Etalon Assets Reach Record Valuation of RUB288 BLN
16 March 2023
Etalon Group Assets Reach Record Valuation of RUB 288 BLN
ETALON GROUP PLC ("Etalon Group" or the "Company"), one of Russia's largest and longest-established development and construction companies, announces the results of its asset valuation as of 31 December 2022, conducted by Nikoliers.
The total value of Etalon Group's assets has reached RUB 288 billion (up 7% year-on-year), which is equivalent to USD 10.70 per global depositary receipt (GDR) at the Bank of Russia's exchange rate as of 31 December 2022.
The total NSA of Etalon Group's project portfolio increased from 6.0 mln sqm as of the end of 2021 to 6.4 mln sqm as of the end of 2022, and the number of regions where the Company operates increased from seven to eight, thanks in part to the acquisition of YIT Russia. Nikoliers determined the market value of the real estate at 38 ongoing projects as well as completed residential and commercial properties to be RUB 272 billion, 6% higher than the value of the Company's portfolio as of 31 December 2021.
The asset valuation also encompasses Etalon Group's integrated construction and maintenance division, which includes the Company's own general contractors and subcontractors, service business as well as IT companies and production enterprises, such as a modular production facility, the first phase of which is expected to be delivered in 2023. Since the beginning of the year, the market value of the construction and maintenance division has increased by 14% to RUB 16 billion.
Commenting on the asset valuation, Etalon Group CEO Gennadiy Shcherbina said:
"Since 2021, one of our main strategic development goals has been the expansion and qualitative improvement of our project portfolio. In 2021, we more than doubled the size of our portfolio thanks to the effective implementation of our acquisitions programme and our expansion into new regional markets. In 2022, despite a challenging market environment, we continued to develop our land bank, expanding it to 6.4 mln sqm and increasing the value of our assets to a record RUB 288 billion, including through the lucrative acquisition of YIT Russia as well as the launch of new projects in regions such as Omsk, Ekaterinburg, Tyumen and Kazan.
"In the context of market consolidation and the expansion of major players into regional markets, we continue to work to make our product more affordable. To this end, we have largely been taking a standardised approach to design, incorporating digital products and developing state-of-the-art technologies for industrial housing construction: prefabrication and modular technology. We are building our own production facilities and have already begun assembling test modules, which will increase the value of our production assets even further, beyond the record RUB 16 billion achieved in 2022. We are confident that new business streams, such as IT and prefabrication, will not only give us competitive advantages but will also lay the groundwork so that we can compete in new markets."
This and other announcements are available on the Etalon Group website: https://www.etalongroup.com/investor-relations/investor-news/
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About Etalon Group
Founded in 1987, Etalon Group is one of Russia's largest development and construction companies. The Company focuses on middle class residential real estate in the Moscow and St Petersburg metropolitan areas. In 2021, the Company began a regional expansion programme and has already launched new projects in Omsk, the Novosibirsk region, Ekaterinburg, Tyumen and Kazan. With a 35-year history, Etalon Group has one of the longest and most successful track records in the Russian real estate industry. Since its foundation, Etalon Group has delivered 8.6 mln sqm of real estate.
Thanks to its integrated business model, Etalon Group is able to create added value for customers and shareholders at every stage of development, from land plot analysis and acquisition to the operation and maintenance of existing properties. Etalon Group employs over 4,600 people, and its nationwide sales and marketing network covers 59 Russian cities.
Etalon Group's assets comprise 38 projects at the design and construction stages, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 6.4 mln sqm, as well as a construction and maintenance division. According to Nikoliers, the value of Etalon Group assets as of 31 December 2022 was RUB 288 billion.
In 2022, Etalon Group's new contract sales totalled 292 ths sqm, or RUB 58.7 billion, not including accumulated new contract sales at YIT Russia as of its acquisition.
The Company's revenue in 2021 amounted to RUB 87.1 billion, with EBITDA of RUB 17.9 billion.
Etalon Group's GDRs have been listed on the Main Market of the London Stock Exchange since 20 April 2011 and in the Level 1 quotation list of Moscow Exchange since 31 January 2020 under the ticker ETLN.