Page 147 - RusRPTNov21

On our estimates, the cost of the land plot was less than R1bn. The company will hold a conference call today devoted to its 3Q21 trading update, during which it plans to provide an update on its regional expansion plans. We view the news as positive for the company.
Etalon released 3Q21 / 9M21 Operating Results.
•Contract sales were 96,000 sqm in 3Q21 (-36% y/y; -21% q/q) – a decline evenly led by Moscow (49,400 sqm -38% y/y; -38% q/q) and St Petersburg (47,000 sqm – 33% y/y; +10% q/q). Yet, for 9M21, sales declined by 15% y/y to 317,000 sqm mostly due to a 26% decline in St Petersburg and -3% y/y in Moscow sales, given more active sales in ZIL-Yug and the recently launched project in Moscow
•Contract sales totaled Rb18.4bn in 3Q21 (-23% y/y; -26% q/q) and a record Rb59.5bn (+11% y/y) for 9M21, supported by very firm dynamics – average prices rose 30% y/y to Rb186,000/sqm with strong trends in Moscow and St Petersburg– supportive vs 2021 guidance for 10% growth
• The share of mortgages in apartment sales remained firm at 66% in 3Q21 vs 67% in 2Q21
•Etalon continues to replenish its land bank with 1.9mn sqm added in 2021 and entered new regions of Novosibirsk and Omsk
•During the conference call, management believes it is on track to meet 2021 guidance on sales in money terms – the main target – with sales in sqm potentially coming below 538,000 sqm, albeit 4Q is usually strong on seasonality. On acquisitions – the addition of 0.8mn sqm in Moscow and St Petersburg are currently under negotiations after 1.9mn sqm already acquired in 2021. On dividends – the management sees updated dividends policy on pre-PPA IFRS net income to be more comfortable for investors with Rb12 minimum removed as the legacy following the Lider-Invest deal
Russia's largest developer PIK Group announced becoming a fee developer for projects of Ingrad peer, with fee-based development of several ongoing projects to build and sell more than 1mn square meters of real estate. The first joint project will be a residential area in Rumyantsevo, in southwest Moscow near the Moscow Ring Road. Fee-based revenues supported the performance of PIK before it made a major strategic shift to tech and new verticals, including modular housing construction.
9.2.5 Retail corporate news
147 RUSSIA Country Report November 2021 www.intellinews.com
Fix Price CEO Dmitry Kirsanov has given an interview to Kommersant. The key highlights are as follows.
● New openings are guided at 730 this year, 750 in 2022, and 800 annually from 2023.
● The current trading environment is stable, while profitability is