The large Russian rating agency RAEX (RA Expert) has assigned the ruBBB credit rating with a stable outlook to Pioneer Group.
In its press release RAEX Agency (RA Expert) positively assessed the company’s business prospects. The specifics of the development business of Pioneer Group presuppose a high level of diversification of revenues, which allows to reduce risks of concentrating on one buyer. Also, in view of the fact that the management of all settlements is denominated in Russian rubles, and the debt portfolio is represented by ruble borrowings, the company’s activities are not subject to fluctuations in the foreign exchange market.
RAEX Agency (RA Expert) expects a gradual increase in the profitability of Pioneer Group as the company’s current projects are realized. Now the largest projects at the realization stage are residential quarters LIFE-Botanic Garden and LIFE-Botanical Garden 2, whose share in the revenue structure in 2018 according to estimates of Pioneer Group will be about 50%.
Among the factors of the corporate risk block, the agency positively assessed the level of information transparency, as well as the quality of the risk management system.
We would like to note that according to the IFRS consolidated financial statements for the 12 months of 2017, the revenue of Pioneer Group reached 24.7 billion rubles, net profit – 2.3 billion rubles. The company’s assets as of December 31, 2017 amounted to 23.5 billion rubles.
Pioneer Group published its consolidated financial statements for the 12 months of 2017. Over the past period, the Group has again demonstrated positive development dynamics and significantly improved its key performance indicators.
The company’s net profit in 2017 was 2.3 billion rubles, which is 15.7% higher than in the previous reporting period. The revenue exceeded the indicator of 2016 by 7.2% and reached 24.7 billion rubles. The company’s operating profit in 2017 increased by 19% and amounted to 4.1 billion rubles. EBITDA improved as well – 4.2 billion rubles compared to 3.4 billion rubles in 2016.
Over the reporting period, Pioneer Group significantly reduced its accounts payable. Net debt decreased by 9% and amounted to 6.57 billion rubles (in 2016 – 7.17 billion rubles). The ratio of net debt to EBITDA is 1.6 (a year earlier it was 2.1).
“Following the results of 2017, Pioneer Group demonstrated an organic growth of the main financial indicators. This result is in line with our long-term strategy, which is aimed at ensuring a stable growth in the Group’s revenue, maintaining a market level of profitability and quality management of liquidity, “ notes Deputy General Director for Finance Andrei Tyutchenko.
Pioneer Group for many years has been an example of a successful and steadily developing real estate development company. In April 2018, the rating agency RAEX (RA Expert) assigned a ruBBB level credit rating to the Group, the forecast is “stable”. Earlier, the international rating agency Standard & Poor’s Global Ratings changed the rating outlook from “stable” to “positive”.
Follow the link for the full text of the consolidated financial statements for 2017.
On April 3 the names of the winners of the annual Move Realty Awards 2018 were announced in Moscow. According to the results of the expert jury vote, the residential quarter LIFE-Primorsky was recognized as the best in St. Petersburg.
Together with the project of the Pioneer Group, five more large residential complexes of the northern capital fought for the victory. Other projects of the Group – the business-class quarter LIFE-Kutuzovsky (Moscow), the residential complex LIFE-Lesnaya, the apart-hotel YE’S Sotsialisticheskaya (St. Petersburg) – were in the shortlist of the competition.
The Move Realty Awards was held for the fourth time and this year is gathered a record number of nominees – almost 250 applications from more than 100 real estate development companies and agencies from Moscow and St. Petersburg. Each participant was evaluated according to 50 criteria, including project cost and liquidity, safety and security, layout solutions, social infrastructure, etc. The key goal of the award is to select reliable developers and high-quality real estate units purchasing housing in which will be profitable and comfortable.
Now any apartment in LIFE residential areas can be booked in real time without leaving your home. Pioneer Group has launched an online booking server for housing projects in Moscow and St. Petersburg.
All the buyer needs to do is to choose the room they like, enter their personal data and accept the offer contract. The web-booking is valid for 14 business days for clients planning to purchase an apartment with the use of credit funds, and 7 business days for those who buy housing without mortgage registration. Payment for the reservation is made using the Internet acquiring technology widely used in the world for electronic payments. Customers can use Visa, MasterCard and MIR cards, no transaction fee is charged, and the cost of booking is included in the total purchase budget.
The online booking option from Pioneer Group allows the client to save a lot of time, excludes the possibility of making mistakes when making a contract, filling in details, etc. From the point of view of sales tactics, this technology provides the prospect of a sustainable growth of the company, as it meets the needs of a modern digital generation, accustomed to purchasing goods and services through a smartphone or tablet.
You can book an apartment online on the web-sites of Moscow projects LIFE-Kutuzovsky, LIFE-Botanic Garden and in the residential areas in St. Petersburg LIFE-Lesnaya and LIFE-Primorsky.
The international rating agency Standard & Poor’s Global Ratings has changed the estimation for Pioneer Group’s rating from “stable” to “positive”. The long-term credit rating of the developer is confirmed at the level of “B-”.
Revision of the rating is due to the increase in the development portfolio of Pioneer Group through acquisition of land and the launch of new projects. The company provided the necessary financing to support business growth, lowered the cost of debt and improved liquidity.
“The revision of the estimation reflects our opinion that we can upgrade the rating of Pioneer Group if the growth rate of the scale and profitability of the company exceeds our current expectations. The company continued to expand its portfolio, which currently includes 2 million square meters of real estate in Moscow and St. Petersburg, together with purchasing land and new projects at the design and construction stages,” the agency said.
In 2017, more than 140 thousand square meters were contracted in the facilities under construction by Pioneer Group, revenue amounted to 21 billion rubles. The rating agency believes that the sales of Pioneer Group will increase significantly against the backdrop of the launch of the residential quarter LIFE-Kutuzovsky, new stages in the construction of LIFE Botanic Garden, as well as other major projects.