Growth in operating profit and net asset value – Arricano unveils financial indicators for the first half of 2021
Arricano, a leading developer and operator of professional shopping malls in Ukraine with a rental area of more than 148 thousand square meters and three other sites that are at the development stage, has announced interim results of operations for 6 Months ended June 30, 2021.
In the first half of this year, the company's operating activities were significantly affected by the latest state orders on work restrictions caused by COVID-19, because in different regions access to shopping malls was partially closed for up to 59 days.
However, the Arricano team managed to increase revenue by 19% to 16.9 million US dollars. In 2020, this figure was at the level of 14.2 million US dollars.
Thus, operating profit excluding investment property revaluation increased by 23% to USD 11.9 million, compared to USD 9.6 million in the first half of 2020.
The overall occupancy rate in the Arricano shopping malls is 99.5%, which means that the company is operating at full capacity, and the rental space of shopping malls is in demand in the market among retailers.
The total value of Arricano's investment property portfolio is estimated at 281.6 million US dollars. As of December 31, 2020, the total cost was 275.5 million US dollars.
The net asset value increased to 125.2 million US dollars compared to 119.4 million as of December 31, 2020.
Cash flows from operating activities increased by 52% compared to the first half of 2020.
The average cost of bank loans decreased to 8.3% as of June 31, 2021, compared to 10.1% as of December 31, 2020.
"The first half of 2021 was difficult and dynamic at the same time. However, even though the shopping malls were operating in a limited format for about two months, the Arricano team maintained a strong market position and achieved significant financial performance. An increase in operating revenue by 19% and operating profit (before investment property revaluation) by 23%, as well as an increase in the net asset value of Arricano – these are the investment indicators that form the attractiveness of the development market and demonstrate its potential even in conditions of increased complexity of the company's management," concluded Anna Chubotina, CEO of Arricano.
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