Press Release | Corporate News Vienna, 19 December 2012
IMMOFINANZ Group increases rental income and cash flow
in the first half-year of 2012/13
|
KEY FIGURES
(in MEUR)
|
1 May 2012 –
31 October 2012
|
Δ in %
|
1 May 2011 –
31 October 2011
|
|
|
|
|
|
|
Rental income
|
326.7
|
15.1%
|
283.7
|
|
Income from asset management
|
277.7
|
21.1%
|
229.3
|
|
Income from property sales*
|
20.5
|
-13.8%
|
23.8
|
|
Income from property development *
|
4.3
|
-89.7%
|
41.9
|
|
Administrative expenses
|
-70.0
|
14.7%
|
-61.1
|
|
Results of operation
|
250.0
|
-7.5%
|
270.3
|
|
Operating profit (EBIT)
|
324.7
|
-47.6%
|
619.3
|
|
Net profit
|
103.3
|
-61.0%
|
265.1
|
|
Net profit adjusted for currency effects and derivatives
|
114.1
|
-51.4%
|
234.6
|
|
Gross cash flow
|
225.1
|
15.0%
|
195.8
|
* before foreign exchange effects
IMMOFINANZ Group generated solid operating results in the first half of the 2012/13 financial year. There was a significant increase in rental income of 15.1% from EUR 283.7 million to EUR 326.7 million compared to the first half of the previous year. Despite the increase in rental income, results of operation fell by 7.5% to EUR 250.0 million compared to the first half of the previous year. A strong positive contribution was made last year by the completed development projects
Silesia City Center
and
Maritimo Shopping Center.
Net profit declined by 61.0% to EUR 103.3 million. Adjusted for exchange rate effects and derivatives, net profit fell by 51.4% to EUR 114.1 million as well. This decline is attributed to the exchange rate-adjusted revaluation of real estate assets, which was considerably lower compared to the year before. Gross cash flow rose by 15.0% year-on-year to EUR 225.1 million.
'For the first half-year we continued the trend of the previous quarter: we achieved a significant rise in rental income and also increased cash flow. Our share price performance was also respectable: with an increase in the return of over 40% Europe-wide, our share was one of the top-ranked in real estate in the period from 1 January to 3 December', comments Eduard Zehetner, CEO of IMMOFINANZ Group. 'The current results are a solid basis for a good start to the second half of our financial year as well as the new calendar year. We will be able to continue increasing our rental income as a result of our excellent asset management and in this regard we continue to expect an improvement in the operating result. However, the stagnating economy has not left us unscathed: consequently, we will only invest in carefully selected development projects that meet our strict criteria of profitability'.
Income from asset management
Rental income amounted to EUR 326.7 million for the first half of 2012/13, which represents an increase of 15.1% over the comparable prior year period (EUR 283.7 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 an increase of 39.1% or EUR 38.5 million in rental income. Rental income in the other asset classes was also higher in annual comparison: office +3.0%, residential +1.9% and logistics +0.1%. Income from asset management rose by 21.1% to EUR 277.7 million, supported by the year-on-year increase in rental income and a reduction in real estate expenses (Q1-2 2011/12: EUR 229.3 million).
Income from property sales
Income of EUR 20.5 million before foreign exchange effects was recorded on the sale of properties during the reporting period (Q1-2 2011/12: EUR 23.8 million). These transactions primarily involved properties in Austria. In addition to a number of smaller properties, the optimisation of the portfolio led to the sale of a building at
Mariahilfer Strasse 53
in the sixth district of Vienna. This revitalised 19th Century building with over 4,000 sqm of space houses a well-known textile chain and also includes office and residential units. Seven apartment buildings in Vienna with approx. 15,000 sqm of space were also sold in recent months.
Income from property development
The sale of inventories and the valuation of active development projects generated income of EUR 4.3 million, before foreign exchange effects, during the reporting period (Q1-2 2011/12: EUR 41.9 million). The sale of BUWOG (a wholly owned subsidiary of IMMOFINANZ Group) condominium apartments made the largest contribution to this income.
Administrative expenses
Administrative expenses (overhead costs and personnel expenses) rose from EUR -61.1 million in the first half of the prior year to EUR -70.0 for the reporting period. This shift resulted mainly from a salary increase implemented at the beginning of the new financial year. It also reflected personnel expenses related to the full takeover of the Adama Group and additional hiring for development activities, above all in Germany.
Results of operations, EBIT, EBT, net profit
The strong growth in income from asset management was offset by the decline in income from property development. Consequently, results of operations were slightly lower than the comparable prior year period at EUR 250.0 million for the first half of 2012/13 (Q1-2 2011/12: EUR 270.3 million). Lower valuation results (including foreign exchange effects) of EUR 74.8 million (Q1-2 2011/12: EUR 349.0 million) led to a decline in operating profit (EBIT) to EUR 324.7 million (Q1-2 2011/12: EUR 619.3 million). Financial results improved in year-on-year comparison, amounting to EUR -203.2 million for the reporting period (Q1-2 2011/12:
EUR -315.7 million). This position includes non-cash foreign exchange accounting effects of EUR -58.0 million. Other financial results of EUR -36.7 million also include, among others, negative effects from the non-cash valuation of derivatives that are held to hedge interest rate risk. The substantial drop in positive foreign exchange effects (EUR -50.7 million), lower income from property development before foreign exchange effects (EUR -37.6 million) and a reduction in foreign exchange-adjusted revaluation results (EUR -96.6 million) led to a year-on-year decline in net profit from EUR 265.1 million to EUR 103.3 million. Excluding the effects of foreign exchange rates and derivatives, net profit for the first half of 2012/13 would have equalled EUR 114.1 million (Q1-2 2011/12: EUR 234.6 million).
Cash flow and outlook
Gross cash flow rose by 15.0% year-on-year to EUR 225.1 million. A substantial increase was recorded in cashflow from operating activities, which amounted to EUR 165.2 million (Q1-2 2011/12: EUR 7.4 million). The components of earnings that had a negative effect on profit for the first half of the reporting year – e.g. reduced positive foreign exchange effects and lower foreign exchange-adjusted revaluation results – represent noncash items. Therefore, the sustainable cash flow generated by the IMMMOFINANZ portfolio improved further during the first half of the 2012/13 financial year. The unfavourable macroeconomic environment and the sovereign debt crisis in Europe are also influencing IMMOFINANZ Group's earnings performance. Construction on the
GOODZONE
shopping center development project in Moscow has not proceeded as planned due to problems with the general contractor and for this reason will not generate any rental income before the 2013/14 financial year. The Group's active and decentralised asset management continues to support an increase in rental income, and this trend will continue during the second half-year. That will lead to a further improvement in results of operations, but the forecasted target of EUR 600.0 million will not be reached.
NAV per share and earnings per share
Diluted net asset value (NAV) per share rose by 4.1% over the level at 30 April 2012 (EUR 5.33) to EUR 5.55 as of 31 October 2012. In addition, a dividend of EUR 0.15 per share was paid on 15 October 2012. Based on the share price as of on 18 December 2012 (EUR 3.38), the IMMOFINANZ share traded at a discount of 39.0% to the diluted NAV per share price.
The current half-year report will be available for download as of 20 December under
www.immofinanz.com
in the Investor Relations section under 'Financial Reports'.
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 1,820 investment properties with a carrying amount of approx. EUR 10.51 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 change 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:
Stefan Schönauer
Head of Corporate Finance & Investor Relations
Interim Head of Corporate Communications | Press Spokesman
IMMOFINANZ Group
T +43 (0)1 88090 2312
M +43 (0)699 1685 7312
Investor Relations:
investor@immofinanz.com
Media Inquiries:
communications@immofinanz.com
A-1100 Wien, Wienerbergstraße 11
www.immofinanz.com