LSR Group Reports 4Q and 12M 2016 Operating Results

Primary results obtained in twelve months of 2016
• Over a period of 12 months the volume of new concluded contracts made up 681 thous. sq. m. (+11% YoY). Total value of the contracts concluded made up RUB 70.6 bln. (+29% YoY).
• Over a period of 12 months average price of the contracts concluded increased by 15% YoY up to RUB 104 thous.
• Over a period of 12 months we put 729 thous. sq. m of real property in the market.
• Share of contracts concluded with employment of mortgage funds made up 38% at the year-end and reached 42% in Q4.
• Over a period of 12 months 789 thous. sq. m (+5% YoY) were commissioned; property volume that will be included in the proceeds at 2016 year-end constitutes 780 thous. sq. m (+8% YoY).

Yury Ilyin, Chief Communications Officer of LSR Group, points out the following:
As of today buyers of apartments are much more demanding and pay very close attention to the residential complexes, analyze the infrastructure, transport accessibility, price and quality, as well as reputation of the developer and its experience at the market. Due to this, projects of LSR Group implemented in Moscow, Saint Petersburg and Yekaterinburg are in great stable demand. Thus, we concluded new sales contracts amounting to 681 thous. sq. m, which is by 11% exceeds indicators of 2015, in all presence regions over the past 12 months. Total value of the contracts concluded increased by 29% and made up RUB 70.6 bln. Major part of transactions connected with the purchase of residential property was made with employment of mortgage credits. Thus, if at 2015 year-end share of transactions with mortgage employment made up 33%, then in 2016 it reached 38%.

Average price of the property sold increased by 15%. 

Throughout 2016, LSR Group actively extended the offer for buyers at the market of real property under construction. Total of 729 thous. sq. m of real property, including new projects and new stages of residential complexes under construction, were put in the market. In Saint Petersburg, sales of two large-scale projects, Civilization and Tsvetnoy Gorod, were started. Ca. 163 thous. sq. m of ZILART complex (Moscow) were put in the market. 

And we have no less optimistic forecast for 2017. LSR Group is planning to put ca. 900 thous. sq. m in the market: of which 230 thous. sq. m in Moscow, 616 thous. sq. m in Saint Petersburg, 48 thous. sq. m in Yekaterinburg. It is also planned to commission ca. 1 mln sq. m of residential property in all presence regions.