OREANDA-NEWS. XXI Century Investments Public Limited, the Ukraine's leading real estate investment, development and property management company, on September 28 reported its interim results for the six months ended June 30, 2007.
 
The Company's Financial Highlights are:
 
   • Net asset value (NAV) of the Company increased by 188 % to US$ 1.498  billion for six months from December 2006 (December 31, 2006: US$520 million);   basic earnings per share increased to US$27.27 (June 30, 2006: US$ 0.23);
 
   • The Company successfully placed its debut Eurobond issue in May 2007,  raising US$175m at 10% due 2010; proceeds are to finance existing portfolio and acquire further assets in Ukraine, which fits the Company strategy;
 
   • The Company's leverage (excluding trade and non-cash obligations) amounted to US$ 193.92 million, approximately 10% of total assets at the end of the first half of 2007;
 
   • Revenues remained on the level of 1H 2006, despite the sale of Kvadrat-Borschahivka shopping centre in 1H 2006 and the reduction of revenues from sales of residential bonds, caused by the Company's decision to postpone sales of most liquid apartments until closer to the completion  of construction in Capitoliy and Parus projects, in order to take advantage of the growing prices in the market. The rental income increased by 54%, primarily due to the increase of rents in Kvadrat-Lukyanivka operating shopping centre in Kyiv;
 
   • Costs of operations decreased by 22% primarily due to the sale of  Kvadrat-Borschahivka shopping centre in 1H 2006. The increase in  administrative expenses is explained by the growth in legal and professional  services and audit fees related to the issue of Eurobonds in May 2007.

These items also include the consultancy services on real estate acquisitions and investments during the period;
 
   • Profit before tax increased to US$1.019 billion (June 30, 2006: US$8.705 million);
 
   • Profit after tax for the six months till June 30, 2007 rose to US$1.018 billion (June 30, 2006: US$8.600 million).
 
Operational Highlights are as follows:
 
   • 74% of the portfolio growth is derived from 25 projects in portfolio at December 31, 2006;
 
   • 26% of the portfolio growth is derived from 9 new sites and projects acquired during the first six months of 2007;
 
   • As of June 30, 2007, the appraised value of portfolio (XXI Century share) increased by 216% to US$1.542 billion (December 31 2006: US$489 million)
 
   • As of June 30, 2007, the portfolio comprised 34 projects with a total area of 5.2 million sq.m
 
   • As of September 28, the portfolio comprised 41 projects with a total area of 6.3 million sq.m; appraised value of XXI Century share in 7 projects increased and since June 30, 2007 amounts to US$185 million, and will be reflected in the Group's year-end 2007 financial statements.
 
Mr Lev Partskhaladze, Chairman of the Board, commented on the results: "I am pleased to say that we are progressing with our strategy of active expansion across the major cities in Ukraine. It remains our strategic goal to become the number one developer in Ukraine by capitalization, quality of projects and corporate development. We believe that recent independent appraisal of our property portfolio indicates the strength of the Ukrainian property market as well as a potential for our Company."