AFI Europe Romania reports Q3 of 2014 financial results

The Net Operating Income (NOI) of the Portfolio in Romania increased to more than EUR 27 million in the first 9 months of 2014; AFI Palace Cotroceni is valued for more than EUR 400 million

“AFI Palace Cotroceni” shopping mall in Bucharest, the company’s largest and most important asset, continues to show improvement in its performance. The shopping mall was valued as of September 30, 2014 at EUR 401 million, representing an increase of 7% compared to last year.


The shopping mall’s net operating income (NOI) totaled EUR 7.4 million for Q3 and a total of EUR 22 million for the first 9 months of 2014, representing an increase of 4% compared to the same periods in 2013. Based on first 9 months results, NOI for 2014 is assumed to total close to EUR 30 million.


AFI’s retailer’s sales (Turn-Over) excluding the hypermarket increased by 4.3% in Q3, 2014 and a total increase of 3.7% during the first 9 months of 2014 compared to the same periods last year. In addition, “AFI Palace Cotroceni” showed stable results in shoppers’ footfall (visitors to the mall) with an average of 52,000 visitors per day during the first 9 months of 2014 and prior to the 4th quarter footfall results. Current occupancy rate is over 98%.


AFI Palace Ploiesti was valued at EUR 66 million as of September 30, 2014, as opposed to EUR 56.5 last year. AFI Palace Ploiesti shoppers’ footfall (visitors to the mall) remains stable at 15,000 visitors per day. Current occupancy of the shopping mall in Ploiesti remains 99%.


“AFI Europe Romania is continuing to show improvement in the financial results. The value of our income generating assets, projects under construction and lands bank has grown significantly to EUR 670 million with an average occupancy rate in the income generating assets of 98% and a NOI of more than EUR 27 million for the first nine months of 2014. We plan to continue this momentum of development with new office buildings and new shopping malls to be developed in the near future” said David Hay, CEO AFI Europe Romania.


On the office segment, AFI Park 1 was valued at EUR 28 million, AFI Park 2 was valued at EUR 27.5 million.


Currently 3 buildings are under construction including AFI Park 3 which is planned to be completed and handed over to its tenants in December 2014 and AFI 4&5 which are planned to be completed in Q4, 2015.


AFI Properties results:

“AFI Properties“, the parent company of “AFI Europe“, has published its financial reports, registering a sharp increase in profit in the first 9 months of 2014 to EUR 55.4 million compared to EUR 26.5 million first 9 months of 2013. AFI Properties also announced a net operating income (NOI) of EUR 59.8 million for the first 9 months of 2014 representing an increase of 12% in comparison first 9 months of 2013, and a NOI of EUR 20.4 million for Q3 2014, an increase of 12% in comparison to Q3 2013.


On November 6th AFI Europe has completed the sale of AFI Palace Pardubice shopping mall in the Czech Republic (which was opened in November 2008) for EUR 83 million, resulting in a 28% yearly IRR and a cash flow of EUR 22 million.


During Q3, AFI Properties board of directors has distributed dividends of EUR 16 million. This has been the first dividend distribution since 2006. Dividends distribution enables all shareholders to gain income and share the company’s success.


Total income of AFI Properties for the first 9 months of 2014 summed up to EUR 128.5 million.