June 21, 2023.
Acra upgraded the credit rating of JSC Laut to BB+ (RU), outlook "Positive"
The increase in the credit rating of JSC "Laut" (hereinafter - the Company, "Laut") is due to the improvement of the Company's profitability due to the growth of its net operating income (net operating income, NOI) by the end of 2022. Otherwise, the credit rating is characterized by the Company's strong business profile and average market position in its segment and location, strong cash flow, average debt burden and weak liquidity. The credit rating is constrained by the high industry risk inherent in commercial real estate segment companies and low level of corporate governance.
The agency expects improvement of payment coverage due to expected growth of NOI in the forecast period provided that there is no attraction of new financing and successful repayment of planned debt payments. This, in turn, could lead to an improvement in the Company's credit rating, which is reflected in the continuation of the "Positive" outlook on the credit rating.
"Laut" is the owner and operator of the shopping mall "Salaris", the total area of which is 310 thousand square meters, leasable area - 105 thousand square meters. The shopping center is managed by Mall Management Group.
The agency expects improvement of payment coverage due to expected growth of NOI in the forecast period provided that there is no attraction of new financing and successful repayment of planned debt payments. This, in turn, could lead to an improvement in the Company's credit rating, which is reflected in the continuation of the "Positive" outlook on the credit rating.
"Laut" is the owner and operator of the shopping mall "Salaris", the total area of which is 310 thousand square meters, leasable area - 105 thousand square meters. The shopping center is managed by Mall Management Group.
Key assessment factors
Strong business profile. "Laut owns one property with a very diversified tenant pool - Salaris shopping mall. The company has successfully replaced international brands that left the Russian market or suspended operations in spring 2022. As of the end of May 2023, the occupancy of the premises was 98%, the attendance and turnover of the shopping center are growing.
Very high profitability at an average business size. The suspension of operations by certain international brands at the beginning of last year did not have a negative impact on Laut's 2022 financial results. NOI of the Company according to the results of 2022 turned out to be higher than the value expected by the Agency and amounted to RUR 2 bln (growth by 30% to the value of the previous year). The weighted NOI for the period 2020-2025 amounts to RUR 2,1 bln. Increase in rental income contributed to improvement of the Company's profitability indicators to a very high level: weighted average NOI per one square meter of leasable area exceeds 20 thousand rubles, and weighted capitalization rate for the horizon 2020-2025 is 12.1%.
Strong business profile. "Laut owns one property with a very diversified tenant pool - Salaris shopping mall. The company has successfully replaced international brands that left the Russian market or suspended operations in spring 2022. As of the end of May 2023, the occupancy of the premises was 98%, the attendance and turnover of the shopping center are growing.
Very high profitability at an average business size. The suspension of operations by certain international brands at the beginning of last year did not have a negative impact on Laut's 2022 financial results. NOI of the Company according to the results of 2022 turned out to be higher than the value expected by the Agency and amounted to RUR 2 bln (growth by 30% to the value of the previous year). The weighted NOI for the period 2020-2025 amounts to RUR 2,1 bln. Increase in rental income contributed to improvement of the Company's profitability indicators to a very high level: weighted average NOI per one square meter of leasable area exceeds 20 thousand rubles, and weighted capitalization rate for the horizon 2020-2025 is 12.1%.
Very high profitability at an average business size. The suspension of operations by certain international brands at the beginning of last year did not have a negative impact on Laut's 2022 financial results. NOI of the Company according to the results of 2022 turned out to be higher than the value expected by the Agency and amounted to RUR 2 bln (growth by 30% to the value of the previous year). The weighted NOI for the period 2020-2025 amounts to RUR 2,1 bln. Increase in rental income contributed to improvement of the Company's profitability indicators to a very high level: weighted average NOI per one square meter of leasable area exceeds 20 thousand rubles, and weighted capitalization rate for the horizon 2020-2025 is 12.1%.
Strong business profile. "Laut owns one property with a very diversified tenant pool - Salaris shopping mall. The company has successfully replaced international brands that left the Russian market or suspended operations in spring 2022. As of the end of May 2023, the occupancy of the premises was 98%, the attendance and turnover of the shopping center are growing.
Very high profitability at an average business size. The suspension of operations by certain international brands at the beginning of last year did not have a negative impact on Laut's 2022 financial results. NOI of the Company according to the results of 2022 turned out to be higher than the value expected by the Agency and amounted to RUR 2 bln (growth by 30% to the value of the previous year). The weighted NOI for the period 2020-2025 amounts to RUR 2,1 bln. Increase in rental income contributed to improvement of the Company's profitability indicators to a very high level: weighted average NOI per one square meter of leasable area exceeds 20 thousand rubles, and weighted capitalization rate for the horizon 2020-2025 is 12.1%.