Raven Russia's profits soar in 2011

Raven Russia, the commercial real estate group focused in Russia, saw profits surge in 2011 helped by high levels of tenant demand and 222,000 square metres of net lettings during the year.

Pre-tax profit in the 12 months to December 31st jumped 131% from $55.7m to $128.9m while net asset value (NAV) per share increased by 13.3% from 105 cents to 119 cents.

With the shares trading at a significant discount to NAV, the group has proposed distributing 1.75p per share back to shareholders through a tender offer buy-back of one in 39 ordinary shares at 68p.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

"When we started Raven Russia the aim was to create a high quality, income producing portfolio of grade A warehouses. It feels like we are nearly there," the firm said.

The group has 1.03m square metres of finished space, 92% of which is let with an annualised net operating income (NOI) at today's date of $129m. The completed portfolio will product $137m of NOI when fully let, the company said.

"Our task for 2011 was relatively straightforward. Continue to let the portfolio and improve returns and cash-flow through refinancing. We have been helped by a strong level of tenant demand and have done as well as we could have hoped," said Chief Executive Glyn Hirsch.

The year-end cash balance stood at $181.8m, up from $107.6m the year before.

BC