EQS-News: IMMOFINANZ with a strong start into the 2022 financial year: 4.3% increase in like-for-like rental income

EQS-News: IMMOFINANZ AG / Key word(s): Quarter Results/Real Estate
IMMOFINANZ with a strong start into the 2022 financial year: 4.3% increase
in like-for-like rental income

24.05.2022 / 17:42
The issuer is solely responsible for the content of this announcement.

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IMMOFINANZ with a strong start into the 2022 financial year: 4.3% increase
in like-for-like rental income
 

• FFO 1 (before tax) reflects the very good prior year level at EUR 34.4
million
• Occupancy rate remains high at 94.4%
• EPRA NTA per share improves to EUR 29.4
• Strong balance sheet with equity ratio of 52.3% and net LTV of 32.7%

 

KEY FIGURES (IN MEUR) Q1 2022 Δ IN % Q1 2021
Rental income 70.2 -6.1 74.8
Rental income like for like 64.0 4.3 61.4
Results of asset management 53.9 -1.8 54.9
Results of property sales 0.6 n/a -0.4
Results of property development -4.1 n/a 1.1
Results of operations 38.1 -17.9 46.4
EBIT 37.3 -21.1 47.4
Financial results 47.7 -40.1 79.7
Net profit 72.4 -41.2 123.1
FFO 1 (before tax) 34.4 -0.2 34.5

 

IMMOFINANZ successfully completed a solid start into the 2022 financial
year: Like-for-like rental income rose by 4.3% in the first quarter, the
occupancy rate remained high at 94.4%, and FFO 1 before tax was stable at
a very good level of EUR 34.4 million. Net profit totalled EUR 72.4
million, compared with a substantial positive effect in the first quarter
of the previous year from the revaluation of the stake in S IMMO. With an
equity ratio of 52.3% and conservative debt level with a net LTV of 32.7%,
IMMOFINANZ has a strong capital foundation.

IFRS rental income totalled EUR 70.2 million in the first quarter and was
slightly lower than the previous year, which was influenced by a positive
non-recurring compensation payment from a large tenant for a
pandemic-related reduction in the rented space (Q1 2021: EUR 74.8
million). After an adjustment for this non-recurring effect of EUR 6.7
million, IMMOFINANZ generated sound growth in the first quarter: In
comparison with the previous year, rental income rose by 3.1% and exceeded
the Q4 2021 level by 2.8%. This positive development was also reflected in
a year-on-year increase of 4.3% in like-for-like rental income (adjusted
for acquisitions, sales and completions) to EUR 64.0 million.

“The strong growth in like-for-like rental income underscores the optimal
positioning of our portfolio: This mix of affordable retail for consumers
and high-quality, innovative and flexible offices solutions meets the
requirements of our tenants as well as their customers and employees“,
explained Dietmar Reindl, member of the Executive Board of IMMOFINANZ.
“Positive development was recorded in most of the markets – led by
Austria. Like-for-like rental income rose by 2.9% in the office business
and by 5.6% in the retail business, which impressively demonstrates the
strength of our STOP SHOP and myhive brands.“

The results of operations totalled EUR 38.1 million in the first quarter
of 2022 (Q1 2021: EUR 46.4 million), and financial results equalled EUR
47.7 million (Q1 2021: EUR 79.7 million). Net profit amounted to EUR 72.4
million, following a comparative first quarter that was substantially
influenced by the positive revaluation of the stake in
S IMMO (Q1 2021: EUR 123.1 million). FFO 1 from the standing investment
business (before tax) was stable at EUR 34.4 million (Q1 2021: EUR 34.5
million). That represents FFO 1 per share of EUR 0.26, compared with EUR
0.28 in Q1 2021 based on a higher number of shares.

Occupancy rate at high level
The IMMOFINANZ property portfolio covered 225 properties as of 31 March
2022 with a combined value of EUR 5.2 billion. Standing investments
represented the largest component at EUR 4.6 billion and 2.0 million sqm
of rentable space. At 94.4% (31 December 2021: 95.1%), the occupancy rate
remained high. The retail properties were practically fully rented at
98.4%. The gross return on the standing investment portfolio equalled 5.9%
based on IFRS rental income and 6.2% based on invoiced rents.

Radka Doehring, member of the Executive Board of IMMOFINANZ: “We further
expanded our position as the leading retail park operator in Europe this
year with the acquisition of another retail park in Italy. We also
recently completed a STOP SHOP in the Croatian city of Kastela and opened
with full occupancy. Our plans call for the continuation of our growth
course in the promising Adriatic region, and we will soon start
construction on further retail park projects in Croatia.“

Equity ratio strengthened
IMMOFINANZ had a robust balance sheet structure as of 31 March 2022 with a
stronger equity ratio of 52.3% (31 December 2021: 48.1%) and cash and cash
equivalents of EUR 953.6 million. Cash and cash equivalents declined by
EUR 568.8 million after the end of the reporting period following the
repayment of corporate bonds. Despite this liquidity outflow, IMMOFINANZ
still has a sound financial position. The average financing costs for
financial liabilities (incl. derivatives) remained unchanged at a
favourable 1.9%.

Stefan Schönauer, member of the Executive Board of IMMOFINANZ: “Our equity
ratio has improved to roughly 52% since the beginning of the year and our
debt level – based on the net loan-to-value – is very conservative at
32.7%. In addition, roughly 90% of our financial liabilities are hedged
against rising interest rates – which also has a positive influence on our
financial results and underscores our effective hedging strategy. That
creates a decisive advantage in the current environment.“

EPRA indicators per share improved
The EPRA NTA per share rose by 0.6% from EUR 29.19 at the end of December
2021 to EUR 29.37 as of 31 March 2022. The IFRS book value per share
equalled EUR 26.94 at the end of March 2022 (31 December 2021: EUR 27.44).

Outlook
A change of control event led to the repayment of corporate bonds and to
cash outflows of EUR 568.8 million. As communicated in an ad-hoc press
release on 26 April 2022, the amount of these repayments had an influence
on the outlook for business development in 2022 as originally announced by
IMMOFINANZ. This guidance was therefore retracted, and the Executive Board
is re-assessing the expected development of business. Plans call for the
announcement of an updated guidance for the financial goals in 2022 during
the year.

The annual general meeting for the 2021 financial year will be held on 12
July 2022 as a virtual annual general meeting in accordance with the
relevant COVID-19 regulation. The dividend recommendation for the 2021
financial year will be announced on a timely basis before the annual
general meeting.

Results in detail
Rental income totalled EUR 70.2 million in the first quarter. The
year-on-year decline (Q1 2021: EUR 74.8 million) is attributable to a
positive non-recurring compensation payment of EUR 6.7 million in the
first quarter of 2021 from a large tenant for a pandemic-related reduction
in the rented space. After an adjustment for this non-recurring effect,
rental income rose by 3.1%. Rental income also exceeded the Q4 2021 level
by 2.8%. This positive development was also reflected in an increase of
4.3% in like-for-like rental income (adjusted for acquisitions, sales and
completions) over Q1 2021.

Property expenses fell by 28.5% to EUR -12.2 million, above all due to a
sharp drop to EUR -0.4 million (Q1 2021: EUR -6.2 million) in the
write-off of rent receivables included in this position. These write-offs
represented support by IMMOFINANZ for its tenants during the
pandemic-related lockdown periods in 2020 and 2021. The write-offs of rent
receivables declined to the pre-crisis level in Q1 2022. The results of
asset management were stable year-on-year at EUR 53.9 million (Q1 2021:
EUR 54.9 million).

The results of property sales rose to EUR 0.6 million (Q1 2021: EUR -0.4
million) based on sales of EUR 2.5 million. The sold properties consisted
mainly of non-core land in Turkey. The results of property development
amounted to EUR -4.1 million (Q1 2021: EUR 1.1 million) and resulted
chiefly from a general increase in the construction costs for individual
projects.

Other operating expenses rose to EUR -12.9 million (Q1 2021: EUR -10.1
million), mainly due to consulting costs in connection with the takeover
offers by the CPI Property Group and S IMMO for IMMOFINANZ and in
connection with digitalisation measures. Consequently, the results of
operations equalled EUR 38.1 million (Q1 2021: EUR 46.4 million).

Results from the revaluation of standing investments amounted to EUR -0.7
million (Q1 2021: EUR 1.0 million) based – as is regularly the case in Q1
and Q3 of a financial year – on an internal valuation. Operating profit
(EBIT) totalled EUR 37.3 million (Q1 2021: EUR 47.4 million).

Financing costs fell by 15.2% to EUR -17.0 million (Q1 2021: EUR -20.0
million) and declined at a higher rate than the 8.7% reduction in the
financing volume. The largest savings were attributable to conversions of
the convertible bond 2024 in connection with the attainment of control by
the CPI Property Group. The other financial results of EUR 45.9 million
(Q1 2021: EUR 8,9 million) were based primarily on the positive valuation
of interest rate derivatives (EUR 47.5 million) following an increase in
long-term interest rates and underscore the Group’s effective hedging
policy.

The share of results from equity-accounted investments totalled EUR 17.3
million (Q1 2021: EUR 90.9 million), due to the strong positive
revaluation of the S IMMO investment in the first quarter of the previous
year. The S IMMO investment was responsible for a proportional earnings
share of EUR 15.1 million (Q1 2021: EUR 88.0 million). Financial results
totalled EUR 47.7 million (Q1 2021: EUR 79.7 million).

Profit before tax totalled EUR 85.1 million (Q1 2021: EUR 127.0 million).
After the deduction of
EUR -12.7 million (Q1 2021: EUR -4.0 million) in income taxes, net profit
amounted to EUR 72.4 million (Q1 2021: EUR 123.1 million). That represents
earnings per share^[1][(] of EUR 0.55 (Q1 2021: EUR 0.91).

The interim financial report by IMMOFINANZ AG for the first quarter of the
financial year 2022 as of 31 March 2022 will be available on the company’s
website under
[2] https://immofinanz.com/en/investor-relations/financial-reports starting
on 25 May 2022.

^[(] Number of shares included for Q1 2022: 132,867,405 (basic and
diluted); number of shares included for Q1 2021: 137,196,458 (diluted)

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. With the new On Top Living brand, IMMOFINANZ is
expanding into sustainable and affordable living. The real estate
portfolio has a value of approximately EUR 5.2 billion and covers more
than 220 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
IMMOFINANZ
T +43 (0)1 88 090 2290
M +43 (0)699 1685 7290
[4]communications@immofinanz.com
[5]investor@immofinanz.com

 
 

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24.05.2022 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: 1360407

 
End of News EQS News Service

1360407  24.05.2022 

References

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4. communications@immofinanz.com
5. investor@immofinanz.com

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