OREANDA-NEWS. October 22, 2012. LSR Group (LSE: LSRG; MICEX-RTS: LSRG), one of the leading real estate developers and building materials producers in Russia, is publishing the operating results for the third quarter of 2012, reported the press-centre of LSR Group.    

In the first nine months of 2012 in all regions of our operations we entered into new contracts for the sale of 285 th m2 (+22%). The total value of the contracts for the sale of apartments and other premises in the first nine months of this year was RUB 24bn, up 41% against the corresponding period in 2011.

Elite real estate in St. Petersburg
In 3Q 2012, in the elite real estate segment in St. Petersburg, we entered into new contracts for the sale of 11 th m2 of net sellable area, up 37% against 3Q 2011. In the first nine months of 2012 we signed new contracts for the sale of 51 th m2 of net sellable area, up 60% year-on-year. The total value of the contracts for the sale of apartments and other premises in the first nine months of this year was RUB 8bn (+90%).

In 3Q 2012, we transferred to our customers 2 th m2 of net sellable area and completed 26 th m2 in our Smolny Park project.

Mass market real estate in St. Petersburg
In 3Q 2012, we entered into new contracts for the sale of 28 th m2, down 63% on our sales in 3Q 2011. In the first nine months of 2012 we signed new contracts for the sale of 114 th m2 of net sellable area, down 15% year-on-year. The total value of the contracts signed during the first nine months of 2012 was RUB 9.1bn (-3%).

Decrease in the new contract sales was due to the insufficient supply of new projects as well as product mix changes which is explained by the rescheduling of new projects launches till 4Q 2012 due to general permitting process delays in St. Petersburg.

At the beginning of October 2012 we started pre-sales in Aurora-2 residential complex located in the Nevsky district of St. Petersburg. During the first three days we managed to sell more than 8 th m2, ca. 14% of the total net sellable area available for sale.

In 3Q 2012, we transferred to our customers 3 th m2 of net sellable area. There were no housing completions in 3Q 2012 due to the projects schedule.

Real Estate in Moscow
In 3Q 2012, we entered into new contracts with our customers for the sale of 25 th m2 of net sellable area, up 131% on our sales in 3Q 2011. In the first nine months of 2012 we signed new contracts for the sale of 65 th m2 of net sellable area, up 238% year-on-year. The total value of the contracts signed in the first nine months of 2012 was RUB 3.8bn (+196%).

During the third quarter we transferred to our customers 5 th m2 of net sellable area and completed 8 th m2 in the residential complex New Nakhabino.

In July 2012, we signed an investment contract to build the second stage of the mass-market residential neighbourhood Novoe Domodedovo. The total area of the project has increased more than twice, up to 685 th m2.

Real Estate in Yekaterinburg
In 3Q 2012, in Yekaterinburg we entered into new contracts for the sale of 23 th m2 of net sellable area, up 5% against 3Q 2011. In the first nine months of 2012 we signed new contracts for the sale of 56 th m2 of net sellable area, up 16% year-on-year. The total value of the contracts signed in the first nine months of 2012 was RUB 3.4bn (+43%).

In 3Q 2012 we transferred to customers 3 th m2 of net sellable area. There were no housing completions in 3Q 2012 due to the projects schedule.

Construction
In 3Q 2012, our subsidiaries in St. Petersburg, Moscow and Yekaterinburg transferred to our customers 190 th m2 of panel housing (-1%). In the first nine months of 2012 we transferred 508 th m2 (+18%).

The sales volume decrease in St. Petersburg is explained by the rescheduling of new projects launches till 4Q 2012 due to general permitting process delays in St. Petersburg.

Reinforced Concrete
In 3Q 2012, we sold 135 th m3 of reinforced concrete items, down 3% on the same period of 2011. It included 108 th m3 in St. Petersburg, 2 th m3 in Moscow and 25 th m3 in Yekaterinburg.

In St. Petersburg in 3Q 2012 we supplied our reinforced concrete items for residential and large infrastructure projects including Western High Speed Diameter, new terminal of Pulkovo Airport and Ust-Luga port.

In 3Q 2012, in Moscow we primarily supplied our reinforced concrete items for residential and infrastructure projects including our own real estate development projects.

In 3Q 2012, we were running most of our building materials plants at full capacity. Similar utilization level was observed in 3Q 2011 when the market for building materials completely recovered in terms of volumes. High capacity utilization during the next 12 months resulted in the increased prices on our products which had a positive effect on our margins in the building materials business.

Crushed Granite
In 3Q 2012, our crushed granite sales totaled 2m m3. Crushed granite sales in 3Q 2012 remained unchanged as compared to the corresponding period in 2011. At the same time in the first nine months of 2012 we increased our sales by 27% year-on-year. In 3Q 2012, we supplied our crushed granite to producers of building materials and for construction of large infrastructure projects including Western High Speed Diameter.

Sand
Sand sales in the third quarter of 2012 were 3.2m m3, down by 5% on 3Q 2011. In the first nine months of 2012, we increased our sales by 3% year-on-year. In 3Q 2012, we primarily supplied our sand to large infrastructure projects including Western High Speed Diameter and the International Convention and Exhibition Centre Expoforum.

Ready-Mix Concrete
In 3Q 2012, ready-mix concrete sales were 424 th m3, unchanged as compared to the corresponding period in 2011. It included 262 th m3 sold in St. Petersburg and 162 th m3 in Moscow. In the first nine months of 2012 we increased our sales by 9% year-on-year.

In 3Q 2012, in St. Petersburg we primarily supplied our ready-mix concrete to residential and infrastructure projects including Western High Speed Diameter and the International Convention and Exhibition Centre Expoforum. In Moscow we mainly supplied our ready-mix concrete for residential construction.

Cement
In 3Q 2012 we sold 465 th tonnes of cement. We mainly supplied our cement to building materials producers, primarily to ready-mix concrete factories.

Bricks
Our bricks sales amounted to 57 million units, down 5% against 3Q 2011. The insignificant sales decrease was due to the temporary reduction of our capacities in St. Petersburg - we continue construction of our new brick plant in the Kirovsky district of the Leningrad region. The land plots previously occupied by the obsolete production facilities are used for development of mass-market real estate.

In 3Q 2012, 7 million units were sold by our brick plant in the Moscow region.

Aerated Concrete
Aerated concrete sales amounted to 338 th m3 in 3Q 2012. St. Petersburg accounted for 106 th m3, another 232 th m3 were sold in Ukraine. Our sales volume grew by 23% year-on-year. Growth of sales was mainly driven by the popularity of aerated concrete in Ukraine, where our sales increased by 58% year-on-year in 3Q 2012.