse space in Russia, saw rental income improve significantly in 2009; that rose from $39.6m (£26m) to $50.3m. But property value writedowns reached $108m - hence the hefty loss.
Raven's main focus during 2009 was on developing the property portfolio and increasing letting levels and, on both counts, there was good progress. Net operating income(NOI) stood at $70.6m at the year-end and, by 15 March, had risen to $73.4m. This meant that, excluding bank loan repayments, Raven just about managed cash break even.
What's more, NOI doesn't include pre-lease agreements and letters of intent which, together, could be worth a further $11.4m. And additional negotiations could add another $7.4m, although management conceded that not all NOI is converted into a revenue stream. Even so, at current rent levels, Raven's portfolio should produce NOI of $123m when fully let. Moreover, as chief executive Glyn Hirsch points out, there's no new development activity in Raven's sector and, with demand improving, there will come a point when a lack of vacant space will drive rents higher still.
| RAVEN RUSSIA (RUS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 52p | MARKET VALUE: | £268m | |
| TOUCH: | 52-53p | 12-MONTH HIGH: | 56p | LOW: 11p |
| DIVIDEND YIELD: | 1.9% | DEVELOPMENT PROPERTIES: | $101m | |
| DISCOUNT TO NAV: | 27% | |||
| INVEST PROPERTIES: | $879m | NET DEBT: | 40% | |
| Year to 31 Dec | Net asset value (p) | Pre-tax profit ($m) | Earnings per share (c) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 106* | 37.0 | 9.70 | 4.00 |
| 2007 | 115* | 116 | 22.7 | 6.50 |
| 2008 | 98.0 | -189 | -38.8 | 3.00 |
| 2009 | 71.0 | -148 | -28.5 | 1.00 |
| % change | -28 | - | - | -67 |
Ex-div:- Payment:- *Adjusted £1=$1.518 | ||||
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