Samolet Group releases H1 2020 report
Moscow, July 16, 2020 — Samolet Group, a leading full-cycle developer and a systemically important company of the Russian economy, announces its operating results according to unaudited management reporting for the six months ended June 30, 2020.
• Real estate sales increased by 14% to 25.4 billion rubles (226,000 sq. m.) as compared to 22.3 billion rubles (236,000 sq. m.) for the first half of 2019. In particular, revenue from other business activities (apart from the sale of housing and serviced apartments) amounted to 0.8 billion rubles.
• The significant rise in sales volumes is due to an unprecedented increase in the average price per square meter by 19% year-on-year to 112,000 rubles.
• The commissioning volume reached 42,000 sq. m., which is 87% less compared to the first half of 2019 (327,000 sq. m.), since most of the commissioning is planned for the second half of 2020. The annual commissioning indicators will be comparable to the company’s record-breaking results in 2019.
• Mortgages accounted for 75% of total sales, of which 80% were subsidized mortgages at an interest rate of 6.5%.
• The company is actively switching to the escrow accounts, with more than half of current projects running on this logic.
• The total area of real estate put on sale amounted to 24,856,000 sq. m., which is 54.3% more than in the first half of 2019 (16,109,000 sq. m.).
Key events of the first half of the year:
According to an independent valuation conducted in the first half of the year by the international consulting company JLL, the Group’s project portfolio as of the end of 2019, with a total of 12.1 million sq. m., was valued at 117.5 billion rubles. In 2019, the portfolio grew primarily due to projects in New Moscow.
In February, the company successfully issued bonds worth 6 billion rubles, which created a liquidity cushion and enabled the company to go through the lockdown risk-free.
The company announced the acquisition of two new projects with a total area of 253 hectares and a total area sold of 1.6 million sq. m.
The company received funding for six projects totaling more than 32.5 billion rubles.
This March, the Group’s first business-class project in Moscow, Novodanilovskaya 8, was put on sale. The total area of the serviced apartments is 3,446,000 sq. m.
In June, the credit rating agency NKR assigned Samolet Group a credit rating of A-.ru, outlook stable.
As part of a partnership program, the Group signed an agreement with SPb Renovation LLC to jointly implement projects in Saint Petersburg and the Leningrad Region under the aegis of Samolet Group.
Anton Elistratov, CEO of Samolet Group: “The Company ended the first six month with business indicators notably higher than those of the previous year and kept to its pre-crisis plans. We managed to significantly limit the impact of the crisis on our business due to timely managerial decisions, participation in state support programs, and strong financial results in Q1. Ninety-five percent of Samolet Group’s offers fall under the criteria of the government's most effective anti-crisis measure for the industry – the mortgage subsidy program.”
The company’s large-scale digitalization initiative, launched in 2019, reached a new level in all the segments during Q2. The company continues to implement BIM technologies at all stages of the construction cycle. Dozens of implemented IT solutions allow the company to save hundreds of millions of rubles a year.
The share of online sales tools has also risen. For example, the percentage of online mortgage approvals has increased to 47% and reached about 500 loans. Customers are starting to make full use of the option to buy an apartment online.
In the first half of the year, the Group introduced digital services into operations of the management company. All 100,000 customers got access to the multi-function service and communication platform VMESTE.RU, with the number of users already exceeding 80% of the total number of personal accounts.