March 14 (Bloomberg) -- Raven Russia Ltd. returned to profit last year as the value of its warehouses in Moscow and St. Petersburg increased and demand for space rose.
Net income was $41.5 million, or 7.4 cents a share, last year, compared with a loss of $139.3 million, or 28.5 cents, a year earlier, the Guernsey-registered company said in a statement today.
“Russia is getting better more quickly than people thought,” Chief Executive Officer Glyn Hirsch said in a telephone interview. “Rents are going up and we are slowly starting to build again.”
The recovery of the Russian economy meant the availability of warehouse space has shrunk. Developers, including Raven Russia, stopped constructing logistics buildings in 2009 following the financial crisis. Raven Russia now has only 5 percent of its total space available after leasing 220,000 square meters (2.4 million square feet) this year.
Retailers are leading the demand for space, and Raven Russia is building more space in the Moscow region as the capital is leading the country’s economic recovery, Hirsch said.
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