Sept. 26 (Bloomberg) -- PIK Group, the Russian property developer partly owned by billionaire Suleiman Kerimov, reported a profit for the first half as rising prices lifted revenue.
Net income was 3.2 billion rubles ($100 million) compared with a loss of 5.2 billion rubles a year earlier, PIK said in a statement today. Revenue rose 51 percent to 22.8 billion rubles as PIK completed homes with total space of 354,000 square meters (3.8 million square feet), an increase of about 45 percent.
PIK focuses on residential development mainly in the Moscow region. Average property prices around the Russian capital gained about 8 percent in the first half compared with the whole of 2010 as “buying patterns returned to normality,” PIK said.
“Consumer confidence is back and individuals are buying real estate from the early stage of construction,” the Moscow- based developer said.
Net debt increased to 42.5 billion rubles from 38.9 billion rubles, PIK said. The company’s gross profit margin was 16 percent in the first half. That compared with a negative figure a year earlier.
Kerimov’s Nafta Moskva owns about 38 percent of PIK, according to a presentation PIK made to investors in August.
PIK fell as much as 6.5 percent in Moscow trading and was down 2.8 percent at 95.66 rubles as of 11:37 a.m. The stock has declined 22 percent this year, cutting the company’s market value to 47.1 billion rubles.
--With reporting by Ilya Khrennikov in Moscow. Editors: Ross Larsen, Jeff St.Onge
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