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 fourth quarter and twelve months ended 31 December 2018.
· Outperformed guidance by 9.5% on new contract sales — up 44% year-on-year to 1,002 th. sqm, or 920 th. sqm, excluding parking space, reaching RUB 93 billion, up 38% year-on-year, or RUB 90 billion, respectively.
· Average price per sqm of RUB 93,000 (RUB 98,000 excl. parking), reflecting higher sales in the St. Petersburg mass-market real estate segment.
· 684 th. sqm (620 th. sqm excl. parking) launched across all market segments.
· Completions of 1,009 th. sqm of net sellable area (888 th. sqm excluding parking).
· Share of mortgage sales amounted to 53% compared to 47% in 2017.
· Completion of 153 th. sqm (114 th. sqm excl. parking) of the ZILART and Nakhabino Yasnoe projects in Moscow.
· In the fourth quarter, LSR entered the apartment market through the NEOPARK project and the launch of a large-scale mass market project Ruchyi, St. Petersburg.
· Strong performance by the Building Materials business segment: sales of crushed granite and sand increased by 26% year-on-year and 41% year-on-year, respectively; and a record high sale of 1.1 mln m3 of ready-mix concrete.
Andrey Molchanov, Chairman of the Board of Directors of PJSC LSR Group, commented:
«LSR Group delivered a solid set of results for 2018, on the back of record high new contract sales across all regions.
New contract sales totalled just over one million square meters during 2018, translating into RUB 93 billion. This is a reflection of the recent adjustments made to the Company’s product offering, which has led to a more competitive proposition. Contract sales were also underpinned by record low mortgage rates in the first half of the year, and consumer expectations for future price increases in light of recent regulatory changes.
Our building materials business segment continues to perform strongly, with an increase in sales of our crushed granite and sand products, as well as higher shipment volumes of our ready-mix concrete.
Looking ahead, we will maintain our leading market positions by focusing on offering an optimal mix of elite, business and mass-market developments, leaving us well positioned to capitalise on the general increase in market demand for quality real estate.»
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