Results surge for Ukraine shopping centre owner Arricano

Ukraine-focussed shopping centre developer and operator Arricano Real Estate posted its final results on Wednesday, with recurring revenues increasing by 13.3% year-on-year to $23.1m.

The AIM-traded company owns and operates five completed shopping centres comprising 147,800 square metres of gross leasable area, a 49.9% shareholding in Assofit and land for a further three sites under development.

It said its operating profit increased to $43.8m from $18.9m, with both figures including revaluation gains and adjustments to operating expenses.

Total fair valuation of the company's portfolio was 175.7m as at 31 December, improving from $160.3m, while its overall occupancy rates increased to 98.3% from 96.2%.

As at year end, the company's borrowings at project level remained “conservative”, the board said, with a loan-to-investment property value ratio of 28.5%, compared to 37.4% in 2015.

Net asset value stood at $24.2m, compared to $3.1m a year earlier.

“Following on from our half-year report in September 2016, the market in Ukraine has continued to show signs of improvement and the company's trading performance reflects this,” said chairman Rupert Cottrell.

“There remain many challenges ahead for the country and the economy but there is now evidence of consistent improvement and a growing expectation of continued progress.”