DGAP-News: IMMOFINANZ AG
/ Key word(s): Half Year Results/Real Estate
IMMOFINANZ with strong earnings plus for the first half-year - successful growth course will be continued
IMMOFINANZ generated strong growth in the results of operations and net profit during the first half-year. The expansion of the portfolio through acquisitions in Bucharest and Italy during recent months will be continued: The acquisition and development project pipeline has a volume of more than EUR 1 billion.
IMMOFINANZ delivered strong results for the first half of 2021, even though the markets generally remained under the influence of the COVID-19 pandemic and related containment measures. The results of operations rose by a sound 73% to EUR 103.3 million, above all due to an increase in the results of asset management and the results of property development combined with cost savings, and shows the professional performance of IMMOFINANZ employees in all markets. 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. Net profit turned strongly positive and, at EUR 228.6 million, clearly exceeded the pre-crisis half-year in 2019. FFO 1, which excludes valuation results and reflects the company's operating cash flow earning power, improved by 7.7% to EUR 64.4 million and also substantially exceeded the pre-crisis FFO 1 from the 2019 reference period.
"The strong development of our business and portfolio in the first half of 2021 underscores the excellent position of our real estate products in both crisis times and for the following years as well as our pioneering role in Europe - with regard to our high-quality, flexible myhive office solutions and our standing as Europe's leading retail park operator. From this basis, we intend to continue our growth course as one of the major European real estate companies and are planning acquisitions and development projects for more than one billion euros by 2024", indicated Dietmar Reindl, COO of IMMOFINANZ. Plans include the further expansion of the existing asset classes with myhive in Vienna and in the capital cities of the core countries. The STOP SHOP retail park portfolio will grow from roughly 100 to 140 locations, whereby the country focus will be placed on Italy and Croatia, CEE and, selectively, also on Western Europe.
"We are very well positioned for this growth with a robust balance sheet structure, more than one billion euros of available liquidity, our investment grade rating and favourable financing costs of 1.9%. In view of the strong earnings and financial situation and successful crisis management, we will make a recommendation to the annual general meeting for the 2020 financial year to increase the dividend from EUR 0.55 per share to EUR 0.75 per share", explained Stefan Schönauer, CFO of IMMOFINANZ. The 28th annual general meeting is scheduled for 19 October 2021.
Property portfolio grows to EUR 5.1 billion
More than EUR 1 billion of available liquid funds
EPRA indicators and book value per share improve by roughly 8%
Q1-2 2021 results in detail
Property sales totalling EUR 148.6 million were concluded during the first half-year and were related primarily to older office properties in Warsaw and Budapest. The results of property development turned strongly positive at EUR 22.0 million (Q1-2 2020: EUR -16.7 million), chiefly due to positive valuation effects from an office project in Düsseldorf.
Other operating expenses improved by 13.4% to EUR -23.0 million (Q1-2 2020: EUR -26.5 million), above all due to the absence of non-recurring effects from the previous year. The results of operations therefore rose by a solid 73.0% to EUR 103.3 million (Q1-2 2020: EUR 59.7 million).
Results from the revaluation of standing investments equalled EUR 52.5 million, compared with crisis-related write-downs in the previous year to reflect the adverse effects of the COVID-19 pandemic (Q1-2 2020:
Financing costs totalled EUR -42.2 million (Q1-2 2020: EUR -37.7 million) and reflect the year-on-year increase of roughly 11.1% in the financing volume. Average financing costs, including hedging, equalled 1.91% per year (31 December 2020: 1.99%). The other financial results of EUR 8.5 million (Q1-2 2020: EUR -12.4 million) resulted primarily from the valuation of interest rate derivatives (Q1-2 2021: EUR 11.1 million) following an increase in long-term interest rates.
The share of results from equity-accounted investments increased to EUR 124.1 million (Q1-2 2020: EUR 6.4 million). Of this total, EUR 121.8 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 36.5 million). Financial results totalled EUR 91.6 million (Q1-2 2020: EUR -42.4 million).
Profit before tax improved significantly to EUR 247.4 million (Q1-2 2020: EUR -126.0 million). After the deduction of EUR -18.8 million (Q1-2 2020: EUR 5.7 million) in income taxes, net profit amounted to EUR 228.6 million (Q1-2 2020: EUR -120.4 million). That represents earnings per share of EUR 1.85 (basic), respectively EUR 1.69 (diluted) (Q1-2 2020: EUR -1.19 basic/diluted).
FFO 1 from the standing investment business (before tax and including accrued interest on the bonds) rose by 7.7% to EUR 64.4 million (Q1-2 2020: EUR 59.8 million). This increase is attributable, above all, to the improvement in the results of asset management. FFO 1 per share equalled EUR 0.52, compared with EUR 0.59 in the first half of 2020 based on a higher number of shares.
The interim report by IMMOFINANZ AG on the first half year 2021 as of 30 June 2021 will be available on the company's website under http://www.immofinanz.com/en/investor-relations/financial-reports starting on 31 August 2020.
 Number of shares for the calculation for Q1-2 2021: 123,293,795 (basic, including full dilution by mandatory convertible bonds 2023) and 137,196,458 (diluted, incl. full dilution by convertible bonds 2024)
 Number of shares: 123,293,795 for Q1-2 2021 incl. full dilution by mandatory convertible bonds 2023 and 100,876,743 shares for Q1-2 2020
30.08.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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