Russia-focused British real estate company Raven Property Group (RAV) has updated the value of its portfolio in the country on Tuesday, citing expectations of continued growth in Russia’s economy and its real estate sector, according to QuotedData.
Along with the portfolio increasing in value, a stronger Russian ruble, on account of improving fundamentals, along with ongoing weakness in the pound, RAV’s reporting currency, is providing an exchange rate boost, the company said.
“Market rental levels are increasing and vacancy is decreasing. Accordingly, the company can report an increase in the rouble valuation of its portfolio of 1.1% to 109.5 billion rubles, equating to a revaluation gain of £14.4 million at the ruble-sterling exchange rate of 82.2 on 31 May 2019. This represents an increase, before any associated tax and the impact of the strengthening of the rouble, in net asset value per share of 2.4p for ordinary shares in issue today,” Raven Property Group said.
Over the year to 31 December 2018, weakness in the ruble had a detrimental impact on the value of the property. Since then, the rouble has since returned to its three year average of 80 rubles to a pound, which will have a further beneficial impact on the property valuations when translated into sterling.