EQS-News: IMMOFINANZ with strong operating performance in 2022 despite a challenging environment
EQS-News: IMMOFINANZ AG / Key word(s): Annual Results/Real Estate
IMMOFINANZ with strong operating performance in 2022 despite a challenging
environment
30.03.2023 / 17:58 CET/CEST
The issuer is solely responsible for the content of this announcement.
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IMMOFINANZ with strong operating performance in 2022 despite a challenging
environment
• Like-for-like rental income rises by 8%
• FFO 1 improves by 22% to EUR 146 million
• Portfolio grows by 62% to EUR 8.4 billion due to the full
consolidation of S IMMO
and the acquisition of retail properties
• Net profit positive at EUR 142 million in spite of negative results
from property valuation
• Proceeds from successful property sales will be used to repay debt and
reinvested in real estate
• Based on IMMOFINANZ’s strategy and in view of the continuing market
uncertainty, the annual general meeting will be asked to waive the
dividend for the 2022 financial year
KEY FIGURES (IN MEUR) 2022 Δ IN % 2021
Rental income 300.2 5.4 284.7
Results of asset management 226.1 7.2 211.0
Results of property sales 4.6 -82.0 25.7
Results of property development -20.7 n. a. 18.9
Results of operations 154.3 -26.5 210.1
EBIT 258.3 -12.7 296.0
Financial results -72.6 n.a. 90.4
Net profit 142.0 -58.9 345.8
FFO 1 (before tax) 146.1 21.7 120.1
Since the increase in the investment in S IMMO to 50% plus one share took
place at year-end 2022, the assets and liabilities of S IMMO represent an
integral part of the consolidation as of 31 December 2022 and the income
statement positions were not included.
IMMOFINANZ Group delivered very good operating performance in 2022 in
spite of the challenging environment. Sustainable FFO 1 from the standing
investment business rose by 21.7%. Rental income increased by 5.4% to
EUR 300.2 million and the results of asset management by 7.2% to
EUR 226.1 million. The Group also has a very solid capital base with an
equity ratio of 47.9% and conservative debt with a net LTV of 40.7%.
This strong operating performance was, however, contrasted by the negative
effect on valuation results caused by current market trends. Results from
the valuation of standing investments therefore amounted to
EUR -110.5 million. This was contrasted by a positive net effect of
EUR 55.6 million from the initial full consolidation of S IMMO following
an increase in the investment to 50% plus one share. In total, IMMOFINANZ
generated net profit of EUR 142.0 million, or earnings per share of EUR
1.04, in the 2022 financial year.
“The quality of our properties and steady rental income again proved to be
stable pillars in a volatile environment. All in all, we performed very
well and demonstrated the strength of our business model. Like-for-like
rental income improved by more than 8% and sustainable FFO 1 by roughly
22%. We took further important steps to grow our business during the past
year and substantially strengthened our position as an international
provider of resilient retail properties and innovative office solutions.
Our portfolio volume increased by more than 60% to nearly EUR 8.4 billion
as a result of acquisitions and completions, especially in the retail
sector, as well as an increase in our S IMMO investment to 50% plus one
share at year-end and the resulting full consolidation“, explained Radka
Doehring, Executive Chairwoman of IMMOFINANZ. “We made very good progress
on our programme to sell properties with a total value of approximately
one billion euros and closed profitable sales of nearly 166 million euros
during the past year. Further transactions are also in preparation.“
Like-for-like rental income (adjusted for acquisitions, sales and
completions) rose by a sound 12.9% in the fourth quarter of 2022 (versus
Q4 2021) and by 8.1% in year-on-year comparison. Sustainable FFO 1 from
the standing investment business improved substantially by 21.7% to
EUR 146.1 million, above all due to an increase in rental income and a
decline in financing costs. That represents FFO 1 per share of EUR 1.07.
Strong portfolio growth
The IMMOFINANZ portfolio grew by 61.8% to EUR 8.4 billion and to 627
properties in 2022. This growth was supported, above all, by the full
consolidation of S IMMO and by the acquisition and completion of retail
properties. Of this total, EUR 7.9 billion represent standing investments
with 3.5 million sqm of rentable space. The overall occupancy rate for the
portfolio (incl. S IMMO) equalled 92.9%. The gross return on the
IMMOFINANZ standing investment portfolio (excl. S IMMO) equalled 6.5%
based on IFRS rental income and 6.7% based on invoiced rents.
Robust balance sheet structure
The IMMOFINANZ Group had a robust balance sheet structure with an equity
ratio of 47.9% as of 31 December 2022 (31 December 2021: 48.1%) and a
solid net loan-to-value ratio (net LTV) of 40.7% (31 December 2021:
36.7%). Cash and cash equivalents amounted to EUR 684.7 million. Roughly
87% of financial liabilities are hedged against interest rate increases.
EPRA per share indicators strengthened
The EPRA NTA per share rose by 5.3% from EUR 29.19 at the end of December
2021 to EUR 30.74 as of 31 December 2022. The IFRS book value per share
improved to EUR 27.47 despite an increase in the number of shares
(31 December 2021: EUR 27.44).
Outlook and annual general meeting
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. The sale pipeline, which is an integral part of the company’s
active portfolio management, includes the successful transactions
completed in 2022 as well as an additional roughly EUR 830 million.
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.
In line with this strategy, the Executive Board and the Supervisory Board
of IMMOFINANZ will ask the annual general meeting to waive the dividend
for the 2022 financial year and use the funds to strengthen the balance
sheet. The annual general meeting of IMMOFINANZ is scheduled to take place
on 3^rd May 2023 as a virtual meeting in accordance with the Covid-19
Company Law Directive.
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.
As central banks’ interest rate hikes have not yet peaked and geopolitical
uncertainty continues, the resulting effects – among others on the
development of financing costs and the market prices of real estate –
cannot be reliably estimated. IMMOFINANZ – with its flexible and resilient
real estate products – believes it is well positioned for the future, also
in an environment that is characterised by greater uncertainty.
Results in detail
Rental income rose by 5.4% to EUR 300.2 million in 2022. However, the
comparative prior-year value was positively influenced by a non-recurring
compensation payment of EUR 6.7 million from a major tenant. After an
adjustment for this non-recurring effect, rental income rose by an even
higher 8.0%. This increase more than offset property sales and was
supported by the sound development of like-for-like rental income, the
purchase of retail properties and the completion of development projects.
Like-for-like rental income (adjusted for acquisitions, sales and
completions) rose by a solid 12.9% year-on-year in the fourth quarter of
2022 (versus Q4 2021) and by 8.1% in year-on-year comparison.
Property expenses declined by 2.1% to EUR -60.1 million, and the write-off
of rents receivable included in this position was reduced to
EUR -2.4 million (2021: EUR -11.9 million). These write-offs represent
IMMOFINANZ’s support for its tenants during the pandemic-related lockdown
periods in 2020 and 2021. Maintenance costs increased to EUR -21.8 million
in 2022 (2021: EUR -17.3 million). The results of asset management rose by
7.2% to EUR 226.1 million (2021: EUR 211.0 million).
The results of property sales amounted to EUR 4.6 million (2021:
EUR 25.7 million) and were negatively influenced, above all, by the full
write-off of a EUR -12.9 million purchase price receivable from Russia
during the second quarter 2022. Property sales totalled EUR 165.6 million
and mainly involved office buildings in Prague and Vienna as well as
non-core land in Turkey. After an adjustment for the Russian write-off,
the sales margin equalled 10.6%. The results of property development
amounted to EUR -20.7 million (2021: EUR 18.9 million) and reflected the
market development and rising construction costs.
Other operating expenses increased – as the result of non-recurring
effects – to EUR -66.1 million (2021: EUR -47.7 million). These
non-recurring effects consisted chiefly of consulting costs connected with
the takeover offers for IMMOFINANZ by the CPI Property Group and S IMMO,
expenses related to the resignation of two Executive Board members, and
the cost of digitalisation measures. The results of operations equalled
EUR 154.3 million for the 2022 financial year (2021: EUR 210.1 million).
Results from the revaluation of standing investments reflected the general
market trends and totalled EUR -110.5 million (2021: EUR 86.2 million).
Revaluation losses recognised during the reporting year equalled 2.1% of
IMMOFINANZ’s standing investments at year-end 2022. A contrary factor was
the positive earnings effect from the initial full consolidation of the
S IMMO investment at EUR 214.6 million (also see the influence of S IMMO
on earnings under financial results). As a consequence, the overall
revaluation results from standing investments and goodwill totalled
EUR 104.0 million, compared with EUR 85.9 million in the previous year.
Operating profit (EBIT) amounted to EUR 258.3 million (2021:
EUR 296.0 million).
Financing costs declined by 4.1% to EUR -77.8 million (2021:
EUR -81.1 million). A reduction in the interest expense on bonds (above
all, due to the change of control and the related redemptions and
conversions) was offset in part by an increase in the standard market
conditions for real estate financing. The substantial improvement in other
financial results to EUR 149.1 million (2021: EUR 29.3 million) resulted
from the positive valuation of interest rate derivatives
(EUR 156.7 million) following an increase in long-term interest rates and
underscores the effectiveness of IMMOFINANZ’s hedging policy. A
contrasting negative effect involved costs of EUR -5.6 million for the
repurchase of corporate bonds at 101% of their nominal value as a
consequence of the change of control.
The share of profit/loss from equity-accounted investments amounted to
EUR -151.9 million (2021: EUR 139.8 million) and resulted mainly from the
final measurement of the equity investment in S IMMO at fair value. The
total net effect from the inclusion of S IMMO was positive at
EUR 55.6 million (EUR 214.6 million from the valuation of goodwill and
purchase price adjustments as well as EUR -159.0 million for the
proportional share of S IMMO earnings under the equity accounting method).
Financial results amounted to EUR -72.6 million (2021: EUR 90.4 million).
Profit before tax totalled EUR 185.7 million (2021: EUR 386.3 million),
and income taxes rose slightly to EUR -43.7 million (2021:
EUR -40.5 million). Net profit totalled EUR 142.0 million (2021:
EUR 345.8 million) and represents earnings per share* of EUR 1.04 (2021:
EUR 2.59).
The financial report by IMMOFINANZ AG for the financial year 2022 as of 31
December 2022 will be available on the company’s website under
[1] https://immofinanz.com/en/investor-relations/financial-reports starting
on 30 March 2023.
*Number of shares included for 2022: 136,866,509; number of shares
included for 2021: 137,069,884
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 8.4 billion and covers roughly 630 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
T +43 (0)1 88 090 2290
M +43 (0)699 1685 7290
[3]communications@immofinanz.com
[4]investor@immofinanz.com
IMMOFINANZ
1100 Vienna, Wienerbergstraße 9, Austria
www.immofinanz.com
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30.03.2023 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: 1597435
End of News EQS News Service
1597435 30.03.2023 CET/CEST
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3. communications@immofinanz.com
4. investor@immofinanz.com
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