DGAP-News: IMMOFINANZ AG / Key word(s): Quarter Results/Miscellaneous IMMOFINANZ AG: IMMOFINANZ Group reports continuation of strong operating performance in the third quarter of 2011/12
26.03.2012 / 08:01
IMMOFINANZ Group reports continuation of strong operating performance in the third quarter of 2011/12
KEY FIGURES (in MEUR) 31/01/2012 / ? in % / 31/01/2011
Rental income 437.3 / +3.4 / 423.1 Income from asset management 352.6 / +5.7 / 333.5 Income from property sales* 39.4 / +67.9 / 23.5 Income from property development* 49.0 / +133.4 / 21.0 Administrative expenses 101.0 / -17.7 / 122.7 Results of operations 372.0 / +19.9 / 310.3 Net profit 269.4 / +17.5 / 229.3 Net profit before currency effects 252.6 / +1.3 / 249.4 Operating cash flow 289.4 / -4.5 / 303.2
* before foreign exchange effects
IMMOFINANZ Group continued the positive trend recorded in recent quarters during the third quarter of the 2011/12 financial year. Strong growth was recorded, above all in rental income, which rose by 8.5% over the previous quarter to EUR 153.6 million. In contrast, net profit fell more than 90% below the second quarter to EUR 4.3 million. This decline is attributable to negative, non-cash effects from foreign currency translation and the valuation of derivatives. After an adjustment for these non-cash foreign exchange effects, net profit for the third quarter of 2011/12 equalled EUR 54.0 million (including EUR -5.4 million of non-cash effects from the transition consolidation of the remaining 69.2% of the Romanian residential property developer Adama).
'We also exceeded our operating targets during the past quarter: income was higher in all segments and administrative costs were again reduced. From the current point of view, we are well on the way to continue this stable development in the future. Our new strategic focus will play an important role in this process: We are working hard to transform IMMOFINANZ Group from a 'real estate manager' into a 'real estate machine'. The goal is to produce standardised properties at a clearly defined, constantly high quality level, fully rent these properties through active asset management and then sell them substantially over the carrying amount at a cycle-optimised time. This comprehensive approach is designed to expand our profitability across the entire value chain and increase the turnover of our property portfolio. Our growth course will also be accelerated by the continuous optimisation of the standing investment portfolio, a reduction in operating costs and a stronger focus on cash flow generation', commented Eduard Zehetner, Chairman of the Executive Board of IMMOFINANZ Group, on the company's development in the third quarter.
Income from Asset Management Rental income totalled EUR 437.3 million for the first three quarters of 2011/12, for an increase of 3.4% over the comparable prior year period (EUR 423.1 million). This positive development is attributable chiefly to the retail segment, where rental income rose by 15.0% or EUR 20.5 million over the first six months of the previous year. Strong sales in our Russian shopping centers during the Christmas season as well as the opening of the Maritimo Shopping Center and the expansion of the Silesia City Center in October 2011 made an important contribution to this income. Rental income in the residential asset class rose by 4.2% over the comparable prior year period, but decreased in the office (-8.2%) and logistics (-2.2%) segments. The decline in the office segment resulted from the sale of properties: since 30/04/2011, five properties in Austria and one in Germany were sold.
Revenues rose by 3.3% to EUR 577.1 million for the first three quarters of 2011/12. AT0000809058 year-on-year increase in rental income supported growth of 5.7% in income from asset management to EUR 352.6 million (comparable amount for 2010/11: EUR 333.5 million). Property expenses consist chiefly of optimisation measures, e.g. maintenance and renovation, and totalled EUR 109.6 million for the reporting period. The goal of these improvement measures is to increase occupancy rates and rental income as well as the proceeds on future sales.
Income from Property Sales The sale of properties during the reporting period generated income of EUR 39.4 million, for an increase of 70.2% over the comparable prior year level of EUR 23.1 million. These transactions mainly involved properties in Austria and Germany. Property sales during the first nine months of the reporting year included, among others, the 30% stake in the MyPlace SelfStorage logistics property, the 50% joint venture investment in the Andreasquartier development project in Düsseldorf, the 50% joint venture investment in the Office Campus Gasometer office complex in Vienna and numerous apartments from the BUWOG portfolio. In accordance with IFRS requirements, the revaluation gain on the sale of the Bankgasse property in the first district of Vienna is included in results for the third quarter of 2011/12, even though the closing took place after the balance sheet date. These transactions reflect the steady implementation of the Group's strategy to sell properties at the high point of their cycle and to sell non-controlling interests and joint venture investments or develop them into majority holdings.
Income from Property Development The sale of inventories and the valuation of active development projects generated income of EUR 49.0 million, before foreign exchange effects, during the reporting period. This represents an impressive 133.4% increase over the previous year (EUR 21.0 million) in this increasingly important area of business. The largest contributions to this outstanding development were made by the extension of the Silesia City Center shopping center in Katowice, Poland, and the Maritimo Shopping Center in Romania. Negative effects arose from cost increases and revaluation results from the GoodZone project in Russia.
Administrative Expenses Administrative expenses (overhead costs and personnel expenses) declined from EUR 122.7 million in the first three quarters of 2010/11 to EUR 101.0 million for the reporting period. This represents a reduction of EUR 21.7 million or 17.7%, which resulted primarily from a decrease in administrative and consulting expenses. The increase from EUR 29.2 million in the third quarter of 2010/11 to EUR 41.2 million for the reporting period resulted chiefly from non-recurring costs of approx. EUR 10.0 million related to the takeover of Adama.
Results of Operations, EBIT, EBT, Net Profit The steady improvement in operating indicators is also reflected in a strong year-on-year increase in the results of operations from EUR 310.3 million to EUR 372.0 million. After the inclusion of positive valuation results (including foreign exchange effects) totalling EUR 352.9 million (prior year: EUR 57.6 million), IMMOFINANZ Group generated EBIT of EUR 690.9 million in the first three quarters of 2011/12 (prior year: EUR 343.3 million). This increase was supported by the improvement of operating results and above all, by higher results from the revaluation of properties (EUR +130.5 million) and higher foreign exchange effects (EUR +164.8 million) compared with the first three quarters of the previous year.
Financial results were clearly negative at EUR -377.7 million (prior year: EUR -91.9 million). This amount also includes EUR -166.2 million of non-cash foreign exchange effects - as contra items to positive foreign exchange-related effects from the revaluation of properties - as well as substantially lower other financial results. The other financial results consist chiefly of EUR -66.1 million in valuation effects from derivatives that are held for hedging purposes.
Earnings before tax (EBT) rose from EUR 251.4 million in the comparable prior year period to EUR 313.2 million. Net profit for the first three quarters of 2011/12 amounted to EUR 269.4 million. Excluding non-cash foreign exchange effects, net profit would have equalled EUR 252.6 million (prior year: EUR 249.4 million).
Cash Flow and Dividend, Outlook Gross cash flow declined slightly by 4.5% year-on-year to EUR 289.4 million. The approximate cash flow relevant for the dividend rose by EUR 13.3 million to EUR 222.2 million (*) and comprises gross cash flow less interest paid and cash outflows from derivatives plus interest received and income from property sales. A dividend of EUR 0.15 per share or EUR 155.4 million is planned for the 2011/12 financial year. IMMOFINANZ Group generated 143.0% of the required funds during the first three quarters of the reporting year. This calculation does not include any cash inflows from the sale of properties but only the resulting income, and the planned distribution could therefore be paid in full from operating cash flow - provided there are no negative developments during the final quarter of the reporting year. In spite of the volatility on financial and capital markets, we continue to expect stable development in the IMMOFINANZ Group's markets for the remainder of this financial year.
NAV per Share and Earnings per Share Diluted net asset value (NAV) per share rose from EUR 5.36 on 30/04/2011 to EUR 5.53 on 31/01/2012, despite the payment of a EUR 0.10 dividend per share in October 2011. This increase as supported by the sound results generated during the first nine months of the reporting year. Based on the share price as of 16/03/2012 (EUR 2.85), the IMMOFINANZ share traded at a discount of 48.4% to the diluted NAV per share. Diluted earnings per share for the first three quarters of 2011/12 equal EUR 0.26. This represents an annualised price-earnings ratio of 8.3 based on a share price of EUR 2.85.
(*) Gross cash flow (EUR 289.4 million) minus interest paid (EUR -113.3 million) plus interest received (EUR 11.2 million) minus cash outflow from derivatives (EUR -12.9 million) plus income from property sales (EUR 39.4 million) plus income from the sale of inventories minus production costs (EUR 8.4 million).
The current report on the first three quarters is now available at www.immofinanz.com. To view the report, please click the Investor Relations tab and go to Financial Reports.
On IMMOFINANZ Group IMMOFINANZ Group is one of the leading listed property companies in Europe and is included in the leading ATX index of the Vienna Stock Exchange. Since its founding in 1990, the company has compiled a high-quality property portfolio that now comprises more than 1,830 investment properties with a carrying amount of approx. EUR 9.81 billion. The core business of IMMOFINANZ Group covers the acquisition and management of investment properties, the realisation of development projects and the sale of objects. IMMOFINANZ Group concentrates its activities in the retail, office, logistics and residential segments of eight regional core markets: Austria, Germany, Czech Republic, Slovakia, Hungary, Romania, Poland and Russia. Further information under: www.immofinanz.com.
Contact: For additional information contact:
Simone Korbelius Investor Relations IMMOFINANZ AG T +43 (0)5 7111 2291 email@example.com
Sandra Bauer Head of Corporate Communications | Press Spokesperson IMMOFINANZ AG T +43 (0)5 7111 2292 M +43 (0)699 1685 7292 firstname.lastname@example.org
A-1100 Wien, Wienerbergstraße 11 www.immofinanz.com
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Company: IMMOFINANZ AG
Phone: +43 (0) 5 7111 - 2291
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Listed: Freiverkehr in Berlin, München, Stuttgart; Open Market in
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