TKS’ net revenue totals USD 53.1 mln in 2007

TKS Real Estate (37W1: BUY) ended 2007 with sales of USD 7.6 mln, EBITDA of 56.8 mln and net income of USD 54.2 mln, according to IFRS accounts released yesterday in a conference call with investors. Andriy Gostik: The company’s 2007 net revenue beat our estimate by 4.5 times. The major revenue contributor last year was residential sales in the amount of USD 3.0 mln, which we did not expect to be realized until 2008. Rental revenue of USD 1.9 mln slightly exceeded our forecast of USD 1.7 mln, the only sales component we projected in 2007. The balance came from TKS’ non-core businesses (construction services and concrete production), which added USD 2.7 mln to sales and was not accounted for in our model. TKS’ reported EBITDA and net income included a revaluation gain component and after adjustment came close to our projections of USD 1.6 mln and USD 0.6 mln, respectively. TKS’ reported historical NAV (shareholder’s equity) totaled USD 211 mln.