EQS-News: IMMOFINANZ AG / Key word(s): Half Year Results/Real Estate
IMMOFINANZ with very good first half-year in 2022: FFO 1 increases by 6%,
net profit reaches EUR 163 million
24.08.2022 / 17:51 CET/CEST
The issuer is solely responsible for the content of this announcement.
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IMMOFINANZ with very good first half-year in 2022: FFO 1 increases by 6%,
net profit reaches EUR 163 million
– Rental income stable year-on-year, plus 4.2% after adjustment for
non-recurring effect
– Occupancy rate high at 94.3%
– EPRA NTA per share improves to EUR 29.5
– Strong balance sheet with equity ratio of 57.3% and net LTV of 32.5%
KEY FIGURES (IN MEUR) Q1-2 2022 Δ IN % Q1-2 2021
Rental income 144.2 -0.6 145.0
Results of asset management 110.0 3.0 106.8
Results of property sales -11.8 ≤ -100% -3.7
Results of property development -7.8 n/a 22.0
Results of operations 56.3 -45.5 103.3
EBIT 131.0 -15.9 155.9
Financial results 68.8 -24.8 91.6
Net profit 162.7 -28.8 228.6
FFO 1 (before tax) 78.7 6.1 74.2[1][1]
IMMOFINANZ closed the first half of 2022 with very strong performance:
Rental income reached a high level of EUR 144.2 million, the results of
asset management improved by 3.0% to EUR 110.0 million, and sustainable
FFO 1 from the standing investment business rose by 6.1% to
EUR 78.7 million.
Net profit equaled EUR 162.7 million, whereby the first half of the previous year was influenced, above all, by a substantial
revaluation to the investment in S IMMO. With an equity ratio of 57.3% and
conservative debt with a net LTV of 32.5%, IMMOFINANZ has a strong capital
base.
“The good development of earnings in the first half of 2022 underscores
IMMOFINANZ’s strong position in its core markets. Rental income – after an
adjustment for non-recurring effects – increased despite the challenging
environment and FFO 1 rose by more than 6%.
Although several one-off
effects were reflected in earnings and on the balance sheet, we have a very solid financial base to continue our value-enhancing growth course in
the future. We plan to expand with our strong myhive, STOP SHOP and VIVO!
brands and further improve our leading position in innovative office and
retail solutions. We are optimally positioned to create value for our
tenants, employees and shareholders”, explained Radka Doehring of the
Executive Board of IMMOFINANZ.
The attainment of majority control by the CPI Property Group triggered several non-recurring effects in the first half-year, among others, higher
costs due to the takeover offers by the CPI Property Group and S IMMO and
the related premature repayment of corporate bonds due to the change of
control. The current environment was also reflected in the full write-off
of a purchase price receivable from the Russian portfolio that was sold in
2017, which had a negative effect on the results of property sales. The
results of operations totalled EUR 56.3 million (Q1-2 2021: EUR 103.3
million) and operating profit amounted to EUR 131.0 million (Q1-2 2021:
EUR 155.9 million).
In total, IMMOFINANZ generated net profit of EUR 162.7 million, or earnings per share of EUR 1.20, in the first half of
2022 (Q1-2 2021: EUR 228.6 million resp. EUR 1.69 per share).
FFO 1 from the standing investment business (before tax) rose by 6.1% to
EUR 78.7 million in the first half of 2022 (Q1-2 2021:
EUR 74.2 million^1).
That represents FFO 1 per share of EUR 0.58 (Q1-2 2021: EUR 0.60¹) and is based on a higher number of shares.
Occupancy rate at high level
The IMMOFINANZ property portfolio covered 227 properties as of 30 June
2022 with a combined value of EUR 5.4 billion. Standing investments
represented the largest component at EUR 4.8 billion and 2.0 million sqm
of rentable space. At 94.3% (31 December 2021: 95.1%), the occupancy rate
remained high. The retail properties were practically fully rented at
98.5%.
The gross return on the standing investment portfolio equaled 6.1% based on IFRS rental income and 6.4% based on invoiced rents.
Equity ratio strengthened
IMMOFINANZ had a robust balance sheet structure with a stronger equity ratio of 57.3% (31 December 2021: 48.1%) and cash and cash equivalents of EUR 383.5 million at the end of June 2022. The average financing costs for
financial liabilities (incl. derivatives) remained unchanged at a
favorable 1.9%.
EPRA per share indicators improved
The EPRA NTA per share rose by 1.0% from EUR 29.19 at the end of December
2021 to EUR 29.49 as of 30 June 2022. The IFRS book value per share
equalled EUR 27.64 (31 December 2021: EUR 27.44).
Outlook
IMMOFINANZ intends to continue its growth course, as indicated in the
strategy update which was approved after the majority takeover by the CPI
Property Group in June of this year. The focus will remain on retail
properties and myhive office solutions.
Active portfolio management will
also include the sale of properties with a combined value of roughly EUR 1 billion. IMMOFINANZ plans to reinvest the proceeds in real estate to
strengthen its brands or use the funds to repay debt.
FFO 1 before tax is expected to reach the good prior year level of roughly
EUR 120 million for the full 12 months of 2022.
The distribution policy for the 2022 financial year will be dependent on
the further development of the market environment, the timing of planned
property acquisitions and sales, and coordination with IMMOFINANZ’s
majority shareholder.
Results in detail
Rental income was stable in comparison with the previous year at
EUR 144.2 million in the first half of 2022 (Q1-2 2021:
EUR 145.0 million).
However, the first half of 2021 was positively influenced by a non-recurring compensation payment of EUR 6.7 million from
a major tenant for a pandemic-related reduction in space. After an
adjustment for this non-recurring effect, rental income rose by 4.2%.
This
increase was supported by the sound development of like-for-like rental income, the purchase of a STOP SHOP retail park in Italy, and the
completion of development projects which more than offset the sale of
properties. Like-for-like rental income (adjusted for acquisitions, sales
and completions) increased by a solid 7.1% in the second quarter of 2022.
Property expenses were 14.8% lower at EUR -26.9 million, chiefly due to a
substantial decline in the write-off of rents receivable included in this
position to EUR -1.2 million (Q1-2 2021: EUR -9.4 million). These
write-offs represented support by IMMOFINANZ for its tenants during the
pandemic-related lockdown periods in 2020 and 2021. The pre-crisis level
for write-downs was reached during the first half of 2022. The results of
asset management rose by 3.0% to EUR 110.0 million (Q1-2 2021:
EUR 106.8 million).
The results of property sales amounted to EUR -11.8 million (Q1-2 2021:
EUR -3.7 million) and were influenced, above all, by the full write-off of
a EUR -12.9 million purchase price receivable from Russia.
This receivable originated from the sale of the Russian portfolio in 2017 and was scheduled for settlement in the first half of 2022. As a consequence of the war in Ukraine and the related sanctions against the Russian Federation together with the accompanying effects – in particular, the payment restrictions imposed by Russia – management classified this receivable as uncollectible. IMMOFINANZ holds no other receivables nor
liabilities from the former Russian portfolio and is currently reviewing
all legal options to assert this claim.
Property sales totalled EUR 4.9 million in the first half of 2022 and
consist, above all, of non-core land in Turkey.
The results of property development equaled EUR -7.8 million (Q1-2 2021: EUR 22.0 million) and
reflect the increase in construction costs for individual projects which resulted from changes in the operating environment.
Other operating expenses increased to EUR -36.1 million as a result of
non-recurring effects (Q1-2 2021: EUR -23.0 million).
These expenses
generally involved consulting fees related to the takeover offers for IMMOFINANZ by the CPI Property Group and S IMMO, the resignation of Dietmar Reindl and Stefan Schönauer from the Executive Board, and digitalization projects. The results of operations amounted to
EUR 56.3 million (Q1-2 2021: EUR 103.3 million).
Results from the revaluation of standing investments totalled
EUR 74.7 million (Q1-2 2021: EUR 52.5 million).
Retail properties were responsible for EUR 50.4 million of the value appreciation, which covered
STOP SHOPs as well as VIVO! shopping centers and reflected the improvement
in the market environment. Revaluations in the standing office investments
amounted to EUR 28.3 million and were supported by positive effects at
buildings in Warsaw, Vienna and Prague. Operating profit (EBIT) equaled
EUR 131.0 million (Q1-2 2021: EUR 155.9 million).
Financing costs declined by 2.6% to EUR -41.0 million (Q1-2 2021: EUR
-42.2 million).
The other financial results of EUR 80.9 million (Q1-2 2021: EUR 8.5 million) were based primarily on the positive valuation of
interest rate derivatives (EUR 88.1 million) following an increase in
long-term interest rates and demonstrate the Group’s effective hedging
policy. These factors were contrasted by costs of EUR -5.6 million for the
repurchase of corporate bonds at 101% of the nominal value as a
consequence of the change of control.
The share of results from equity-accounted investments totalled EUR 27.4 million and reflected the strong positive revaluation of the
S IMMO investment in the first half of the previous year (Q1-2 2021:
EUR 124.1 million). The S IMMO investment was responsible for a
proportional earnings share of EUR 25.2 million in the first half of 2022
(Q1-2 2021: EUR 121.8 million). Financial results amounted to
EUR 68.8 million (Q1-2 2021: EUR 91.6 million).
Profit before tax totalled EUR 199.9 million (Q1-2 2021:
EUR 247.4 million).
Income taxes rose to EUR -37.1 million (Q1-2 2021: EUR -18.8 million), above all due to the
increase in deferred tax expenses that resulted among others from the
strong positive valuation of interest rate derivatives. Net profit
equaled EUR 162.7 million (Q1-2 2021: EUR 228.6 million) and represents
earnings per share[2][2] of EUR 1.20 (Q1-2 2021: EUR 1.69).
The interim financial report by IMMOFINANZ AG for the first half of the
financial year 2022 as of 30 June 2022 will be available on the company’s
website under
[3] https://immofinanz.com/en/investor-relations/financial-reports starting
on 25 August 2022.
[4]^[1] To improve comparability, the 2021 dividend from S IMMO was
adjusted to show an assumed receipt of EUR 9.
7 million in the second quarter 2021 instead of the actual payment in the fourth quarter 2021.
[5]^[2] Number of shares included for Q1-2 2022: 135,707,360; number of
shares included for Q1-2 2021: 137,196,458
On IMMOFINANZ
IMMOFINANZ is a commercial real estate group whose activities are focused
on the office and retail segments of eight core markets in Europe:
Austria, Germany, Poland, Czech Republic, Slovakia, Hungary, Romania and
the Adriatic region. The core business covers the management and
development of properties, whereby the STOP SHOP (retail), VIVO! (retail)
and myhive (office) brands represent strong focal points that stand for
quality and service. With the new On Top Living brand, IMMOFINANZ is
expanding into sustainable and affordable living. The real estate
portfolio has a value of approximately EUR 5.4 billion and covers more
than 220 properties. IMMOFINANZ is listed on the stock exchanges in Vienna
(leading ATX index) and Warsaw. Further information under:
[6] https://www.immofinanz.com
For additional information contact:
Bettina Schragl
Head of Corporate Communications and Investor Relations
IMMOFINANZ
T +43 (0)1 88 090 2290
M +43 (0)699 1685 7290
[8][email protected] 1100 Vienna, Wienerbergstraße 9, Austria
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24.08.2022 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
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Language: English
Company: IMMOFINANZ AG
Wienerbergstraße 9
1100 Vienna
Austria
Phone: +43 (0) 1 88090 – 2290
Fax: +43 (0) 1 88090 – 8290
E-mail: [email protected]
Internet: http://www.immofinanz.com
ISIN: AT0000A21KS2
WKN: A2JN9W
Listed: Regulated Unofficial Market in Berlin, Frankfurt, Munich,
Stuttgart; Warsaw, Vienna Stock Exchange (Official Market)
EQS News ID: 1427597
End of News EQS News Service
1427597 24.08.2022 CET/CEST
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