A LONDON-listed property firm that supplies warehouse space for big blue-chip companies in Russia has seen earnings almost double in the last six months on the back of booming demand from fast-growing consumer firms.
Raven Russia, which owns around 12 huge warehouses around Moscow and St Petersburg yesterday reported a 97 per cent jump in underlying earnings after tax to $27.8m (£17.9m) in the six months to 30 June compared with the same time last year. Its portfolio is now almost fully let (97 per cent) to tenants such as Dixy and X5 – two of Russia’s biggest supermarket chains.
Raven Russia’s executive deputy chairman Anton Bilton and chief executive Glyn Hirsch founded and floated the business in 2005. Both were long-term players in the London property market but went in search of the higher yields Russian industrial property offered.
The average yield, or return, for investors is 11 per cent — almost double the rate in London.
Shares rose 6.5 per cent to 73p yesterday. However analysts at Singer said shares were still undervalued.
Hirsch told City A.M. Russia still had a negative perception among people but it was building investor interest “piece by piece”.