OREANDA-NEWS. December 29, 2009. XXI Century Investments Public Limited, Ukraine's real estate investment, development and property management Company reports its interim unaudited results for the six months ended 30 June 2009.

Financial highlights:

Revenue decreased by 27% to USD 10.6 million (USD14.5 million as at 30 June 2008) due to decrease in residential sales and rental income.

Costs of operations increased by USD 4.8 million due to construction costs related to finalizing residential premises in early 2009, with the result that gross profit decreased by 67% to USD 4.3 million in comparison to the same period year in 2008.

General, selling and administrative costs decreased by 68% to USD 4.5 million (USD 14.3 million as at 30 June 2008:)  due to substantial reductions in personnel and salary levels, general overhead expenses, as well as freezing all development activities and capital expenditure.

The fair value of our investment property was written down by USD 24.5 million since 31 December 2008 reflecting the ongoing economic recession and continued deterioration in property values.

Notwithstanding severe cutbacks in administrative and operating expenses, net loss amounted to USD 41.8 million compared with USD 76.7 million for the same period last year.

The Company's real estate portfolio was appraised by CB Richard Ellis and as at 30 June 2009  the value of the Company's share amounted to approximately USD 406 million compared to USD 474 million at 31 December 2008, and USD 2.18 billion at 30 June 2008.

Net Asset Value, excluding minorities, at 30 June 2009 was USD 124 million compared to USD 165 million at 31 December 2008. Most of this difference reflects write down (USD 24.5 million) of properties in our portfolio and property sales (USD 46.3 million) and foreign exchange gains (USD 3.9 million).

Operational highlights:

The Company successfully restructured the USD 175 million 3 year 10% Guaranteed Secured Notes maturing in 2010.

The Company’s USD 60 million revolving line of credit with Eurobank EFG, was also recently restructured.

Capitoliy, a premium class residential apartment complex located in downtown Kyiv with 48 units, was completely sold out in the first quarter of 2009, notwithstanding the prevailing recessionary conditions.

Parus, a business class residential complex located in the central business district in Kyiv and containing 202 apartments was also completely sold out in the first quarter of 2009.

In view of the changed market circumstances and economic recession in Ukraine, the Company revised its business model to focus on core competencies based on experience, reputation and promising sites - namely, retail, high end residential and mixed use complexes, primarily in Kyiv. The Company also adopted a survival strategy and substantially reduced administrative expenses and overheads, including staff levels and salaries.  In addition, all capital expenditure and developments were frozen.

In order to conserve resources and improve liquidity, the Company sold a variety of non- core properties in Kharkiv, Sevastopol, Donetsk, in addition to the Lisnyky and Boryspil sites in the capital region of Kyiv.

The Report and Consolidated Financial Statements of the Company for the six months ended 30 June 2009 is available on the Company’s website: www.21.com.ua

A conference call for investors is planned for the second half of January 2010, with details to be announced early in the New Year.