TMM proceeds from real estate sales decrease 24% in 2015

Sales of residential property by TMM Real Estate (TR61 GR) decreased 24% yoy to UAH 328 mln, the company reported on its website. This implies that in 2H15, the company was able to sell properties for a total of UAH 121 mln, which is 42% less h/h and 43% less yoy. Sales of completed properties amounted to more than 80% of total proceeds, according to the company.

Alexander Paraschiy: With a total debt of UAH 1.4 bln as of end-1H15, the company remains barely solvent, and needs to further restructure its debt to the state Oschadbank (about UAH 0.9 bln), due in the short-term. In 1H15, TMM was only able to deleverage by UAH 0.1 bln, and given that its sales in 2H15 were even weaker, its ability to repay loans should have worsened recently. It’s very unlikely that the company improves its solvency in 2016, which is expected to be a hard year for the local banking system and real estate business. Though, we expect the company will continue muddling through by securing short-term debt restructurings in the coming years.