EQS-News: IMMOFINANZ with growth surge in Q1 2023

EQS-News: IMMOFINANZ AG / Key word(s): Quarter Results/Real Estate
IMMOFINANZ with growth surge in Q1 2023

26.05.2023 / 08:16 CET/CEST
The issuer is solely responsible for the content of this announcement.

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IMMOFINANZ with growth surge in Q1 2023
 

• Rental income rises to EUR 128.4 million due to full consolidation of
S IMMO and acquisitions
• Results of operations and FFO 1 more than double
• Like-for-like growth in rental income remains strong at 9.8%
• Equity ratio increases to 50.1%, net LTV conservative at 37.6%

 
KEY FIGURES (IN MEUR) Q1 2023 Δ IN % Q1 2022
Rental income 128.4 82.9 70.2
Results of asset management 104.9 94.6 53.9
Results of property sales -5.1 n.a. 0.6
Results of property development -1.4 67.0 -4.1
Results of operations 82.5 ≥100 38.1
EBIT 77.4 ≥100 37.3
Financial results -48.5 n.a. 47.7
Net profit 18.4 -74.5 72.4
FFO 1 (before tax) 72.5 ≥100 34.4

The increase in the investment in S IMMO to 50% plus one share was
finalised at year-end 2022. The assets and liabilities of S IMMO have
therefore been included in IMMOFINANZ’s consolidated financial statements
since 31 December 2022, while the income statement positions were included
beginning with Q1 2023.
 

IMMOFINANZ Group recorded strong growth in both rental income and
operating results for the first quarter of 2023, which was supported
primarily by the full consolidation of S IMMO and by property
acquisitions. Rental income rose by roughly 83% to EUR 128.4 million. The
results of operations and sustainable FFO 1 from the standing investment
business more than doubled to EUR 82.5 million and EUR 72.5 million,
respectively.

“Our acquisitions for the retail business combined with the increase in
our S IMMO investment and the resulting full consolidation have
significantly strengthened our market position. The IMMOFINANZ property
portfolio now covers roughly eight billion euros in ten European
countries, and our operating results have more than doubled. We are also
making excellent progress with our portfolio optimisation. In the first
quarter of this year, our group successfully closed strategic property
sales with a volume of roughly 470 million euros“, commented
Radka Doehring, Executive Chairwoman of IMMOFINANZ. 

Sustainable FFO 1 (before tax) improved by 110.4% to EUR 72.5 million (Q1
2022: EUR 34.4 million) and exceeded the increase in both rental income
and the results of asset management. That represents FFO 1 per share of
EUR 0.53 (Q1 2022: EUR 0.26).

Financial results turned negative at EUR -48.5 million (Q1 2022:
EUR 47.7 million). The underlying reasons include, above all, non-cash
valuation effects and the full consolidation of S IMMO under which the
earnings contributions are no longer included under financial results. In
total, IMMOFINANZ generated net profit of EUR 18.4 million, or earnings
per share of EUR 0.16, in the first quarter of 2023.

High occupancy rate

The IMMOFINANZ Group’s property portfolio contained 550 properties as of
31 March 2023, which have a combined value of EUR 7.9 billion. Of this
total, EUR 7.5 billion represent standing investments with 3.4 million sqm
of rentable space and a gross return of 6.5%. The occupancy rate remained
high at 92.2% (31 December 2022: 92.9%).

A further improvement was recorded in like-for-like rental income (i.e.
adjusted for acquisitions, completions and sales, excluding S IMMO) with
an increase of 9.8% in the first quarter of 2023 (versus Q1 2022). The
indexing of rental contracts served as the driving factor.

Robust balance sheet structure

The IMMOFINANZ Group had a robust balance sheet structure with an equity
ratio of 50.1% as of 31 March 2023 (31 December 2022: 47.9%) and a solid
net loan-to-value ratio (net LTV) of 37.6% (31 December 2022: 40.7%). Cash
and cash equivalents amounted to EUR 741.2 million. Roughly 89.0% of
financial liabilities are hedged against interest rate increases.

The IFRS book value per share improved by 0.8% to EUR 27.68 (31 December
2022: EUR 27,47). The EPRA NTA per share declined slightly by 2.9% to EUR
28.95 (31 December 2022: EUR 29.82).

Outlook

IMMOFINANZ’s portfolio strategy remains focused on resilient and
cost-efficient retail properties and innovative office solutions. Plans
include the expansion of this offering in the core countries over the
medium term. Following the closing of successful transactions in 2022 and
in Q1 2023, the sale pipeline defined in connection with the Group‘s
active portfolio management covers properties with a total value of
approximately EUR 760 million (excluding S IMMO). Further closings are
expected in the coming months despite the volatile market environment. The
proceeds will be used to repay debt or for reinvestment in real estate.

Further synergies and opportunities for improvement will be identified
together with S IMMO and with the support of CPIPG in 2023 to increase
transparency and profitability for all stakeholders.

Results in detail

Rental income recorded by the IMMOFINANZ Group rose by 82.9% to
EUR 128.4 million in the first quarter of 2023. This increase is chiefly
attributable to the full consolidation of S IMMO as well as the
acquisition of retail properties in the previous year. The improvement in
the results of asset management exceeded the increase in rental income
with a plus of 94.6% to EUR 104.9 million (Q1 2022: EUR 53.9 million).

The results of property sales totalled EUR -5.1 million (Q1 2022:
EUR 0.6 million) based on real estate sales with a volume of
EUR 471.8 million. These sales consisted mainly of strategic transactions
by S IMMO in Germany, while IMMOFINANZ continued its portfolio
optimisation with the sale of another office property in Vienna during the
first quarter of 2023. The results of property development amounted to
EUR -1.4 million (Q1 2022: EUR -4.1 million) and reflected the market
development and rising construction costs.

The results of operations more than doubled to EUR 82.5 million (Q1 2022:
EUR 38.1 million). Operating profit (EBIT), after an adjustment for
market-related property valuations of EUR -5.1 million, increased by over
100% year-on-year to EUR 77.4 million (Q1 2022: EUR 37.3 million).

Financing costs rose to EUR -39.8 million (Q1 2022: EUR -17.0 million),
mainly due to the full consolidation of S IMMO as well as increased cost
of financing. Other financial results turned negative at EUR -24.8 million
based on the non-cash valuation of interest rate derivatives (Q1 2022:
EUR 45.9 million) which followed the decline in long-term eurozone
interest rates during the first quarter. The settlement payments from
derivatives were, in contrast, positive and made an important contribution
to financing income of EUR 10.6 million (Q1 2022: EUR 0.7 million). As the
investment in S IMMO is no longer accounted for at equity, the share of
profit/loss from equity-accounted investment declined to EUR 1.6 million
(Q1 2022: EUR 17.3 million). Financial results totalled EUR -48.5 million
in the first quarter of 2023 (Q1 2022: EUR 47.7 million).

Profit before tax amounted to EUR 28.9 million (Q1 2022:
EUR 85.1 million), and income taxes declined slightly to EUR -10.4 million
(Q1 2022: EUR -12.7 million). Net profit for the first quarter of 2023
equalled EUR 18.4 million (Q1 2022: EUR 72.4 million) and represents
earnings per share of EUR 0.16 (Q1 2022: EUR 0.55).

The interim financial report by IMMOFINANZ AG for the first quarter 2023
as of 31 March 2023 will be available on the company’s website under
[1] https://immofinanz.com/en/investor-relations/financial-reports starting
on 26 May 2023.
 

On IMMOFINANZ

The IMMOFINANZ Group is a commercial real estate corporation whose
activities are focused on the office and retail segments of eight core
markets in Europe: Austria, Germany, Poland, Czech Republic, Slovakia,
Hungary, Romania and the Adriatic region. The core business covers the
management and development of properties, whereby IMMOFINANZ relies on its
established brands – STOP SHOP (retail), VIVO! (retail) and myhive
(office) – as well as complementary products and portfolios like S IMMO.
IMMOFINANZ increased its investment in S IMMO to 50% plus one share at the
end of 2022 and now includes this company through full consolidation. The
real estate portfolio of the IMMOFINANZ Group has a value of approximately
EUR 7.9 billion and covers roughly 550 properties. IMMOFINANZ is listed on
the stock exchanges in Vienna (leading ATX index) and Warsaw. Further
information under [2] https://www.immofinanz.com

For additional information contact:

Bettina Schragl
Head of Corporate Communications and Investor Relations
IMMOFINANZ
T +43 (0)1 88 090 2290
M +43 (0)699 1685 7290
[3]communications@immofinanz.com
[4]investor@immofinanz.com 1100 Vienna, Wienerbergstraße 9, Austria
www.immofinanz.com

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26.05.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com

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Language: English
Company: IMMOFINANZ AG
Wienerbergstraße 9
1100 Vienna
Austria
Phone: +43 (0) 1 88090 – 2290
Fax: +43 (0) 1 88090 – 8290
E-mail: investor@immofinanz.com
Internet: http://www.immofinanz.com
ISIN: AT0000A21KS2
WKN: A2JN9W
Listed: Regulated Unofficial Market in Berlin, Frankfurt, Munich,
Stuttgart; Warschau, Vienna Stock Exchange (Official Market)
EQS News ID: 1642425

 
End of News EQS News Service

1642425  26.05.2023 CET/CEST

References

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