Dragon-ukrainian Propert... Share Discussion Threads

[envirovision] 25/1/2010 17:44

Interesting to know the bottoms allready past history and to read evidence of Q4 showing recovery (3% up since Q2/3) you still in these dasv?

[dasv] 19/1/2010 10:04

TIDMDUPD

RNS Number : 7670F
Dragon-Ukrainian Prop. & Dev. PLC
19 January 2010

?
19 January 2010


DRAGON - Ukrainian Properties & Development PLC


("DUPD" or the "Company" and together with its subsidiaries, the "Group")


Trading Update


Dragon - Ukrainian Properties & Development plc, a leading investor in the real
estate sector in Ukraine, is pleased to provide an update on its operations and
results of its portfolio appraisal ahead of the full audited
financial statements for the year ending 31 December 2009, expected to be
released by April 2010.


Valuation and Financial Highlights:


* The value of the Company's portfolio was appraised by CB Richard Ellis and
amounted to USD 85.0 million as at 31 December 2009, indicating a 1.8% decrease,
compared to USD 86.5 (as at 30 June 2009). This is, mainly due to a decrease in
shareholding in the Avenue Shopping Mall project as described in the operational
highlights below.

* As in all previous periods, the Company's USD 120 million investment in its
landbank was not subject to appraisal, as the board has conservatively elected
to hold these investments at cost. * Cash, held in several leading European
banks, stood at USD 85.8 million as at 31 December, 2009.

* No bank debt at Company or Group level.


Operational Highlights:


* The Company is benefiting from the stablisation of real estate prices
and rentals during 4Q 2009. In addition, the market has witnessed the first
signs of recovery, evidenced by increasing demand for quality properties. During
the last four months of the year - the end of the sales season, DUPD has
successfully pre-sold 11 homes in its Green Hills project which will generate
revenues of USD 2.9 million for the Company, making Green Hills one of the most
successful residential projects in the market based on number of homes sold..
For 2010, we expect sales to remain strong for both Green Hills as well as the
Riviera Villas project, which has subsequently started its sales effort with its
first pre-sale (approx. USD 0.8 million) concluded in December 2009.

* The Company was able to realise its first sale in its commercial property
portfolio by agreeing terms of sale of its Ukrainian subsidiary (under Glangate
Ltd) that previously acquired land lease rights to a land plot in Sevastopol,
and recently completed development of project documentation and received a
construction permit. The subject property was sold to one of the leading local
retailers for USD 1.95 million, representing a 3% premium to the property's book
value as at 30 June 2009.


* Due to delays on certain deliverables by the Company's partner in the Avenue
Shopping Mall project, and given current market conditions, the Company decided
to exercise its option to cancel the share capital increase of USD 5 million in
Hindale Executive Investments Ltd, thus decreasing its stake in the project from
50.01% to 18.77%. These funds have been added to the Company's total uncommitted
cash balance and are available for new investments at the discretion of the
Company's Board.


* On 24 December 2009, the Company successfully received project documentation
approval from the Kyiv Architectural Council on one of its largest projects
- Obolon Residential Towers, and submitted the project documentation to the
State Detailed Expertise for final approval. Management expects to complete the
pre-construction stage of the project development and to receive a construction
permit in March-April 2010.


Chris Kamtsios, Senior Partner & Managing Director of Dragon Capital Partners
Ltd ("DCP or the "Investment Manager") commented:


"Being completely debt-free and having a substantial cash balance, we are able
to concentrate on proper and timely execution of our existing projects and not
deviate from our initial strategy of setting new quality standards for the
Ukrainian real estate market. Our focus on quality coupled with advanced stages
of project documentation and permitting processes on most of the projects in our
portfolio will allow the Company to take advantage of the market revival, which
we expect to continue during the course of the year.


"At the same time, we keep working on assessing various opportunities to invest
into properties that match our investment criteria and are already operational
or require reasonable levels of financing to complete the final stage of
construction."

[dasv] 15/1/2010 16:51

nice little rise at the end there.

[dasv] 13/1/2010 10:40

Interesting RNS I missed from December.

" Once the proceeds of the Placing have been fully invested, the Directors intend to work towards a target dividend yield of 7 to 10% per annum at the $2.00 placing price and also currently intend that in due course dividends paid by the Company will represent not less than 85% of annual net profits. "

This works out at about 30p a share dividend at 1.6 USD GBP.

Let's see how the strategy works out but certainly an attractive target.

[envirovision] 23/10/2009 15:33

Excellent thread, was not aware of that one thanks. Dont mention the bank bailouts, the amount of money we are potentially on the hook for reported by the FSA is up to an extra £500 billion, but many others are claiming it could be nearer 2 Trillion!

[dasv] 23/10/2009 13:56

I have been informed that the in effect the government does not even publish or indeed balance the books - you mentioned public pension and PFI - that is true, but you can add to that bank bailouts too. Northern Rock didn't go on the balance sheet either.

Hyper inflation is one way out yes. Good argument for having lots of gold. Pension managers have finally cottoned onto the fact they don't have any gold in their funds. More on my MACR thread on this.

[envirovision] 23/10/2009 13:21

175Bln and he still wants to throw more at it. Now if we are to balance the books, in order to pay this back and indeed to also pay not the pretend national debt, but the astronomical "real" national debt i.e. public pension and pfi liability, this would easily be a figure of 1.5 times GDP. This means every single one of us would have to work a whole 1.5 years for free. Of course we cant do that because we would need to feed and shelter ourselves during the 1.5 years hard labour. What a mess. At some point we or our children will be faced with no other option than ridding this debt away with south african style hyper inflation.

[dasv] 23/10/2009 10:30

Agreed. Before they started with QE Merv King did say he had no idea whether it would work.

One thing it has helped with is giving the investment banks lots and lots of readies to play the casinos with though. (e.g. GS, JPMorgan etc. etc)

[envirovision] 23/10/2009 09:36

Hmm sterling up in smoke this morning, things much worse than expected in the UK. Gilts getting one hell of a kicking this morning. Looks like theres going to be some nasty revisions downwards here in the UK on those dire GDP forcasts. Anyone putting all their eggs in UK facing stocks would have to be stone cold crazy. The billions and billions of imaginiary money pumped in to the economy by the BOE and its still not enough. I think people have no clue quite how bad things are in the UK and quite how bad they are going to get.

[dasv] 21/10/2009 12:48

Great strength on a down day for the indices

[envirovision] 20/10/2009 15:07

Yes progress being made most days now, very good. Now the only question going forward is will we be moving into Green Hills or Riviera Villas with our profits. I think i'm more of a Riviera sort myself.

[dasv] 20/10/2009 15:01

cheers for that..

BTW another rise today - nice looking chart now...

[envirovision] 20/10/2009 13:46

UKRO may be worth a look, they are a clever outfit imo, hence why they have a nice stake in DUPD.

[envirovision] 16/10/2009 15:04

I also bought AURR for my sipp

[dasv] 16/10/2009 15:01

I also bought Russian tracker XMRC (an ETF). Nice chart.

[envirovision] 16/10/2009 14:34

Watching newsnight last night, russias economy grew 5.1% in september

[thelongandtheshortandthetall] 12/10/2009 17:15

good stuff indeed!!!

[jlp4] 12/10/2009 16:27

Good stuff, the patient will be rewarded

[dasv] 12/10/2009 13:47

excellent ;)

[envirovision] 12/10/2009 13:24

Looks like the next leg up is begining.

[envirovision] 08/10/2009 12:38

12:08:48 58p 900,000 £522,000 55p 58p BUY O
12:08:23 58.05p 900,000 £522,450 55p 58p BUY O

good volume this week, some big buys coming in this morning.

[envirovision] 01/10/2009 15:54

Ukraine's 2Q09 GDP – more proof recovery has started

Yesterday (30 Sep) Ukraine's State Statistics Committee released 2Q09 GDP data. The numbers showed Ukraine's real GDP shrank 17.8% YoY vs a preliminary estimate of 18% and a 20.3% drop in the previous quarter. Despite the fact the YoY decline in all main GDP components remained rather substantial, in 2Q09 there was improvement in the dynamic of almost all sectors indicating QoQ growth of GDP.

The most notable improvement was posted by transports, which we regard as particularly indicative in terms of a revival of economic activity. The drop of added-value in this sector slowed to -8.6% YoY in 2Q vs -14.6% YoY in 1Q09. The YoY dynamic of the key sectors that comprise the highest share of GDP, manufacturing and trade, improved just slightly in the second quarter to -33% and -17.6% respectively. This was mainly due to the high base of comparison. Construction contracted the most (-47.3% YoY in 2Q09 vs -54.1% YoY in 1Q09) due to Ukrainian banks still not issueing new retail loans (especially new mortgage loans). Agriculture was the only sector that continued to grow even in 4Q08-1Q09, and which saw an increase in value-added to 2.3% YoY in 2Q vs 1.3% in 1Q09.

The Statistics Committee also recently released other important indicators, which showed improvement, hinting at the beginning of a slight recovery in 2Q09. The decline in real disposable income slowed to –8.3% YoY in 2Q vs – 12.9% YoY seen in 1Q09. The unemployment declined to 9.9% as of the end of June vs 10.3% in April.

[envirovision] 01/10/2009 12:07

1.5 million volume. Looks like a large weighting swap, 25K blocks swapping at 51p to 52p on the sets system.

[jlp4] 01/10/2009 08:49

Anyone know what is going on with the mass sales this morn? someone is offloading. 500,000 sold now...