Raven Property Group

LN: RAV

£161.6m market cap

27.6p last close

Raven Property Group (formerly Raven Russia) invests mainly in Class A warehouses in Russia. It also owns three office buildings in St Petersburg, a third-party logistics company in Russia and a residential development company in the UK.

Investment summary

The H120 underlying performance was very robust against the backdrop of a challenging operating environment, although headline figures were affected by FX movements. Occupancy increased to 93% from 90% at end FY19 and more than 99% of rents were collected. Rouble property valuations were stable despite the continuing decline in Russian interest rates, and with the key interest rate at 4.25%, prime yields of 11–12% look increasingly attractive. In sterling terms, underlying PBT before FX movements reduced and IFRS net earnings swung to a loss, with NAV per share at 58p (FY19: 76p). The company will now proceed with the final FY19 distribution of 2.25p by way of a tender offer on the basis of one in 16 shares at 36p a share. The re-designation of convertible preferred shares into new ordinary and preference shares became effective 30 September.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 118.3 N/A 26.2 3.1 8.9 N/A
2019A 126.5 N/A 53.7 7.7 3.6 N/A
2020E 113.3 N/A (10.7) (4.0) N/A N/A
2021E 106.4 N/A 24.9 2.7 10.2 N/A
Industry outlook

Although the pandemic has negatively impacted the Russian economy it has accelerated structural distribution shifts. Agents indicate a continuing healthy positive demand-supply balance in the warehouse sector, with speculative development being deferred.

Last updated on 19/01/2021
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Share price graph
Balance sheet
Forecast net debt (£m) 825
Forecast gearing ratio (%) 330
Price performance
%
1m
3m
12m
Actual 1.5 5.8 (46.5)
Relative* (1.3) (7.7) (40.0)
52-week high/low 50.6p/23.8p
*% relative to local index
Key management
Glyn Hirsch CEO
Mark Sinclair CFO

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