DGAP-News: IMMOFINANZ Group confirms upward trend in operations during 2012/13 - property sales at record high, net profit lower due to decline in positive valuation effects
(firmenpresse) - DGAP-News: IMMOFINANZ AG / Key word(s): Real Estate/Final Results
IMMOFINANZ Group confirms upward trend in operations during 2012/13 -
property sales at record high, net profit lower due to decline in
positive valuation effects
02.08.2013 / 18:05
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KEY FIGURES (in MEUR)*: 1 May 2012 - 30 April 2013 //?in % // 1 May 2011
- 30 April 2012
Rental income: 655.8 // 12.0% // 585.7
Results of asset management: 513.0 // 15.1% // 445.9
Results of property sales: 110.8 // 108.3% // 53.2
Results of property development: -18.4 // n.a. // 30.1
Expenses not directly attributable: -98.5 // -0.7% // -99.2
Results of operations: 542.1 // 15.3% // 470.1
Operating profit (EBIT): 508.9 // -26.6% // 692.9
Net profit: 110.8 // -59.1% // 271.2
Gross cash flow: 408.5 // 8.0% // 378.3
Sustainable cash flow (FFO): 341.0 // 27.1% // 268.4
* IMMOFINANZ Group adjusted the structure of the consolidated income
statement as of 30 April 2013 to reflect the international peer group
reporting standards respectively EPRA's recommendation. The costs directly
attributable to income sources (personnel and overhead expenses) were
reclassified from personnel and overhead expenses to the individual income
categories (results of asset management, results of property sales and
results of property development). With this change, IMMOFINANZ Group has
improved its cost transparency and comparability with the peer group and
also taken a further step to optimise the transparent presentation of
corporate results.
In 2012/13 IMMOFINANZ Group confirmed the positive operating trend from the
past year despite weaker growth in the core markets. Results of operations
for the 2012/13 financial year totalled EUR 542.1 million, which represents
an increase of 15.3% or EUR 71.9 million.
Rental income rose substantially year-on-year by EUR 70.2 million or 12.0%.
Revenues rose by 11.2% to EUR 869.2 million in 2012/13. Results of asset
management were 15.1% higher at EUR 513.0 million. Results of property
sales rose by an impressive 108.3% year-on-year to EUR 110.8 million.
Results of property development amounted to EUR -18.4 million (2011/12: EUR
30.1 million), above all due to delays in the GOODZONE project in Russia.
'The 2012/13 financial year was characterised by a concentration on the
operating business - and we generated more than solid growth rates. Gross
cash flow rose by 8.0% to EUR 408.5 million, and sustainable cash flow
(FFO) increased by 27.1% to EUR 341.0 million or from EUR 0.27 to EUR 0.33
per share', commented Eduard Zehetner, CEO of IMMOFINANZ Group. 'The
decline of EUR 160.4 million in net profit resulted primarily from lower
positive effects from property valuation which, after an adjustment for
foreign exchange effects, fell by EUR 170.7 million to EUR 37.9 million',
added Zehetner.
'Our real estate machine gained significant speed during the past year.
This is true, above all, for our sales activities, where we set a new
record since the beginning of our sales programme with a volume of approx.
EUR 661.3 million. With these results, we exceeded our target of EUR 1.5
billion by EUR 153.2 million or 10.2% after three years. This figure does
not include properties with a carrying value of EUR 583.4 million that were
classified as held for sale on the balance sheet as of 30 April 2013. Many
of these transactions have closed or the contract has already been signed.'
Negative other valuation results of EUR -33.2 million (incl. foreign
exchange effects) led to a decline in operating profit to EUR 508.9 million
(2011/12: EUR 692.9 million). This decline is attributable to the
year-on-year drop of approx. EUR 170.7 million in positive effects from the
foreign exchange adjusted revaluation of properties (from EUR 208.7 million
to EUR 37.9 million) and a negative non-recurring effect (EUR -106.4
million) from the adjustment of the purchase price liability for the
acquisition of the Golden Babylon Rostokino shopping center in Moscow. The
final purchase price for this shopping center, which was opened together
with a joint venture partner in November 2009 and taken over in full during
May 2012, is dependent on the net operating income (NOI) generated in the
2013 calendar year. This NOI has risen significantly in recent months
because the Golden Babylon Rostokino is almost fully rented. Consequently,
the fair value of the property rose by EUR 135.0 million in 2012/13 and
will offset the additional costs from the purchase price adjustment.
Net profit for the 2012/13 financial year equalled EUR 110.8 million
(2011/12: EUR 271.2 million). The substantial increase in the tax rate to
43.2% (2011/12: 14.9%) resulted primarily from unusually high,
non-recurring non-cash effects related to deferred taxes.
Sustainable cash flow per share rose from EUR 0.27 in 2011/12 to EUR 0.33
for the reporting year and reflects the sound improvement in the
development of the operating business.
The EUR 0.15 dividend for the 2012/13 financial year is confirmed, subject
to the approval of the annual general meeting on 2 October 2013. The net
asset value (NAV) per share rose by 4.9% to EUR 5.51.
OUTLOOK:
The most important goals for the 2013/14 financial year are to
significantly increase development activities and generate sound
contributions to earnings, but to also create the requirements to raise the
real estate machine to a new activity level. 'For 2014 we plan to separate
the residential property management and development activities in Germany
and Austria that are bundled in BUWOG from IMMOFINANZ Group and transfer
this business to a separate company. This will take place through an
initial public offering (IPO) or a spin-off, depending on the relevant
market environment at that time. Both options will be designed to establish
a fair balance between the interests of the company and shareholders, above
all with a view to the potential effects of the individual alternatives on
liquidity', indicated Eduard Zehetner.
The remaining commercial part of IMMOFINANZ Group will concentrate on the
highly profitable retail, office and logistics market segments especially
in Central and Eastern Europe. Activities will be focused on real estate
development, including the development of condominium apartments for sale
in Central and Eastern Europe.
'As in the past, we will also continue our efforts to optimise real estate
management through the further reduction of vacancies in individual
countries and asset classes, and the simplification of the portfolio
through the sale of properties in non-core countries and the Opportunistic
Office and Opportunistic Retail segment. Our optimisation efforts will be
accompanied by financial goals that include the sale of the remaining
property assets that do not represent direct investments or are not under
our direct control. We are optimistic that we will be able to further
increase the value of IMMOFINANZ Group during the 2013/14 financial year
and generate growing, risk-optimised cash flows for our shareholders.'
DEVELOPMENTS IN DETAIL:
INCOME STATEMENT:
Results of asset management include rental income, other revenues,
operating income and operating costs as well as directly allocated
expenses. Rental income rose substantially year-on-year by EUR 70.2 million
or 12.0%. This positive development was supported, above all, by the retail
segment, where rental income increased by EUR 70.4 million or 33.4%. The
improvement in rental income from retail properties resulted, for the most
part, from the acquisition of the remaining 50% stake in the Golden Babylon
Rostokino shopping center in Moscow on 16 May 2012. Rental income in the
office and logistics asset classes rose slightly by 1.1% and 0.3%,
respectively. The residential asset class recorded a slight year-on-year
decline of 3.0%, which resulted chiefly from the sale of properties in the
BUWOG segment.
Revenues rose by 11.2% to EUR 869.2 million in 2012/13. Results of asset
management were 15.1% higher at EUR 513.0 million due to an increase in
rental income and a constant level of direct expenses.
Results of property sales rose by an impressive 108.3% year-on-year to EUR
110.8 million. Transactions in the BUWOG segment covered the sale of
individual apartments and the sale of a residential property portfolio in
Carynthia, Austria, that includes 35 buildings with 781 apartments. These
sales reflect the strategy to sell regional portfolios in Austria and use
the proceeds for acquisitions in Germany. Even though the transaction
volume in Eastern Europe was lower than Western Europe, IMMOFINANZ Group
was able to arrange for the profitable sale of the BB Centrum Building C
and Diamond Point office properties in the Czech Republic during the
reporting year. Portfolio optimisation measures in the office segment also
included the sale of the Office Cube and Josefstaedter Strasse 78 in
Vienna. Transactions in the logistics asset class covered three properties
owned by the Deutsche Lagerhaus subsidiary and the Quartier Saint Isidore
in Nice. A number of apartment buildings in Vienna were also sold to
investors in recent months, including Mariahilfer Straße 53. The largest
contribution to earnings was made by the sale of 100% of the shares in Les
Bains de St. Moritz Holding AG, the owner of the Kempinski Grand Hotel des
Bains in Switzerland. After the balance sheet date on 30 April 2013,
IMMOFINANZ Group also sold the Silesia City Center shopping center in
Katowice, Poland, and a logistics property from the Deutsche Lagerhaus
portfolio in Egerkingen, Switzerland. In accordance with IFRS, the
revaluation gains on these sales are included in the financial statements
as of 30 April 2013, even though the cash inflows will only take place in
2013/14.
Results of property development cover the sale of inventories as well as
the valuation of development projects completed during the reporting year
or currently in progress. In 2012/13 results from property development
totalled EUR -18.4 million (2011/12: EUR 30.1 million). The negative
results recorded for the reporting year are attributable, above all, to the
GOODZONE project in Russia. The bankruptcy-related replacement of the
general contractor led to delays and the postponement of the scheduled
opening from 2012/13 into the following year. As a result, the planned
earnings were not realised and costs increased. A new general contractor
has been engaged, and the completion and opening of the project is planned
for the end of 2013.
Other operating income was 12.4% lower at EUR 35.2 million due to a
year-on-year decline in the reversal of provisions.
Expenses not directly attributable (personnel and overhead expenses) were
slightly lower than the prior year level at EUR 98.5 million (2011/12: EUR
99.2 million) despite an inflation-related increase in personnel expenses.
Results of operations for the 2012/13 financial year totalled EUR 542.1
million, which represents an increase of 15.3% or EUR 71.9 million. This
improvement resulted, above all, from the substantial growth in the results
of asset management and sound results from property sales.
Negative other revaluation results of EUR -33.2 million (incl. foreign
exchange effects) led to a decline in operating profit to EUR 508.9 million
(2011/12: EUR 692.9 million). This decline is attributable to the
year-on-year drop of approx. EUR 170.7 million in positive effects from the
foreign exchange adjusted revaluation of properties (from EUR 208.7 million
to EUR 37.9 million) and a negative non-recurring effect (EUR -106.4
million) from the adjustment of the purchase price liability for the
acquisition of the Golden Babylon Rostokino shopping center in Moscow. The
final purchase price for this shopping center, which was opened together
with a joint venture partner in November 2009 and taken over in full during
May 2012, is dependent on the net operating income (NOI) generated in the
2013 calendar year. This NOI has risen significantly in recent months
because the Golden Babylon Rostokino is almost fully rented. Consequently,
the fair value of the property rose by EUR 135.0 million in 2012/13 and
will offset the additional costs from the purchase price adjustment.
Financial results improved by EUR 60.5 million in year-on-year comparison
to EUR -313.8 million, whereby this figure also includes EUR -32.5 million
of non-cash foreign exchange effects. However, earnings before tax declined
to EUR 195.0 million (2011/12: EUR 318.5 million). This foreign
exchange-related factor should be reduced substantially by the conversion
of the functional currency in the core markets of Poland, Czech Republic,
Hungary and Romania to the Euro after the balance sheet date on 30 April
2013.
Net profit for the 2012/13 financial year equalled EUR 110.8 million
(2011/12: EUR 271.2 million). The substantial increase in the tax rate to
43.2% (2011/12: 14.9%) resulted primarily from unusually high,
non-recurring non-cash effects related to deferred taxes. These effects
were higher, among others, due to changes in tax rates and the use of
capitalised tax loss carryforwards.
Sustainable cash flow per share rose from EUR 0.27 in 2011/12 to EUR 0.33
for the reporting year and reflects the sound improvement in the
development of the operating business.?BALANCE SHEET:
Investment property represented 83.4% of total assets as of 30 April 2013
and is reported on the balance sheet under the following positions:
investment property, property under construction, inventories and
noncurrent assets held for sale. IMMOFINANZ Group recorded a year-on-year
increase of EUR 81.3 million in investment property to EUR 10.5 billion in
2012/13.
Cash and cash equivalents, the second largest position under assets, rose
by EUR 179.3 million to EUR 738.5 million. This represents 5.9% of total
assets as of 30 April 2013.
IMMOFINANZ Group's equity amounted to EUR 5.3 billion as of 30 April 2013
(2011/12: EUR 5.5 billion). This represents an equity ratio of 42.3%. If
cash and cash equivalents (including the cash and cash equivalents in other
receivables) were offset against financial liabilities, the equity ratio
would increase to 45.7%.
Financial liabilities, including liabilities from convertible bonds, rose
by 6.6% over the previous year to EUR 4.6 billion.
CASH FLOW:
Gross cash flow rose by 8.0% from EUR 378.3 million to EUR 408.5 million
due to the improvement in operating results. Cash flow from operating
activities increased 16.7% from EUR 339.6 million to EUR 396.3 million.
Cash flow from investing activities amounted to EUR -26.3 million in
2012/13 (2011/12: EUR -113.3 million). This decline reflected the lower
volume of investments during the reporting year.
Cash flow from financing activities consists primarily of additions to and
reductions in financial liabilities, bonds and convertible bonds as well as
the dividend payment. This position totalled EUR
-201.1 million for the reporting year (2011/12: EUR -267.6 million).
Cash and cash equivalents rose by 32.1% year-on-year to EUR 738.4 million.
This increase reflected an improvement in all major cash flow indicators.?KEY DATA:
The key data show generally positive development for the reporting year.
Results of operations rose by 15.3% to EUR 542.1 million. Earnings per
share declined from EUR 0.27 to EUR 0.11 due to negative non-recurring
effects in 2012/13. In contrast, sustainable cash flow per share rose from
EUR 0.27 to EUR 0.33.
Gross cash flow and cash flow from operating activities increased to EUR
408.5 million (+8.0% year-on-year) and EUR 396.3 million (+16.7%
year-on-year), respectively, in 2012/13.
In spite of the challenging economic environment in individual core
countries of IMMOFINANZ Group, the occupancy level in the portfolio
remained stable at 89.5% during 2012/13.
The net asset value (NAV) of the IMMOFINANZ share rose by 4.9% to EUR 5.51,
despite the dividend payment of EUR 0.15 per share.
More key figures are available on the comany's website
http://www.immofinanz.com in the Investor Relations section.
The annual report for 2012/13 will be available beginning on 20 August 2013
under the menu point 'Financial Reports' in the Investor Relations section
of http://www.immofinanz.com.
On IMMOFINANZ Group
IMMOFINANZ Group is one of the leading listed property companies in Europe.
The company is included in the leading ATX index of the Vienna Stock
Exchange and also trades on the Warsaw Stock Exchange. Since its founding
in 1990, the company has compiled a high-quality property portfolio that
now comprises more than 1,700 investment properties with a carrying amount
of approx. EUR 10.5 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.
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: http://www.immofinanz.com |
http://blog.immofinanz.com | http://properties.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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