EQS-News: IMMOFINANZ with strong results in 2021: 46% increase in results of operations, net profit reaches EUR 346 million
EQS-News: IMMOFINANZ with strong results in 2021: 46% increase in results of operations, net profit reaches EUR 346 million
EQS-News: IMMOFINANZ AG / Key word(s): Annual Results/Real Estate
IMMOFINANZ with strong results in 2021: 46% increase in results of
operations, net profit reaches EUR 346 million
20.04.2022 / 18:33
The issuer is solely responsible for the content of this announcement.
══════════════════════════════════════════════════════════════════════════
IMMOFINANZ with strong results in 2021: 46% increase in results of
operations, net profit reaches EUR 346 million
• Strong Group results with profit of EUR 345.8 million
• Sound performance in all income streams leads to 46% increase in
results of operations to EUR 210.1 million
• Occupancy rate remains high at 95.1%
• EPRA NTA per share improves by 5% to EUR 29.2, book value by 9% to EUR
27.4
• Strong balance sheet with equity ratio of 48.1% and liquid funds of
EUR 987.1 million
• Value-creating growth strategy with steady focus on ESG along the
entire value chain and expansion into sustainable and affordable
housing
• Selected by UN to participate in the World Climate Summit 2022 as one
of 45 companies worldwide
KEY FIGURES (IN MEUR) 2021 Δ IN % 2020
Rental income 284.7 -1.7% 289.5
Results of asset management 211.0 2.2% 206.4
Results of property sales 25.7 >=+100.0% 7.9
Results of property development 18.9 n/a -24.2
Results of operations 210.1 45.9% 143.9
EBIT 296.0 n/a -12.7
Financial results 90.4 n/a -147.8
Net profit/loss 345.8 n/a -165.9
FFO 1 (before tax and incl. S IMMO) 120.1 -4.7% 126.1
The 2021 financial year brought a massive increase in IMMOFINANZ’s earning
power: The results of operations rose by roughly 46% to EUR 210.1 million
and clearly topped the previous year as well as the pre-crisis period in
2019. Net profit improved significantly to EUR 345.8 million, compared
with the crisis-related loss of
EUR -165.9 million in the previous year.
IMMOFINANZ successfully implemented its value-creating growth strategy in
2021, even though the markets were still negatively influenced by the
Covid-19 pandemic. The results of operations rose by 45.9% to EUR 210.1
million. The company realised an increase in the results of asset
management and a significant improvement in the earnings from property
sales and property development as well as cost savings. The
pandemic-related revaluation losses recognised to property in the previous
year were in part recovered. Revaluation results from the standing
investment portfolio totalled EUR 85.9 million, compared with EUR -156.6
million in the previous year. Financial results improved to EUR 90.4
million due to a substantial increase in the profit from investments. In
total, IMMOFINANZ generated net profit of EUR 345.8 million, compared with
EUR -165.9 million in the previous year. That represents diluted earnings
per share of EUR 2.6 (2020: EUR -1.5).
„2021 was an eventful and, at the same time, a very successful financial
year. Our portfolio is optimally positioned: With our mix of low-cost
retail solutions for consumers and high-quality, innovative and flexible
office products, we meet the demands of our tenants as well as their
customers and employees. We intend to extend our strong market position in
2022 and grow with our STOP SHOP and myhive brands – and drive the
portfolio expansion towards sustainable and affordable housing with our
new brand On Top Living“, explained Dietmar Reindl, member of the
Executive Board of IMMOFINANZ. „The improvement of our sustainability
performance is also a key priority. With our ESG strategy, we have set
ambitious goals along the entire value chain to make IMMOFINANZ
emission-free by 2040. This illustrates and underscores our responsibility
for people and the environment, and we want to actively support the fight
against climate change in our industry. In this connection, we are
especially pleased that IMMOFINANZ was chosen as one of 45 companies
worldwide to participate in the United Nation’s World Climate Summit at
Sharm El-Sheikh in November 2022 where we can share our innovations and
sustainable activities and inspire other companies throughout the world.“
Stefan Schönauer, member of the Executive Board of IMMOFINANZ: „A strong
balance sheet, solid financing structure and stable investment grade
rating are the foundation for our value-creating, sustainable growth. Our
equity ratio improved to roughly 48% during the course of the year and
gearing – based on the net loan-to-value – is conservative at 36.7%. Over
and above that, we have nearly one billion euros of liquid funds. In other
words, we have a sound foundation for further growth and the flexibility
for possible debt repayment. Almost 90% of our financial liabilities are
hedged against rising interest rates – an important point in today’s very
volatile environment.“
FFO 1 before tax, which does not include any valuation effects, was
slightly lower than the previous year at EUR 120.1 million in 2021 (2020:
EUR 126.1 million). This decline reflects the increased financing costs
which resulted from a higher volume of financing as well as a lower
dividend payment from the investment in S IMMO. FFO 1 per share equalled
EUR 0.97 compared with EUR 1.13 in the previous year, based on a higher
number of shares.
Steady high occupancy rate
At 95.1% (31 December 2020: 96.0%), the occupancy rate remained at a high
level. The retail properties were practically fully rented at 98.4%.
Take-up amounted to roughly 427,500 sqm, or 22% of the total rentable
space, despite a still challenging market environment. The take-up in 2021
includes 83,200 sqm of new rentals and 344,300 sqm of contract extensions.
The gross return on the standing investment portfolio equalled 5.9% based
on IFRS rental income and 6.3% based on invoiced rents.
More than EUR 1 billion of available liquid funds
IMMOFINANZ has a robust balance sheet structure with a strengthened equity
ratio of 48.1% (31 December 2020: 45.1%) and cash and cash equivalents of
EUR 987.1 million. Furthermore, a revolving credit line of EUR 100.0
million is also available. The net loan-to-value ratio equalled a
conservative 36.7% at year-end 2021 (31 December 2020: 37.8%). The average
remaining term of the financial liabilities was 3.8 years, and the average
financing costs (including derivatives) declined to 1.9% (31 December
2020: 2.0%). The hedging quota for interest rate risk was high at 88.8%,
and the unencumbered asset pool (investment property and S IMMO shares at
the EPRA NAV as of 30 September 2021) totalled EUR 2.0 billion or 35.5%.
EPRA indicators and book value per share improved
The EPRA NTA per share rose by 4.9% to EUR 29.2 in 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 8.9% to EUR
27.4 (31 December 2020: EUR 25.2).
Outlook and dividend
The war against Ukraine which was started by Russia at the end of February
2022 represents an increased uncertainty factor for the entire global
economy whose impact cannot be conclusively evaluated at the present time.
IMMOFINANZ believes its flexible and crisis-resilient real estate products
create a sound position – also for an environment with greater
uncertainty. From the current point of view and under the assumption of
moderate Covid-19 influences, no further escalation of the war in Ukraine
and no significant effects on the company’s liquidity situation from the
change-of-control clauses triggered by the majority takeover by the CPI
Property Group, IMMOFINANZ confirms its guidance for the 2022 financial
year. Plans call for the expansion of the portfolio towards the EUR 6
billion-mark in 2022, whereby the focus will be placed on sustainable
properties in the myhive and STOP SHOP brands. FFO 1 before tax is
expected to exceed EUR 135 million. The financial policy will remain
unchanged: Gearing, based on the net LTV, is planned to remain below 45%
over the medium term and the investment grade rating will be retained.
„IMMOFINANZ pursues an attractive dividend policy, and we want our
shareholders to also participate in the company’s success during the
extremely productive 2021 financial year. Since the current outlook is
still heavily influenced by numerous external factors and assumptions, we
will wait with a detailed recommendation for the dividend for the year
2021 – but announce this on a timely basis before the annual general
meeting“, explained Executive Board member Stefan Schönauer. The annual
general meeting for the 2021 financial year will be held on 12 July 2022.
The dividend guidance for the 2022 financial year remains unchanged at
roughly 70% of the FFO 1 generated in 2022.
Results 2021 in detail
The results of asset management rose by 2.2% to EUR 211.0 million (2020:
EUR 206.4 million). This improvement was supported primarily by a
reduction in real estate expenses, which fell by 14.5% to EUR -61.4
million (2020: EUR -71.9 million). These costs are still higher than the
pre-crisis level due to the pandemic, but the included write-offs of rents
receivable, which reflected support by IMMOFINANZ for its tenants during
the lockdown periods, were substantially reduced to EUR -11.9 million
(2020: EUR -29.2 million). Rental income totalled EUR 284.7 million (2020:
EUR 289.5 million) and nearly matched the previous year, whereby the
slight difference is chiefly attributable to property sales in the office
business.
The results of property sales more than tripled to EUR 25.7 million (2020:
EUR 7.9 million), whereby the largest positive effect was the sale of the
Cluster Produktionstechnik office building in Aachen for EUR 124.0
million. Overall, properties with a volume of EUR 328.4 million were sold
during 2021 in line with the corporate strategy. In addition to the
building in Aachen, this mainly involved older non-core office properties
in Warsaw and Budapest. A substantial improvement was also recorded in the
results of property development, which turned positive to EUR 18.9 million
(2020: EUR -24.2 million). This increase was based, above all, on positive
valuation effects from the office development project in Düsseldorf.
Other operating expenses declined by 2.6% to EUR -47.7 million (2020: EUR
-48.9 million). The results of operations therefore rose by a strong 45.9%
to EUR 210.1 million (2020: EUR 143.9 million). Results from the
revaluation of standing investments totalled EUR 85.9 million, following
crisis-related write-downs of EUR -156.6 million in the previous year due
to the COVID-19 pandemic. Of the total revaluations, EUR 65.7 million are
related primarily to office properties in Düsseldorf, Vienna and Warsaw.
The revaluations to standing investments in the retail business amounted
to EUR 21.0 million and were supported by positive effects from individual
VIVO! shopping centers in Romania and the Czech Republic following an
improvement in the operating environment. These factors were responsible
for a significant improvement in operating profit (EBIT), which rose to
EUR 296.0 million (2020: EUR -12.7 million).
Financing costs amounted to EUR -81.1 million (2020: EUR -64.0 million)
and also reflected the year-on-year increase in the financing volume
during 2021 – above all due to the issue of a EUR 500 million corporate
bond in October 2020. Average financing costs, including hedging, declined
to 1.92% per year (31 December 2020: 1.99% per year). Other financial
results of EUR 29.3 million (2020: EUR -14.6 million) resulted mainly from
the positive valuation of interest rate derivatives (2021: EUR 25.2
million) based on the increase in long-term interest rates. The share of
profit/loss from equity-accounted investments increased substantially to
EUR 139.8 million (2020: EUR -69.5 million). Of this total, EUR 134.0
million are attributable to S IMMO (revaluation of EUR 85.3 million to the
investment based on the higher share price and the EUR 48.8 million share
of earnings)^[1][(]. Financial results amounted to EUR 90.4 million (2020:
EUR -147.8 million).
Profit before tax improved significantly to EUR 386.3 million (2020: EUR
-160.4 million). After the deduction of EUR -40.5 million (2020: EUR -5.5
million) in income taxes, net profit totalled EUR 345.8 million (2020: EUR
-165.9 million; 2019: EUR 352.1 million). That represents earnings per
share^[2][((] of EUR 2.8 (basic), respectively EUR 2.6 (diluted), compared
with EUR -1.50 in 2020.
The financial report by IMMOFINANZ AG for the 2021 financial year as of 31
December 2021 will be available on the company’s website under
[3] https://immofinanz.com/en/investor-relations/financial-reports starting
on 21 April 2022.
^[(] As of 31 December 2021, S IMMO was included at equity based on an
extrapolation of the financial statements as of 30 September 2021 and
including additional material effects (among others, based on ad-hoc
reports and other published information).
^[((] Number of shares included for 2021: 123,293,525 (basic) and
137,069,885 (diluted); number of shares included for 2020: 111,595,279
(basic)
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:
[4] 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
[5]communications@immofinanz.com
[6]investor@immofinanz.com
1100 Vienna, Wienerbergstraße 9, Austria
www.immofinanz.com
══════════════════════════════════════════════════════════════════════════
20.04.2022 This Corporate News was distributed by EQS Group AG.
www.eqs.com
══════════════════════════════════════════════════════════════════════════
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: 1331359
End of News EQS News Service
1331359 20.04.2022
References
Visible links
1. file:///tmp/HTML-FormatExternal-6LEfZe.html#footnote_1
2. file:///tmp/HTML-FormatExternal-6LEfZe.html#footnote_2
3. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=693b36d209568e3b3bbb16988eef824d&application_id=1331359&site_id=apa_ots_austria&application_name=news
4. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=0ed29e50f589c1b82eceada4cab90825&application_id=1331359&site_id=apa_ots_austria&application_name=news
5. communications@immofinanz.com
6. investor@immofinanz.com
OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS. www.ots.at
© Copyright APA-OTS Originaltext-Service GmbH und der jeweilige Aussender