A record-breaking quarter for Ronson Development

In the fourth quarter of 2016 Ronson Development achieved the best results in its entire history, so far, of 275 apartments sold, which represents an increase of 11% compared to the same period of 2015. In 2016, Ronson sold a total of 821 apartments compared to 906 apartments sold in the record-breaking year of 2015. The last quarter of 2016 was also the best in the company’s history in terms of the number of housing units handed over to buyers. Ronson handed over the keys to 275 apartments, 12% more than in the fourth quarter of 2015.

The number of apartments delivered in the fourth quarter of this year was therefore exactly the same as the number of apartments sold in that period. In the whole of 2016 Ronson handed over a total of 790 apartments to buyers, which represents a year on year increase of nearly 14%.

A record number of handed over apartments should translate into significantly higher financial results compared to 2015 – without taking into account the sales transactions of the Nova Królikarnia project, finalised in December, and its significant positive impact on the previous year’s financial results.

“The last quarter of 2016 was record-breaking for us in terms of sales and the number of apartments we handed over. The most popular among buyers continued to be the City Link project in Warsaw’s Wola district, in which we sold 83 apartments in the fourth quarter alone and as many as 237 in the last year. Moreover, Espresso in Warsaw and Kamienica Jeżyce in Poznań proved to be very popular. In total, we sold 821 apartments in all of our projects in 2016, which is slightly less than in our record-breaking year of 2015, but in accordance with our projections after the third quarter of last year. This decrease was mainly due to the fact that in 2016 we did not launch the Marina Miasto project in Wrocław as initially planned, and we commenced the Miasto Moje project in Warsaw’s Białołęka district later than planned”, said Tomasz Łapiński, the financial director of Ronson Development.

“Handing over 790 apartments to our clients in 2016 was hugely satisfying for us. We handed over keys to 275 apartments in the fourth quarter alone, which was the best result in our history both on a quarterly and annual basis. This will translate into a significant increase in Ronson Development’s revenues compared with the corresponding periods of 2015. The results achieved in the fourth quarter were mainly due to the second stage of our very profitable Moko project in Warsaw, completed in November, and the first stage of the Kamienica Jeżyce estate in Poznań, the realisation of which ended in the third quarter”, said Tomasz Łapiński.

In addition, at the end of 2016, Ronson obtained an occupational permit for the third stage of the Espresso investment in Warsaw and the second stage of the Kamienica Jeżyce project in Poznań, whereby the majority of apartments built and sold in these projects will be handed over and recognised in the financial results in the first quarter of 2017. These two projects alone comprised 254 apartments built and sold at the end of 2016, awaiting only to be handed over to the buyers, which leads to very good prospects in terms of expected financial results for the first quarter of 2017.

In 2016, Ronson completed a total of 7 projects comprising 1,054 apartments. Ronson launched 7 investments comprising a total of 975 apartments in the same period. These are both further stages of previously realised projects, namely Espresso IV and City Link III in Warsaw, Chilli City IV and Młody Grunwald III in Poznań and Panoramika III in Szczecin, as well as entirely new investments, namely Nova Królikarnia and Miasto Moje in Warsaw.

The Nova Królikarnia project was sold at the end of last year to Global City Holdings (GCH) for a total price of PLN 175.1 mln as part of a transaction, which allowed GCH to exit the shareholding of Ronson Europe. The estimated profit before tax from the transaction in the amount of about PLN 55 mln will increase the Company’s results for 2016. Ronson will continue to manage the Nova Krolikarnia project, i.e. its further realisation and sales of apartments, on a commercial basis.

At the end of 2016, the offer of Ronson Development comprised a total of 980 apartments (930 apartments excluding the Nova Królikarnia estate).

Ronson Development – sale and handing over the apartments

 

Number of apartments 4Q 2016 4Q 2015 Change y/y 2016 2015 Change y/y
Sales     275 248 +11% 821 906 -9%
Hand-overs 275 245 +12% 790 696 +14%

 

 

Opublikowano:
5.01.2017