The profit level of lessors

The restrictions imposed by the pandemic response put the owners of office and commercial premises in a difficult predicament. The lessors close businesses, go bankrupt or looking for more budget-friendly options.

Information agency Credinform has prepared a ranking to find out which of the lessors have a margin of safety due to the effective work within 2017-2019.

The largest enterprises (TOP-10) in terms of annual revenue were selected according to the data from the Statistical Register and the Federal Tax Service for the available periods (2017-2019). Then the companies were ranged by net profit ratio (Table 1). The company selection and analysis were based on the data from the Information and Analytical system Globas.

Net profit ratio (%) is calculated as a ratio of net profit (loss) to sales revenue. The ratio reflects the company’s level of sales profit.

The ratio doesn’t have the standard value. It is recommended to compare the companies within the industry or the change of a ratio in time for a certain company. The negative value of the ratio indicates about net loss. The higher is the ratio value, the better the company operates.

For the most full and fair opinion about the company’s financial position the whole set of financial indicators and ratios should be taken into account.

Table 1. Revenue, net profit, net profit ratio, solvency index Globas of the largest lessors (ТОP-10)

Name, INN, region	Revenue, million RUB		Net profit (loss), million RUB		Net profit ratio, %		Solvency index Globas
	2018	2019	2018	2019	2018	2019
1	2	3	4	5	6	7	8
LLC BRIZ CONSTRUCTION COMPANY INN 7813188168 St.Petersburg	7 275,7	8 009,4	4 306,9	4 881,1	59,20	60,94	208 Strong
LLC MEGA BELAYA DACHA INN 5027108265 Moscow region	6 523,3	6 494,5	3 590,6	3 766,2	55,04	57,99	197 High
LLC MARIYA-RA INN 2225021331 Altai Territory	8 064,6	8 780,9	4 529,3	4 871,2	56,16	55,48	179 High
LLC ENKA TC INN 7702190316 Moscow	7 398,4	8 530,4	-1 860,3	3 905,3	-25,15	45,78	236 Strong
LLC KRASNOBORSKOE INN 7801237357 St.Petersburg	5 105,7	5 353,5	2 221,9	2 097,6	43,52	39,18	225 Strong
JSC X5 NEDVIZHIMOST INN 7816157915 St.Petersburg	16 993,4	16 560,6	-14 642,67	3 306,4	-86,17	19,97	266 Medium
JSC DORINDA INN 7801072391 St.Petersburg	6 975,4	7 089,5	1 166,7	1 300,4	16,73	18,34	219 Strong
GlavUpDK under the MFA of Russia INN 7704010978 Moscow	11 348,8	11 319,4	1 184,1	888,7	10,43	7,85	196 High
JSC CROCUS INTERNATIONAL INN 7728115183 Moscow region	46 610,7	48 416,8	-4 667,9	867,5	-10,01	1,79	266 Medium
JSC RN – MAMONTOVO INN 8612008064 Khanty-Mansi Autonomous Okrug- Yugra	5 953,0	5 596,2	-638,3	-553,1	-10,72	-9,88	313 Adequate
Average value for TOP-10 companies	12 224,9	12 615,1	-481,0	2 533,1	10,90	29,74
Avarage indastry value	22,0	23,4	1,5	3,7	6,90	15,97

growth of indicator in comparison with prior period, decline of indicator in comparison with prior period

The average value of net profit ratio for TOP-10 companies is higher than avarage indastry value. In 2019, seven companies improved the result in comparison with prior period.

Picture 1. Net profit ratio and revenue of the largest lessors (ТОP-10)

Within 6 years, the average indicators of net profit ratio showed the positive upward trend (Picture 2).

Picture 2. Change in average values of net profit ratio of the lessors in 2014 – 2019