PJSC LSR Group (LSRG)
PJSC LSR Group: LSR Group reports its operating results for the nine months
of 2019
15-Oct-2019 / 12:15 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
LSR Group reports its operating results for the nine months of 2019
Strong performance in Moscow with sales up 22% YoY
and a 17% YoY increase in average price per sqm
St. Petersburg, Russia - 15 October 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 third quarter and the nine months ended 30
September 2019.
9M 2019 Highlights[1]:
? New contract sales reached RUB 57 billion, or 551 th. sqm;
? Average price per sqm increased by 17% year-on-year reaching RUB
114,000;
? Share of mortgage sales amounted to 48%;
? Completions reached 390 th. sqm of net sellable area, up 118%
year-on-year, in line with the project schedule;
? New 749 th. sqm of net sellable area launched in the reporting period;
? In July, the Company sold its 100% interest in its subsidiary LLC LSR.
Reinforced Concrete. This disposal represents another step towards the
realisation of LSR Group's strategy to optimise its building materials
business segment;
? In July, LSR Group's two projects, the premium-class residential project
Russky Dom (Russian House) built in the heart of St. Petersburg, and
Tyufeleva Roscha Park created as part of the ZILART project in Moscow,
were ranked among the world's best architectural projects at the 2019
International Architecture Awards;
? In August, the Rating Agency of Construction Industry awarded LSR Group
the highest rating among Russian developers (A1), regarding LSR as a
company with high business management standards and a strong ability to
fulfil its outstanding obligations;
? In August, LSR Group expanded its sales portfolio with a new project -
Zapovedny Park, a comfort class residential complex located on a 6-hectare
land plot in the Primorsky District of St. Petersburg. The complex
comprises 9 residential buildings, 14 to 25 stories high, with a
residential area of more than 90,000 sqm. The Company has commenced the
active construction stage of the complex and has launched apartment sales
in the first building;
Significant events after the end of the reporting period:
? In October, Fitch Ratings upgraded LSR's Long-Term Issuer Default Rating
(IDR) to 'B+', outlook stable;
? In October, LSR Group completed the placement of RUB 7 billion Series
001P-04 exchange-traded bonds with a coupon rate of 8.5% per annum.
Andrey Molchanov, CEO of PJSC LSR Group, commented:
"LSR Group's results for the first nine months of 2019 reflect the strong
sales performance of our Moscow portfolio, with sales up 22% in RUB terms.
This was driven by robust sales in our flagship ZILART project, coupled with
a revised pricing strategy which saw the average price increase by 17%
year-on-year.
We are very pleased with the pace of our transition to the new housing
legislation. To that end, we have launched sales under the new rules in
Yekaterinburg and secured strong access to liquidity. We expect the changes
in regulation to have a favourable impact on the competitive environment and
we remain optimistic about our near and mid-term prospects."
***
The Company's operating results for the first nine months of 2019 will be
discussed during the Q&A session following the publication of the FY2019
operating results, in January 2020. Dial in details will be provided prior
to the call.
***
Full version of the press release is available in PDF-format (link below)
and on www.lsrgroup.ru [1]
For more information please contact:
Igor Tsoy
Director of Investor Relations and Sustainable Development
E-mail: IR@lsrgroup.ru
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 five largest regions of Russia - Moscow, St.
Petersburg, Yekaterinburg, the Leningrad and Moscow regions. 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).
www.lsrgroup.ru [1]
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[1] The year-on-year percentage change is provided for sales excluding
parking lots
Attachment
Document title: LSR Group 3q/9m Operating Results
Document: http://n.eqs.com/c/fncls.ssp?u=EJTVMIFTIW [2]
ISIN: US50218G2066
Category Code: QRT
TIDM: LSRG
LEI Code: 25340067LEEMJ79K8X43
OAM Categories: 2.2. Inside information
Sequence No.: 23439
EQS News ID: 890317
End of Announcement EQS News Service
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2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=dbaccb02ec69a198f3e4e62d1c489ec6&application_id=890317&site_id=vwd&application_name=news
(END) Dow Jones Newswires
October 15, 2019 06:15 ET (10:15 GMT)
