O1 PROPERTIES LIMITED ANNOUNCES CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE YEAR 2012

Moscow, Russia – 26 June 2013 – Investment company O1 Properties (“O1 Properties” or the “Company”), one of the largest owners and managers of a portfolio of high quality office properties in Moscow, today announced its condensed consolidated interim financial information for the fiscal year  ended 31 December 2012.
 
FULL YEAR HIGHLIGHTS
 
Net rental income up 67% y-o-y to US$ 144.3 million
EBITDA up 58% y-o-y to US$ 116 million, with a margin of 80%
Net profit  (Total Comprehensive Income) amounted to US$ 126.4 million
Total equity up 39% to US$ 1.077 billion versus US$ 0.775 billion as at the end of 2011
Gross asset value of properties as at 31st December 2012 was US$ 3 billion as appraised by Cushman & Wakefield (incl. Olympia Park which was classified as “Asset Held For Sale”)
 
KEY CORPORATE HIGHLIGHTS FOR 2012
 
O1 Properties continued to cement its position as the pre-eminent Class A landlord in Moscow.
 
During 2012, the Company acquired the Silver City office complex with net rentable area of 41,661 sq.m. centrally located inside the Garden Ring Road in Moscow from  Evans Randall, and also Ducat Place III business center with net rentable area of 33,098 sq.m., which is close to the Mayakovskaya Metro station in the heart of Moscow, from  Hines.
 
With these acquisitions O1 Properties extended its relationships over such tenants as Goldman Sachs, Citibank, Conoco Phillips, EBRD, Cushman Wakefield, Clifford Chance, Toyota, Marsh, Canon, Aecom, Skadden Arps, Noble Oil ect.
 
The Company also signed over 120,000 sq.m. of long term leases in 2012 with more than 60% of its tenant base representing leading multinational companies. As at year end the Company’s Vivaldi Plaza project was 100% leased after signing a lease for 23,875 sq.m. (the largest lease signed in Moscow in 2012) with Eurasec, (the Eurasian Economic Community which is an international organization comprising numerous countries within the FSU including Russia, Kazakstan and Belarus).
 
Dmitry Mints, Chairman of O1 Properties, commented: “In 2012 O1 Properties has made a series of significant transactions thus it has been a good year for us. We acquired three trophy yielding office assets located in the centre of Moscow that raised our Gross asset value to US$ 3,7 billion. An important occasion of 2012 was the disposal of Olympia Park business complex to its end-user Kaspersky Lab.
 
The Company leased 120,000 sq.m. of its office space in 2012 . This achievement in leasing together with our acquisitions, should double the Company’s net rental income in 2013”.
 
FINANCIAL REVIEW

US$ millionFY 2012FY 2011Change
Net Rental Income     144,3 85,5   67%
EBITDA     115,9 73,1   58%
Net profit     126,4  196,4 - 35%
Gross asset value     2,983  2,012   50%

COMPANY OPERATING REVIEW
 
In 2012, O1 Properties’ net rental income amounted to US$ 144.3 million, representing an increase of 67% compared with US$ 85.5 million in 2011. The increase was a result of a contribution from new projects acquired in the end of 2011(Lesnaya Plaza) and during 2012 (Silver City and Ducat Place III), as well as solid rental performance of existing yielding assets and 3-4% advance of rental rates annually.
 
O1 Properties’ EBITDA amounted to US$ 115.9 million in 2012, representing an increase of 58% compared with US$ 73.1 million in 2011.
 
Net profit amounted to US$ 126.4 million.
 
SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD
 
In December of 2012, an affiliate of O1 company also acquired the White Square office complex which comprised a complex of 3 buildings whose tenants include Price Waterhouse, Deloitte, JP Morgan, BNP Paribas, McKinsey and Microsoft.
 
In December of 2012, the Company also entered into an agreement to sell the recently finished Olympia Park business center to its anchor tenant.
 
Giving effect to the above two transactions (the White Square acquisition and the divestiture of Olympia Park),on a pro forma basis, the Company finished the year with 426,000 rentable square meters of Class A and B+ premises, that were 98% rented.

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