DGAP-News: IMMOFINANZ Group increases results of operations
(firmenpresse) - DGAP-News: IMMOFINANZ AG / Key word(s): Real Estate/Quarter Results
IMMOFINANZ Group increases results of operations
20.03.2013 / 19:43
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KEY FIGURES (in MEUR) // 1 May 2012-31 January 2013 //?in % // 1 May
2011-31 January 2012
Rental income // 492.9 // 12.7% // 437.3
Income from asset management // 410.7 // 16.5% // 352.6
Income from property sales* // 62.8 // 51.1% // 41.6
Income from property development * // 3.0 // -93.8% // 48.2
Administrative expenses // 106.3 // 3.9% // 102.3
Results of operations // 396.8 // 6.7% // 372.0
Operating profit (EBIT) // 444.7 // -35.6% // 690.9
Net profit // 210.1 // -22.0% // 269.4
Net profit adjusted for currency effects and derivatives // 162.1 // -40.6%
// 272.9
Gross cash flow // 315.3 // 8.9% // 289.4
* before foreign exchange effects
IMMOFINANZ Group generated solid operating results in the first three
quarters of the 2012/13 financial year. A comparison with the first three
quarters of the previous year shows strong growth, above all through a
significant 12.7% increase in rental income to EUR 492.9 million. A
substantial improvement was also recorded in income from property sales
before foreign exchange effects with a plus of 51.1% to EUR 62.8 million,
which offset the year-on-year decline in income from property development.
Operating earnings rose by 6.7% to EUR 396.8 million for the first three
quarters of 2012/13 (Q1-3 2011/12: EUR 372.0 million). Net profit for the
reporting period fell by 22.0% to EUR 210.1 million. After an adjustment
for foreign exchange effects and derivatives, net profit was 40.6% lower at
EUR 162.1 million. This decline is attributable to a significant
year-on-year reduction in foreign exchange-adjusted revaluation results,
which totalled EUR 24.7 mil¬lion instead of EUR 160.8 million. Gross cash
flow rose by 8.9% year-on-year to EUR 315.3 million.
'We continued our operating success series and can look back on the
strongest quarter for rental income and income from property sales in this
financial year. The portfolio's ability to generate sustainable cash flows
became stronger. In the development area we set a number of milestones and
continued our expansion on the German residential market against the
backdrop of a possible initial public offering by our BUWOG subsidiary. The
non-cash revaluation of properties in the first three quarters was, as
expected, lower than the previous year, but the many sales transactions
confirm our conservative book values. In addition, our five-year sale
programme is now substantially over target following the sale of the Swiss
Grand Hotel', says Eduard Zehetner, CEO of IMMOFINANZ Group. 'For the
fourth quarter, we are expecting further positive development in results of
operations. Preparations are also underway for a second listing on the
Warsaw Stock Exchange, which should increase the visibility and liquidity
of the IMMOFINANZ share.'
Income from asset management
Rental income amounted to EUR 492.9 million for the first three quarters of
2012/13, which represents an increase of 12.7% over the comparable prior
year period (EUR 437.3 million). This sound development was driven
primarily by the retail segment, in particular through the acquisition of
the second 50% stake in the Golden Babylon Rostokino shopping center. In
comparison with the previous year, this asset class generated anincrease
of 32.5%, or EUR 51.0 million, in rental income to EUR 208.0 million.
Rental income in the office and residential asset classes rose by 1.8% and
1.6%, respectively.
Income from asset management was 16.5% higher at EUR 410.7 million (Q1-3
2011/12: EUR 352.6 million), supported by the year-on-year increase in
rental income and a slight decline in real estate expenses.
Income from property sales
Income of EUR 62.8 million, before foreign exchange effects, was recorded
on the sale of properties during the reporting period (Q1-3 2011/12: EUR
41.6 million). Despite the generally low volume of transactions in Eastern
Europe, IMMOFINANZ Group sold the BB Centrum Building C and Diamont Point
office properties in the Czech Republic during the reporting period. The
portfolio optimisation also led to the sale of the Office Cube and
Josefstädter Strasse 78 office buildings. Transactions in the logistics
asset class covered three properties owned by the subsidiary Deutsche
Lagerhaus as well as the Nizza Quartier Saint Isidore. A number of
apartment buildings in Vienna were also sold during recent months,
including the Mariahilfer Strasse 53. However, the largest contribution to
earnings was made by the sale of 100% of the shares in the Swiss Les Bains
de St. Moritz Holding AG, owner of the Kempinski Grand Hotel des Bains,
after the reporting period. In accordance with IFRS, the revaluation gain
on the sale of this investment was recognised as of 31 January 2013 and
included in third quarter results, even though the cash inflows will only
be received during the following quarter. The Hotel Kempinski was the most
important property in the hotel asset class based on the carrying amount.
IMMOFINANZ Group has also started the sale process for two recently
renovated hotels, the Hilton Danube and the Leonardo Vienna, which
represents the final step in the strategic exit from this asset class.
Income from property development
The sale of inventories and the valuation of active development projects
generated income of EUR 3.0 million, before foreign exchange effects,
during the reporting period (Q1-3 2011/12: EUR 48.2 million). The sale of
BUWOG condominium apartments made the largest contribution to this income.
Administrative expenses
Administrative expenses (overhead costs and personnel expenses) rose
slightly from EUR -102.3 million in the first three quarters of the prior
year to EUR -106.3 for the reporting period. This shift resulted mainly
from an increase in personnel expenses following the takeover of the Adama
Group and additional hiring for development activities, above all in
Germany.
Results of operations, EBIT, EBT, net profit
The strong rise in income from asset management and property sales offset
the lower income from property development. This supported a 6.7%
year-on-year increase in results of operations to EUR 396.8 million (Q1-3
2011/12: EUR 372.0 million). A decline in valuation results, including
foreign exchange effects, from EUR 318.9 million in the comparable prior
year period to EUR 47.9 million reduced operating profit (EBIT) to EUR
444.7 million (Q1-3 2011/12: EUR 690.9 million).
Financial results improved in year-on-year comparison, amounting to EUR
-188.9 million for the reporting period (EUR -377.7 million). This
position includes non-cash foreign exchange accounting effects of EUR -18.5
million (Q1-3 2011/12: EUR -166.2 million). Other financial results of EUR
-22.7 million also include, among others, negative effects from the
non-cash valuation of derivatives that are held to hedge interest rate risk
(Q1-3 2011/12: EUR -75.8 million).
The substantial decline in positive foreign exchange effects (difference:
EUR -11.4 million), lower income from property development before foreign
exchange effects (difference: EUR -45.2 million) and a reduction in
foreign exchange-adjusted revaluation results (difference: EUR -136.2
million) led to a year-on-year decline in net profit from EUR 269.4 million
to EUR 210.1 million. Excluding the effects of foreign exchange rates and
derivatives, net profit for the first three quarters of 2012/13 would have
equalled EUR 162.1 million after EUR 272.9 million in Q1-3 2011/12 (higher
revaluation results in the previous year).
Cash Flow and Outlook
Gross cash flow rose by 8.9% year-on-year to EUR 315.3 million. An increase
was also recorded in cash flow from operating activities, which amounted to
EUR 305.4 million (Q1-3 2011/12: EUR 304.4 million). The earnings component
that had a substantial negative effect on profit for the reporting period -
lower foreign exchange-adjusted revaluation results - is a non-cash item.
Therefore, the sustainable cash flow generated by the IMMOFINANZ portfolio
improved during the first three quarters of the 2012/13 financial year.
Sustainable FFO (Funds from Operations) totalled EUR 253.0 million
(previous year: EUR 216.0 million) for the reporting period. *)
IMMOFINANZ Group generated solid earnings and recorded a further
improvement in results from operations during the first three quarters of
2012/13 in spite of the challenging economic environment. The current
growth and optimisation course will be continued during and after the
fourth quarter. Activities will also focus on the reduction of operating
costs and cash flow generation. The BUWOG Group will be strengthened
through further property acquisitions on the German market in preparation
for a possible IPO and the positioning of IMMOFINANZ Group as one of the
leading real estate companies in Europe and a specialist for retail and
office properties will be improved with specially designed development
activities.
NAV per share and earnings per share
Diluted net asset value (NAV) per share rose by 5.5% over the level at 30
April 2012 (EUR 5.33) to EUR 5.62 as of 31 January 2013. In addition, a
dividend of EUR 0.15 per share was paid on 15 October 2012.
Based on the share price as of 19 March 2013 (EUR 3.163), the IMMOFINANZ
share traded at a discount of 43.7% to the diluted NAV per share price.
The current report on the third quarter will be available for download as
of 21 March under www.immofinanz.com in the Investor Relations section
under 'Financial Reports'.
*) Sustainable FFO: Gross cash flow (EUR 315.3 million) + interest received
on financial investments (EUR 14.4 million) - interest paid (EUR -116.1
million) - cash outflows from derivatives (EUR -23.5 million) + income from
property sales (EUR 62.9 million)
On IMMOFINANZ Group
IMMOFINANZ Group is one of the leading listed property companies in Europe
and is included in the leading ATX index of the Vienna Stock Exchange.
Since its founding in 1990, the company has compiled a high-quality
property portfolio that now comprises more than 1,810 investment properties
with a carrying amount of approx. EUR 10.49 billion. As a 'real estate
machine' the company concentrates on linking its three core business areas:
the development of sustainable, specially designed prime properties in
premium locations, the professional management of these properties and
cycle-optimised sales. Active and decentralised asset management increases
rental income and, at the same time, reduces vacancies. The liquid funds
generated by property sales are reinvested in new development projects and,
in this way, keep the machine running. The company's goal is to generate
greater profitability along the entire value chain with a clearly defined,
standardised and industrialised process. IMMOFINANZ Group concentrates its
activities in the retail, office, logistics and residential segments of
eight regional core markets: Austria, Germany, Czech Republic, Slovakia,
Hungary, Romania, Poland and Russia. Further information under:
www.immofinanz.com
For additional information please contact:
MEDIA INQUIRIES
Bettina Schragl
Head of Corporate Communications | Press Spokesperson
IMMOFINANZ Group
T +43 (0)1 88 090 2290
M +43(0)699 1685 7290
communications(at)immofinanz.com
INVESTOR RELATIONS
Stefan Schönauer
Head of Corporate Finance&Investor Relations
IMMOFINANZ Group
T +43 (0)1 88 090 2312
M +43 (0)699 1685 7312
investor(at)immofinanz.com
End of Corporate News
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Language: English
Company: IMMOFINANZ AG
Wienerbergstraße 11
1100 Wien
Austria
Phone: +43 (0) 1 88090 - 2291
Fax: +43 (0) 1 88090 - 8291
E-mail: investor(at)immofinanz.com
Internet: http://www.immofinanz.com
ISIN: AT0000809058
WKN: 911064
Listed: Freiverkehr in Berlin, München, Stuttgart; Frankfurt in
Open Market ; Wien (Amtlicher Handel / Official Market)
End of News DGAP News-Service
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