Raven Russia, the Russia-focused property company, is benefiting from an improving economy, particularly around Moscow and Rostov, and an under-supply of the kind of warehousing facilities which are its speciality.
In the six months to June 30th pre-tax profits came in at $29.6m, down on the prior year's number of $86.4m but this may give a misleading impression because underlying earnings before tax for the period were $14.3m against a loss of $5.9m in 2011.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely 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
The group's net asset value, or NAV, increased from $669m at the year's end to $685m by the end of June; property companies tend to be far more concerned about NAV than the bottom line.
The latest portfolio valuation is $1,417m, representing a fully let portfolio yield of 11.7%.
Raven Russia's Chief Executive, Glyn Hirsch, said: "The market in which we operate continues to improve. The Russian economy is growing and our tenants are doing well. There is a structural under-supply of logistics warehousing and combined with fragmented competition and limited development finance, this means that the supply/demand dynamics are in the landlord's favour."
Raven Russia is a recent entrant to the FTSE 250 and so far this year the stock has gained 33.7%.
BS
-
Steve Webb: The triple lock is there to do a job. I’m not embarrassed or ashamed of itThe triple lock means 13 million pensioners will now get an above-inflation state pension boost in April. While the rising cost of the policy has stirred controversy, Steve Webb, who served as pensions minister when it was introduced, argues the triple lock is vital and should stay. Webb speaks to Kalpana Fitzpatrick on the new episode of MoneyWeek Talks – out now.
-
How retirement pots risk running out 11 years early if inflation remains highPension savers could find their retirement income may not last as long as they anticipated over fears that inflation may not slow down
