R A V E N R U S S I A L I M I T E D
www.RavenRussia.com
Registered Office
Raven Russia Limited, P .O. Box 522, 1 Le Truchot, St. Peter Port, Guernsey, GY1 6EH
Annual Report and Financial Statements
for the year ended 31 December 2011
R A V E N R U S S I A L I M I T E D
R A V E N R U S S I A L I M I T E D
Annual Report and Financial Statements 2011
Raven Russia Cover spread V2_Raven Russia Cover A4  04/04/2012  13:39  Page 1 Raven Russia Cover spread V2_Raven Russia Cover A4  04/04/2012  13:39  Page 2 Highlights 4
Chairman’s Statement 5
Chief Executive’s Report 6
Property Review 8
Financial Review 10
Directors 12
Directors’ Report 14
Corporate Governance 19
Directors’ Remuneration Report 23
Independent Auditor’s Report 28
Group Income Statement 29
Group Statement of Comprehensive Income 30
Group Balance Sheet 31
Group Cash Flow Statement 32
Group Statement of Changes in Equity 33
Notes to the Financial Statements 34
Advisers 70
Contents
3 Highlights
 4
• Profit before tax increased 131% from $55.7 million to $128.9 million;
• NAV per share up 13.3% from 105 cents to 119 cents;
• 222,000sqm of new lettings during the year;
• Portfolio now 92% let;
• Annualised NOI of $129 million at today’s date;
• Fully let portfolio NOI of $137 million;
• Fully let portfolio yield of 11.9%;
• Tender offer buy-back of 1 in 39 shares at 68 pence proposed;
• Basic EPS of 16.7 cents;
• Fully diluted EPS of 15.11 cents;
• Year end cash balance of $181.8 million.
Klimovsk Phase 2, Moscow, 11,747m
2
leased to Danone. The Board of Raven Russia announces the Group’s results for
the year ended 31 December 2011.
The year has shown continued progress in lettings and
financing, both helped by strong demand from occupiers.
Reported net operating income (“NOI”) for the year increased
by 50% from $61.0 million to $91.7 million. Operating profit
increased by 128% from $25.3 million to $57.8 million and
underlying earnings before tax showed a profit of $8.1 million
(2010: loss of $19.8 million). Operating cash inflow increased
147% from $33.1 million to $81.6 million.
After a revaluation surplus of $153 million (2010: $79.2 million),
profit before tax has increased by 131% to $128.9 million
(2010: $55.7 million) and fully diluted net asset value per share
has increased by 13.3% to 119 cents (2010: 105 cents) per
share.
At today’s date the annualised total of NOI including pre let
agreements (“PLAs”) and letters of intent (“LOIs”) is $129 million.
On that basis, 92% of our 1.03 million square metres (“sqm”) of
completed portfolio is let.
Our balance sheet remains strong. Gearing remains low at
38.1% (2010: 35.6%) as calculated in note 34 to the financial
statements. Our year end cash balance stood at $181.8 million
(2010: $107.6 million).
As a result of the considerable progress made we are able to
declare a final distribution of 1.75 pence per share making a
total of 3 pence for the year. As the shares continue to trade
at a significant discount to NAV we will be distributing in the
form of a tender offer buy back of 1 in 39 ordinary shares at
68 pence. The tender offer will be subject to the approval of
shareholders and a circular setting out full details will be
posted shortly. It is expected that the tender offer will be
completed in May 2012.
I would like to take this opportunity to thank our shareholders,
employees and advisors for their support during the year.
Richard Jewson 
Chairman
11 March 2012
Chairman’s Statement
5 Our task for 2011 was relatively straightforward. Continue to let
the portfolio and improve returns and cash-flow through
refinancing.
We have been helped by a strong level of tenant demand and
have done as well as we could have hoped.
When we started Raven Russia the aim was to create a high
quality, income producing portfolio of grade A warehouses.
It feels like we are nearly there. 1.03 million sqm of finished
space, 92% let, with an annualised NOI (including PLAs and
LOIs) at today's date of $129 million. We are profitable and
cash generative and have now started to make the meaningful
distributions to shareholders that we have always planned. This
should continue to improve as we let up our remaining vacant
space. 
The completed portfolio will produce $137 million of NOI when
fully let, so there is still potential for further growth from the
existing portfolio as well as the potential from developing out
our land.
Report and Accounts tend to be repetitive but I am more than
happy to repeat our key numbers:
• Annualised NOI up to $129 million;
• Profit before tax up to $128.9 million;
• Fully diluted NAV per share 119 cents;
• Distribution per share 3 pence; and
• A year end cash balance $181.8 million.
So looking back is lovely, what about looking forward?
There is some clear built in growth as we let our remaining
vacant space and annualised NOI rises towards $137 million.
Everything in the occupiers’ market today suggests that we will
achieve this in the short term. That will enable us to continue a
progressive distribution policy and should enhance NAV per
share as well.
Chief Executive’s Report
6
Noginsk, Moscow, works for X5 who leased 76,000m
2
.   
7
Chief Executive’s Report – continued
In addition, the 119 cents of NAV per share is derived from a
portfolio valuation at an average, fully let yield of 11.9% (2010:
12.8%), which still has potential to improve.
The key to our next phase of growth is investment and the use
of our cash. The plan is to combine further development and
acquisition of income producing assets. We are in the process
of acquiring attractive land plots in the North of Moscow where
we believe tenant demand is strong and competition limited.
Initial cautious appraisals suggest unleveraged cash on cash
returns of around 14% should be achievable. We are confident
that we can increase the portfolio by 50,000sqm to
100,000sqm per annum on this basis, from our own resources.
High quality completed assets yielding 11.5% funded with
conservative bank debt gives a high income return on equity.
This is earnings enhancing and immediately contributes to our
capacity to make distributions to shareholders. We are looking
at a number of acquisitions and have active negotiations in
progress including one potentially significant acquisition which
would require shareholder approval.
One option open to us to fund income producing investments
would be a further issue of preference shares. We are currently
exploring this option and at a 9% yield this would be an
attractive funding option for the Group.
So, we have had a good year, the Group’s financials are strong
and the market place is helping us. What is there to worry
about? There are still a lot of global problems. The main direct
issue for us is the small pool of debt providers to our market.
Despite high margins and reliable cash flows the twin terrors of
“Russia” and “property” keep most institutions away. This helps
us in constraining development and discouraging competition
but reduces our returns and slows our growth.
In general though, business is going well and there is no other
asset class or country where we would rather be.
Glyn Hirsch
Chief Executive Officer
11 March 2012 Property Review
Throughout 2011 we saw high levels of tenant demand across
the portfolio and as a result we completed 222,000sqm
(2.39 million square feet) of new lettings to third parties,
generating an additional $31.4 million of annual rental income
and allowing full operating cost recovery on the space. We
remain the market leader in our sector, as measured by
amount of space, breadth of portfolio and capacity to expand.
As we anticipated last year, vacancy rates in Moscow have
fallen to negligible levels and rents have risen considerably. In
our other markets, vacancy is falling and rents increasing, albeit
at a slower rate.
The investment properties were valued by JLL at the period
end, in accordance with the RICS Valuation and Appraisal
guidelines, and are carried at an aggregate gross value of
$1,154 million. 
This resulted in an increase of $125 million in portfolio value,
(on a like for like basis) compared to 31 December 2010,
reflecting our progress in leasing and the improvement in the
investment market. This year end valuation reflects an average
yield of 11.9% on a fully let portfolio NOI of $137 million.
Investment Portfolio
In Moscow, not including the second phase of the Klimovsk
project, we have six completed projects totalling 563,000sqm,
producing an annualised income of $74.6 million at the year
end. These properties are virtually fully let. We let 135,000sqm
in Moscow in 2011 and rents have grown strongly, now
standing at $130-$135 per sqm for Grade A warehousing.
This included turning a vacancy of 95,000sqm at Noginsk into
a vacancy of just 3,000sqm, about 1 million square feet of
letting at one project. Within this number was the 76,000sqm
we leased to X5 Retail, the largest retailer in Russia for whom
we fitted out part of their space as temperature controlled
storage, at a cost of almost $20 million, in return for which we
benefit from an enhanced rent.
At the end of the last quarter we completed the construction
of 53,000sqm of new Grade A warehouse space at Klimovsk
on time and budget. Since the year end, we have signed
leases with Burda and de Agostini on 18,260sqm with a
further 20,217sqm under PLA and LOI, giving a total NOI of
$6.3 million per annum. This increases to $8.5 million once the
phase is fully let. Cash cost to construct this part of the project
was $37.2 million, delivering a yield on cost of 23%. Even after
allowing for an allocation of pre paid land and infrastructure
costs, the yield on cost is 15.5%. In the third quarter, we
acquired 8ha of adjacent land to allow a third phase to the
project, with the potential to construct a further 45,000sqm.
In St Petersburg, we have leased 27,000sqm during the year
which reflects the slower market in the city. Since the year end
we have leased a further 21,500sqm at our Shushari project.
We also sold 2ha of surplus land to Johnson Controls at
around $500,000 per ha.
8
Property Review
Noginsk, Moscow, 92,000m
2
leased in 2011. Property Review – continued
9
Our Rostov project is now 95% leased, with the final space
under a LOI. Demand in the city has been strong and we have
the potential to start construction of an additional 15,000sqm
of new space. In Novosibirsk, demand has been improving
although we still have 42,000sqm vacant.
New leases included a total of 50,700sqm to tenants for
expansion purposes; effectively organic growth from within the
portfolio. The strength of our contacts with occupiers and of
our in house leasing team is demonstrated by the fact that we
paid agents fees on only 75,288sqm out of the 222,000sqm of
lettings, representing a saving of circa $1.7 million.
We have now exited all of our remaining development joint
venture arrangements at a notional cash cost.
Land Bank
We own development land at Noginsk, Klimovsk phase 3 and
Rostov, a total of 75ha. These projects benefit from existing
infrastructure and utilities and should the Company choose,
development could commence on them in short order. We sold
our property assets in Kiev in the last quarter of 2011, as the
market in Ukraine seemed unlikely to deliver better returns than
development in Moscow.
The Company holds an additional 290ha of land in various
regional Russian cities and in Minsk, Belarus, with longer term
potential.
The Market
Particularly in Moscow, tenant demand is strong and far
outstrips supply. JLL believe existing supply was just 1.26% or
104,000sqm at the year end. Demand for 2012 is estimated by
JLL at 1 million sqm and additional supply at 700,000sqm.
Based on this and our own analysis of the market, we will
consider starting to build more space at our Moscow projects
where possible. 
Increasing rents produce excellent development returns, but at
the same time they price a number of tenants out of the rental
market. That is evidenced by the increasing number of build to
suit to buy requirements in the market. Although this delivers
immediate profits it does not produce long term stable income
streams that can be the backbone for dividends. We therefore
remain focused on the leasing market and continue with our
strategy of trying to attract the best tenants on the longest
leases at acceptable rents. Equivalent yields in Moscow for
Grade A, well let, rack rented warehouses are now in the
region of 11%, approximately 50bps improvement on last year. 
If occupier demand stays strong and rents continue to tick up,
our properties look increasingly reversionary, underpinning
value. Financial Review
10
We have let over 20% of our completed stock in the year and
this is reflected in a strong set of financial results.
Income
The Russian warehouse portfolio generated $80.9 million of
NOI (2010: $50.4 million) from third party tenants, increasing to
$91.6 million (2010: $56.1 million) including Roslogistics
contribution to gross revenue, an increase of 63%. This is after
the cost of servicing vacant space in the year of $13.7 million
(2010: $20.8 million).
Roslogistics continued to operate out of 76,600sqm of our
portfolio and is steadily increasing its contribution to profit.
The poor residential market in the UK had an impact on the
results of Raven Mount, which generated $14 million (2010:
$18 million) in cash on liquidating its stock. In addition, we
impaired our investment in a potential development in the
Grand Bahamas in the first half of the year, resulting in a
charge of $2 million.
Overheads
Overheads supporting the investment portfolio were
$12.8 million (2010: $13.2 million) and central overheads,
supporting the corporate head office in Guernsey and the
intermediate office in Cyprus, $6.1 million (2010: $6.1 million).
Raven Mount and Roslogistics had overheads of $3.0 million
(2010: $3.1 million) and $3.0 million (2010: $3.4 million)
respectively before depreciation and the cost of moving our
preference shares to the full list was $0.5 million. The charge
for share based payments in the year was $6.1 million (2010:
$6.4 million), reflecting the share price on the grant date of
various share schemes.
Our underlying earnings for the year, as defined in note 9 to the
financial statements, show a pre tax profit of $8 million (2010:
pre tax loss of $20 million).
Financing
With the Eurozone problems progressively impacting on the
pool of available international lenders, we have focussed on
drawing finance on unencumbered assets and extending the
maturity of existing facilities, whilst maintaining our cost of
debt. This has been a successful exercise so far.
Debt service costs totalled $38.9 million (2010: $35.7 million)
including amortisation of costs of $4 million (2010: $3 million).
Our year end debt level, excluding preference shares, was
$561 million (2010: $432 million) with a weighted average cost
of debt of 7.1% (2010: 7.0%) and average term to maturity of
4.5 years (2010: 3 years).
In January, we completed a $30 million, 7 year term loan with
Marfin Bank secured on our Lobyna warehouse and in June
we completed a $38 million, 9 year term loan with Raiffeisen
Bank for the completed phase 1 of our Klimovsk project.
Shushary, St Petersburg, 11,130m
2
leased in 2011. 11
Financial Review – continued 
During the second half of the year, we completed the
refinancing and extension of the Istra facility with Aareal Bank.
The term has been extended to 2016 and an additional
$34.5million was drawn, giving a total outstanding facility of
$142 million. 
In the final quarter, we completed the refinancing of the
$57 million HSH Nordbank loan secured on our Noginsk
warehouse, with a new $83.3 million, 5 year facility with
Unicredit Bank. This generated $26.3 million of additional
funds.
An initial $40 million was drawn from a $78 million, 10 year
term loan with Raiffeisen Bank secured on our St Petersburg,
Shushary project. The outstanding balance of this committed
facility will be drawn this year as leasing and debt service
triggers are satisfied.
These facilities have collectively generated $169 million of extra
net funding.
The UK Barclays facility of $1.9 million (2010: $7.5 million) was
extended to May 2012 at the same margin of 2.5%. A short
term $10.9 million Group facility from RBSI was rolled over to
January 2012 at a margin of 2.85% and has been repaid since
the year end.
The Group has met all covenants on its debt facilities during
the period except for the facility secured on Constanta, the
Grade B office block in St Petersburg, where a potential loan to
value breach of $5.3 million exists. The bank has waived this
potential breach in the last calendar year and sweeps all
excess cash generated by the asset. It has been agreed that
this arrangement will continue in the current year.
The Dollar value of our preference shares was $218 million
(2010: $217 million) at 31 December 2011. The unrealised
foreign exchange loss since issue is $7.9 million (2010:
$9.4 million) and is included in the translation reserve.
The coupon paid during the year of $29.3 million (2010:
$27.7 million) is included in finance expense. Our weighted
average cost of debt and gearing level, including preference
shares as debt, is 8.5% (2010: 8.4%) and 53% (2010: 53%)
respectively.
Hedging
It is the Group’s policy to hedge the cost of debt secured on
completed assets and this is achieved using a mixture of caps
and swaps on US Libor. $186 million (2010: $117 million) is
capped at 2.69% (2010: 3.64%) with four years remaining.
$335 million (2010: $225 million) is swapped at an average rate
of 2.38% (2010: 3.10%) with three years remaining.
Cash flow hedges are operated through the lease mechanisms
which are principally US Dollar pegged and in holding sufficient
Sterling cash reserves to cover preference share coupon and
dividend commitments.
Cashflow
Letting continues to drive our improving operating cashflows,
increasing to $82 million (2010: $33 million) in the year. New
debt financing more than covered capital commitments and
debt amortisation obligations. We also had the benefit of
warrant conversions generating $25 million of funds. Year end
cash increased by $74 million, after distributions to ordinary
and preference shareholders of $51 million.
Net Asset Value and Dividends
Net assets have increased to $669 million at 31 December
2011(2010: $580 million) after a revaluation surplus of
$153 million (2010: $79 million). We distributed the equivalent
of 1.25p per share by way of a combined tender offer buy
back and dividend during the year and intend to distribute a
further 1.75p by tender offer buy back as a final distribution.
Mark Sinclair
Chief Financial Officer
11 March 2012 12
Richard Jewson (aged 67)
Non-Executive Chairman
Richard Jewson joined Jewson, the timber and building merchant, in 1965 becoming the Managing Director, then Chairman of
its holding group, Meyer International plc from which he retired in 1993. Since then he has served as non-executive director and
chairman of a number of public companies. He retired in 2004 from 10 years as Chairman of Savills plc and in 2005 from 14 years
as a non-executive Director and deputy Chairman of Anglian Water plc. He is currently Chairman of Archant Ltd, and a
non-executive director of Temple Bar Investment Trust plc, Grafton Group plc and other unquoted companies.
He is a member of the Remuneration Committee and is Chairman of the Nominations Committee.
Anton Bilton (aged 47)
Executive Deputy Chairman
Anton Bilton is an economics graduate from The City University in London. Anton was the founder of The Raven Group. He has also
been a founder and director of three other companies that have floated on AIM and four public property companies established under
the Business Expansion Scheme.
He is a member of the Nominations Committee.
Glyn Hirsch (aged 50)
Chief Executive Officer
Glyn Hirsch, a Guernsey resident, qualified as a Chartered Accountant with Peat, Marwick Mitchell & Co in 1985. Until 1995, he
worked in the corporate finance department of UBS (formerly Phillips & Drew) latterly as an Executive Director specialising in UK
smaller companies. From 1995 until 2001, he was Chief Executive of CLS Holdings plc, the listed property investment company, a
former Director of Citadel Holdings plc, the specialist French property investor and former Chairman of Property Fund Management plc,
the listed property fund management business. Glyn is also a non-executive director of Liontrust Asset Management PLC.
Mark Sinclair (aged 46)
Chief Financial Officer
Mark Sinclair, a Guernsey resident, is a chartered accountant, and spent 18 years at BDO Stoy Hayward, a leading professional
services firm in the UK. He was a partner in the London real estate group responsible for a portfolio of large property companies, both
listed and private. He joined Raven Mount in June 2006 as Finance Director of Raven Russia Property Management Ltd, the Property
Adviser to the Company. He has significant experience in all financial aspects of property transactions and company reporting.
Colin Smith (aged 42)
Chief Operating Officer
Colin Smith, a Guernsey resident, qualified as a Chartered Accountant with Stoy Hayward. Prior to joining the company, he was a
director in the audit and assurance division of the chartered accountant practice of BDO in Guernsey, having joined BDO in 1994.
Colin has also been a non-executive director of a number of offshore investment funds and companies.
Directors 13
Directors – continued 
Christopher Sherwell (aged 64)
Senior Independent Non-Executive Director
Christopher Sherwell is a Guernsey resident and a former managing director of Schroders in the Channel Islands. Before joining
Schroders, he was Far East Regional Strategist in London and Hong Kong for Smith New Court Securities and prior to that spent
15 years as a journalist much of them as a foreign correspondent for the Financial Times. He has considerable public company
experience and acts as a non executive director on a number of publicly listed investment companies including Goldman Sachs
Dynamic Opportunities Ltd, where he is chairman, IRP Property Investments Ltd, Baker Steel Resources Trust Ltd and Hermes
Alternative Investment Funds Plc.
He is Chairman of the Remuneration Committee, a member of the Audit and Nominations Committees.
Stephen Coe (aged 46)
Non-Executive Director
Stephen Coe BSc, FCA, a resident of Guernsey, is self employed providing executive and non-executive services to public and private
clients. His current public directorships include Matrix European Real Estate Investment Trust Ltd, Kolar Gold Limited and Trinity Capital
Limited where he acts as a non-executive director; he is also chairman of the audit committee for these three entities. Private clients
include investment funds and a captive insurer. From 2003 to 2006, he was Managing Director of Investec Trust (Guernsey) Ltd and
Investec Administration Services Ltd, responsible for private client and institutional structures. Between 1997 and 2003 he was a
director of Bachmann Trust Company Ltd and previously he worked with Price Waterhouse specialising in financial services.
He is Chairman of the Audit Committee and a member of the Remuneration Committee.
David Moore (aged 51)
Non-Executive Director
David Moore is a resident of Guernsey. He is an advocate of the Royal Court of Guernsey and is a partner with Mourant Ozannes.
He has been with Mourant Ozannes since 1993 and before that spent 10 years practising in the City of London, predominantly with
Ashurst Morris Crisp. He specialises in corporate and financial matters and is a non-executive director of a number of investment and
insurance management companies, investment and insurance companies including Standard Life Investments Property Income Trust
Ltd of which he is non-executive chairman.
He is a member of the Audit Committee. 14
The Directors present their report and the audited financial statements of the Group for the year ended
31 December 2011.
Principal activities
The Company is a Guernsey registered investment company and during the year carried on business as a property investment
company. 
Business review
A review of the business during the year is contained in the Chairman’s Statement, Chief Executive’s Report, Property Review and
Financial Review.
Results and dividends
The results for the year are set out in the attached financial statements.
The Company made an interim dividend of 1.25p per share. A tender offer alternative was also offered should a shareholder wish to
elect for this option, (2010: Tender offer 1 share in every 62 at 58p). A final distribution of 1.75p by way of a tender offer of 1 share in
every 39 at 68p is being proposed at the Annual General Meeting (2010: Dividend of 1p).
Principal Risks and Uncertainties
Internal controls and an effective risk management regime are integral to the Group’s continued operation. The risk management
processes adopted by the Group are described within the Corporate Governance statement. The following section outlines the Group’s
principal risks and uncertainties.
Strategic Risks
A poorly executed or ineffective strategy may damage shareholder value, fail to meet shareholders’ expectations and have reputational
consequences for the Group. The principal risks to delivering our strategy are:
Risk
Our inability to anticipate,
manage and take advantage of
changes in the economic
environment.
Management treatments to mitigate principal risks
The Board monitors the external financial environment closely in the jurisdictions in which the
Group operates and establishes a number of strategic priorities to respond to anticipated
changes in the economic environment. Whilst the Russian economy and the Moscow market in
particular, has rebounded, the impact of the Eurozone problems is being seen in the Russian
arena, principally on a decreasing pool of international banks operating in the sector. This is
having an effect on the availability of project finance and may put pressure on the cost of debt
in the market. Management have been focussed on financing unencumbered assets and
extending the maturity of existing debt finance, whilst maintaining our average cost of debt, to
mitigate against the short and medium term effects of this.
Our ability to accurately
evaluate and enhance or realise
value from real estate
investment opportunities in the
markets in which we operate.
As noted above, the Russian market continues a strong recovery, assisted by an undersupply
of product in our market. However, valuations remain close to replacement cost which may give
rise to investment opportunities in the sector. We continue to liquidate our UK stock but the
market is slow and may put pressure on the carrying value of our stock. Various initiatives such
as “rent to buy” schemes have been undertaken to stimulate residential stock sales where
possible.
Directors’ Report 15
Directors’ Report – continued
Financial Risks
The financial risks to which the Group is exposed could lead to the Group’s inability to meet shareholder expectations in terms of
returns and ultimately the financial viability of the Group. The principal risks are:
Deterioration in the Company’s
credit profile, a decline in debt
market conditions or a general
rise in interest rates could
impact the cost and availability
of borrowing.
The Group monitors changes in credit market conditions, and to the broader financial
environment, and seeks to optimise its use of different sources of debt capital. Interest rate
sensitivity is mitigated by using fixed rate debt instruments or caps. As noted earlier, extending
the maturity of debt and fixing our cost of debt was a focus for the team in the last year but this
remains a key risk as the Eurozone problems continue.
Foreign exchange rate changes
could reduce the US Dollar
value of assets and earnings.
The operational currency of Russian assets is Russian Rouble but the transaction currency is
US Dollars. To mitigate this, leases are pegged to US Dollar rates. Debt is raised in US Dollars
also. Capital instruments are denominated in Sterling and sufficient sterling cash is retained to
service these. However, the balance sheet is open to exchange rate movements on the carrying
value of our preference shares and rouble assets.
Potential taxation issues. As the Group operates in a number of jurisdictions, monitoring of cross border tax issues and
repatriation of funds is required. The Group has developed adequate presence in its key
jurisdictions of Guernsey, Cyprus and Russia to manage the risks that changing tax legislation
may present. As the Russian tax regime increases in sophistication and double tax treaties are
renegotiated, tax efficiency for the Group may reduce. However, Russia remains a relatively low
tax environment for both corporates and individuals.
Risk
A material fall in the Group’s
property asset values or rental
income could lead to a breach
of financial covenants within its
credit facilities, which in turn
could lead to credit facilities
being cancelled.
Management treatments to mitigate principal risks
The Group has a Board approved funding and treasury strategy and monitors funding needs
regularly.
Financial covenant ratios are monitored and sensitised as part of normal financial planning
procedures. The majority of the Group’s financing facilities are project specific and non-recourse
in nature and have the ability to remedy any marginal breaches. This helps mitigate the risk of
one facility breach having a knock on effect on the Group’s balance sheet. This structure also
assists in the re-negotiation of financial covenants if required. The Group does not have
significant gearing and has managed all facilities sufficiently without formal breaches arising.  Directors’ Report – continued
16
Real Estate and Development Risks
Real estate and development risks may impact income and the value of the Group’s property assets. The principal risks are:
Operational Risk
The Group’s inability to continue its operations may impact the reputation, revenue and value of the Group. The principal risks are:
Risk
Business and IT system
disruption.
Management treatments to mitigate principal risks
IT disaster recovery plans are in place and all data is stored remotely offsite for all offices. A full
review of the current IT systems was undertaken in the year and a full upgrade programme will
be implemented in the current year.
Failing to attract, retain and
motivate key staff employees.
The Remuneration Committee and Executive Committee regularly reviews remuneration against
comparable market information. Employees have regular appraisals and documented
development plans and incentives are based on measurable, annual targets.
A change or breach of
regulatory and local legal
requirements.
Regulatory compliance is managed with the assistance of external advisors. Changes in
Russian legal requirements are monitored by the in house legal department and with the use
of external advisors where required.
Risk
A potential loss of income and
increased vacancy due to
customer default, falling demand
and oversupply or uninsured
loss.
Failing to acquire or dispose of
assets at attractive prices.
The Group has built up a strong property team in Moscow that monitors the market and market
opportunities through a network of contacts and agents. Valuations have returned to close to
replacement cost and opportunities for acquisitions are appearing on the market. The Group is
assessing a number of these.
A decline in the value of
property assets due to market
conditions.
2009 saw the Russian market rapidly decline and property values drop below replacement
cost. The inherent undersupply in the market has assisted in the recovery of those values as
new supply and project finance is constrained.
Development projects fail to
deliver the expected returns.
This may be due to increased
project costs, delays, changes
in customer demand, or a fall in
property market values.
All potential development projects are subject to a full technical and financial appraisal on which
Board approval is based. The strategic choice of the warehouse market as a focus was partly
based on the ability to build in phases and hence manage the risk of speculative builds in a
market downturn. Any new speculative development will be limited to 50,000sqm to
100,000sqm in any year to mitigate against excessive construction or letting risk.
Holding excess or insufficient
development land due to
unexpected changes in
customer demand.
The Executive Board review the land holding and acquisition policy of the Group and agree a
strategy for existing holdings and potential acquisitions. The land bank is carried at an
appropriate value and opportunities to dispose of land holdings in the Regional cities will be
sought where possible.
Management treatments to mitigate principal risks
The Group has developed a good tenant mix of both international and Russian tenants and
monitors the credit worthiness of its tenants and works closely with individual tenants facing
financial difficulty. The impact of transferring foreign exchange risk to tenants by the use of
US Dollar pegged leases is also monitored in times of US Dollar strength.
Given the stage of development of the Group, there has been no significant customer default
and vacant space relates to the introduction of new space into the market in 2009.
Appropriate insurance is available in the Russian market but this is an area that is reviewed on
an annual basis to ensure that the correct cover and policies are in place. 17
Directors’ Report – continued
Directors
The Directors, who served throughout the year were as follows:
Richard Jewson (Non-Executive Chairman)
Anton Bilton (Executive Deputy Chairman) 
Glyn Hirsch (Chief Executive Officer) 
Mark Sinclair (Chief Financial Officer) 
Colin Smith (Chief Operating Officer) 
Christopher Sherwell (Senior Independent Non-Executive Director) 
Stephen Coe (Non-Executive Director)
David Moore (Non-Executive Director)
At each annual general meeting of the Company, one third of the Directors shall retire from office. In addition, each Director shall retire
from office at the third annual general meeting after he was appointed or reappointed, if he would not otherwise fall within the Directors
to retire by rotation. A retiring Director shall be eligible for re-appointment.
Details of the Directors’ remuneration and shareholdings are included within the Remuneration Report.
Substantial shareholdings
The Company has been notified of shareholders, other than directors, holding 3% or more of the ordinary shares as follows:
Number held Percentage Number held Percentage
Ordinary Shares of £0.01 25 December of share 25 February of share
Name of holder 2011 capital 2012 capital
Invesco Perpetual 170,896,092 28.77 170,896,092 28.69
Schroder Investment Management 86,294,863 14.53 87,769,863 14.73
Mackenzie Cundill Investment Management 56,739,131 9.55 56,739,131 9.52
F&C Asset Management Limited 29,367,457 4.94 29,245,893 4.91
JO Hambro Capital Management 24,074,889 4.05 24,784,889 4.16
Legal & General Investment Management 20,660,744 3.48 20,817,633 3.49
Auditors
Ernst & Young LLP have expressed their willingness to continue in office and a resolution to re-appoint them will be proposed at the
forthcoming Annual General Meeting.
Going Concern
The financial position of the Group, its cash flows, liquidity position and borrowings are described in the Financial Review and the notes
to the accompanying financial statements. In addition, in note 34 there is a description of the Group’s objectives and policies for
managing its capital, its financial instruments and hedging activities and its exposure to credit and liquidity risk.
During the year the Group had and continues to hold substantial cash and short term deposits. These were supplemented by the
increasing and profitable rental income streams of the operating activities of the Group. Additional financing facilities were obtained
during the year which extended the Group’s average time to maturity of its facilities to beyond four years. As a consequence, the
Directors believe the Group is well placed to manage its future business risks. 
After making enquiries and examining major areas which could give rise to significant financial exposure, the Board has a reasonable
expectation that the Company and the Group have adequate resources to continue its operations for the foreseeable future.
Accordingly, the Group continues to adopt the going concern basis in the preparation of these financial statements. 18
Directors’ Report – continued
Directors’ responsibilities 
Guernsey company law requires the Directors to prepare financial statements for each financial year, which give a true and fair view of
the state of affairs of the Group at the end of the year and of the profit or loss of the Group for that period. In preparing those financial
statements, the Directors are required to:
• Select suitable accounting policies and then apply them consistently;
• Make judgements and estimates that are reasonable and prudent;
• State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in
the financial statements; and
• Prepare the financial statements on the going concern basis unless it is inappropriate to assume that the Group will continue in
business.
The Directors confirm that they have complied with the above requirements in preparing the financial statements.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial
position of the Group and to enable them to ensure that the financial statements comply with the Companies (Guernsey) Law, 2008
and IFRS as adopted by the EU. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable
steps for the prevention and detection of fraud and other irregularities.
So far as each of the Directors is aware, there is no relevant audit information of which the Company’s auditor is unaware and each
has taken all the steps he ought to have taken as a Director to make himself aware of any relevant audit information and to establish
that the Company’s auditor is aware of that information.
Directors Responsibility Statement
The Board confirms to the best of its knowledge:
The financial statements, prepared in accordance with International Financial Reporting Standards as adopted by the EU, give a true
and fair view of the assets, liabilities, financial position and profit and loss of the Company and the undertakings included in the
consolidation taken as a whole; and
The management report, which is incorporated into the Directors’ Report, includes a fair review of the development and performance
of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties that they face.
This responsibility statement was approved by the Board of Directors on the 11 March 2012 and is signed on its behalf by:
Mark Sinclair Colin Smith
Chief Financial Officer Chief Operating Officer 19
Corporate Governance
UK Corporate Governance Code
The Board is committed to maintaining a high standard of
corporate governance throughout the Group’s operations. The
Financial Services Authority’s listing rules require the Company
to explain how it has applied the Main Principles in Section 1 of
the UK Corporate Governance Code (the “Code”). This report,
together with the Directors’ and Remuneration Reports, set out
how the Company has done so. In the opinion of the Board,
the Company has complied fully with the provisions of the
Code throughout the financial year. Copies of the Code can be
obtained free of charge from the Financial Reporting Council’s
website (www.frc.org.uk). 
The Role of the Board
The Board is accountable for the governance processes within
the Group, and sets the parameters within which the Group
seeks to further the interests of shareholders, while monitoring the
performance of the executives to whom it delegates management
responsibility for the Group. The Board have approved a formal
schedule of matters reserved solely for its consideration as
outlined below. The Board review and update this schedule as
necessary. Matters reserved for the Board include:
• Strategy;
• Capital structure and dividends;
• Financial reporting including approving results;
• Internal control and risk management;
• Corporate governance; and 
• Material transactional activity.
The Board has delegated a number of its responsibilities
through its Audit, Remuneration and Nominations Committees.
Terms of references for each of these committees are reviewed
periodically by the Board and its Committees, and are made
available on the Company’s website, www.ravenrussia.com.
An outline of each of the Committees’ functions and
responsibilities is set out below.
Board composition
During the year, the Board comprised eight directors:
Non-Executive Chairman Richard Jewson; four Executive
Directors; and three Non-Executive Directors. The Board
considers all of the Non-Executive Directors to be
independent for the purposes of the Code as further
explained below. The Board considered the Chairman to be
independent on appointment. The balance of skills and
expertise of the Board ensures that no individual or group of
individuals dominate the Board’s decision making, allowing
for independent challenge and rigour to the Board’s
deliberations. The roles of the individual Directors are
explained further below and within the Directors’ Report.
Board balance
There is a defined division of the responsibilities between the
Chairman and Chief Executive, the Chairman being primarily
responsible for the effective working of the Board, while the
Chief Executive is responsible for the operational management
of the business, developing the strategy and business model
and presenting this to the Board for consideration, along with
its implementation across the Group. These roles are
undertaken by Richard Jewson and Glyn Hirsch respectively,
terms of reference delineating clear divisions of responsibilities
have been established and are reviewed on a regular basis. 
Christopher Sherwell is the Senior Independent Director of the
Company.
David Moore is a partner in Mourant Ozannes, Advocates and
Notaries Public. The Group has previously used Mourant
Ozannes for legal engagements and Notary services. To avoid
any possible conflict of interest or challenge of independence
to Mr Moore, the Group has, since early 2010 ensured all new
legal engagements, both in terms of structure and
remuneration, are not undertaken by Mourant Ozannes other
than notary services. During 2011 all engagements, including
notary services ceased to be undertaken by Mourant Ozannes
further supporting the independence of Mr Moore. Fees to
Mourant Ozannes for the year ended 31 December 2011
amounted to £18,877 (2010: £1,194). Mr Moore refrains from
participation in and voting on any board resolutions concerning
the appointment or remuneration of Mourant Ozannes. The
other members of the Board consider that Mr Moore has
conducted himself and carried out his duties in relation to the
Company in a manner consistent with, and demonstrative of,
his independence, this along with the non material nature of
the previous fees paid, the Board considers, therefore,
Mr Moore to be independent for the purposes of the Code.
Biographies for each Director are included elsewhere in the
Annual Report and Financial Statements. In accordance with
the Articles, one third of the Directors are required to retire by
rotation. The Directors retiring by rotation at the Annual General
Non-Executive Directors
Executive Directors
Chairman
1
4
3 20
Corporate Governance – continued
Attendance at Board or Committee meetings during the year to 31 December 2011
(where ‘N/A’ is shown, the Director listed is not a member of the Committee)
Audit Nominations Remuneration
Board
(1)
Committee Committee Committee
R Jewson
(2)
7 2 1 2
A Bilton 7 N/A 1 N/A
G Hirsch 7 N/A N/A N/A
M Sinclair 7 N/A N/A N/A
C Smith 7 N/A N/A N/A
S Coe 5 4 N/A 1
C Sherwell 7 4 1 2
D Moore 6 4 N/A N/A
Number of meetings during the year 7 4 1 2
(1) In addition to the above Board meetings there were 20 Board Committee meetings held throughout the year
(2) Richard Jewson resigned from the audit committee on the 16 May 2011.
Board performance evaluation
The Board undertakes annual performance evaluations of its
own and its Committees’ activities. These are led by the
Chairman and where dealing with his own performance, by the
Senior Independent Director.
The performance evaluations during 2011 were facilitated
internally which took the form of a questionnaire and one to
one interview with the Chairman or Senior Independent
Director. It was concluded that the performance of the Board,
its Committees and individual Directors were operating
effectively and had the necessary balance of skills and
expertise required to direct the business. The Board supports
the re-election of each Director standing for re-election at the
2012 AGM. 
The Board considers the Non-Executive Directors, Stephen
Coe and David Moore to be of continued value to the Group’s
operations having an intrinsic understanding of the Group’s
operations and having acted and worked with the Company
since its establishment. Their continued commitment to the
Group, Board and its Committees supports their
reappointment. Mr Coe and Mr Moore will, should they be
reappointed by shareholders at the 2012 AGM, serve as
Non-Executive Directors until their next scheduled re-election
during 2015. During this term, the Board and the Nominations
Committee will consider the composition of the Board with
reference to the business needs and requirements of the Code.
Board Committees
The Board has established Audit, Remuneration and
Nominations Committees. These Committees undertake
specific activities through delegated authority from the full
Board. Terms of reference for each Committee are agreed and
reviewed on a regular basis by the Board. Full terms of
reference for each Committee can be obtained from the
Company’s website. 
Meeting in 2012 are Glyn Hirsch, Colin Smith, Stephen Coe
and David Moore. Having considered the balance of skills and
expertise of the Board, its Committees and individual Directors,
the Board recommends each of the Directors for
reappointment at the Annual General Meeting. 
The full Board meets at least six times a year to consider
general matters affecting the Company and otherwise as
required. Committee meetings comprising any two or more
Directors meet on an ad hoc basis to consider transactional
and related matters concerning the Company’s business.
During 2011, there were 20 such Committee meetings.
Meetings are generally held in Guernsey at the head office,
however at least once a year the Board will hold a meeting 
in Russia to review the Group’s operations and meet local
management. 
To enable the Board to discharge its duties, all Directors
receive appropriate and timely information, including briefing
papers distributed in advance of any Board Meeting and
regular management information. All the Directors are entitled
to have access to independent professional advice at the
Company's expense where they deem it necessary to
discharge their responsibilities as Directors. On appointment,
aDirector receives advice from the Company’s financial and
other professional advisers as to the affairs of the Company
and their responsibilities, an estimation of time commitments
necessary to undertake the role and a commitment to receive
other such training as may, from time to time, be appropriate. 21
Corporate Governance – continued
Audit Committee
The Audit Committee comprises David Moore, Christopher
Sherwell and Stephen Coe, (Chairman), who is considered to
have recent and relevant financial experience. Richard Jewson
resigned from the Audit Committee on the 16 May 2011 to
allow the Committee to be constituted solely from Independent
Non-Executive Directors. The Committee meets at least twice a
year. There are a number of regular attendees at the meetings
of the Audit Committee which include other members of the
Board, senior management and the Group’s external auditors.
The Chairman of the Committee also meets with the external
auditors without management present.
The Committee is responsible for ensuring that the financial
performance of the Group is properly reported and monitored.
The Committee reviews the annual and interim accounts,
interim management statement, financial announcements,
internal control systems and risk management, accounting
policies of the Group and the continuing appointment of the
auditors. During the year, the Audit Committee met four times,
to consider the annual and interim accounts, audit planning
and internal controls and risk management. 
Due to its size and structure, the Group does not have an
internal audit function, a matter which is kept under review by
the Committee. During the year, the Audit Committee again
considered the need for an internal audit function, whether a
bespoke function facilitated by internal resources, or using an
outsourced model with the assistance of the Group’s advisors.
The Audit Committee concluded that there was no need for a
separate internal audit function at this time. The Committee,
however assesses the internal controls and risk management
of the Group on a regular basis and reports to the Board
accordingly.
During the year, the Committee has considered the
appointment, compensation and independence of the Group’s
auditor, Ernst & Young LLP . 
Having considered the ratio of audit to non audit services
performed by Ernst & Young LLP , the Committee is satisfied
that where Ernst & Young LLP are used for non audit services,
due to their intrinsic knowledge of the Group’s activities, they
were best placed and offered commercial advantage to the
Group in performing these services. The policy for the provision
of non audit services is reviewed and confirmed by the
Committee annually. For the year ended December 2011, fees
payable to Ernst & Young LLP totalled $0.972 million (2010:
$1.483 million) of which 22% (2010: 64%) was for the provision
of non audit services. For the year ended 31 December 2011,
the fees for non audit services totalled US$0.210 million (2010:
US$0.944 million).
Ernst & Young LLP have provided the Committee with written
confirmation of their independence. The Committee has
recommended a resolution for their reappointment be
proposed to shareholders at the Annual General Meeting.
Nominations Committee
The Nominations Committee comprises Anton Bilton,
Christopher Sherwell and Richard Jewson, who is Chairman.
The Committee undertake an annual review of any succession
planning and ensures that the membership and composition of
the Board and its Committees are constituted appropriately in
light of the business requirements and those of the Code, with
the necessary balance of skills and expertise to undertake their
roles effectively. 
The Committee reviewed and assessed the performance of the
Board and its Committees. It concluded that the Board
comprised the appropriate mix of skill and experience for the
ongoing activities of the Group. Should the Committee
consider it necessary to either refresh or enlarge the Board or
its Committees, acting in accordance with its terms of
reference, a rigorous and thorough evaluation will be
undertaken by the Committee in assessing the requirements of
the Company and Group so that the individual or individuals
appointed will add value to the ongoing activities of the
business.
Remuneration Committee
The Remuneration Committee comprises Stephen Coe,
Richard Jewson and Christopher Sherwell, who is Chairman.
The Remuneration Committee meet at least once a year to
review the performance of Executive Directors and to
recommend their remuneration and other benefit packages.
The fees of the Non-Executive Directors are determined by the
Executive Directors. Full details of the activities undertaken by
the Committee during the year are included within the
Remuneration Committee Report. This Report will be subject to
an advisory vote at the Annual General Meeting.
Internal Control and Risk Management 
The Board has overall responsibility for the systems of internal
control and for reviewing their effectiveness throughout the
Group and ensuring that there is an ongoing process in
accordance with the guidance of the Turnbull Committee on
internal controls that identifies, evaluates and manages the
principal risk and uncertainties that may affect the achievement
of the Group’s strategic objectives. Such a system is designed
to manage or reduce the effects of the possible risks to which
the Group’s activities are subject, rather than providing
absolute assurance against material misstatement or loss. Key features of the risk management process in place during
the year and up to the date of the annual report and financial
statements include:
• A comprehensive system of reporting and business
planning;
• A defined schedule of matters reserved for the Board;
• An organisational structure chart with clearly defined levels
of authority and division of responsibilities;
• Formal documented policies and procedures throughout
the Group;
• The close involvement of the Executive Directors and
senior management in all aspects of the day-to-day
operations, including regular meetings to review all
operational aspects of the business and risk management
systems;
• The Board reviewing Group strategy and progress against
objectives throughout the year;
• A formal whistle blowing policy;
• A comprehensive and robust system of financial reporting
which includes regular management information, such as
budgets, re-forecasting models, cash flows, treasury
reporting and management accounts; and
• A formal assessment of risks within the business at all
operational levels.
The Audit Committee has reviewed the effectiveness of the
systems of internal control and has reported its findings to the
Board throughout the year. The Risk Committee (as further
defined below) report regularly to the Audit Committee on its
deliberations and findings. The risks and uncertainties to which
the Group is subject are reviewed and considered by the Audit
Committee and Board at regular intervals, specifically around
the strategic and long term objects of the Group as a whole in
delivering a sustainable operating business and creating long
term shareholder value.
The Audit Committee have established a Risk Committee to
carry out the review and assessment of risks within the Group’s
activities. This Risk Committee comprises Executive Directors
and senior management involved in each operating jurisdiction
and activity of the Group. This process allows a bottom up, as
well as a top down approach to risk assessment and ensures
that all significant principal risk and uncertainties to which the
Group is subject are identified. During the year ended 2011,
the Risk Committee met three times. 
Corporate, Social and Environmental
reporting
The Board are responsible and accountable for matters relating
to corporate responsibility. The Executive Directors and senior
management have been tasked with the day to day operations
and control of the Group’s impact within the environments in
which it operates. The Board understand that operating in its
favoured jurisdiction, Russia, may have implications which can
differ from those of organisations operating in western locations
such as Europe and the UK. The Board considers its
jurisdiction specific obligations as well as those specific to the
property asset class.
Investor relations
The Chief Executive, Executive Deputy Chairman and Chief
Financial Officer are the Company’s points of contact for
investors, fund managers, analysts, the press and other
interested parties. The Company’s investor relations
programme includes formal presentations of the annual and
interim results, as well and regular analyst briefings and
meetings. 
The Board regularly receive reports on the Group’s investor
relations activities including any reports prepared by the
Company’s brokers and analysts following the Company, views
of major shareholder and details of any shareholder meetings.
The Board believes that sustainable financial performance and
delivering on the objectives of the Company are key measures
in building trust with the Company's shareholders. To promote
a clear understanding of the Company, its objectives and
financial results, the Board ensures that information relating to
the Company is disclosed in a timely manner and in a format
suitable to the shareholders of the Company. The Company’s
website has been developed to facilitate communication with
all shareholders. Communication through these means allow
our investors to receive information in a timely and cost
effective manner. 
The notice of AGM accompanies this report and a separate
proxy card is provided for shareholders.
Signed For and On behalf of the Board
Colin Smith
Director
11 March 2012
22
Corporate Governance – continued 23
Directors’ Remuneration Report
Remuneration policy principles
The Group’s remuneration policy aims to attract, retain and
incentivise high calibre executives and senior staff and to align
their interests with those of shareholders and other
stakeholders in the business. The Remuneration Committee
(“the Committee”) seeks to ensure that total remuneration is
at competitive levels compared to the Company’s peers in the
property sector, whilst taking into account the strategic and
geographical complexity of the business. No Director,
Executive or Non-Executive is involved in deciding his own
remuneration. 
Remuneration Committee
The Committee comprises three independent Non-Executive
Directors, Stephen Coe, Richard Jewson and Christopher
Sherwell (Chairman). The Committee has responsibility for
determining policy and the framework for the remuneration
and employment arrangements of the Executive Directors
and senior management of the Company consistent with the
principles above.
Executive Directors
Remuneration packages for Executive Directors include
performance-related and non-performance-related rewards
and comprise annual salaries, benefits such as life and health
insurance, pension contributions, performance-related
bonuses in cash and shares and share options.
Details of these payments in the year are shown in the table
below. The cash bonus amounts disclosed in the table relate to
performance in 2010, and were confirmed in the annual report
for the year ended 31 December 2010.
Executive Directors may serve as Non-Executive Directors for
companies outside of the Group and retain such fees which
may be paid to them. Glyn Hirsch is a Non-Executive Director
on Liontrust Asset Management Plc for which he receives a fee
of £27,400 per annum.
Basic salary and benefits
The Committee reviews basic salaries and the level and nature
of benefits provided to the Executive Directors and senior
management annually. Basic salary is the only element of the
Executive Directors’ remuneration which attracts pension
contributions.
As confirmed in last year’s Remuneration Committee Report,
Executive Directors received salary increases in 2011 limited to
the increase in UK RPI and this will also be the case in 2012. 
Benefits principally comprise life insurance, health insurance
and private healthcare subscriptions. The cost of these benefits
for Executive Directors is included in the table below. A
contribution of 10% of basic salary is made to each Executive
Director for his personal pension arrangements or direct to his
personal pension plan.
Directors’ remuneration details in respect of the year ended 31 December 2011
Salaries/ Cash Total Total Pension Pension
fees Bonuses* Benefits 2011 2010 2011 2010
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Executive
A Bilton 494 –7 501 491 46 45
G Hirsch 494 – 14 508 491 46 45
M Sinclair 309 100 6 415 402 31 30
C Smith 232 100 6 338 330 23 23
1,529 200 33 1,762 1,714 146 143
Non-executive
R Jewson 90 –– 90 80 ––
C Sherwell 42 –– 42 40 ––
S Coe 42 –– 42 40 ––
D Moore 42 –– 42 40 ––
216 –– 216 200 ––
*Bonus payments relate to performance in 2010. 24
Directors’ Remuneration Report – continued
The contractual arrangements of the Executive Directors for 2012 are:
Contractual
Appointment Unexpired Notice termination
Salary Date term period payment
Director
A Bilton £509,000 27 November 2008 Rolling contract 12 months Payment of 12 months
G Hirsch £509,000 27 November 2008 Rolling contract 12 months salary and benefits 
M Sinclair £318,000 23 March 2009 Rolling contract 12 months on termination
C Smith £239,000 14 November 2008 Rolling contract 12 months
Share Schemes
This is a year of transition for the incentive schemes that have
been put in place for the Group. The existing bonus plan
ceased at the end of 2011 and the Executive Share Option
Schemes (“ESOS”) and Long Term Incentive Plan (“LTIP”)
introduced at the early stages of the Company’s development
are at the vesting stage. The Committee has reviewed the
guidance issued by the Association of British Insurers (“ABI”)
last year and held discussions with the Group’s major
shareholders before developing a new long term incentive
scheme for the Executive Board and senior management
which aims to align their objectives with shareholder interests.
The following sections of the report explain the conclusion of
the existing schemes and set out the proposed new scheme
for the three years to 31 December 2014. 
Bonus Plan
In 2009, the Committee designed a bonus plan for 2009, 2010
and 2011 which reduced the cash burden to the Group and
aligned Executive Directors and senior management with
shareholder interests. 
The table below shows the share bonuses issued in the year
with regards to 2010 performance as explained in last year’s
Remuneration Report.
2010
awards
A Bilton 900,000
G Hirsch 900,000
M Sinclair 775,000
C Smith 160,000
In respect of 2011, the bonus scheme set targets for the
Executive Board and senior management to be met over the
three years to 31 December 2011. These objectives are
detailed below with a comparative to actual results for the
period.
• Annualised Net Operating Income targets up to
$115 million per annum;
Annualised Net Operating Income at 1 January 2009 was
$51.9 million and has risen to $115.2 million at
31 December 2011, not including PLAs or LOIs;
• Dividend cover targets and /or a share price or diluted
NAV per share target of 75p;
The share price continues to trade at a significant
discount to NAV but annualised NOI will now generate
increased retained profits and fully diluted NAV per share
was 77p at 31 December 2011;
• Treasury management with maintenance of cash buffer;
The Group holds cash of $181.8 million at 31 December
2011, up from $108.4 million at 1 January 2009;
• Maintaining local and international tenants with strong
covenants;
The Property Review section confirms the continuing
success in attracting a range of strong tenants with good
covenants;
• Asset and tenant management including operating
expenditure targets;
Operating expenditure has been well controlled and the
cost of vacant space reduced from $20.8 million in 2010
to $13.7 million in the 12 months to 31 December 2011.
There has been no loss of existing tenants over the
performance period;
• Management and expansion of debt relationships;
Over the performance period, the Group has introduced
six new debt facilities with five banks;
• Internal control and risk management;
The Group runs an active risk management programme
and has continually developed and improved its internal
control structure over the period; and
• Proactive shareholder relations programme.
The group has retained the support of its key
shareholders over the period.
Under the bonus scheme, the Committee has the discretion to
award up to 4.4 million of shares to the Executive Board and
senior management for performance over the bonus period. 25
Directors’ Remuneration Report – continued
Any awards based on these targets assumed that the
Executives and senior management remained in employment
at the time of issue of the 31 December 2011 results and will
be made following the issue of these audited financial
statements. The Committee will meet to allocate awards in
April. In addition, the Committee is also intending to allocate an
additional cash bonus not exceeding £1.2 million across the
Executive Board and senior management team, with the
proviso that no individual will receive a cash bonus of more
than 100% of basic salary. As explained later, no further cash
bonuses will be available to the Executive Board in the coming
three years to 31 December 2014.
Executive Share Option Schemes (ESOS)
The Group operates two ESOS in which the Executive
Directors participate. These schemes were approved by
shareholders on 28 August 2008 and 24 March 2009 and
replaced schemes that had been put in place for the Property
Advisor prior to its acquisition by the Company in November
2008. Options available under the schemes are granted by the
Company’s Employee Benefit Trust (‘EBT”) which holds the
underlying shares. The EBT’s Trustees are independent of the
Company but will consider the recommendations of the
Committee as to the granting of awards under the schemes. 
(a) Executive Retention Scheme (ERS)
This scheme was introduced for certain Executive
Directors and Senior Managers at the time of the
acquisition of the Property Advisor. The EBT held 5 million
ordinary shares for this scheme. The options it grants over
these shares were exercisable from the date of publication
of the audited financial statements of Raven Russia
Limited for the year ended 31 December 2010. The
options do not have an exercise price, dividends roll up
during the life of the option and the sole vesting condition
was that the scheme member remained in the
employment of the Group until the first exercise date.
Anton Bilton and Glyn Hirsch did not participate in this
scheme.
(b) Long Term Incentive Plan (LTIP)
All employees of the Group are eligible to receive
invitations to participate in this plan and the EBT currently
holds the 10 million ordinary shares reserved for the
purpose. The options it grants over these shares vest in
three equal tranches, subject to performance criteria, on
24 March 2012, 24 March 2013 and 24 March 2014. 
Performance criteria for each tranche are based on
meeting a target of total shareholder return of 7.5% over
UK RPI in each of the following three year periods, with a
starting share price of 25p:
• 24 March 2009 to 24 March 2012;
• 24 March 2010 to 24 March 2013; and
• 24 March 2011 to 24 March 2014.
Dividends roll up during the vesting period and options
granted under this scheme have an exercise price of 25p.
The Directors’ interests in the ESOS at both 1 January 2011
and 31 December 2011 are set out below:
Number of Shares
ERS LTIP Total
A Bilton – 810,811 810,811
G Hirsch – 1,000,000 1,000,000
M Sinclair 1,000,000 1,000,000 2,000,000
C Smith 125,000 500,000 625,000
Combined Bonus and Long Term Incentive
Scheme From 2012
As the existing bonus scheme ceased in 2011, and the ESOS
vesting periods have now commenced, the Committee has
developed a new scheme for the years 2012 to 2014, with
reference to the recent guidelines issued by the ABI.
This is a simple long term scheme which meets the criteria of:
• Shareholder alignment;
• Deferral of benefits;
• Clawback provisions;
• Cost efficiency and shareholder value enhancement;
• Stretching corporate targets; and
• Reasonable reward levels for target achievement.
This new joint scheme will be based on performance criteria
which will reflect cash generation and the progressive dividend
policy and total shareholder return determined by the Board.
No cash bonuses will be paid to the Executive Board and all
awards will be made in ordinary shares to align their interest
with shareholders.
Over the next three years, on an equal basis, a total of
22.5 million ordinary shares (or any of the Company’s other
capital instruments to the same value) will be made available
for the scheme through a mixture of shares already held by the
EBT or in treasury, buy backs and new issues. These will be
used for performance remuneration of Executives and senior
management, combined, currently a team of 16. In addition it
is proposed that: 26
Directors’ Remuneration Report – continued
• Awards for any Executive Director cannot exceed 300% of
salary in any year based on the share price at the date of
grant of an award; and
• No Executive Director can receive more than 1.5m shares
in any one year.
The targets associated with awards are:
Year 1
• 50% on operating cash income of $18 million;
• 75% on operating cash income of $27 million; and
• 100% on operating cash income of $36 million.
Year 2
• 50% on operating cash income of $27 million;
• 75% on operating cash income of $36 million; and
• 100% on operating cash income of $45 million.
Year 3
• 50% on operating cash income of $36 million;
• 75% on operating cash income of $45 million; and
• 100% on operating cash income of $54 million.
• Operating cash income is defined as “Net cash generated
from operating activities plus interest received less
borrowing costs paid less dividends paid on preference
shares”, all as presented in the audited group cash flow
statement, where borrowing costs paid are adjusted for
any element that is capitalised as part of construction
programmes. Awards will be made on a straight line basis
• The Remuneration Committee will also take into account
total shareholder return targets. If the above cash income
targets are not met but total shareholder return targets are
achieved, then awards can be made at the discretion of
the Committee. The proposed shareholder return target is
7.5% per annum. Shareholder return is defined as either
the annual increase in share price or fully diluted NAV per
share, whichever is higher, adjusted for distributions to
ordinary shareholders.
• All targets will be adjusted appropriately to account for the
effect of any change in share capital; and
• All executives must retain any shares awarded under the
scheme, except for disposals required for income tax
purposes, until the date the annual financial statements for
31 December 2015 are issued. This means a retention
period until April 2016.
Participants are also set personal targets for the performance
period, beyond their contribution to the achievement of the
company’s cash generation targets. The Committee will review
achievement of these and may as a result flex individual
awards. The Committee will also take account of shareholder
experience and poor total shareholder return performance, if
unforeseen events cause these to be out of line with the cash
generation formula described above.
The intended maximum allocation of awards of ordinary shares
over the period proposed by the Committee for the Executive
Board is as follows with a grant price of 59.5p, being the
market value of shares on the date the Committee approved
this scheme: 
Number of Shares
2012 2013 2014
A Bilton 1,341,000 1,341,000 1,341,000
G Hirsch 1,341,000 1,341,000 1,341,000
M Sinclair 1,141,000 1,141,000 1,141,000
C Smith 756,000 756,000 756,000
The Committee believes the terms of this scheme meet
existing guidelines as:
• it is a simple, transparent and flexible structure that
awards executives and senior management for achieving
the underlying progressive dividend strategy and in so
doing, aligns with shareholder interests;
• it is a cost effective scheme which preserves cash in the
business for shareholder benefit;
• it gives a significant level of variable remuneration based
on the achievement of strategic goals;
• Targets set are stretching and the holding period of shares
ensures a “deferral” of rewards if ongoing targets are not
met and also gives a focus on long term goals;
• Claw back arrangements are effectively in place as the
capital value of shares awarded to executives will drop
if targets are not met and sustained;
• The executives already have and intend to increase
through this scheme, their holdings in ordinary shares of
the company, to levels above many of those in their UK
peer group. The quantum of executives’ holdings also
ensures that they will be focussed on the improvement of
shareholder returns.
Since incorporation in 2005, 30 million existing shares have
been allocated to the Company’s incentive schemes without
the issue of new shares. With the additional 22.5 million
proposed in this scheme, a total of 52.5 million ordinary shares
will have been made available by 2014 which equates to 8.3%
of existing issued ordinary shares and warrants. This is within
the 10% rolling dilution ABI guideline over any 10 year period.
If all 22.5 million shares were issued as new shares, the actual
dilution would be 3.6%. 10 million of unallocated shares which 27
Directors’ Remuneration Report – continued
The contractual arrangements for 2012 of the Non-Executives Directors are set out below. 
Contractual
Appointment Unexpired Notice termination
Fees Date term period payment
Non-Executive Director
R Jewson 100 29 June 2007 Rolling contract 3 months No provision for 
S Coe 42 4 July 2005 Rolling contract 3 months payment on 
D Moore 42 4 July 2005 Rolling contract 3 months termination
C Sherwell 42 1 April 2008 Rolling contract 3 months
Interests of Executive and Non-Executive Directors in Ordinary Shares, Preference Shares and
Warrants 
The beneficial interests of the Directors in office at 31 December 2011 in the ordinary shares, preference shares and warrants of the
Company, both at the beginning (or date of appointment if later) and the end of the year, are set out below:
Director Number of Number of Number of
ordinary shares preference shares warrants
31 December 2011 31 December 2011 31 December 2011
R Jewson 138,810 130,949 –
A Bilton
(1)
17,991,199 27,435,700 15,082,944
G Hirsch
(1)
2,827,946 3,562,578 2,292,817
M Sinclair 1,375,934 158,612 7,332
C Smith 231,242 90,772 7,385
C Sherwell 29,000 100,712 –
S Coe 82,727 55,791 31,997
D Moore 142,336 57,052 –
22,819,194 31,592,166 17,422,475
Director Number of Number of Number of
ordinary shares preference shares warrants
31 December 2010 31 December 2010 31 December 2010
R Jewson 123,653 125,127 15,157 
A Bilton
(1)
17,107,277 27,281,549 15,082,944 
G Hirsch
(1)
1,944,024 3,549,910 2,292,817 
M Sinclair 614,779 150,887 7,332 
C Smith 74,100 89,178 7,385 
C Sherwell 29,000 100,712 –
S Coe 72,727 51,933 31,997 
D Moore 101,779 57,052 40,557 
20,067,339 31,406,348 17,478,189
(1) Includes ordinary and preference shares and warrants held by an Employer Funded Retirement Benefit Scheme
can be used for this scheme, are currently held by the EBT
or in treasury. The remainder would be raised through a
combination of share buybacks and/or new issues as
previously indicated.
Non-Executive Directors
The remuneration of Non-Executive Directors is determined by
the Committee in consultation with the wider Board, including
in particular the Executive Deputy Chairman and the Chief
Executive. The Committee believes the pay of the
Non-Executive Directors reflects their commitment of time
and the responsibilities of their roles. No Non-Executive
Director is entitled to any form of performance-related
remuneration, including share options. 28
To the Members of Raven Russia Limited
We have audited the financial statements of Raven Russia
Limited for the year ended 31 December 2011 which comprise
the Group Income Statement, the Group Statement of
Comprehensive Income, the Group Balance Sheet, the Group
Cash Flow Statement, the Group Statement of Changes in
Equity and the related notes 1 to 36. The financial reporting
framework that has been applied in their preparation is
applicable law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union.
This report is made solely to the company’s members, as a
body, in accordance with Section 262 of the Companies
(Guernsey) Law, 2008. Our audit work has been undertaken so
that we might state to the company’s members those matters
we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the
company and the company’s members as a body, for our audit
work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and
auditor
As explained more fully in the Directors’ Responsibilities
Statement set out on page 18, the directors are responsible for
the preparation of the financial statements and for being
satisfied that they give a true and fair view. Our responsibility is
to audit and express an opinion on the financial statements in
accordance with applicable law and International Standards on
Auditing (UK and Ireland). Those standards require us to
comply with the Auditing Practices Board’s Ethical Standards
for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and
disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free
from material misstatement, whether caused by fraud or error.
This includes an assessment of: whether the accounting
policies are appropriate to the company’s circumstances and
have been consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates made by
the directors; and the overall presentation of the financial
statements. In addition, we read all the financial and non-
financial information in the Raven Russia Limited annual report
and financial statements to identify material inconsistencies
with the audited financial statements. If we become aware of
any apparent material misstatements or inconsistencies we
consider the implications for our report.
Opinion on financial statements
In our opinion the financial statements:
• Give a true and fair view of the state of the group’s affairs
as at 31 December 2011 and of its profit for the year then
ended;
• Have been properly prepared in accordance with IFRS as
adopted by the European Union; and
• Have been prepared in accordance with the requirements
of the Companies (Guernsey) Law, 2008.
Matters on which we are required to report
by exception
We have nothing to report in respect of the following:
Where, under the Companies (Guernsey) Law, 2008, we are
required to report to you if, in our opinion:
• Proper accounting records have not been kept; or
• The financial statements are not in agreement with the
accounting records; or
• We have not received all the information and explanations
we require for our audit.
Where, under the Listing Rules, we are required to review the
part of the Corporate Governance Statement relating to the
company’s compliance with the nine provisions of the UK
Corporate Governance Code specified for our review.
Nick Gomer
for and on behalf of Ernst & Young LLP
London
11 March 2012
Note:
1. Legislation in Guernsey governing the preparation and
dissemination of financial statements may differ from
legislation in other jurisdictions.
Independent Auditor’s Report 29
Group Income Statement
For the year ended 31 December 2011
2011 2010
Underlying Capital Underlying Capital
earnings & other Total earnings & other Total
Notes US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Gross revenue 4/5 162,770 – 162,770 130,628 – 130,628
Property operating expenditure
and cost of sales (68,662) (2,454) (71,116) (69,553) – (69,553)
Net rental and related income 94,108 (2,454) 91,654 61,075 – 61,075
Administrative expenses 4/6 (24,601) (2,639) (27,240) (25,802) (5,562) (31,364)
Share-based payments 31 – (6,099) (6,099) – (6,427) (6,427)
Foreign currency (losses)/profits (562) – (562) 1,985 – 1,985
Operating expenditure (25,163) (8,738) (33,901) (23,817) (11,989) (35,806)
Operating profit/(loss) before 
profits and losses on 
investment property 68,945 (11,192) 57,753 37,258 (11,989) 25,269
Profit on disposal of investment 
property –– –– 12,178 12,178
Loss on disposal of investment 
property under construction – (1,158) (1,158) –– –
Unrealised profit on revaluation 
of investment property 11 – 133,062 133,062 – 62,798 62,798
Unrealised profit on revaluation 
of investment property 
under construction 12 – 10,611 10,611 – 16,453 16,453
Operating profit 68,945 131,323 200,268 37,258 79,440 116,698
Finance income 7 2,197 – 2,197 2,483 1,370 3,853
Finance expense 7 (63,086) (10,463) (73,549) (59,563) (5,276) (64,839)
Profit/(loss) before tax 8,056 120,860 128,916 (19,822) 75,534 55,712
Tax 8 (7,109) (33,444) (40,553) (1,385) (12,842) (14,227)
Profit/(loss) for the year 947 87,416 88,363 (21,207) 62,692 41,485
Earnings per share: 9
Basic (cents) 16.73 8.41
Diluted (cents) 15.11 7.40
Underlying earnings 9
per share:
Basic (cents) 0.18 (4.30)
Diluted (cents) 0.16 (4.30)
The total column of this statement represents the Group’s Income Statement, prepared in accordance with IFRS as adopted by
the EU. The “underlying earnings” and “capital and other” columns are both supplied as supplementary information permitted by IFRS
as adopted by the EU. Further details of the change in presentation and the allocation of items between the supplementary columns
are given in notes 2 and 9.
All items in the above statement derive from continuing operations.
All income is attributable to the equity holders of the parent company. There are no non-controlling interests.
The accompanying notes are an integral part of this statement. 30
Group Statement of Comprehensive Income
For the year ended 31 December 2011
2011 2010
US$’000 US$’000
Profit for the year 88,363 41,485
Foreign currency translation (12,851) 1,765
Tax relating to foreign currency translation 2,454 661
Other comprehensive income, net of tax (10,397) 2,426
Total comprehensive income for the year, net of tax 77,966 43,911
All income is attributable to the equity holders of the parent company. There are no non-controlling interests.
The accompanying notes are an integral part of this statement. 31
Group Balance Sheet
As at 31 December 2011
2011 2010
Notes US$’000 US$’000
Non-current assets
Investment property 11 1,145,090 942,950
Investment property under construction 12 101,458 106,741
Plant and equipment 6,711 6,682
Goodwill 13 13,475 13,498
Other receivables 16 13,084 15,522
Derivative financial instruments 19 1,216 347
Deferred tax assets 25 57,994 61,219
1,339,028 1,146,959
Current assets
Inventory 17 51,155 56,341
Trade and other receivables 18 43,661 34,737
Derivative financial instruments 19 – 102
Cash and short term deposits 20 181,826 107,641
276,642 198,821
Total assets 1,615,670 1,345,780
Current liabilities
Trade and other payables 21 70,577 47,938
Derivative financial instruments 19 – 1,682
Interest bearing loans and borrowings 22 95,607 89,845
166,184 139,465
Non-current liabilities
Interest bearing loans and borrowings 22 465,638 342,205
Preference shares 23 218,206 217,425
Other payables 24 18,352 25,168
Derivative financial instruments 19 8,968 4,439
Deferred tax liabilities 25 69,562 36,714
780,726 625,951
Total liabilities 946,910 765,416
Net assets 668,760 580,364
Equity
Share capital 26 11,208 10,196
Share premium 83,454 55,119
Warrants 27 1,985 6,033
Own shares held 28 (16,222) (12,241)
Special reserve 852,802 852,802
Capital reserve 52,239 (71,152)
Translation reserve (120,647) (110,250)
Retained earnings (196,059) (150,143)
Total equity 29 668,760 580,364
Net asset value per share (dollars): 30
Basic 1.18 1.16
Diluted 1.11 1.01
Adjusted net asset value per share (dollars): 30
Basic 1.26 1.20
Diluted 1.19 1.05
The financial statements were approved by the Board of Directors on 11 March 2012 and signed on its behalf by:
Mark Sinclair Colin Smith
The accompanying notes are an integral part of this statement. 32
Group Cash Flow Statement
For the year ended 31 December 2011
2011 2010
Notes US$’000 US$’000
Cash flows from operating activities
Profit before tax 128,916 55,712
Adjustments for:
Depreciation 6 1,754 2,188
Inventory write down 2,454 –
Finance income 7 (2,197) (3,853)
Finance expense 7 73,549 64,839
Profit on disposal of investment property – (12,178)
Loss on disposal of investment property under construction 1,158 –
Profit on revaluation of investment property 11 (133,062) (62,798)
Profit on revaluation of investment property under construction 12 (10,611) (16,453)
Foreign exchange losses/(profits) 562 (1,985)
Recognised share-based payments 31 6,099 6,427
68,622 31,899
(Increase)/decrease in operating receivables (2,953) 5,456
Decrease in other operating current assets 2,652 8,163
Increase/(decrease) in operating payables 15,921 (9,420)
84,242 36,098
Tax paid (2,655) (2,960)
Net cash generated from operating activities 81,587 33,138
Cash flows from investing activities
Payments for investment property and investment property under construction (76,928) (35,669)
Refunds of VAT on construction 2,434 26,646
Proceeds from disposal of investment property 8,702 43,451
Cash disposed with subsidiary undertakings (414) (3,534)
Proceeds from sale of plant and equipment 475 –
Purchase of plant and equipment (3,055) –
Loans advanced (5,056) –
Loans repaid 4,215 722
Settlement of maturing forward currency financial instruments (299) 409
Interest received 2,055 2,483
Net cash (used in)/generated from investing activities (67,871) 34,508
Cash flows from financing activities
Proceeds from long term borrowings 226,085 53,594
Repayment of long term borrowings (84,624) (63,622)
Repayment of other borrowings (9,600) –
Bank borrowing costs paid (39,965) (31,611)
Exercise of warrants 26/27 25,299 1,606
Purchase of warrants 27 – (5,467)
Own shares acquired 28 (8,752) (8,047)
Own shares disposed 4,139 –
Dividends paid on preference shares (25,973) (24,599)
Ordinary dividends paid 10 (16,355) (3,949)
Net cash generated from/(used in) financing activities 70,254 (82,095)
Net increase/(decrease) in cash and cash equivalents 83,970 (14,449)
Opening cash and cash equivalents 107,641 123,782
Effect of foreign exchange rate changes (9,785) (1,692)
Closing cash and cash equivalents 20 181,826 107,641
The accompanying notes are an integral part of this statement. 33
Group Statement of Changes in Equity
For the year ended 31 December 2011
Own
Share Share Shares Special Capital Translation Retained
Capital Premium Warrants Held Reserve Reserve Reserve Earnings Total
Notes US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
For the year ended 31 December 2010
At 1 January 2010 9,924 46,858 8,584 (13,841) 870,692 (151,562) (112,676) (112,096) 545,883
Profit for the year –– –– ––– 41,485 41,485
Other comprehensive income –– –– –– 2,426 – 2,426
Total comprehensive income for the year –– –– –– 2,426 41,485 43,911
Warrants exercised 26/27 71 1,820 (285) –– –– – 1,606
Warrant offer 26/27 340 14,349 (2,266) – (17,890) –– – (5,467)
Own shares allocated 28 –– – 1,600 –– – (1,600) –
Ordinary shares cancelled 26 (139) (7,908) –– –– –– (8,047)
Ordinary dividends paid 10 –– –– ––– (3,949) (3,949)
Share-based payment expense 31 –– –– ––– 6,427 6,427
Transfer in respect of capital profits –– –– – 80,410 – (80,410) –
At 31 December 2010 10,196 55,119 6,033 (12,241) 852,802 (71,152) (110,250) (150,143) 580,364
For the year ended 31 December 2011
Profit for the year –– –– ––– 88,363 88,363
Other comprehensive income –– –– –– (10,397) – (10,397)
Total comprehensive income for the year –– –– –– (10,397) 88,363 77,966
Warrants exercised 26/27 1,012 28,335 (4,048) –– –– – 25,299
Own shares disposed 28 –– – 1,739 –– – 2,400 4,139
Own shares acquired 28 –– – (8,752) –– –– (8,752)
Own shares allocated 28 –– – 3,032 –– – (3,032) –
Ordinary dividends paid 10 –– –– ––– (16,355) (16,355)
Share-based payment expense 31 –– –– ––– 6,099 6,099
Transfer in respect of capital profits –– –– – 123,391 – (123,391) –
At 31 December 2011 11,208 83,454 1,985 (16,222) 852,802 52,239 (120,647) (196,059) 668,760 
The accompanying notes are an integral part of this statement. Notes to the Financial Statements
34
For the year ended 31 December 2011
1. General information
Raven Russia Limited (the “Company”) and its subsidiaries (together the “Group”) is a property investment group specialising in
commercial real estate in Russia.
The Company is incorporated and domiciled in Guernsey under the provisions of the Companies (Guernsey) Law, 2008. The
Company’s registered office is 1 Le Truchot, St Peter Port, Guernsey GY1 6EH.
The audited financial statements of the Group for the year ended 31 December 2011 comprise the Company and its
subsidiaries and were authorised by the Board for issue on 11 March 2012.
2. Accounting policies
Basis of preparation
The Company has taken advantage of the exemption conferred by the Companies (Guernsey) Law, 2008, section 244, not to
prepare Company Financial Statements as Group Financial Statements have been prepared for both current and prior periods.
The Group Financial Statements are presented in US Dollars and all values are rounded to the nearest thousand Dollars ($000)
except where otherwise indicated.
The principal accounting policies adopted in the preparation of the Group Financial Statements are set out below. The policies
have been consistently applied to all years presented, unless otherwise indicated.
The Directors have considered the supplementary information presented in the Group Income Statement and determined that
the information presented could be enhanced through disclosing a measure of underlying earnings. This is considered to be a
key performance measure, as it is the measure used by Management to assess the long term return on holding investment
assets. Underlying earnings is more fully described in note 9. The 2010 supplementary information has been represented for
consistency.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the accounting policies. The areas involving a high
degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are
disclosed in note 3.
Statement of compliance 
The financial statements of the Group have been prepared in accordance with International Financial Reporting Standards
adopted for use in the European Union (“IFRS”) and the Companies (Guernsey) Law, 2008.
Changes in accounting policies
The accounting policies adopted are consistent with those of the previous financial year, except that the Group has adopted
the following new and amended IFRS and IFRIC interpretations as of 1 January 2011:
New and amended standards:
IAS 24 Related Party Disclosures (Amendment) 
IAS 32 Financial Instruments: Presentation – Classification of Rights Issues (Amendment) 
The principal effects of these changes on the financial statements of the Group, if any, are as follows: 
IAS 24 Related Party Disclosures (Amendment) 
The IASB issued an amendment to IAS 24 that clarifies the definitions of a related party. The new definitions did not have an
impact on the identification of related parties to the Group nor any impact on its financial position or its performance. Notes to the Financial Statements – continued
35
IAS 32 Financial Instruments: Presentation – Classification of Rights Issues (Amendment) 
The IASB issued an amendment that altered the definition of a financial liability in IAS 32 to enable entities to classify rights
issues and certain options or warrants as equity instruments. The amendment has had no effect on the financial position or
performance of the Group because the Group has not made any rights issues and the warrants it has in issue already met the
definition of equity.
Interpretations and Improvements to IFRS 
Improvements to IFRSs (May 2010) 
The IASB issued the third omnibus of amendments to its standards, primarily with a view to removing inconsistencies and to
clarify wording. There are separate transitional provisions for each standard. The majority of changes had no impact on the
accounting policies, performance or financial position of the Group. The key change in so far as the Group is concerned was:
IFRS 7 Financial instruments – Disclosures: The amendment changes the disclosures required of collateral held. The Group
reflects the revised disclosure requirements in note 34. 
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments: IFRIC 19 clarifies that equity instruments issued to a
creditor to extinguish a financial liability are consideration paid. The equity instruments issued are measured at their fair value,
unless this cannot be reliably measured, in which case, they are measured at the fair value of the liability extinguished. Any gain
or loss is recognised immediately in profit or loss. The Group has not issued any equity instruments to extinguish a liability in
either the current or prior reporting period.
The IASB also issued various other interpretations and amendments to interpretations that did not have any effect on the
financial performance or financial position of the Group and in many cases did not have any relevance to the activities of the
Group. These were:
IFRIC 14 Prepayments of a Minimum Funding Requirement (Amendment) 
Certain new interpretations and amendments or revisions to existing standards, which may be relevant to the Group, have
been published that are mandatory for later accounting periods and which have not been adopted early. These are:
IFRS 7 Financial Instruments: Disclosures (Amendment) effective 1 July 2011 
IAS 12 Income Taxes (Amendment) – Deferred Taxes: Recovery of Underlying Assets effective 1 January 2012 
IFRS 9 Financial Instruments – Classification and Measurement effective 1 January 2013 
IFRS 10 Consolidated Financial Statements effective 1 January 2013 
IAS 27 Separate Financial Statements effective 1 January 2013 
IFRS 11 Joint Arrangements effective 1 January 2013 
IAS 28 Investments in Associates and Joint Ventures effective 1 January 2013 
IFRS 12 Disclosure of Interests in Other Entities effective 1 January 2013 
IFRS 13 Fair Value Measurement effective 1 January 2013 
IAS 1 Presentation of Items of Other Comprehensive Income (Amendment) effective 1 July 2012 
IAS 19 Employee Benefits (Revised) effective 1 January 2013 
The Group is currently assessing the impact of these changes on its financial statements and the effect of these, if any, has not
yet been determined. The changes to IFRS 11 will require the Group’s joint ventures to be equity accounted. Presently these
arrangements are proportionately consolidated. The amendments or revisions are effective for annual periods beginning on or
after the dates noted above.
Basis of consolidation 
The Consolidated Financial Statements incorporate the Financial Statements of the Company, its subsidiaries and the special
purpose vehicles (“SPVs”) controlled by the Company, made up to 31 December each year. Control is achieved where the
Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefit from its
activities. Notes to the Financial Statements – continued
36
The Group has acquired investment properties through the purchase of SPVs. In the opinion of the Directors, these
transactions did not meet the definition of a business combination as set out in IFRS 3 “Business Combinations”. Accordingly
the transactions have not been accounted for as an acquisition of a business and instead the Financial Statements reflect the
substance of the transactions, which is considered to be the purchase of investment property and investment property under
construction.
The results of subsidiaries acquired or disposed of during the year are included in the Income Statement from the effective
date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of entities acquired to bring the accounting policies into
line with those used by the Group.
All intra-group transactions, balances, income and expenditure are eliminated on consolidation. 
Goodwill 
Goodwill represents the excess of the cost of a business combination over the interest in the fair value of identifiable assets,
liabilities and contingent liabilities acquired. Cost comprises the fair values of assets given, liabilities assumed and equity
instruments issued. For business combinations after 1 January 2010, transaction costs associated with an acquisition are
expensed as incurred.
Goodwill is capitalised with any impairment in carrying value being charged to the Income Statement. Impairment tests on
goodwill are undertaken annually at the financial year end. Impairment charges are included in the administrative expenses line
item in the Income Statement. An impairment loss recognised for goodwill is not reversed.
Where the interest in the fair value of identifiable assets, liabilities and contingent liabilities acquired exceeds the cost of the
combination, the resulting negative goodwill is recognised immediately in the Income Statement.
Joint ventures 
A joint venture is a contractual arrangement whereby two or more parties undertake economic activity that is subject to joint
control. The Group undertakes its joint ventures through jointly controlled entities. The Group Financial Statements include the
Group’s proportionate share of these entities’ assets, liabilities, income and expenditure on a line by line basis from the date on
which joint control commences to the date on which joint control ceases. Any premium paid for an interest in a jointly
controlled entity above the fair value of the Group’s share of identifiable assets, liabilities and contingent liabilities is accounted
for in accordance with the goodwill accounting policy.
Revenue recognition 
(a) Property investment 
Rental income from operating leases is recognised in income on a straight-line basis over the lease term. Rental increases
calculated with reference to an underlying index and the resulting rental income (“contingent rents”) are recognised in income
as they are determined.
Incentives for lessees to enter into lease agreements are spread evenly over the lease term, even if the payments are not made
on such a basis. The lease term is the non-cancellable period of the lease, together with any further term for which the tenant
has the option to continue the lease, where, at the inception of the lease, the directors are reasonably certain that the tenant
will exercise that option.
Premiums received to terminate leases are recognised in the Income Statement as they arise.  Notes to the Financial Statements – continued
37
(b) Roslogistics 
Logistics revenue, excluding value added tax, is recognised as services are provided. 
(c) Raven Mount 
The sales of completed properties and land are recognised on legal completion. 
Taxation 
The Company is a limited company registered in Guernsey, Channel Islands, and is exempt from taxation. The Group is liable
to Russian, UK and Cypriot tax arising on the results of its Russian, UK and Cypriot operations.
The tax expense represents the sum of the tax currently payable and deferred tax. 
(a) Current tax 
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit (or loss) as reported in the
Income Statement because it excludes items of income and expenditure that are taxable or deductible in other years and it
further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that
have been enacted or substantively enacted by the balance sheet date.
(b) Deferred tax 
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is
accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary
differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against
which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary
difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities
in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Unrecognised
deferred tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable
that future taxable profit will allow the deferred tax asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset
realised, based on tax rates that have been enacted or substantively enacted at the reporting date. Deferred tax is charged or
credited in the Income Statement, except when it relates to items charged or credited directly to equity, in which case the
deferred tax is also dealt with in equity.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority.
(c) Value added tax 
Revenue, expenditure, assets and liabilities are recognised net of the amount of value added tax except: 
Where the value added tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which
case the value added tax is recognised as part of the cost of acquisition of the asset or as part of the expenditure item as
applicable; and Notes to the Financial Statements – continued
38
Receivables and payables that are stated with the amount of value added tax included. 
The net amount of value added tax recoverable from, or payable to, the taxation authority is included as part of receivables or
payables, as appropriate, in the Balance Sheet.
Investment property and investment property under construction 
Investment property comprises completed property and property under construction held to earn rentals or for capital
appreciation or both. Investment property comprises both freehold and leasehold land and buildings.
Investment property is measured initially at its cost, including related transaction costs. After initial recognition, investment
property is carried at fair value. The Directors assess the fair value of investment property based on independent valuations
carried out by their appointed property valuers or on independent valuations prepared for banking purposes. The Group has
appointed Jones Lang LaSalle (“JLL”) as property valuers to prepare valuations on a semi-annual basis.
Valuations are undertaken in accordance with appropriate sections of the current Practice Statements contained in the Royal
Institution of Chartered Surveyors Appraisal and Valuation Standards, 7th Edition (the “Red Book”). This is an internationally
accepted basis of valuation. Gains or losses arising from changes in the fair value of investment property are included in the
Income Statement in the period in which they arise.
Borrowing costs that are directly attributable to the construction of investment property are included in the cost of the property
from the date of commencement of construction until construction is completed.
Where properties are acquired through corporate acquisitions and there are no significant assets or liabilities other than
property, the acquisition is treated as an asset acquisition. In all other cases the acquisition is accounted for as a business
combination, in which case, the assets and liabilities of a subsidiary are measured at their estimated fair value at the date of
acquisition.
Leasing (as lessors) 
Leases where the Group does not transfer substantially all the risks and benefits incidental to ownership of the asset are
classified as operating leases. All of the Group’s properties are leased under operating leases and are included in investment
property in the Balance Sheet.
Inventory 
Inventory is stated at the lower of cost and net realisable value. Such inventory includes land, work in progress and completed
units that are available for sale. 
Financial assets 
The Group classifies its financial assets into one of the categories discussed below, depending upon the purpose for which the
asset was acquired. The Group has not classified any of its financial assets as held to maturity.
(a) Fair value through profit or loss 
This category comprises only in-the-money derivatives (see financial liabilities policy for out-of-the-money derivatives), which
are carried at fair value with changes in the fair value recognised in the Income Statement in finance income or finance
expense.
(b) Loans and receivables 
These are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. In the
case of the Group, loans and receivables comprise trade and other receivables, loans and cash and short term deposits. Notes to the Financial Statements – continued
39
Loans and receivables are initially recognised at fair value, plus transaction costs that are directly attributable to their
acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for
impairment. 
If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference
between the asset’s carrying amount and the present value of estimated future cash flows. The amount of the impairment loss
is recognised in administrative expenses. If in a subsequent period the amount of the impairment loss decreases and the
decrease can be related objectively to an event occurring after the impairment is recognised, the previously recognised
impairment loss is reversed. Any such reversal of an impairment loss is recognised in the Income Statement.
Cash and short term deposits include cash in hand, deposits held at call with banks and other short term highly liquid
investments with original maturities of three months or less.
Financial liabilities and equity 
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered
into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its
liabilities. Equity comprises ordinary shares and listed warrants.
The Group classifies its financial liabilities into one of the categories listed below. 
(a) Fair value through profit or loss 
This category comprises only out-of-the-money derivatives, which are carried at fair value with changes in the fair value
recognised in the Income Statement in finance income or finance expense
(b) Other financial liabilities 
Other financial liabilities include interest bearing loans, trade payables (including rent deposits and retentions under
construction contracts), preference shares and other short-term monetary liabilities.
Trade payables and other short-term monetary liabilities are initially recorded at fair value and subsequently carried at
amortised cost using the effective interest rate method.
Interest bearing loans and preference shares are initially recorded at fair value net of direct issue costs and subsequently
carried at amortised cost using the effective interest rate method. Finance charges, including premiums payable on settlement
or redemption and direct issue costs, are charged to the Income Statement using the effective interest method.
Own shares held 
Own equity instruments which are reacquired are recognised at cost and deducted from equity. No gain or loss is recognised
in the Income Statement on the purchase, sale, issue or cancellation of the Group’s own equity instruments. Any difference
between the carrying amount and the consideration is recognised in retained earnings.
Share-based payments 
The Group makes equity-settled share-based payments to certain employees (including senior executives) and service
providers.
The cost of equity-settled transactions is measured by reference to the fair value at the date at which they are granted. Fair
value is determined by an external valuer, using an appropriate pricing model. In valuing equity-settled transactions, no account
is taken of any service and performance conditions (vesting conditions), other than performance conditions linked to the price
of the shares of the Company (market conditions). Any other conditions, which are required to be met in order for an employee Notes to the Financial Statements – continued
40
to become fully entitled to an award are considered to be non-vesting conditions. Like market conditions, non-vesting
conditions are taken into account in determining the fair value at grant date.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which
the performance and service conditions are fulfilled. The cumulative expense is recognised at each reporting date until the
vesting date, reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity
instruments that will ultimately vest. The Income Statement expense or credit for a period represents the movement in
cumulative expense recognised at the beginning and end of that period.
No expense is recognised for awards that do not ultimately vest, except for equity-settled transactions where vesting is
conditional upon a market or non-vesting condition, which are treated as vesting irrespective of whether or not the market or
non-vesting condition is satisfied, provided that all other performance and service conditions are satisfied.
Where an equity-settled award is cancelled, it is treated as if it vested on the date of cancellation, and any expense not yet
recognised for the award is recognised immediately. This includes any award where non-vesting conditions within the control of
either the entity or the employee are not met.
Foreign currency translation 
(a) Functional and presentation currency 
Items included in the financial statements of each Group entity are measured in the currency of the primary economic
environment in which the entity operates (the “functional currency”). For the Company the directors consider this to be Sterling.
The presentation currency of the Group is United States Dollars, which the directors consider to be the key currency for the
Group’s operations as a whole.
(b) Transactions and balances 
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at
the year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income
statement. Non-monetary assets and liabilities are translated using exchange rates at the date of the initial transaction or when
their fair values are reassessed.
(c) On consolidation 
The results and financial position of all the Group entities that have a functional currency different from the presentation
currency are translated into the presentation currency as follows:
(i) assets and liabilities for each balance sheet are translated at the closing rate at the date of the balance sheet; 
(ii) income and expenditure for each income statement are translated at the average exchange rate prevailing in the period;
and
(iii) all resulting exchange differences are recognised in other comprehensive income. 
On consolidation, the exchange differences arising from the translation of the net investment in foreign entities are recognised
in other comprehensive income. When a foreign entity is sold, such exchange differences are recognised in the Income
Statement as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign entity
are treated as assets and liabilities of the foreign entity and translated at the closing rate.
Dividends 
Dividends to the Company’s ordinary shareholders are recognised when they become legally payable. In the case of interim
dividends, this is when declared by the directors. In the case of final dividends, this is when they are approved by the
shareholders at an AGM. Notes to the Financial Statements – continued
41
3. Critical accounting estimates and judgements
The Group makes certain estimates and judgements regarding the future. Estimates and judgements are continually evaluated
and are based on historical experience as adjusted for current market conditions and other factors. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates and judgements that have a significant risk
of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined
below.
(a) Valuation of investment property and investment property under construction 
The best evidence of fair value is current prices in an active market for similar lease and other contracts. In the absence of
such information, the Group determines the amount within a range of reasonable, fair value estimates. In making its judgement
the Group considers information from a variety of sources and engages external, professional advisers to carry out third party
valuations of its properties. These are completed in accordance with appropriate sections of the current Practice Statements
contained in the Royal Institution of Chartered Surveyors Appraisal and Valuation Standards, 7th Edition (the “Red Book”). This
is an internationally accepted basis of valuation. 
In completing these valuations the valuers use their market knowledge and professional judgement and consider the following: 
(i) current prices in an active market for properties of a different nature, condition or location (or subject to different lease or
other contracts), adjusted to reflect those differences;
(ii) recent prices of similar properties in less active markets, with adjustments to reflect any changes in economic conditions
since the date of the transactions occurred at those prices; and 
(iii) discounted cash flow projections based on reliable estimates of future cash flows, derived from the terms of any existing
lease or other contracts and (where possible) from external evidence such as current market rents for similar properties in
the same location and condition, and using discount rates that reflect current market assessments of the uncertainty in
the amount and timing of cash flows. 
All of the above require the valuers to make estimates and assumptions. In our market, where transactional activity is minimal,
the valuers are required to use a greater degree of estimation or judgement than in a market where comparable transactions
are more readily available.
(b) Income tax 
As part of the process of preparing its financial statements, the Group is required to estimate the provision for income tax in
each of the jurisdictions in which it operates. This process involves an estimation of the actual current tax exposure, together
with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These
differences result in deferred tax assets and liabilities, which are included in the Balance Sheet.
Russian tax legislation is subject to varying interpretations and changes, which may occur frequently. The interpretation of
legislation that the Group applies to its transactions and activities may be challenged by the relevant regional and federal
authorities. Additionally there may be inconsistent interpretation of tax regulations by various authorities, creating uncertainties
in the taxation environment in Russia. Fiscal periods remain open to review by the authorities for the three calendar years
preceding the years of review and in some circumstances may cover a longer period. Additionally, there have been instances
where tax regulations have taken effect retrospectively.
Significant judgement is required in determining the provision for income tax and the recognition of deferred tax assets and
liabilities. Notes to the Financial Statements – continued
42
(c) Recognition of deferred tax assets 
The recognition of deferred tax assets is based upon whether it is probable that sufficient and suitable taxable profits will be
available in the future, against which the reversal of temporary differences can be deducted. Recognition, therefore, involves
judgement regarding the future financial performance of the particular legal entity or tax group in which the deferred tax asset
has been recognised.
(d) Acquisitions of investment property 
The consideration payable in respect of each acquisition is dependent upon certain future events. In calculating the cost of
each acquisition the Group has assessed the most probable outcome as at the Balance Sheet date. These amounts are
reconsidered annually at each year end. The assessments include consideration of the future rental levels and costs of
construction of a property as well as the terms of the legal agreements governing each acquisition. Based on these factors
management will consider whether a liability or a contingent liability should be recognised or disclosed at the balance sheet
date.
4. Segmental information 
The Group has three operating segments, which are managed and report independently to the Board of the Group. These
comprise:
Property investment – acquire, develop and lease commercial property in Russia 
Roslogistics – provision of warehousing, transport, customs brokerage and related services in Russia 
Raven Mount – sale of residential property in the UK 
Financial information relating to Property Investment is provided to the Board on a property by property basis. The information
provided is gross rentals, operating costs, net operating income, revaluation gains and losses and where relevant the profit or
loss on disposal of an investment property. The individual properties have similar economic characteristics and are aggregated
into a single reporting segment.
Information about Raven Mount provided to the Board comprises the gross sale proceeds, inventory cost of sales and gross
profit, including the share of profits or losses of its joint venture.
Roslogistics is a discrete business and the Board is presented with turnover, cost of sales and operating profits or losses after
deduction of administrative expenses.
Administrative expenses and foreign currency gains or losses are reported to the Board by segment. Finance income and
finance expense are not reported to the Board on a segment basis. Sales between segments are eliminated prior to provision
of financial information to the Board.
For the balance sheet, segmental information is provided in relation to investment property, inventory, cash balances and
borrowings. Whilst segment liabilities includes loans and borrowings, segment loss does not include the related finance costs.
If such finance costs were included in segment profit or loss, the profit from Property Investment would have decreased by
US$41,279k (2010: US$36,504k) and the loss from Raven Mount increased by US$408k (2010: US$600k). Aggregate
segment profit would have decreased by US$41,687k (2010: US$37,104k). Notes to the Financial Statements – continued
43
Year ended 31 December 2011 
Property Raven Segment Central
Investment Roslogistics Mount Total Overhead Total
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Gross revenue 124,229 24,599 13,942 162,770 – 162,770
Operating costs/cost of sales (43,280) (13,870) (13,966) (71,116) – (71,116)
Net operating income 80,949 10,729 (24) 91,654 – 91,654
Administrative expenses
Running general & administration 
expenses (12,848) (2,982) (2,986) (18,816) (6,122) (24,938)
Listing costs –––– (548) (548)
Closure costs ––––––
Depreciation (650) (1,086) (18) (1,754) – (1,754)
Share-based payments (1,502) –– (1,502) (4,597) (6,099)
Foreign currency (losses)/profits (35) (527) – (562) – (562)
Operating profit/(loss) before 
profits on investment property 65,914 6,134 (3,028) 69,020 (11,267) 57,753
Profit on disposal of investment 
property ––––––
Loss on disposal of investment
property under construction (1,158) –– (1,158) – (1,158)
Unrealised profit on revaluation of 
investment property 133,062 –– 133,062 – 133,062
Unrealised profit on revaluation of 
investment property under 
construction 10,611 –– 10,611 – 10,611
Segment profit/(loss) 208,429 6,134 (3,028) 211,535 (11,267) 200,268
Finance income 2,197
Finance expense (73,549)
Profit before tax 128,916
As at 31 December 2011
Property Raven
Investment Roslogistics Mount Total
US$’000 US$’000 US$’000 US$’000
Assets 
Investment property 1,145,090 –– 1,145,090
Investment property under construction 101,458 –– 101,458
Inventory –– 51,155 51,155
Cash and short term deposits 173,874 1,306 6,646 181,826
Segment assets 1,420,422 1,306 57,801 1,479,529
Other non-current assets 92,480
Other current assets 43,661
Total assets 1,615,670
Segment liabilities 
Interest bearing loans and borrowings 559,259 – 1,986 561,245
Capital expenditure 
Payments for investment property under construction 76,928 –– 76,928 Notes to the Financial Statements – continued
44
Year ended 31 December 2010 
Property Raven Segment Central
Investment Roslogistics Mount Total Overhead Total
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Gross revenue 91,236 21,584 17,808 130,628 – 130,628
Operating costs/cost of sales (40,877) (15,816) (12,860) (69,553) – (69,553)
Net operating income 50,359 5,768 4,948 61,075 – 61,075
Administrative expenses
Running general & administration 
expenses (13,216) (3,377) (3,060) (19,653) (6,149) (25,802)
Listing costs –––– (2,017) (2,017)
Closure costs – (1,357) – (1,357) – (1,357)
Depreciation (573) (1,599) (16) (2,188) – (2,188)
Share-based payments (1,310) –– (1,310) (5,117) (6,427)
Foreign currency (losses)/profits 2,270 (285) – 1,985 – 1,985
Operating profit/(loss) before 
profits on investment property 37,530 (850) 1,872 38,552 (13,283) 25,269
Profit on disposal of investment 
property 12,178 –– 12,178 – 12,178
Unrealised profit on revaluation of 
investment property 62,798 –– 62,798 – 62,798
Unrealised profit on revaluation of 
investment property under 
construction 16,453 –– 16,453 – 16,453
Segment profit/(loss) 128,959 (850) 1,872 129,981 (13,283) 116,698
Finance income 3,853
Finance expense (64,839)
Profit before tax 55,712
As at 31 December 2010 
Property Raven
Investment Roslogistics Mount Total
US$’000 US$’000 US$’000 US$’000
Assets 
Investment property 942,950 –– 942,950
Investment property under construction 106,741 –– 106,741
Inventory –– 56,341 56,341
Cash and short term deposits 102,463 2,306 2,872 107,641
Segment assets 1,152,154 2,306 59,213 1,213,673
Other non-current assets 97,268
Other current assets 34,839
Total assets 1,345,780
Segment liabilities 
Interest bearing loans and borrowings 422,738 – 9,312 432,050
Capital expenditure 
Payments for investment property under construction 35,669 –– 35,669
In 2011 and 2010 there were no single customers accounting for more than 10% of Group revenues.  Notes to the Financial Statements – continued
45
5. Gross Revenue
2011 2010
US$’000 US$’000
Rental and related income 124,229 91,236
Proceeds from the sale of inventory property 13,942 17,808
Logistics 24,599 21,584
162,770 130,628
The Group’s leases typically include annual rental increases (“contingent rents”) based on a consumer price index in Russia,
Europe and USA, which are recognised in income as they arise. Contingent rents included in rental income for the year
amounted to US$845k (2010: US$337k).
Details of the Group’s contracted future minimum lease receivables are detailed in note 36. 
6. Administrative expenses
2011 2010
US$’000 US$’000
Employment costs 12,475 12,363
Directors’ remuneration 3,415 3,275
Office running costs and insurance 3,577 4,315
Travel costs 1,562 1,557
External administrator fees 82 385
Auditors’ remuneration – audit services 762 539
Auditors’ remuneration – non-audit services 210 230
Legal and professional 2,115 2,195
Depreciation 1,754 2,188
Loss on disposal of plant and equipment 337 –
Listing costs 548 2,017
Closure costs – 1,357
Registrar costs and other administrative expenses 131 754
Share of operating expenditure of joint ventures 272 189 
27,240 31,364  Notes to the Financial Statements – continued
46
7. Finance income and expense
2011 2010
US$’000 US$’000
Finance income
Income from cash and short term deposits 1,409 1,249
Interest income on loans receivable 788 1,234
Total interest income on financial assets not at fair value through profit or loss 2,197 2,483
Change in fair value of open forward currency derivative financial instruments – 961
Profit on maturing forward currency derivative financial instruments – 409
Finance income 2,197 3,853
Finance expense
Interest expense on loans and borrowings measured at amortised cost 38,898 35,740
Interest expense on preference shares 29,261 27,735
Total interest expense on financial liabilities not at fair value through profit or loss 68,159 63,475
Loss on maturing forward currency derivative financial instruments 401 –
Change in fair value of open forward currency derivative financial instruments 2,200 –
Change in fair value of open interest rate derivative financial instruments 2,784 1,333
Loss on closure of interest rate derivative financial instruments 5 31
Finance expense 73,549 64,839
Included in interest expense on loans and borrowings is US$3.9 million (2010: US$3.0 million) relating to the amortisation
of costs incurred in originating the loans. Included in interest expense on preference shares is US$1.1 million (2010:
US$0.9 million) relating to the accretion of premiums payable on redemption of preference shares and the amortisation
of costs incurred in issuing preference shares.
8. Tax
2011 2010
US$’000 US$’000
The tax expense for the year comprises: 
Current taxation 3,809 1,752 
Decrease/(increase) in deferred tax asset (note 25) 1,493 (303)
Increase in deferred tax liability (note 25) 35,251 12,778
Tax charge 40,553 14,227
The charge for the year can be reconciled to the profit per the income statement as follows:
2011 2010
US$’000 US$’000
Profit before tax 128,916 55,712
Tax at the Russian corporate tax rate of 20% 25,783 11,142
Tax effect of income not subject to tax and non-deductible expenses 15,738 5,116
Tax on dividends and other inter company gains 807 771
Tax effect of financing arrangements (14,181) (22,335)
Movement on unprovided deferred tax on tax losses 12,357 20,385
Under/(over) provision in prior year 49 (852)
40,553 14,227 Notes to the Financial Statements – continued
47
9. Earnings measures
In addition to reporting IFRS earnings the Group adopts the European Public Real Estate Association (“EPRA”) earnings
measure, as set out in their Best Practice Policy Recommendations document issued in August 2011 and also to report an
underlying earnings measure.
EPRA earnings 
The EPRA earnings measure excludes investment property revaluations and gains or losses on disposal of investment
property, intangible asset movements, gains and losses on derivative financial instruments and related taxation.
Underlying earnings 
Underlying earnings consists of the EPRA earnings measure, with additional group adjustments. The Directors consider
underlying earnings to be a key performance measure, as this is the measure used by Management to assess the return on
holding investment assets for the long term. Adjustments include share-based payments, the accretion of premiums payable
on redemption of preference shares, material non-recurring items, depreciation and amortisation of loan origination costs.
The calculation of basic and diluted earnings per share is based on the following data: 
2011 2010
Earnings US$’000 US$’000
Earnings for the purposes of basic and diluted earnings per share being the 
net profit for the year prepared under IFRS 88,363 41,485
Adjustments to arrive at EPRA earnings: 
Profit on disposal of investment property – (12,178)
Loss on disposal of investment property under construction 1,158 –
Unrealised profit on revaluation of investment property (133,062) (62,798)
Unrealised profit on revaluation of investment property under construction (10,611) (16,453)
Loss/(profit) on maturing foreign currency derivative financial instruments 401 (409)
Change in fair value of open forward currency derivative financial instruments 2,200 (961)
Loss on closure of interest rate derivative financial instruments 5 31
Change in fair value of open interest rate derivative financial instruments 2,784 1,333
Movement on deferred tax thereon 33,444 12,548
Adjusted EPRA earnings (15,318) (37,402)
Inventory write off 2,454 –
Loss on disposal of plant and equipment 337 –
Share-based payments 6,099 6,427
Premium on redemption of preference shares and amortisation of issue costs 1,094 886
Listing costs 548 2,017
Closure costs – 1,357
Depreciation 1,754 2,188
Amortisation of loan origination costs 3,979 3,026
Tax thereon – 294
Underlying earnings 947 (21,207) Notes to the Financial Statements – continued
48
2011 2010
Number of shares No ’000 No ’000
Weighted average number of ordinary shares for the purposes of basic EPS 
(excluding own shares held) 528,185 493,100
Effect of dilutive potential ordinary shares: 
Listed warrants (note 27) 48,269 61,285
ERS (note 31) 3,102 3,388
LTIP (note 31) 5,361 2,611
Weighted average number of ordinary shares for the purposes of diluted 
EPS (excluding own shares held) 584,917 560,384
2011 2010
Cents Cents 
EPS basic 16.73 8.41 
Effect of dilutive potential ordinary shares: 
Listed warrants (1.40) (0.93)
ERS (0.08) (0.05)
LTIP (0.14) (0.03)
Diluted EPS (cents) 15.11 7.40
EPRA EPS basic (cents) (2.90) (7.59)
Effect of dilutive potential ordinary shares: 
Listed warrants ––
ERS ––
LTIP ––
EPRA EPS diluted (cents) (2.90) (7.59)
Underlying EPS basic (cents) 0.18 (4.30)
Effect of dilutive potential ordinary shares: 
Listed warrants (0.02) –
ERS ––
LTIP ––
Underlying EPS diluted (cents) 0.16 (4.30)
10. Ordinary dividends
2011 2010
US$’000 US$’000
Declared and paid during the year on ordinary shares: 
Final dividend for 2010 1 pence (2009: 0.5 pence) 8,511 3,949
Interim dividend for 2011 1.25 pence (2010: nil pence) 7,844 –
16,355 3,949 
On 8 September 2011 the Company declared an interim dividend of 1.25 pence per share, with a tender offer alternative. The
tender offer alternative allowed shareholders to elect not to receive the ordinary dividend but instead to tender ordinary shares
on the basis of 1 in 46 shares at a price of 58 pence, the equivalent of the interim dividend. On 18 November 2011 the
Company paid the interim dividend in respect of 391,409,999 ordinary shares and accepted tenders over 4,406,122 ordinary
shares (see note 28).
The Directors are proposing to implement a tender offer buy back in place of a final dividend equivalent to 1.75 pence per
share. Notes to the Financial Statements – continued
49
11. Investment property
2011 2010
US$’000 US$’000
Market value at 1 January 942,950 878,775
Transfer from investment property under construction (note 12) 50,412 25,533
Property improvements and movement in completion provisions 27,016 4,688
Disposals (8,350) (28,844)
Unrealised profit on revaluation 142,462 62,798
Market value at 31 December 1,154,490 942,950
Tenant incentives and contracted rent uplifts carrying value at 31 December (9,400) –
Carrying value at 31 December 1,145,090 942,950
Revaluation movement in the year
Gross revaluation 142,462 62,798
Effect of tenant incentives and contracted rent uplift balances (9,400) –
Revaluation reported in the Income Statement 133,062 62,798
It is the Group’s policy to carry investment property at fair value in accordance with IAS 40 “Investment Property”. The fair
value of the Group’s investment property at 31 December 2011 has been arrived at on the basis of market valuations carried
out by Jones Lang LaSalle (“JLL”), external valuers to the Group. JLL have consented to the use of their name in these
financial statements.
The valuations used by the Directors in these financial statements have been carried out in accordance with The Royal
Institution of Chartered Surveyors Valuation Standards, 7th Edition (the “Red Book”). The definition of market value is “the
estimated amount for which an asset should exchange on the date of valuation between a willing buyer and willing seller in an
arms length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without
compulsion”.
The following assumptions were used in determining the valuations, which were specific to the Group: 
No allowances have been made for any expenses of realisation or for taxation which might arise in the event of a disposal
of a property;
The market values reported are gross of purchasers’ costs, which would be incurred on the sale of assets as this is the
recognised valuation approach in Russia; and
No account is taken of the future effect of any index based rent uplifts. 
At 31 December 2011 the Group has pledged investment property with a value of US$1,049 million (2010: US$673 million) to
secure banking facilities granted to the Group (note 22). Notes to the Financial Statements – continued
50
12. Investment property under construction
Additional 
Assets Phases of 
Under Completed 
Construction Property Landbank Total
US$’000 US$’000 US$’000 US$’000
Balance at 1 January 2010 16,512 32,156 52,612 101,280 
Costs incurred 16,324 958 1,716 18,998 
Disposals –– (3,821) (3,821) 
Effect of foreign exchange rate changes (106) (104) (426) (636) 
Transfer to investment property (note 11) (17,793) (7,740) – (25,533) 
Unrealised gain on revaluation 363 16,090 – 16,453 
Balance at 31 December 2010 15,300 41,360 50,081 106,741
Costs incurred 35,117 6,885 1,006 43,008
Disposals – (3,300) – (3,300)
Effect of foreign exchange rate changes (669) (892) (3,629) (5,190)
Transfer to investment property (note 11) (50,412) –– (50,412)
Unrealised gain on revaluation 664 9,947 – 10,611
Balance at 31 December 2011 – 54,000 47,458 101,458
No borrowing costs were capitalised in the year (2010: US$0.4 million). 
Assets under construction are valued by JLL using the residual value method and additional phases of completed investment
property on a comparable sales basis, based on recent real estate transactions with similar characteristics and location to
those assets.
The Directors have valued land based on the amounts they consider they can achieve for permitted land and land with access
and infrastructure. The Directors also considered updated acquisition appraisals, the key assumptions being developer’s
required returns, market rents and yields on completed properties. On this basis the Directors consider the fair value of the
land bank to be US$47 million, which equates to an average price of US$16.3 per square metre (2010: US$17).
At 31 December 2011 the Group has pledged investment property under construction with a carrying value of US$11.3 million
(2010: US$11.2 million) to secure banking facilities granted to the Group (note 22).
13. Goodwill
Relogistics Raven Mount Total
US$’000 US$’000 US$’000
Balance at 1 January 2010 5,383 8,059 13,442
Effect of foreign exchange rate changes – 56 56
Balance at 31 December 2010 5,383 8,115 13,498
Effect of foreign exchange rate changes – (23) (23)
Balance at 31 December 2011 5,383 8,092 13,475
Goodwill acquired through the Raven Mount and Roslogistics business combinations has been allocated for impairment
purposes to their operating segments. These represent the lowest level within the Group at which goodwill is monitored for
internal management purposes. The recoverable amount of goodwill has been determined based on value in use calculations
using cash flow projections and project appraisals approved for internal management reporting and discounted at rates
appropriate to each of the segments. Notes to the Financial Statements – continued
51
14. Investment in subsidiary undertakings
The principal subsidiary undertakings of Raven Russia Limited, all of which have been included in these consolidated financial
statements, are as follows:
Proportion of 
ownership interest
Name Country of incorporation 2011 2010
CJSC Kulon Development Russia 100% 100% 
Fenix LLC Russia 100% 100% 
Petroestate LLC Russia 100% 100% 
EG Logistics LLC Russia 100% 100% 
CSJC Kulon Istra Russia 100% 100% 
Soyuz-Invest LLC Russia 100% 100% 
Reserv-Invest LLC Russia 100% 100% 
Real-Invest LLC Russia 100% 100% 
CSJC Noginsk Vostok Russia 100% 100% 
Resource Economia LLC Russia 100% 100% 
Kulon Spb LLC Russia 100% 100% 
Logopark Don LLC Russia 100% 100% 
Logopark Ob LLC Russia 100% 100% 
Delta LLC Russia 100% –
Roslogistics Holdings (Russia) Limited Cyprus 100% 100% 
Avalon Logistics Company LLC Russia 100% 100% 
Raven Mount Group plc England 100% 100% 
Raven Russia Property Advisers Limited England 100% 100% 
Raven Russia (Service Company) Limited Guernsey 100% 100% 
The Group’s investment property and investment property under construction are held by its subsidiary undertakings. 
15. Investment in joint ventures
The principal jointly controlled entity of the Group is as follows: 
Proportion of 
ownership interest
Name Country of incorporation 2011 2010
Coln Park LLP England 50% 50%
The Group’s interest in each jointly controlled entity has been accounted for by proportionate consolidation. The aggregate
amounts recognised in the balance sheet and income statement were:
2011 2010
US$’000 US$’000
Non-current assets 30 29
Current assets 17,918 15,864
Current liabilities (1,120) (10,159) 
Net assets 16,828 5,734
Income 8,094 8,749
Expenditure (6,274) (6,831)
1,820 1,918 Notes to the Financial Statements – continued
52
16. Other receivables 
2011 2010
US$’000 US$’000
Loans receivable 4 1,017
VAT recoverable 5,217 5,946
Security deposit 2,345 1,722
Prepayments and other receivables 5,518 6,837
13,084 15,522
VAT recoverable arises through the payment of value added tax on construction of investment property, which will be
recovered through the offset of VAT paid on future revenue receipts or repayment direct from the taxation authority. VAT
recoverable has been split between current and non-current assets based on the Group’s assessment of when recovery will
occur.
17. Inventory
Land held
for Housing
development stock Total
US$’000 US$’000 US$’000
Balance at 1 January 2010 3,134 58,269 61,403
Costs incurred in the year 449 8,468 8,917 
Cost of sales – (12,793) (12,793) 
Effect of foreign exchange rate changes (99) (1,087) (1,186) 
Balance at 31 December 2010 3,484 52,857 56,341 
Costs incurred in the year 111 8,135 8,246
Cost of sales – (10,561) (10,561)
Inventory write down (2,116) (338) (2,454)
Effect of foreign exchange rate changes (26) (391) (417)
Balance at 31 December 2011 1,453 49,702 51,155
The Group has pledged inventory with a carrying value of US$31 million (2010: US$42 million) to secure banking facilities
granted to the Group (note 22).
18. Trade and other receivables
2011 2010
US$’000 US$’000
Trade receivables 21,848 15,828
Prepayments 4,670 4,888
VAT recoverable 10,205 6,384
Tax recoverable 1,177 2,397
Loans receivable 2,483 642
Accrued income 40 236
Other receivables 3,238 4,362
43,661 34,737 Notes to the Financial Statements – continued
53
19. Derivative financial instruments
2011 2010
US$’000 US$’000
Interest rate derivative financial instruments
Non-current assets 1,216 347 
Non-current liabilities (6,768) (4,439)
Current liabilities – (1,682)
Forward currency derivative financial instruments 
Current assets – 102
Non-current liabilities (2,200) –
The Group has entered into a series of interest rate derivative financial instruments to manage the interest rate and resulting
cash flow exposure from the Group’s banking facilities. The instruments have a notional value of US$517 million (2010:
US$302 million) and a weighted average fixed or capped rate of 2.5% (2010: 3.3%).
The Group had also entered into a series of forward currency derivative financial instruments to hedge rentals received under
leases denominated in Euros. At 31 December 2011 there were no open contracts to sell Euros (2010: €5.1 million) and buy
US Dollars (2010: US$6.9 million).
Several of the Group’s leases incorporate collars and caps on US Dollar and Russian Rouble exchange rates. These have been
assessed as embedded derivatives and fair values calculated resulting in the non-current liability disclosed above.
20. Cash and short term deposits
2011 2010
US$’000 US$’000
Cash at bank and on call 99,557 76,808
Short term deposits 82,269 30,833
181,826 107,641
The Group has pledged short term deposits with a carrying value of US$12.5 million (2010: US$25.1 million) as security for a
loan facility granted to the Group (note 22). US$10.9 million of the loan was outstanding at 31 December 2011 (2010:
US$11 million). In 2010 the Group had also placed US$1.3 million as security for the Group’s foreign currency derivative
financial instruments (note 19). These instruments have all now matured and the restricted cash released for the unfettered use
of the Group.
Cash at bank and on call attracts variable interest rates, whilst short term deposits attract fixed rates but mature and re-price
over a short period of time. The weighted average interest rate at the balance sheet date is 1.13% (2010: 1.08%). Notes to the Financial Statements – continued
54
21. Trade and other payables
2011 2010
US$’000 US$’000
Investment property acquisition obligations 54 621
Trade and other payables 8,394 9,402
Construction payables 26,869 14,757
Advanced rentals 19,498 11,350
Tax payable 9,095 6,396
Other payable 6,667 5,412
70,577 47,938
22. Interest bearing loans and borrowings
(a) Bank loans
2011 2010
US$’000 US$’000
Loans due for settlement within 12 months 95,607 82,194
Loans due for settlement after 12 months 465,638 340,366
561,245 422,560
(b) Other interest bearing loans
Loans due for settlement within 12 months – 7,651 
Loans due for settlement after 12 months – 1,839
– 9,490 
Totals
Loans due for settlement within 12 months 95,607 89,845 
Loans due for settlement after 12 months 465,638 342,205
561,245 432,050
The Group’s borrowings have the following maturity profile:
On demand or within one year 95,607 89,845
In the second year 100,226 161,735
In the third to fifth years 252,609 122,865
After five years 112,803 57,605
561,245 432,050 Notes to the Financial Statements – continued
55
The principal terms of the Group’s interest bearing loans and borrowings on a weighted average basis are summarised below: 
As at 31 December 2011 
Interest Maturity 
Rate % (years) US$’000
Secured on: 
Investment property and investment property under construction 7.15% 4.6 548,282
Inventory 2.50% 0.4 1,979
Cash 2.85% 0.1 10,984
561,245 
As at 31 December 2010
Secured on: 
Investment property and investment property under construction 7.20% 3.1 402,515 
Inventory 2.42% 0.2 9,042 
Cash 2.85% 1.1 11,003 
Unsecured 11.6% 1.0 9,490 
432,050 
The interest rates shown above are the weighted average all-in rates as at the balance sheet dates. 
During the year the Group has entered into the following financing arrangements: 
The Group has completed and fully drawn on a US$30 million facility secured on its Lobnya project. The facility was provided
by Marfin Bank, has a 7 year term and a margin over US LIBOR of 6.75%.
The facility with Aareal Bank secured on the Istra Project was extended, increasing the facility amount to US$142 million and
extending the maturity date to 20 April 2016. 
The HSH Nordbank facility on the Noginsk Project was successfully refinanced with Unicredit Bank Austria. The Unicredit
facility of US$83 million has a 5 year term and a margin over US LIBOR of 5.5%.
The Group has drawn $40 million from a US$78 million facility from ZAO Raiffieisen Bank secured on the Shushary project.
This facility has a margin of 6.75% over US LIBOR and a 10 year term. The remaining undrawn balance is available until
10 November 2012. 
At 31 December 2011 the Group had undrawn loan facilities available of US$38 million (2010: US$ nil). 
The Group has entered into hedging arrangements in respect of its interest rate exposure (note 19). US$335 million (2010:
US$225 million) of Group bank borrowings have been fixed with three years remaining (2010: two years) at a weighted average
swap rate of 2.38% (2010: 3.10%) and US$186 million (2010: US$117 million) capped at 2.69% (2010: 3.64%) for four years
(2010: three years). This gave a weighted average cost of debt to the Group of 7.1% (2010: 7.0%) at the year end. Notes to the Financial Statements – continued
56
23. Preference shares
2011 2010
US$’000 US$’000
Authorised share capital:
400,000,000 (2010: 400,000,000) preference shares of 1p each 5,981 5,981
2011 2010
Number Number
Issued share capital:
At 1 January 144,357,156 143,315,179
Purchased (2,000,000) –
Disposal 2,000,000 –
Scrip dividends 679,786 1,041,977 
At 31 December 145,036,942 144,357,156 
The Company has issued preference shares, which entitle the holders to a cumulative preference dividend of 12% based on a
par value per share of £1.
During the year the trustees of one of the Company’s Employee Benefit Trusts sold ordinary shares and acquired preference
shares from an independent shareholder of Raven Russia. The trustees subsequently sold the preference shares. Following
this the Company moved the preference shares from AIM to the Official List of the London Stock Exchange.
24. Other payables
2011 2010
US$’000 US$’000
Investment property acquisition obligations 2,929 7,287
Rent deposits 14,833 11,803 
Retentions under construction contracts – 5,838 
Other payables 590 240
18,352 25,168 
25. Deferred tax
(a) Deferred tax assets
Tax losses Other Total
US$’000 US$’000 US$’000
Balance at 1 January 2010 60,779 397 61,176 
Effect of foreign exchange rate changes (597) – (597) 
On disposal of SPV (324) – (324) 
Credit/(charge) to income 501 (198) 303 
Credit to equity 661 – 661 
Balance at 31 December 2010 61,020 199 61,219 
Effect of foreign exchange rate changes (3,247) – (3,247)
On disposal of SPV (359) – (359)
Charge to income (1,394) (99) (1,493)
Credit to equity 1,874 – 1,874
Balance at 31 December 2011 57,894 100 57,994 Notes to the Financial Statements – continued
57
The Group has tax losses in Russia of US$237 million (2010: US$127 million) and tax losses in the UK of US$110 million
(2010: US$110 million) for which deferred tax assets have not been recognised. The losses in Russia expire in 10 years (2010:
10 years) whilst the UK losses do not have an expiry date.
Amounts credited to equity arise on the translation of loans, which comprise part of the net investment of the Group in foreign
entities.
(b) Deferred tax liabilities
Revaluation
Accelerated of
tax investment
allowances property Total
US$’000 US$’000 US$’000
Balance at 1 January 2010 15,806 8,461 24,267 
Effect of foreign exchange rate changes (302) – (302) 
On disposal of SPV (29) – (29) 
Charge to income 683 12,095 12,778 
Balance at 31 December 2010 16,158 20,556 36,714 
Effect of foreign exchange rate changes (1,620) – (1,620)
On disposal of SPV (783) – (783)
Charge to income 11,881 23,370 35,251
Balance at 31 December 2011 25,636 43,926 69,562
26. Share capital
2011 2010
US$’000 US$’000
Authorised ordinary share capital:
1,500,000,000 (2010: 1,500,000,000) ordinary shares of 1p each 27,469 27,469
2011 2010
Number Number
Issued share capital:
At 1 January 530,273,204 512,697,594 
Issued in the year for cash on warrant exercises (note 27) 63,820,350 4,512,713
Issued under the warrant offer (note 27) – 21,740,807
Cancelled under the tender offer – (8,677,910)
At 31 December 594,093,554 530,273,204
On 25 October 2010 the Company completed the purchase of 8,677,910 ordinary shares under the terms of a tender offer, for
a cash consideration of £5 million. The shares repurchased were cancelled. 
Of the authorised ordinary share capital at 31 December 2011, 49,426,666 (2010: 115,897,016) are reserved for options and
warrants.
Details of own shares held are given in note 28.  Notes to the Financial Statements – continued
58
27. Warrants
2011 2010
Number Number
At 1 January 101,651,070 142,419,799 
Exercised in the year (63,820,350) (4,512,713) 
Cancelled under the warrant offer – (36,256,016) 
At 31 December 37,830,720 101,651,070 
2011 2010
US$’000 US$’000 
At 1 January 6,033 8,584 
Exercised in the year (4,048) (285)
Cancelled under the warrant offer – (2,266)
At 31 December 1,985 6,033
The Company has issued warrants, which entitle each holder to subscribe for ordinary shares in the Company at an exercise
price of 25p per share. The warrants expire on 25 March 2019. 
On 28 July 2010 the Company purchased and cancelled 36,256,016 warrants under an open offer to all warrantholders. The
consideration for the purchase was settled partly in cash, £3.5 million, and partly through the issue of 21,740,807 ordinary
shares. 
In the period since 31 December 2011 2,401,600 warrants have been exercised. 
28. Own shares held
2011 2010
Number Number
At 1 January 28,400,054 34,035,054
Acquired under a tender offer 4,406,122 –
Other acquisitions for cash 5,185,054 –
Disposal (4,035,054) –
Allocation to satisfy bonus awards (4,585,000) (5,635,000) 
Allocation to satisfy ERS options exercised (2,450,000) –
At 31 December 26,921,176 28,400,054 
On 3 November 2011 the Company completed the purchase of 4,406,122 ordinary shares under the terms of a tender offer,
for a cash consideration of £2.5 million.
Allocations are transfers by the Company’s Employee Benefit Trusts to satisfy bonus awards made in the year and to satisfy
ERS options exercised in the year following the vesting of the options. Details of outstanding ERS options, which are vested
but unexercised, are given in note 31a.
The disposal and other acquisitions for cash in the year relates to the share transactions undertaken by one of the Company’s
Employee Benefit Trusts. The circumstances surrounding the disposal are more fully explained in note 23. Notes to the Financial Statements – continued
59
29. Equity
The following describes the nature and purpose of each component within equity:
Component Description and purpose
Share capital The amount subscribed for ordinary share capital at nominal value. 
Share premium The amount subscribed for ordinary share capital in excess of the nominal value. 
Warrants The consideration attributed to the subscription of warrants less associated costs of issuance. 
Own shares held The cost to the Company of acquiring the own shares held by the Company and its subsidiary
undertakings or Employee Benefit Trusts. 
Special reserve During 2005 and 2006 the Company applied to the Royal Court of Guernsey to reduce its share
capital by cancellation of its share premium at that time and creation of a special reserve, which is an
additional distributable reserve to be used for all purposes permitted under Guernsey Company law,
including buy back of shares and the payment of dividends.
Capital reserve The amount of any capital profits and losses, including gains and losses on the disposal of investment
properties (after taxation), increases and decreases in the fair value of investment properties held at
each period end, foreign exchange profits and losses on capital items, profits and losses on forward
currency financial instruments relating to capital items and deferred taxation on the increase in fair
value of investment properties.
Translation reserve The amount of any gains or losses arising on the retranslation of net assets of overseas operations.
Retained earnings The amount of any profit or loss for the year after payment of dividend, together with the amount of
any equity-settled share-based payments, and the transfer of capital items described above. Notes to the Financial Statements – continued
60
30. Net asset value per share
2011 2010
US$’000 US$’000
Net asset value 668,760 580,364 
Intangible assets – goodwill (13,475) (13,498)
Deferred tax on revaluation gains 43,926 20,556
Unrealised foreign exchange losses on preference shares 7,895 9,372
Fair value of interest rate derivative financial instruments 5,552 5,774
Fair value of foreign exchange derivative financial instruments 2,200 –
Adjusted net asset value 714,858 602,568 
Assuming exercise of all dilutive potential ordinary shares
– Listed warrants (note 27) 14,698 39,789
– ERS (note 31) ––
– LTIP (note 31) 3,515 3,619
Adjusted fully diluted net asset value 733,071 645,976
Number of ordinary shares (note 26) 594,093,554 530,273,204
Less own shares held (note 28) (26,921,176) (28,400,054)
567,172,378 501,873,150
Assuming exercise of all dilutive potential ordinary shares
– Listed warrants (note 27) 37,830,720 101,651,070
– ERS (note 31) 2,550,000 5,000,000
– LTIP (note 31) 9,045,946 9,245,946
Number of ordinary shares assuming exercise of all potential ordinary shares 616,599,044 617,770,166
2011 2010
US$ US$
Net asset value per share 1.18 1.16
Fully diluted net asset value per share 1.11 1.01
Adjusted net asset value per share 1.26 1.20
Adjusted fully diluted net asset value per share 1.19 1.05
As the preference shares are considered to be capital for capital risk management (see note 34d) unrealised foreign exchange
movements on these have been adjusted when calculating adjusted NAV per share.
31. Share based payments
(a) Terms
In 2005, as part consideration for the services offered by Cenkos Securities Limited and Kinmont Limited under the Placing
Agreement, options were granted to these companies pursuant to which they have the right to subscribe for 1,530,000 and
382,500 ordinary shares respectively at £1.00 per share. The options expired in 2010.
Also in 2005, to incentivise personnel of the Company’s former Property Adviser involved in providing advice to the Group, the
Company granted to the trustee of the Raven Mount Employee Benefit Trust an option to acquire up to 7.5% of its issued
ordinary share capital from time to time, less up to 100,000 ordinary shares under option to Adrian Collins, the Company’s
former Chairman. The options vested in three tranches and were exercisable over a period of 4 to 12 years following the
Company’s admission to AIM dependent upon cumulative performance criteria of between 9% and12% total share return
having been met. Notes to the Financial Statements – continued
61
The first tranche of options held by the trustee and Adrian Collins lapsed as the associated performance criteria were not met.
Upon the Company’s acquisition of the Property Advisor the remaining options held by the trustee were cancelled and the
Company agreed to grant replacement options to certain employees and former employees of the Property Advisor’s group.
These replacement options were issued in 2009 and 2010 and comprise the Employee Retention Scheme (“ERS”) and Long
Term Incentive Plan (“LTIP”) more fully explained in the Remuneration Report.
The second and third tranche of options held by Adrian Collins lapsed as the associated performance criteria were not met. 
2011 2011 2010 2010
Weighted Weighted
average average
No of exercise No of exercise
options price options price
Outstanding at the beginning of the period 14,245,946 16p 4,740,833 46p 
Issued during the year
– ERS –– 3,225,000 –
– LTIP –– 8,225,946 25p 
Lapsed during the year
– LTIP (200,000) 25p ––
– Adviser options –– (1,945,833) 100p
Exercised during the year
– ERS (2,450,000) 0p ––
Outstanding at the end of the period 11,595,946 20p 14,245,946 16p
Represented by:
– ERS 2,550,000 5,000,000
– LTIP 9,045,946 9,245,946
11,595,946 14,245,946
Exercisable at the end of the period 2,550,000 0p ––
ERS options vested during the year and are available for exercise. The LTIP options have yet to vest. The weighted average
remaining contractual life of options was 6 years (2010: 7 years).
(b) Share-based payment charge
The Group recognised a total share-based payment expense as a result of the ERS and LTIP awards of US$1.3 million
(2010: US$2.1 million) for the year. Also, and as set out in the Directors’ Remuneration Report approved by shareholders,
the Company utilised 4.6 million of ordinary shares held (note 28) to satisfy bonuses to the Executive Directors and senior
management. This resulted in a charge of US$4.8 million (2010: US$4.3 million) for the year, giving a total expense of
US$6.1 million (2010: US$6.4 million).
32. Capital commitments
The Group has committed to fund the construction of certain additional investment property. At 31 December 2011,
US$4.4 million of funding was required (2010: US$5.7 million), excluding VAT. Notes to the Financial Statements – continued
62
33. Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and
are not disclosed in this note. Further disclosures concerning transactions with the Company’s directors are made in the
Remuneration Report and note 6.
Remuneration of Directors and other key management personnel 
2011 2010
US$’000 US$’000
Short term employee benefits 4,430 4,699 
Post employment benefits 278 297 
Share-based payment 5,839 6,196
10,547 11,192
Transactions, arrangements and agreements involving key management personnel 
There are no loan balances with directors. During the year the Group advanced a loan of £1.2 million to one of the Group’s key
management personnel. The loan remains outstanding at 31 December 2011, bears interest at a commercial rate and is
secured by a first legal charge over a UK property.
Mourant Ozannes 
David Moore is a partner in Mourant Ozannes, Advocates and Notaries Public. Mourant Ozannes provide independent legal
advice to the Group. Total legal fees paid to Mourant Ozannes during the year amounted to £18,877 (2010: £1,194).
34. Financial instruments – risk management
The Group’s activities expose it to a variety of financial risks in relation to the financial instruments it uses: market risk (including
currency risk, price risk and cash flow interest rate risk), credit risk and liquidity risk. The financial risks relate to the following
financial instruments: trade receivables, cash and short term deposits, trade and other payables, borrowings, preference
shares and derivative financial instruments. 
Risk management parameters are established by the Board on a project by project basis and overseen by management in
conjunction with professional advisers. Reports are provided to the Board formally on a weekly basis and also when authorised
changes are required.
(a) Market risk
Currency risk 
The Group operates internationally and is exposed to foreign exchange risk arising from a variety of currency exposures,
primarily with respect to US Dollars, Sterling and Russian Rouble. Foreign exchange risk arises from future commercial
transactions (including construction contracts and lease receivables), recognised monetary assets and liabilities and net
investments in foreign entities. 
The majority of the Group’s transactions are denominated in US Dollars, which is also the reporting currency for the Group.
The analysis that follows therefore considers the impact of Russian Rouble and Sterling on the Group.
Russian Rouble 
Whilst the Group has some Rouble denominated overhead and maintains modest levels of Rouble cash balances to fund the
working capital requirements of the investment property portfolio in Russia, it is during a period of substantial construction
activity that the Group can become exposed to significant Rouble currency risk. This is because construction contracts have
tended to be denominated in Roubles. The Group is not currently in a period of substantial construction but when this has
been the case the Group has taken out non deliverable forwards to hedge against the US Dollar/Rouble cash flow exposure. Notes to the Financial Statements – continued
63
The other principal area where the Rouble can affect the Group is the accounting adjustments that are required when
consolidating the results of some of the property owning subsidiaries that have a Rouble functional currency. Exchange gains
or losses arising as a result of these consolidation accounting adjustments are included in the translation reserve.
Sterling 
The Group’s exposure to Sterling is primarily driven by the Sterling denominated preference shares and the related quarterly
preference dividends, but also head office costs and ordinary dividends.
The table below summarises the Group’s currency profile at 31 December:
Russian
US Dollar Sterling Rouble Other Total
As at 31 December 2011 US$’000 US$’000 US$’000 US$’000 US$’000
Non-current assets
Loans receivable –– 4– 4
Derivative financial instruments 1,216 –– – 1,216
Current assets
Trade receivables 16,836 1,284 3,728 – 21,848
Loans receivable – 2,411 72 – 2,483
Derivative financial instruments –– –– –
Other current receivables 989 2,101 183 4 3,277
Cash and short term deposits 119,053 30,519 31,732 522 181,826
138,094 36,315 35,719 526 210,654
Non-current liabilities
Interest bearing loans and borrowings 465,638 –– – 465,638
Preference shares – 218,206 –– 218,206
Derivative financial instruments 8,968 –– – 8,968
Rent deposits 12,162 – 2,228 443 14,833
Investment property acquisition obligations 2,929 –– – 2,929
Retentions under construction contracts –– –– –
Other payables –– 590 – 590
Current liabilities
Interest bearing loans and borrowings 82,637 12,970 –– 95,607
Derivative financial instruments –– –– –
Other payables – 5,939 27,575 22 33,536
572,334 237,115 30,393 465 840,307 Notes to the Financial Statements – continued
64
Russian
US Dollar Sterling Rouble Other Total
As at 31 December 2010 US$’000 US$’000 US$’000 US$’000 US$’000
Non-current assets
Loans receivable 4 1,013 –– 1,017 
Derivative financial instruments 347 –– – 347 
Current assets
Trade receivables 8,724 1,106 5,991 7 15,828 
Loans receivable – 579 63 – 642
Derivative financial instruments 102 –– – 102 
Other current receivables 2,112 1,483 1,487 1 5,083 
Cash and short term deposits 55,124 30,804 20,144 1,569 107,641 
66,413 34,985 27,685 1,577 130,660
Non-current liabilities
Interest bearing loans and borrowings 331,309 10,896 –– 342,205 
Preference shares – 217,425 –– 217,425 
Derivative financial instruments 4,439 –– – 4,439 
Rent deposits 8,903 – 2,353 547 11,803 
Investment property acquisition obligations 7,287 –– – 7,287 
Retentions under construction contracts –– 5,838 – 5,838 
Other payables –– 240 – 240 
Current liabilities
Interest bearing loans and borrowings 80,425 9,420 –– 89,845 
Derivative financial instruments 1,682 –– – 1,682 
Other payables 90 4,431 15,627 21 20,169 
434,135 242,172 24,058 568 700,933 
The sensitivity analyses below are based on a change in an assumption while holding all other assumptions constant. In
practice this is unlikely to occur and changes in some of the assumptions may be correlated, for example a change in interest
rate and a change in foreign currency exchange rates. The Group principally manages foreign currency risk on a project by
project basis. The sensitivity analysis prepared by management of foreign currency risk illustrates how changes in the fair value
or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.
The tables above presents financial assets and liabilities denominated in foreign currencies held by the Group in 2011 and
2010. If the US Dollar weakened or strengthened by 10% against the Russian Rouble or Sterling, with all other variables in
each case remaining constant, then: 
2011 2010
Post tax profit or loss would change by: US$’000 US$’000
Russian Rouble 296 182
Sterling 3,513 4,011
2011 2010
Net asset value would change by: US$’000 US$’000
Russian Rouble 196 46
Sterling 20,481 21,145
The majority of sterling sensitivity relates to the retranslation of the value of irredeemable preference shares.  Notes to the Financial Statements – continued
65
Accounting standards also require disclosure of monetary assets and liabilities that are denominated in currencies different
from the functional currency of the specific subsidiary or entity in the Group. These are set out in the tables below.
Russian
US Dollar Sterling Rouble Other
As at 31 December 2011 US$’000 US$’000 US$’000 US$’000
Current assets
Trade receivables 2,623 –– –
Cash and short term deposits 70,585 –– 115
73,208 –– 115
As at 31 December 2010
Current assets
Trade receivables 1,898 –– –
Cash and short term deposits 40,109 –– 331
42,007 –– 331
Current liabilities
Other payables 23 –– 142
The Group’s interest rate risk arises from long-term borrowings (note 22), which include preference shares issued (note 23).
Borrowings issued at variable rates expose the Group to cash flow interest rate risk, whilst borrowings issued at a fixed rate
expose the Group to fair value risk. The Group’s cash flow and fair value risk is reviewed monthly by the Board. The cash flow
and fair value risk is approved monthly by the Board.
The Group analyses its interest rate exposure on a dynamic basis. It takes on exposure to the effects of fluctuations in the
prevailing levels of market interest rates on its financial position and cash flows. Interest costs may increase as a result of such
changes. They may reduce or create losses in the event that unexpected movements arise. Various scenarios are simulated
taking into consideration refinancing, renewal of existing positions, alternative financing and hedging. Based on these scenarios
the Group calculates the impact on profit and loss of a defined interest rate shift. The simulation is run on an on-going basis to
verify that the maximum potential impact is within the parameters expected by management. Formal reporting to the Board on
cash flows is made on a monthly basis. 
To date the Group has sought to fix its exposure to interest rate risk on borrowings through the use of a variety of interest rate
derivatives and the issue of preference shares at a fixed coupon. This gives certainty over future cash flow but exposure to fair
value movements, which amounted to an unrealised loss of US$5.5 million at 31 December 2011 (2010: loss of
US$5.8 million). 
Sensitivity analysis on the Group’s interest rate borrowings, net of interest bearing deposits, indicate that a 1% increase in
LIBOR rates would decrease the profit for the year and net assets by US$400,000 (2010: US$900,000). If LIBOR rates were to
drop to zero then there would be a decrease in the profit for the year and in net assets of US$900,000 (2010: US$100,000) as
the loss on income from cash would be greater than gains on interest expense because of the low LIBOR rates prevailing at
this time and the interest rate hedges in place. 
(b) Credit risk
The Group’s principal financial assets are cash and short term deposits, trade and other receivables and derivative financial
instruments.
Credit risk associated with the Group’s trade and other receivables is considered low due to the Group having policies in place
to ensure that rental contracts are made with tenants meeting appropriate balance sheet covenants, supplemented by rental
deposits or bank guarantees from international banks. The amounts presented in the Balance Sheet are net of allowances for
doubtful receivables. An allowance for impairment is made where there is objective evidence that the Group will not be able to
collect all amounts due according to the terms of the receivables concerned. Details of the movements in provision for
impairment of trade receivables is provided in the table below. Notes to the Financial Statements – continued
66
2011 2010
US$’000 US$’000
At 1 January 377 377
Charge for the year ––
Utilised in the year ––
Unused amounts reversed ––
At 31 December 377 377
At 31 December 2011 there were no significant amounts of trade receivables that were past due for collection (2010: US$ nil). 
The Group has VAT recoverable of US$15.4 million (2010: US$12.3 million). The timing of recovery of these balances is subject
to future revenue receipts and application to the Russian Courts. The Group forecasts the recovery of these balances based
upon the timing of future revenue receipts and its experience of successful application to the Russian Courts. No balances are
considered past due or impaired at 31 December 2011 (2010: US$ nil) based upon this assessment of the timing of future
cash receipts. The Group believes its only exposure is in relation to the timing of recovery.
The credit risk of the Group’s cash and short term deposits and derivative financial instruments is limited to the Group’s policy
of monitoring counterparty exposures.
(c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of
committed credit facilities and the ability to close out market positions. The Board and its advisers seek to have appropriate
credit facilities in place on a project by project basis, either from available cash resources or from bank facilities.
Management monitor the Group’s liquidity position on a daily basis. Formal liquidity reports are issued from all jurisdictions on a
weekly basis and are reviewed monthly by the Board, along with cash flow forecasts. A summary table with maturity of
financial liabilities is presented below.
All amounts shown are gross undiscounted cash flows. 
Financial liabilities
Years Years
Total Current Year 2 3 to 5 5 to 10
US$’000 US$’000 US$’000 US$’000 US$’000
As at 31 December 2011
Interest bearing loans and borrowings 721,504 134,597 131,638 327,726 127,543
Preference shares 269,213 26,921 26,921 80,764 134,607
Derivative financial instruments 8,968 –– 6,768 2,200
Trade and other payables 51,888 51,888 –– –
1,051,573 213,406 158,559 415,258 264,350
As at 31 December 2010
Interest bearing loans and borrowings 513,051 116,845 183,736 145,865 66,605
Preference shares 271,223 27,122 27,122 81,367 135,612
Derivative financial instruments 6,121 1,682 – 4,439 –
Trade and other payables 45,337 45,337 –– –
835,732 190,986 210,858 231,671 202,217 
Details of the interest rates applicable to the Group’s long term borrowings and preference shares are given in notes 22 and
23. The Group is subject to interest costs in perpetuity in respect of preference shares, which have no contractual maturity
date. The table above does not show cash flows beyond 10 years. Notes to the Financial Statements – continued
67
The Group monitors its risk to a shortage of funds by forecasting cash flow requirements for future years. The Group’s
objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts and other
short term borrowing facilities, bank loans and equity fund raisings.
Fair values 
Set out below is a comparison by class of the carrying amounts and fair value of the Group’s financial instruments in the
financial statements.
2011 2011 2010 2010
Carrying Fair Carrying Fair
Value Value Value Value
US$’000 US$’000 US$’000 US$’000
Non-current assets
Loans receivable 44 1,017 959 
Derivative financial instruments 1,216 1,216 347 347 
Current assets
Trade receivables 21,848 21,848 15,828 15,828 
Loans receivable 2,483 2,483 642 642
Other current receivables 3,277 3,277 5,083 5,083 
Derivative financial instruments –– 102 102 
Cash and short term deposits 181,826 181,826 107,641 107,641 
Non-current liabilities
Interest bearing loans and borrowings 465,638 356,157 342,205 287,322 
Preference shares 218,206 291,444 217,425 292,132 
Derivative financial instruments 8,968 8,968 4,439 4,439 
Rent deposits 14,833 14,833 11,803 11,803 
Investment property acquisition obligations 2,929 2,929 7,287 7,287 
Retentions under construction contracts –– 5,838 5,838 
Other payables 590 590 240 240 
Current liabilities
Interest bearing loans and borrowings 95,607 95,607 89,845 89,845 
Derivative financial instruments –– 1,682 1,682 
Other payables 33,536 33,536 20,169 20,169 
The fair values of loans receivable and borrowings have been calculated by discounting the expected future cash flows at
prevailing interest rates. The fair value of short term deposits, other assets, trade and other receivables, trade and other
payables is assumed to approximate to their book values. The fair value of preference shares is assumed to be their last
quoted price. The fair value of derivatives is determined by a model with market based inputs. Notes to the Financial Statements – continued
68
Fair value hierarchy 
The following table shows an analysis of the fair values of financial instruments recognised in the balance sheet by level of the
fair value hierarchy*:
Total Fair
Level 1 Level 2 Level 3 Value
US$’000 US$’000 US$’000 US$’000
As at 31 December 2011
Assets measured at fair value
Derivative financial instruments – 1,216 – 1,216
Liabilities measured at fair value
Derivative financial instruments – 8,968 – 8,968
As at 31 December 2010
Assets measured at fair value
Derivative financial instruments – 449 – 449
Liabilities measured at fair value
Derivative financial instruments – 6,121 – 6,121
* Explanation of the fair value hierarchy:
Level 1 – Quoted prices in active markets for identical assets or liabilities that can be accessed at the balance sheet
date.
Level 2 – Use of a model with inputs that are directly or indirectly observable market data. 
Level 3 – Use of a model with inputs that are not based on observable market data. 
(d) Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern to provide
returns to shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of
capital.
For capital risk management, the Directors consider both the ordinary and preference shares to be permanent capital of the
Company, with similar rights as to cancellation.
To maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, under take
tender offers, return capital to shareholders, issue new shares or sell assets to reduce debt. Consistent with others in its
industry, the Group monitors capital on the basis of its gearing ratio. This ratio is calculated as net debt divided by total capital.
Net debt is calculated as total borrowings (including borrowings and trade and other payables as shown in the balance sheet)
but excluding preference shares, which for capital risk management is considered to be capital rather than debt, less cash and
short term deposits. Total capital is calculated as equity, as shown in the balance sheet, plus preference shares and net debt.
Where the Group has a net cash position, the gearing ratio will be zero. Notes to the Financial Statements – continued
69
2011 2010
US$’000 US$’000
Non-current liabilities (excluding preference shares) 562,520 408,526
Current liabilities 166,184 139,465
Total borrowings 728,704 547,991
Less: cash and short term deposits 181,826 107,641
Net debt 546,878 440,350
Equity 668,760 580,364
Preference shares 218,206 217,425
Total capital 1,433,844 1,238,139
Gearing ratio 38.14% 35.57%
35. Subsequent events
Details of post year end warrant exercises are set out in note 27. 
36. Operating lease arrangements 
The Group earns rental income by leasing its investment properties to tenants under non-cancellable operating leases. 
At the balance sheet date the Group had contracted with tenants for the following future minimum lease payments:
2011 2010
US$’000 US$’000
Within one year 97,564 65,856
In the second year 98,846 65,592
In the third to fifth year (inclusive) 250,998 182,429
After five years 132,420 86,483
579,828 400,360 Advisers
70
Registered Office:
P.O.Box522
1LeTruchot
St.PeterPort
Guernsey
GY16EH
Nominated Advisers, Brokers & Joint Financial Advisers:
SingerCapitalMarketsLimited
OneHanoverStreet
London
W1S1AX
Joint Financial Adviser:
KinmontLimited
5CliffordStreet
London
W1S2LG
Principal Bankers:
RoyalBankofScotlandInternational
UK Solicitors:
BerwinLeightonPaisner
AdelaideHouse
LondonBridge
London
EC4R9HA
Guernsey Advocates:
CareyOlsen
CareyHouse
LesBanques
StPeterPort
Guernsey
GY14BZ
Company Secretary:
BennGarnham
Valuer:
JonesLangLaSalle
KosmodamianskayaNAB
52Korp3
Moscow
Registrars:
CapitaRegistrars(Guernsey)Limited
LongueHougueHouse
StSampson
Guernsey
GY13US
UK Transfer Agent:
CapitaRegistrars
TheRegistry
34BeckenhamRoad
Beckenham
KentBR34TU
Independent Auditors:
Ernst&YoungLLP
1MoreLondonPlace
London
SE12AF 71 72
Linkway Financial Printers
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Registered Office
Raven Russia Limited, P .O. Box 522, 1 Le Truchot, St. Peter Port, Guernsey, GY1 6EH
Annual Report and Financial Statements
for the year ended 31 December 2011
R A V E N R U S S I A L I M I T E D
R A V E N R U S S I A L I M I T E D
Annual Report and Financial Statements 2011
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