AFI Development PLC, a leading real estate company focused on developing property in Russia and the CIS, announced its financial results for the quarter ended 30 September 2009, showing that third quarter revenues increased by 48% to US$17.2 million compared to US$9.1 million in the same period of 2008.

"Although our market environment remains difficult, we are pleased to see some signs of stabilization across all asset classes, as well as some improvement in access to liquidity for the real estate companies in Russia. Our ability to secure refinancing totaling US$150 million for our Four Winds project demonstrates the continued confidence from financial institutions in our ability to successfully execute our strategy," said Alexander Khaldey, Chief Executive. "Our key focus at present remains firmly on completing and leasing the Mall of Russia development, which is recognized by major international and local retailers in the market as a unique development in Moscow, as evidenced by strong interest in the property. In addition, as a result of recent market stabilization, we are in the process of reviewing our short-term strategy with a view to potentially reactivating other projects which are at a relatively advanced stage of development, depending on future market trends."

Profit before tax for the nine months to 30 September 2009 increased to US$285 million from US$35.7 million for the same period in 2008. Profit before tax in the third quarter of 2009 was US$7.8 million compared to a loss before tax of US$74.1 million in the third quarter of 2008.

Net profit for the nine months to 30 September 2009 was US$217.1 million compared to US$28 million for the nine months to 30 September 2008 with US$1.9 million achieved in the third quarter against a net loss of US$69.1 million in same period of 2008.

Third quarter revenues increased by 48% to US$17.2 million compared to US$9.1 million in the same period of 2008. Total year-to-date revenues reached US$47 million compared to US$21.7 million for the same period of 2008.

Cash and cash equivalents increased from 30 June 2009 and remain solid with US$164.2 million as at 30 September 2009. The company's cash position is expected to increase further thanks to the proceeds of the sales of Kossinskaya and the MDM Bank loan.

Continued progress in leasing activity for the Mall of Russia development with further non-binding memoranda of understanding converted to lease agreements resulting in circa 35% fully pre-let with an additional 30% to 35% covered by non-binding letters of intent and memoranda of understanding. A relative stabilization of the real estate market in Moscow seems to have been achieved over the course of the third quarter of 2009 across all asset classes.

In the third quarther, the company experienced easing of liquidity constraints affecting the real estate sector, demonstrated by the success in obtaining significant refinancing for our Four Winds office building. Continued gradual pick up in residential sales, especially at the Ozerkovskaya project.