EQS-News: IMMOFINANZ AG / Key word(s): Half Year Results/Real Estate
IMMOFINANZ with very good 1st half year 2022: FFO 1 improved by 6%,
net profit reaches EUR 163 mn
24.08.2022 / 17:51 CET/CEST
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IMMOFINANZ with very good H1 2022: FFO 1 improved by 6%,
net profit reaches EUR 163 mn.
– Rental income stable vs. prior year, adjusted for one-off effect improved by 4.2%
– Occupancy rate at high level of 94.3%
– Net asset value EPRA NTA per share improved 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
Result from asset management 110.0 3.0 106.8
Result from property sales -11.8 ≤ -100% -3.7
Result from property development -7.8 n/a 22.0
Operating result 56,3 -45.5 103.3
EBIT 131.0 -15.9 155.9
Financial result 68.8 -24.8 91.6
Net profit 162.7 -28.8 228.6
FFO 1 (before tax) 78.7 6.1 74.2
IMMOFINANZ achieved very good results in H1. 2022 first half year very good results:
rental income reached a high level of EUR 144.2 mn, earnings
from asset management improved by 3.0% to EUR 110.0 mn, and
sustainable FFO 1 from the portfolio business climbed by 6.1% to
EUR 78.7 mn. Consolidated net income amounted to EUR 162.7 mn, after
it was significantly positively influenced in the comparable period of the previous year, above all by an appreciation of the
stake in S IMMO. With an
equity ratio of 57.3% and conservative debt with a
net LTV of 32.5%, IMMOFINANZ had a strong capital base.
“The good earnings development in H1 2022 underlines the strong
position of IMMOFINANZ in its core markets. We were able to increase our
rental income – adjusted for one-off effects – despite a challenging
environment and grew FFO 1 by more than 6%. Although some
special effects had an impact on earnings and the balance sheet,
we have an extremely robust financial base to continue our value-enhancing
growth path in the future. We will continue to expand our strong
brands myhive, STOP SHOP and VIVO! and thus further improve our
leading position in innovative office and retail solutions
. We are thus ideally positioned to create further value for our tenants,
employees and shareholders,” says Radka Doehring,
board member of IMMOFINANZ.
As a result of the acquisition of majority control by the CPI Property
Group, a number of one-off effects came to bear in the first half of the year. These include
higher expenses as a result of the takeover offers by CPI Property
Group and S IMMO as well as early repayments of
corporate bonds due to the change of control. Against the backdrop
of the current environment, there was also a full impairment
of a purchase price receivable from the sale of the
Russia portfolio in 2017, which impacted the result from property sales.
As a result, operating profit was EUR 56.3 million (Q1-2 2021:
EUR 103.3 million), while income from operations totaled
EUR 131.0 million (Q1-2 2021: EUR 155.9 million). Overall,
IMMOFINANZ generated a consolidated net profit of EUR 162.7 million or
earnings per share of EUR 1.20 in H1 (Q1-2 2021: EUR 228.6 million or
EUR 78.7 million, sustainable FFO 1 from existing business (before taxes) was 6.1% above the comparable figure of the previous year (Q1-2 2021:
EUR 74.2 million ^1). This corresponds to FFO 1 per share of EUR 0.58
(Q1-2 2021: EUR 0.60¹) taking into account a higher number of shares
compared to the same period of the previous year.
Occupancy rate at a high level
As of June 30, 2022, the IMMOFINANZ
real estate portfolio comprised 227 properties with a portfolio value of EUR 5.4 billion, of which
EUR 4.8 billion were portfolio properties with a leasable area of
2.0 million sqm. The occupancy rate remained at a high level of 94.3% (December 31, 2021: 95.1%)
. The retail properties were fully let at 98.5%
. The gross yield on the existing portfolio was 6.1% on
the basis of IFRS rental income and 6.4% on the basis of rental prepayments.
Equity ratio strengthened again
IMMOFINANZ has a robust balance sheet structure with a
strengthened equity ratio of 57.3% (December 31, 2021: 48.1%) and
cash and cash equivalents of EUR 383.5 million at the end of June 2022. For
financial liabilities, the average cost of financing
(incl. derivatives) remained unchanged at just 1.9%.
EPRA key figures per share improved
The net asset value EPRA NTA per share increased by 1.0%
to EUR 29.49 as of June 30, 2022, compared to EUR 29.19 at the end of December 2021. The book value per share
was EUR 27.64 (December 31, 2021: EUR 27.44).
IMMOFINANZ will consistently pursue its growth strategy in accordance with the strategy update that
adopted after the majority takeover by CPI Property Group in June
of this year. The focus
will be on retail properties and myhive office solutions. As part of active
portfolio management, IMMOFINANZ also intends to dispose of properties valued
at around EUR 1 billion. The proceeds from these sales are to be reinvested in
properties and further strengthen the property brands
or used to repay debt.
IMMOFINANZ expects FFO 1 before tax for the full year 2022 to be at
the good prior-year level of around EUR 120 million.
The distribution policy for the 2022 financial year depends on the further
development of the market environment, the timing of the planned acquisitions
and sales of properties, as well as the coordination with the
IMMOFINANZ majority shareholder.
Development of earnings in detail
Rental income amounted to EUR 144.2 million in the 1st half of 2022 and
thus developed stably compared to the previous year’s value of EUR 145.0 million
. However, this had been significantly positively influenced by a one-time down payment
of a major tenant in the amount of EUR 6.7 million for a pandemic-related
space reduction. Adjusted for this
one-off effect, the increase was 4.2%. In addition to the very good development of like-for-like rental income, the
acquisition of a STOP SHOP in Italy and the completion of
project developments were responsible for this
, which more than compensated for the sale of
properties in the reporting period. Like-for-like rental income
(adjusted for acquisitions, disposals and completions) increased significantly by 7.1% in
Q2 2022 (compared to Q2 2021).
Real estate expenses decreased by 14.8% to EUR -26.9 million, mainly
due to the strong decrease of the included
rental receivable write-offs to EUR -1.2 million (Q1-2 2021: EUR -9.4 million)
. IMMOFINANZ had used these to support its tenants during
pandemic-related closure phases in 2020 and 2021
. In the first half of 2022, this figure returned to approximately the pre-crisis
level. The result from asset management increased by 3.0%
to EUR 110.0 million (Q1-2 2021: EUR 106.8 million).
The result from real estate sales was EUR -11.8 million (Q1-2 2021:
EUR -3.7 million) and was mainly burdened by the full impairment
of a purchase price receivable of EUR -12.9 million from Russia.
This receivable originated from the sale of the Russia portfolio in
2017 and should have been settled in the first half of 2022.
Due to the war in Ukraine and the associated sanctions
against the Russian Federation and their effects – in particular the
payment restrictions imposed in Russia – the receivable is expected to be uncollectible in the view of
management. In addition
there are no further receivables or obligations from the sale
of the Russia portfolio, and IMMOFINANZ is currently reviewing all legal
options to assert this claim.
Overall, property sales in H1 2022 reached a
volume of EUR 4.9 million, mainly involving properties in Turkey not
in line with the strategy. The result from
real estate development was EUR -7.8 million (Q1-2 2021: EUR 22.0 million) and
reflects increased construction costs for
individual projects due to the general environment.
Other operating expenses increased – driven by
one-off effects – to EUR -36.1 million (Q1-2 2021: EUR -23.0 million). At
these were mainly consulting costs in connection with offers for the
takeover of IMMOFINANZ by CPI Property Group and S IMMO as well as
expenses for the departure of the two Executive Board members Dietmar
Reindl and Stefan Schönauer and for digitization measures. The
operating result thus amounted to EUR 56.3 million (Q1-2 2021: EUR 103.3 million).
The valuation result from portfolio properties amounted to
EUR 74.7 million (Q1-2 2021: EUR 52.5 million). The value increases recorded in the reporting period
were attributable to retail properties
in the amount of EUR 50.4 million and, due to the improved market environment, included both STOP SHOPs and
VIVO! Shopping Center. In the case of office properties in the portfolio, the
revaluations amounted to EUR 28.3 million, driven by positive effects in buildings
in Warsaw, Vienna and Prague. The result from operating activities (EBIT)
amounted to EUR 131.0 million (Q1-2 2021: EUR 155.9 million).
Financing expenses decreased by 2.6% to EUR -41.0 million (Q1-2
2021: EUR -42.2 million). The significant year-on-year
increase in other financial result of EUR 80.9 million (Q1-2 2021:
EUR 8.5 million) mainly resulted from the positive valuation of
interest rate derivatives (EUR 88.1 million) due to increased long-term interest rates
and thus underlines the Group’s effective hedging policy.
This was offset by an expense of EUR -5.6 million for the repurchase of
corporate bonds at 101% of the nominal amount as a result of the
change of control.
The share of profit from investments accounted for using the equity method
amounted to EUR 27.4 million, after having been strongly
positively impacted by a reversal of the impairment loss on the investment in S IMMO in the comparable period of the
previous year (Q1-2 2021: EUR 124.1 million). In total
, S IMMO accounted for EUR 25.2 million in H1 2022 (Q1-2 2021:
EUR 121.8 million). The financial result was thus EUR 68.8 million (Q1-2
2021: EUR 91.6 million).
Profit before income taxes amounted to EUR 199.9 million (Q1-2 2021:
EUR 247.4 million). Income taxes increased to EUR -37.1 million (Q1-2
2021: EUR -18.8 million), mainly driven by a higher deferred
tax expense due to the strong positive valuation of interest rate derivatives. The
net result was EUR 162.7 million (Q1-2 2021: EUR 228.6 million). This
corresponds to earnings per share^of EUR 1.20 (Q1-2 2021:
IMMOFINANZ AG’s interim report for the first half of 2022 as of
June 30, 2022 is available on the company’s website at
 https://immofinanz.com/de/investor-relations/finanzberichte as of August 25,
^ For better comparability, the previous year’s figure regarding
the dividend payment of S IMMO was adjusted and the dividend receipt in
the amount of EUR 9.7 million in Q2 2021 was assumed (instead of Q4
2021 as done).
^ Number of shares considered for Q1-2 2022: 135,707,360 and
Number of shares considered for Q1-2 2021: 137,196,458
IMMOFINANZ is a commercial real estate group and focuses its
activities on the office and retail segments in eight core markets in
Europe: Austria, Germany, Poland, Czech Republic, Slovakia, Hungary,
Romania and the Adriatic region. The core business includes
property management and development. Here,
IMMOFINANZ relies heavily on its brands STOP SHOP (retail), VIVO!
(retail) and myhive (office), which represent a promise of quality and
service. With the new brand On Top Living
IMMOFINANZ is expanding into sustainable and affordable living. The
company owns real estate assets of approximately EUR 5.4 billion, which are distributed
among more than 220 properties. The company is listed on the stock exchanges of Vienna
(leading index ATX) and Warsaw. Further information:
For further inquiries please contact:
Head of Corporate Communications and Investor Relations
T +43 (0)1 88 090 2290
M +43 (0)699 1685 7290
firstname.lastname@example.org A-1100 Vienna, Wienerbergstraße 9
24.08.2022 CET/CEST Dissemination of a Corporate News/Financial News Release,
transmitted by EQS Group AG. www.eqs.com
══════════════════════════════════════════════════════════════ IMMOFINANZ AG
Phone: +43 (0) 1 88090 – 2290
Fax: +43 (0) 1 88090 – 8290
Stock exchanges: Open Market in Berlin, Frankfurt, Munich, Stuttgart;
Warsaw, Vienna Stock Exchange (official trading)
EQS News ID: 1427597
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1427597 24.08.2022 CET/CEST
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