Corporate | 20 December 2011 08:03

IMMOFINANZ AG: IMMOFINANZ Group going strong in the first half of 2011/12: Group result has more than doubled compared to the previous year

IMMOFINANZ AG / Key word(s): Half Year Results

20.12.2011 / 08:03

IMMOFINANZ Group going strong in the first half of 2011/12:
Group result has more than doubled compared to the previous year

KEY FIGURES (in MEUR) 31/10/2011 / Δ in % / 31/10/2010

Rental income 283.7 / +2.4 / 277.1
Income from asset management 229.3 / +2.3 / 224.2
Income from property sales* 24.1 / +79.8 / 13.4
Income from property developments* 42.4 / n.a. / -4.5
Administrative expenses -61.9 / -22.2 / -79.5
Results of operation 270.3 / +53.3 / 176.3
Net profit 265.1 / +144.8 / 108.3
Net profit before currency effects 198.6 / +101.8 / 98.4
Operating cash flow (FFO) 195.8 / +32.8. / 147.4
* before currency effects

IMMOFINANZ Group confirmed the successful trend that characterised recent quarters with a strong result in Q2 2011/12. The net profit for the second quarter 2011/12 reached EUR 236.9 million, equivalent to an increase of 740% over the first quarter of the reporting year (EUR 28.2 million). Compared to the second quarter last year (EUR 49.3 million), the net profit for the period grew nearly five-fold (+380%). In addition to considerable increases in the operative components of this result, unlike in the first quarter of the reporting year, this time IMMOFINANZ Group also benefited from highly positive foreign exchange effects.

'We are well on the way of continuing with the stable development that we have seen in the past quarters. This development is marked by a consistent compliance with our optimisation strategy and by the cost reductions in the operative area: We have managed to profitably improve our real estate portfolio through active asset management, several transactions and through the realisation of in-house developments. When speaking about project developments, it was primarily the expansion of the Silesia City Center in Poland that was a full success and a clear sign to intensify our development activities even more in the future. The increased rental income is mostly due to the retail segment and the fact that we were able to lease more than 90% of our office space in Romania', commented Eduard Zehetner, CEO of IMMOFINANZ Group, on the company's developments in Q2.

Income from asset management
Rental income amounted to EUR 283.7 million in the first six months of 2011/12, which represents an increase of 2.4% over the comparable prior year period (EUR 277.1 million). This positive development is attributable chiefly to the retail segment, where rental income rose by 11.9% or EUR 10.5 million over the first six months of the previous year. In the residential segment income increased by 4.8% over the same period of the previous year, whereas in the office (-10.5%) and logistics segment (-1.6%), they fell (especially in Eastern Europe). The decline in the office segment resulted from the sale of properties. Since 30/04/2011, IMMOFINANZ Group has sold five office properties in Austria and one in Germany.

Revenues rose by 2.9% for the first six months to currently EUR 374.7 million. Income from asset management increased in spite of the year-on-year rise by 2.3% to EUR 229.3 million in property expenses (2010/11: EUR 224.2 million). These intensified optimisation measures – in particular, maintenance and renovation projects – are reflected in an amount of EUR 71.4 million (+7.4%). The objective of these improvement measures is to increase occupancy rates and rental income as well as future sales proceeds.

Income from property sales
The sale of properties during the reporting period generated income of EUR 24.1 million (2010/11: EUR 13.1 million).These transactions mainly involved properties in Austria, Germany and Poland. Property sales during the first six months of the reporting year included, among others, the 30% stake in the MyPlace SelfStorage logistics property as well as the Office Campus Gasometer office complex in Vienna, the Cirrus development project in Warsaw, various fund investments as well as residential property of BUWOG. These transactions reflect the steady implementation of the Group's strategy to sell non-controlling interests or joint venture investments or to develop them into majority holdings. After the reporting period, the 50% joint venture interest in the Andreasquartier development project in Düsseldorf was sold. In accordance with IFRS standards, the investment's revaluation surplus associated with the sale was already reported in the half-yearly report as of 31/10/2011.

Income from property development
The sale of inventories and the valuation of active development projects generated proceeds of EUR 42.4 million before foreign exchange effects for IMMOFINANZ Group. This represents a clear increase in comparison with the previous year (EUR -4.5 million) from this increasingly important source of income. The largest contribution to this outstanding result came from the extension of the Silesia City Center shopping center in Katowice, Poland.

Administrative expenses
The deconsolidation of a number of companies and the subsequent integration of the related asset management activities into existing structures led to a reduction in overhead costs. Administrative expenses (overhead costs and personnel expenses) compared to the same period last year, were reduced from EUR 79.5 million to EUR 61.9 million. This represents a decline of EUR 17.6 million or 22.2%.

Results of operations, EBIT, EBT, net profit
As a result of the constant improvement of operative parameters, the results of operations with EUR 270.3 million clearly increased over the same period last year (EUR 176.3 million). Based on positive valuation results (incl. foreign exchange effects) of EUR 349.0 million (2010/11: EUR 91.4 million), IMMOFINANZ Group's EBIT amounted to EUR 619.3 million (2010/11: EUR 267.7 million). In addition to operative improvements, this increase is due to improved property valuation results (EUR +74.7 million), higher foreign exchange effects (EUR +161.2 million), lower amortisation and depreciation (EUR -10.2 million) and lower additions to provisions (EUR -11.6 million) over the same period in the previous year.

Financial results were clearly negative at EUR -315.7 million (2010/11: EUR -149.3 million). This also includes negative non-cash accounting foreign exchange effects of EUR -192.9 million (as contra items to the positive, valuation effects resulting from foreign exchange effects) as well as negative effects from the valuation of derivatives held for hedging purposes amounting to EUR -29.7 million.

Earnings before tax (EBT) thus rose from EUR 118.4 million to EUR 303.6 million over the same period last year. Overall, net profits for the first six months of 2011/12 amounted to EUR 265.1 million. Excluding these non-cash foreign exchange effects, the net profit would have equaled EUR 198.6 million. This still would be double (+101.8%) the net profit adjusted for non-cash foreign currency effects (EUR 98.4 million).

Cash flow and distribution of dividends, forecast
The operating cash flow rose by 32.8% to EUR 195.8 million over the same period the previous year. The approximate relevant cash flow for dividend distribution was increased by EUR 37.0 million to EUR 152.1 million (*). It comprises cash flow from earnings minus interest paid and received and the cash drain from derivatives plus income from property sales. For the reporting period, a dividend distribution of EUR 0.15/share, equaling a total of EUR 155.4 million is planned. 97.8% of this required amount have already been generated in the first six months of 2011/12. Since this cash flow calculation does not include any cash inflows from the sale of properties, but only the income generated from it, the planned dividend distribution will be 100% feasible from the pure operating cash flow, provided that the company is not faced with any opposing trends.

In spite of the volatility of the financial and capital markets, we continue to expect, however, a stable development in the IMMOFINANZ Group's markets for the rest of the financial year.

NAV per share and earnings per share
Diluted net asset value (NAV) per share in spite of a distribution of dividends in October 2011 was increased by EUR 0.10 per share from EUR 5.36 on 30/04/2011 to EUR 5.47. This increase is based on the good results of the first six months of the reporting year. Based on the share price as of 30/11/2011 (EUR 2.228), the IMMOFINANZ share traded at a discount of 58.2% to the NAV per share. Diluted earnings per share for the first six months of 2011/12 amounted to EUR 0.25.

(*) The cash flow from the result (EUR 195.8 million) minus interest paid (EUR -73.0 million) plus interest received (EUR 8.8 million) minus cash outflow from derivatives (EUR -8.6 million) plus income from property sales (EUR 24.1 million) plus income from the sale of inventories minus production costs (EUR 4.9 million).

The current half-year report is now available at www.immofinanz.com . To view the report, please click the Investor Relations tab and go to Financial Reports.

On IMMOFINANZ Group
IMMOFINANZ Group is one of the five largest 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 1,600 standing investment properties with a carrying amount of approx. EUR 8.7 billion. The core business of the IMMOFINANZ Group covers the acquisition and the active management of investment properties, the realisation of development projects and the sale of objects. 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 .

Contact:
For additional information contact:

INVESTOR RELATIONS

Stefan Schönauer
Head of Corporate Finance & Investor Relations
IMMOFINANZ AG
M +43 (0)699 1685 7312
investor@immofinanz.com

Simone Korbelius
Investor Relations
IMMOFINANZ AG
T +43 (0)5 7111 2291
investor@immofinanz.com

MEDIA INQUIRIES

Sandra Bauer
Head of Corporate Communications | Press Spokesperson
IMMOFINANZ AG
T +43 (0)5 7111 2292
M +43 (0)699 1685 7292
communications@immofinanz.com

A-1100 Wien, Wienerbergstraße 11
www.immofinanz.com

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Language:	English
Company:	IMMOFINANZ AG
	Wienerbergstraße 11
	1100 Wien
	Austria
Phone:	+43 (0) 5 7111 – 2291
Fax:	+43 (0) 5 7111 – 8291
E-mail:	investor@immofinanz.com
Internet:	http://www.immofinanz.com
ISIN:	AT0000809058
WKN:	911064
Listed:	Freiverkehr in Berlin, München, Stuttgart; Open Market in Frankfurt; Wien (Amtlicher Handel / Official Market)

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