AFI Europe Romania Q4 and 2016 Financial Results

Bucharest, 14.03.2017:

AFI Europe Romania published its Q4 and 2016 financial results, generating a Net Operating Income (NOI) from its income producing assets in Romania of more than EUR 46 million during 2016 representing an increase of 15.5% compared to 2015. In Q4 2016 the NOI generated was EUR 12.5 mil, representing an increase of 23% compared to Q4 of 2015 end.

AFI Cotroceni, the dominant Shopping Mall in Romania, generated a Net Operating Income (NOI) of EUR 33.8 million in 2016, achieving 10% higher results compared to 2015. Since its opening year in 2009 AFI Cotroceni NOI (net operating income) increased by 46% over the years parallel to its value increasing by EUR 140 million.

Currently AFI Cotroceni is finalizing expansion works adding 6,500 sqm of GLA to the mall, which will host mainly the new fashion anchor Peek&Cloppenburg (P&C) entering the mall to open a 5,200 sqm shop following the lease agreement signed end of last year.

AFI Cotroceni retailer’s sales (Turn-Over) increased by over 9% compared to 2015, resulting in close to EUR 240 million in 2016. Footfall (visitors) to the mall increased by 4% and the occupancy rate is 99% for the currently 85,000 sqm GLA shopping mall (following expansions the mall will reach 90,000 sqm of GLA).

AFI Ploiesti results continue to show significant increase in all parameters. Retailer’s Sales (Turn-Over) rose by 15% in Q4 and during 2016. The net operating income (NOI) increased by 11% in Q4 and by 6% in 2016 reaching EUR 4.5 mil. Current occupancy rate of the shopping mall in Ploiesti remains steady at 99%.

AFI Ploiesti has finalized expansion works including new shops of Deichmann and Starbucks that have been opened.

In the office Project AFI Park, 70,000 sqm GLA in AFI Park 1-5 are close to 100% occupancy rate. Amongst the prestige multinational companies residing in the park are: Microchip Technologies, Electronic Arts (EA), Endava Romania, Cameron USA, SII Romania, ORTEC Central & Eastern Europe, FotoNation, TELUS International, Veeam Software and SecureWorks.

“The record financial results and the raise in value of the assets reflect the team work of AFI in managing the development of new projects and the property management of the existing assets. We are continuing with full force ahead and are currently developing 80,000 sqm of leasable commercial areas which includes AFI Tech Park phase 1, office project located on Progresului Boulevard in Bucharest, of 22,000 sqm of leasable area (GLA), and AFI Brasov consisting of a 40,000 sqm GLA shopping mall & phase 1 of 15,000 sqm GLA of offices. Furthermore we expect to start in the coming weeks our first residential project in Romania AFI City located on Bucurestii Noi Boulevard. We keep searching for new opportunities for shopping malls, commercial centers and office projects”, commented David Hay, CEO AFI Europe Romania.

Record Results to AFI Properties; Profit of EUR 88 million in 2016, 74% higher compared to 2015 results;

“AFI Properties“, the parent company of “AFI Europe“, has published its Q4 and 2016 financial reports, registering a NOI of EUR 78 million, similar to last year results though including a change in the mix of income whereby several assets were sold and operating assets increased their NOI performance, in addition to completing new income generating projects in Romania, Serbia and the Czech Republic. AFI Properties registered a profit of EUR 88 million representing an increase of 74%. The total income grew to EUR 160 million representing a 24% increase compared to 2015.

2016 was a record year to AFI Properties in terms of developments and commencing of new projects. The company completed 50,000 sqm of office projects delivering AFI Park 4&5, phase 4 in Airport City Belgrade and phase 3 in Classic 7 in Prague. AFI has purchased in 2016 lands for new developments as the ones in the city center of Brasov Romania for the development of AFI Brasov Shopping Mall of 45,000 sqm GLA & Offices of 15,000 sqm GLA and in the city center of Belgrade to develop a 68,000 sqm mix use project. In 2016 AFI has sold more than 600 residential units while additional 300 units were leased on a long term basis.

In 2017, AFI Properties through its subsidiaries is developing 20 projects including office buildings totaling 80,000 sqm, a new shopping mall of 40,000 GLA in Brasov Romania and 1,000 residential units in Serbia, Poland, Latvia and the Czech Republic.

The developments of 2017 will be followed-up by developments of additional 100,000 sqm of offices and additional 1,000 residential units to the one mentioned above.