IMMOFINANZ with strong profits plus for the first half – successful growth will be continued
IMMOFINANZ generated strong growth in operating results and net income during the first half of the year. The expansion of the portfolio through acquisitions in Bucharest and Italy in recent months will be continued: The pipeline of acquisition and development projects has a volume of over one billion euros.
IMMOFINANZ delivered good results in the first half of 2021, even though the markets generally remained under the influence of the COVID-19 pandemic and the associated containment measures. The operating result rose by a solid 73% to 103.3 million euros, notably thanks to an increase in the results of asset management and the results of real estate development combined with cost savings, and shows the professional performance of IMMOFINANZ employees in all markets. The progress of the vaccination campaigns and the associated economic recovery made it possible to recover part of the property depreciations linked to the crisis of the previous year. The net result turned strongly positive and, at 228.6 million euros, significantly exceeded the first half of 2019 before the crisis. also significantly exceeded the pre-crisis FFO 1 of the 2019 reference period.
“The strong development of our activity and our portfolio in the first half of 2021 underlines the excellent position of our real estate products in times of crisis and for the following years as well as our pioneering role in Europe – with regard to our quality, flexible myhive office solutions and our position as the leading retail park operator in Europe. On this basis, we intend to continue our growth trajectory as one of the leading European real estate companies and anticipate acquisitions and development projects for more than one billion euros by 2024 “, indicated Dietmar Reindl, COO of IMMOFINANZ.
Plans include the further expansion of existing asset classes with myhive in Vienna and the capitals of major countries. The STOP SHOP business park portfolio will grow from around 100 to 140 locations, with a focus on Italy and Croatia, the EEC and, selectively, also on Western Europe.
“We are very well positioned for this growth with a robust balance sheet structure, over € 1 billion in available liquidity, our investment grade rating and favorable financing costs of 1.9%. In view of the strong results and the financial situation and successful crisis management, we will recommend to the annual general meeting for the financial year 2020 to increase the dividend from 0.55 EUR per share to 0.75 EUR per action ”, explained Stefan Schönauer, Financial Director of IMMOFINANZ.
The 28th Annual General Meeting is scheduled for October 19, 2021.
The real estate portfolio reaches 5.1 billion euros
The IMMOFINANZ portfolio comprised 209 buildings with a combined book value of 5.1 billion euros at the end of June 2021 (31 December 2020: 5.0 billion euros). Of this total, approximately 64% is attributable to office activity and 35% to retail activity. The gross yield is 5.9% based on IFRS rents and 6.2% based on invoiced rents. The occupancy rate stands at 94.1% and continues to represent a high level in international comparison (December 31, 2020: 96.0%). The shops are for the most part fully let with an occupancy rate of 97.5%, and all of the surfaces of our shopping centers and retail parks are open without limitation. The office activity recorded a slight decrease in occupancy rate to 90.3% in the first half of the year – mainly due to a reduction in the areas rented by a major tenant in Germany which has been hit hard by the pandemic of COVID-19. Despite the still difficult environment, we have made several new major long-term rentals: for example, almost 11,000 m² to a major Romanian supplier of medical centers in Bucharest.
Over € 1 billion in available liquidity
IMMOFINANZ has a solid balance sheet structure with an equity ratio of 47.4% (December 31, 2020: 45.1%) and cash and cash equivalents of 966.9 million euros. In addition, a revolving credit line of 100.0 million euros is also available. The loan-to-net worth ratio remains at a conservative level of 38.1% (December 31, 2020: 37.8%). The average remaining term of financial liabilities is 4.25 years and average funding costs have fallen to 1.91% per year, derivatives included (December 31, 2020: 1.99%). The hedging quota is 88.6%, and the pool of unencumbered assets (investment property and S IMMO shares at EPRA NAV) amounts to 2.0 billion euros or 35.6% (December 31, 2020: € 2.0 billion or 34.9%).
EPRA metrics and book value per share improve by around 8%
The EPRA NTA per share increased by 7.8% to reach EUR 30.0 as of June 30, 2021 (December 31, 2020: EUR 27.8). This increase is mainly due to the positive development of results in the first half of 2021. book value per share increased by 7.8% to 27.2 EUR (31 December 2020: 25.2 EUR).
Q1-2 2021 results in detail
Rental income was stable at 145.0 million euros (Q1–2 2020: 146.2 million euros) and asset management results increased 3.9% to 106.8 million euros (Q1 –2 2020: 102.8 million euros). This increase is primarily the result of a drop in property charges, which fell by 18.8% to -31.6 million euros (Q1–2 2020:
-38.9 million euros). These expenses still exceed the pre-crisis level due to the effects of the pandemic – but the depreciation of rents receivable included in this position, which represents IMMOFINANZ’s support for its tenants during periods of containment, have been markedly lower than the previous year. and totaled
-9.4 million euros (Q1–2 2020: -18.2 million euros).
Real estate sales totaling 148.6 million euros were concluded during the first half of the year and mainly concerned older office buildings in Warsaw and Budapest. The real estate development results became strongly positive at 22.0 million euros (Q1–2 2020: -16.7 million euros), mainly due to the positive valuation effects of an office project in Düsseldorf.
Other operating expenses improved by 13.4% to -23.0 million euros (Q1–2 2020: -26.5 million euros), mainly due to the absence of non-negative effects. recurring compared to the previous year. The results of operations therefore increased by 73.0% to 103.3 million euros (Q1–2 2020: 59.7 million euros).
The results of the revaluation of permanent investments amounted to 52.5 million euros, compared to depreciations related to the crisis of the previous year to reflect the negative effects of the COVID-19 pandemic (Q1–2 2020:
-143.4 million euros). The revaluations mainly concern office buildings in Austria and Germany and reflect the still dynamic market environment. Operating result (EBIT) therefore improved significantly to 155.9 million euros (Q1–2 2020: -83.6 million euros).
Financing costs amounted to -42.2 million euros (Q1–2 2020: -37.7 million euros) and reflect the increase of approximately 11.1% in the financing volume of a year over year. The average finance charge, including covers, was 1.91% per annum (December 31, 2020: 1.99%). Other financial results of 8.5 million euros (Q1–2 2020:
EUR -12.4 million) mainly results 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 income from equity-accounted investments increased to 124.1 million euros (Q1–2 2020: 6.4 million euros). Of this total, 121.8 million euros are attributable to S IMMO (revaluation of 85.3 million euros of the investment due to the increase in the share price and a share of the result € 36.5 million). Financial results amounted to 91.6 million euros (Q1–2 2020: -42.4 million euros).
Profit before tax improved significantly to 247.4 million euros (Q1–2 2020: -126.0 million euros). After deduction of -18.8 million euros (Q1–2 2020: 5.7 million euros) of income taxes, net profit amounted to 228.6 million euros (Q1–2 2020: -120.4 million euros). This represents earnings per share of 1.85 EUR (basic), respectively 1.69 EUR (diluted) (Q1–2 2020: -1.19 EUR basic / diluted).
FFO 1 of the permanent investment activity (before taxes and including accrued interest on bonds) increased by 7.7% to 64.4 million euros (Q1–2 2020: 59.8 million euros). This increase can be explained above all by the improvement in the results of asset management. The FFO 1 per share amounts to EUR 0.52, compared to EUR 0.59 in the first half of 2020 based on a higher number of shares.
IMMOFINANZ AG’s interim report for the first half of 2021 to June 30, 2021 will be available on the company’s website at http://www.immofinanz.com/en/investor-relations/financial-reports from August 31 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, including full dilution by convertible bonds 2024 )
 Number of shares: 123,293,795 for Q1-2 2021 incl. total dilution by mandatory convertible bonds 2023 and 100,876,743 shares in Q1-2 2020