EQS-News: IMMOFINANZ with top performance in Q1-3 2021: results of operations and net profit clearly above pre-crisis level

EQS Group-News: IMMOFINANZ AG / Key word(s): 9 Month figures/Real Estate
IMMOFINANZ with top performance in Q1-3 2021: results of operations and
net profit clearly above pre-crisis level

29.11.2021 / 17:54
The issuer is solely responsible for the content of this announcement.

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IMMOFINANZ with top performance in Q1-3 2021: results of operations and
net profit clearly above pre-crisis level

* Strong Group results with net profit of EUR 295.7 million
* Successful crisis management leads to substantial improvement in
results of operations by roughly 60% to EUR 180.4 million
* Occupancy rate remains high at 94.1%
* EPRA NTA per share increases by more than 10% to EUR 30.8
* Portfolio expansion to roughly EUR 6 billion planned for 2022
* FFO 1 before tax of more than EUR 135 million projected for 2022 –
dividend payment targeted at approximately 70% of FFO 1

 

KEY FIGURES (IN MEUR) Q1-3 2021 Δ IN % Q1-3 2020
Rental income 216.4 0.3% 215.8
Results of asset management 163.1 2.6% 158.9
Results of property sales 24.1 >=+100.0% 9.5
Results of property development 24.1 n/a -21.0
Results of operations 180.4 59.5% 113.1
EBIT 234.4 n/a -31.7
Financial results 91.8 n/a -60.5
Net profit/loss 295.7 n/a -98.3
FFO 1 (before tax incl. accrued interest for 90.7 -3.1% 93.6
bonds)

 

IMMOFINANZ again demonstrated its strong earning power in the first three
quarters of 2021. The results of operations rose by nearly 60%
year-on-year to EUR 180.4 million and even substantially exceeded the
comparable 2019 pre-crisis level (+29% versus Q1-3 2019). Net profit
turned clearly positive at EUR 295.7 million and also surpassed the
pre-crisis level in 2019 (Q1-3 2019: EUR 202.6 million).

IMMOFINANZ delivered strong results for the first three quarters of 2021,
even though the markets generally remained under the influence of the
COVID-19 pandemic. An increase in the results of asset management,
significant improvement in the earnings from property sales and property
development as well as cost savings led to a substantial increase of 59.5%
in the results of operations to EUR 180.4 million. The progress of
vaccination campaigns and the related economic upturn supported the
recovery of part of the crisis-related property write-downs from the
previous year. Results from the revaluation of standing investments
equalled EUR 54.0 million, compared with EUR -144.8 million in the first
three quarters of 2020. Financial results improved to EUR 91.8 million
despite a higher financing volume and increased results from
equity-accounted investments. IMMOFINANZ generated net profit of EUR 295.7
million in the first three quarters of 2021 (Q1-3 2020: EUR -98.3
million). FFO 1, which does not include revaluation results, basically
reflected the previous year at EUR 90.7 million (Q1-3 2020: EUR 93.6
million). This slight decline is attributable, above all, to an increase
in financing costs as a result of the higher financing volume.

„IMMOFINANZ is again moving rapidly from one strong quarter to the other
after the corona year in 2020, despite the ongoing effects of the pandemic
on our business activities. Even though we are seeing a substantial rise
in infections in many of our core countries, we are very optimistic over
results for the full 2021 financial year. Sound performance in the first
three quarters and a positive outlook for the remainder of the year prove
that we took the right steps during the crisis. We are emerging stronger
from this pandemic and have built the foundation for future-value creating
growth. Our sustainable success is based on a clear portfolio strategy
with crisis-resistant brands and flexible and innovative offers“,
explained Dietmar Reindl, COO of IMMOFINANZ. „Based on our very good
market position, we are planning to expand the portfolio with our STOP
SHOP and myhive brands from the current volume of EUR 5 billion to roughly
EUR 6 billion in 2022.“

Stefan Schönauer, CFO of IMMOFINANZ: „This growth, the further development
of the portfolio and our solid financial structure represent a strong
foundation for future FFO growth and our sustainable dividend policy. For
the coming 2022 financial year, we expect FFO 1 before tax of more than
EUR 135 million – assuming hopefully moderate COVID-19 effects – and we
want to distribute roughly 70% of FFO 1 as dividends to our shareholders.“
IMMOFINANZ’s financial policy remains unchanged: Leverage expressed by net
LTV, which currently equals a very conservative 36.6%, is targeted to
remain below 45% over the medium-term and the investment grade rating will
be protected. With regard to the valuable investment in S IMMO, IMMOFINANZ
is still keeping all options open.

Crisis-resistant portfolio and waiting lists for flexible office products
IMMOFINANZ’s property portfolio totalled approximately EUR 5.0 billion at
the end of September 2021. Of this total, approximately 63% are
attributable to the office business and 36% to the retail business. The
portfolio strategy is based on clearly defined brands with flexible and
innovative offers and strong customer orientation. These factors, in
combination, allow IMMOFINANZ to meet the needs of buyers in the retail
business and tenants in the office business. The roll-out of the flexible
myhive office products has continued in 2021. The demand for these
short-term bookable, flexible office solutions is developing very well,
and there are currently waiting lists at several locations.

In the retail business, COVID-19 containment measures resulted in the
temporary shutdown of roughly 15% of IMMOFINANZ’s retail space at the end
of November but this space is expected to re-open before Christmas. The
earlier waves in the COVID-19 pandemic were followed by the very rapid
recovery of visitor traffic in the retail parks after the end of the
lockdowns as well as an increase in the turnover per visit. In the first
nine months of 2021, in the STOP SHOP properties retail turnover was 10.0%
higher than the comparable period in 2020. Footfall in the STOP SHOPs was
3.2% lower than the previous year during the months from January to
September 2021 – including the COVID-19-related shutdown days. For the
VIVO! shopping centers, footfall was 13.8% higher, while retail revenues
rose by 25.0%. This sizeable increase is attributable, above all, to the
four VIVO! shopping centers in Romania, which were affected by extensive
shutdowns in the previous year up to mid-June 2020.

Occupancy rate high at 94.1%
The standing investment portfolio has a gross return of 5.9% based on IFRS
rental income and a return of 6.3% based on invoiced rents. At 94.1% (31
December 2020: 96.0%), the occupancy rate remained at a high international
level. The retail properties are practically fully rented at 97.4%, and
the STOP SHOPs can demonstrate an even higher 99.0%. The occupancy rate in
the office business declined slightly to 90.2% during the first three
quarters – however, this is mainly due to the reduction of space by a
large tenant in Germany who was hit hard by the COVID-19 pandemic. The
first new tenants will soon move into these vacant areas. Take-up amounted
to roughly 337,800 sqm in the first nine months of 2021, which represents
17% of the total rentable space. In the office properties, take-up nearly
reached the 2019 pre-crisis level at 106,000 sqm.

More than EUR 1 billion of available liquid funds
IMMOFINANZ has a robust balance sheet structure with a strengthened equity
ratio of 48.5% (31 December 2020: 45.1%) and cash and cash equivalents of
EUR 1,016.9 million. Furthermore, a revolving credit line of EUR 100.0
million is also available. The net loan to value remains at a conservative
36.6% (31 December 2020: 37.8%). The average remaining term of the
financial liabilities is 4.0 years, and the average financing costs
(including derivatives) declined to 1.92% (31 December 2020: 1.99%). The
hedging quota for interest rate hedges is high at 87.9%, and the
unencumbered asset pool (investment property and S IMMO shares at the EPRA
NAV) totals EUR 2.1 billion or 36.7% (31 December 2020: EUR 2.0 billion or
34.9%).

EPRA indicators and book value per share improved by more than 10%
The EPRA NTA per share rose by 10.6% to EUR 30.8 as of 30 September 2021
(31 December 2020: EUR 27.8). This increase is primarily attributable to
the positive development of earnings. The book value per share increased
by 10.3% to EUR 27.8 (31 December 2020: EUR 25.2).

Q1-3 2021 results in detail
Rental income rose slightly to EUR 216.4 million (Q1-3 2020: EUR 215.8
million) and led to an improvement of 2.6% in the results of asset
management to EUR 163.1 million (Q1-3 2020: EUR 158.9 million). This
increase resulted, above all, from a reduction in property expenses, which
improved by 11.5% to EUR -43.4 million (Q1-3 2020: EUR -49.1 million).
Property expenses still exceeded the pre-crisis level due to the effects
of the pandemic – but the write-off of rents receivable included in this
position, which represent support by IMMOFINANZ for its tenants during the
lockdown periods, were substantially lower than the previous year and
totalled EUR -10.9 million (Q1-3 2020: EUR -19.2 million).

The results of property sales more than doubled to EUR 24.1 million (Q1-3
2020: EUR 9.5 million). The sale of the Cluster Produktionstechnik office
building in Aachen for EUR 124.0 million was responsible for the largest
positive effect. In line with the corporate strategy, properties with a
total volume of EUR 259.6 million were sold during the first three
quarters of 2021. Included here are the building in Aachen and, above all,
older and non-strategic office properties in Warsaw and Budapest. The
results of property development also turned strongly positive at EUR 24.1
million (Q1-3 2020: EUR -21.0 million), chiefly due to positive valuation
effects from an office development project in Düsseldorf.

Other operating expenses improved by 9.8% to EUR -32.3 million (Q1-3 2020:
EUR -35.8 million), above all due to the absence of non-recurring effects
from the previous year. The results of operations therefore rose by a
solid 59.5% to EUR 180.4 million (Q1-3 2020: EUR 113.1 million). Results
from the revaluation of standing investments equalled EUR 54.0 million,
compared with crisis-related write-downs in the previous year to reflect
the adverse effects of the COVID-19 pandemic (Q1-3 2020: EUR -144.8
million). The revaluations are related chiefly to office properties in
Austria and Germany and reflect the ongoing dynamic market environment.
Operating profit (EBIT) therefore improved significantly to EUR 234.4
million (Q1-3 2020: EUR -31.7 million).

Financing costs totalled EUR -61.9 million (Q1-3 2020: EUR -55.7 million)
and reflect a year-on-year increase of roughly 12% in the financing
volume. Average financing costs, including hedging, equalled 1.92% per
year (31 December 2020: 1.99%). The other financial results of EUR 20.3
million (Q1-3 2020: EUR -13.4 million) resulted primarily from the
positive valuation of interest rate derivatives (Q1-3 2021: EUR 14.8
million) following an increase in long-term interest rates. The share of
results from equity-accounted investments increased to EUR 131.5 million
(Q1-3 2020: EUR 9.4 million). Of this total, EUR 128.0 million are
attributable to S IMMO (revaluation of EUR 85.3 million to the investment
due to the increase in the share price and a proportional earnings share
of EUR 42.8 million). Financial results totalled EUR 91.8 million (Q1-3
2020: EUR -60.5 million).

Profit before tax improved significantly to EUR 326.2 million (Q1-3 2020:
EUR -92.2 million) and also exceeded the comparable pre-crisis period in
2019. After the deduction of EUR -30.5 million (Q1-3 2020: EUR -6.0
million) in income taxes, net profit amounted to EUR 295.7 million (Q1-3
2020: EUR -98.3 million and Q1-3 2019: EUR 202.6 million). That represents
earnings per share^[1][(] (basic) of EUR 2.4, respectively EUR 2.2
(diluted)
(Q1-3 2020: EUR -0.91).

FFO 1 from the standing investment business (before tax and including the
accrued interest on bonds) totalled EUR 90.7 million and is roughly at the
previous year’s level (Q1-3 2020: EUR 93.6 million). This slight decline
is attributable, above all, to an increase in financing costs as a result
of the higher financing volume. FFO 1 per share equalled EUR 0.74,
compared with EUR 0.87 in the first three quarters of 2020, based on a
higher number of shares*.

^[(] Number of shares for the calculation for Q1-3 2021: 123,293,780
(basic) and 137,196,443 (diluted)
Number of shares for the calculation for Q1-3 2020: 107,667,310

The interim report by IMMOFINANZ AG on the first three quarters of the
year 2021 as of 30 September 2021 will be available on the company’s
website under
[2]https://immofinanz.com/en/investor-relations/financial-reports starting
on 30 November 2021.

On IMMOFINANZ
IMMOFINANZ is a commercial real estate group 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 the STOP SHOP (retail), VIVO! (retail)
and myhive (office) brands represent strong focal points that stand for
quality and service. The real estate portfolio has a value of approx. EUR
5.0 billion and covers roughly 210 properties. IMMOFINANZ is listed on the
stock exchanges in Vienna (leading ATX index) and Warsaw. Further
information under: [3]https://www.immofinanz.com

For additional information contact:
Bettina Schragl
Head of Corporate Communications and Investor Relations
T +43 (0)1 88 090 2290
M +43 (0)699 1685 7290
[4]communications@immofinanz.com
[5]investor@immofinanz.com

1100 Vienna, Wienerbergstraße 9, Austria
www.immofinanz.com

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29.11.2021 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: 1252649

 
End of News EQS Group News Service

1252649  29.11.2021 

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5. investor@immofinanz.com

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