Swedish-based investment vehicle Russian Real Estate Investment Company has posted a sharp jump in losses after tax for the first quarter of the year, -SKr134.3m (-14.9m), a sharp fall from its loss of -SKr0.5m for the first quarter of 2011.
Ruric, formed in 2004, acquires, develops, manages and divests real estate assets in Russia and in St Petersburg in particular.
Net turnover for the interim period was SKr10.3m (Q1 2011: SKr10.6m). Earnings per share fell to SKr1.29 (Q1 2011: SKr0.00) mainly as a result of the revaluation of the assets Moika Glinki and Apraksin Dvor.
The value of Moika Glinky has been adjusted to SKr245.8m (SKr325.4m) after it was confirmed that there could be no new development on the site.
The value of Apraksin Dvor has been adjusted to SKr39.7m (SKr78.2m) to reflect the current estimate of the amount recoverable from rescinding the project.
The total book value of the company’s business centre properties fell to SKr771.5m (SKr911.8m).
The firm agreed with its partner on the Fontanka 57 scheme, Scorpio Real Estate, to buy out its share of the project; the agreement is yet to be approved by the bondholders of both Ruric and Scorpio.
Ruric said it was working “intensively” to find a long-term solution to the company’s debt burden.
Cash flow during the year fell to SKr5.5m (SKr23.6m), of which SKr11.8m (SKr27.0m) was from operating activities. The equity ratio came in at 34.3% (45%) at the end of the period.
Equity amounted to SKr337.3m (SKr516.6m) while liquid funds totalled SKr36.3m (SKr41.8m) and interest-bearing liabilities amounted to SKr563.4m (SKr563.4m).
Ruric’s financing consists of an OMX-listed secured bond loan amounting to SKr563.4m (SKr563.4) maturing 16 November 2014. The bond has a coupon of 10% or 13%, and Ruric may elect to pay 10% in a cash coupon or pay a 3% cash coupon with a roll-up of 10%, accumulated to the bond.
The first coupon payment was made with 3% cash plus 10% roll-up on 16 November 2011. The next payment is due on 16 November this year.
