Page 167 - RusRPTMay21

seasonality and the strong project offering in 1Q20, but supported by strong price dynamics on April 26.
Share of mortgages improved to 63% vs 51% in 1Q20. Launches amounted to 225,000sqm in 1Q21 and the management’s 2021 guidance sees 1mn sqm of new space this year. The key takeaways included:
Sales in St Petersburg fell to 77,000sqm (-32% y/y; -47% q/q), given completion of large scale mass-market projects, which supported 1Q20. Price dynamics were firm with Rb129.9k/sqm (+22% y/y; +18% q/q). Thus, sales amounted to Rb10bn (-18% y/y; -38% q/q)
Moscow sales declined to 44.0k sqm (-22% y/y; -19% q/q) due to limited offering, according to the press-release. Yet, ZILArt sales rose 3% in sqm, despite the launch of premium buildings last year. Price dynamics were strong – 181.8k/sqm; up 15% y/y and -2% q/q – contributing to sales of Rb8.0bn (-9% y/y; -20% q/q)
Ekaterinburg showed the same trends – sales fell to 21k sqm (-24% y/y; -43% q/q) with strong price dynamics to Rb81k/sqm (+26% y/y; +36% q/q)
Construction materials also fell, with sand the weakest (-40% y/y and -49% q/q), followed by bricks (-8% y/y; -16% q/q) and aerated concrete (-4% y/y; -26% q/q), albeit this was in line with the company’s expectations
During the conference call, management said key rate hikes may imply increased mortgage demand in the S-T, though an increase of mortgage rates to 7.5-8% may affect demand later. April trends are seen strong, accounting for last year’s low base, given lockdown. The company is actively replenishing its portfolio, adding land plots monthly.
Etalon released 1Q21 Operating Results. The company also announced the results of Rights Offering and the Board of Directors Meeting, including the approval of an additional share issuance.
· A drop in 1Q21 contract sales was attributed to some portfolio shortage of new apartments – sales fell 13% y/y in Moscow to 51.8ths sqm and 30% y/y in St Petersburg to 46.9ths sqm. Yet, total cash collections rose 2% y/y to Rb18.0bn
· Etalon introduced 2021 guidance – 10% increase in new contract sales to Rb88bn on flat contract sales of 538ths sqm, as well as +10% in total cash collections to Rb90bn
· On 16 April, the Board of Directors approved an additional share issuance of 88.48mn shares (30% of issued ordinary shares) via
167 RUSSIA Country Report May 2021 www.intellinews.com