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CA Immobilien Anlagen AG
Quarterly Report • Aug 21, 2019
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Quarterly Report
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URBAN BENCHMARKS.
FINANCIAL REPORT AS AT 30 JUNE 2019
KEY FINANCIAL FIGURES 1)
| INCOME STATEMENT | |||
|---|---|---|---|
| 1.1.-30.6.2019 | 1.1.-30.6.2018 | ||
| Rental income | € m | 111.4 | 93.8 |
| Net rental income | € m | 96.1 | 86.8 |
| EBITDA | € m | 82.7 | 79.3 |
| Operating result (EBIT) | € m | 195.8 | 149.8 |
| Net result before taxes (EBT) | € m | 140.0 | 123.3 |
| Consolidated net income | € m | 103.3 | 89.6 |
| Operating cash flow | € m | 44.3 | 61.6 |
| Capital expenditure | € m | 125.4 | 189.4 |
| FFO I (excl. trading and pre taxes) | € m | 64.5 | 63.2 |
| FFO II (incl. trading and after taxes) | € m | 61.3 | 63.4 |
BALANCE SHEET
| 30.6.2019 | 31.12.2018 | ||
|---|---|---|---|
| Total assets | € m | 5,555.1 | 5,355.5 |
| Shareholders' equity | € m | 2,670.3 | 2,639.7 |
| Long and short term interest-bearing liabilities | € m | 2,058.0 | 1,943.4 |
| Net debt | € m | 1,737.1 | 1,566.9 |
| Net asset value (EPRA NAV) | € m | 3,168.2 | 3,097.8 |
| Triple Net asset value (EPRA NNNAV) | € m | 2,819.3 | 2,798.7 |
| Gearing | % | 65.1 | 59.4 |
| Equity ratio | % | 48.1 | 49.3 |
| Gross LTV | % | 43.7 | 43.5 |
| Net LTV | % | 36.9 | 35.0 |
PROPERTY PORTFOLIO
| 30.6.2019 | 31.12.2018 | ||
|---|---|---|---|
| Total usable space (excl. parking, excl. projects) 2) | sqm | 1,571,487 | 1,586,183 |
| Fair value of properties | € m | 4,711.5 | 4,470.6 |
| Gross yield investment properties 3) | % | 5.7 | 5.8 |
| Occupancy rate 3) | % | 95.3 | 94.4 |
SHARE RELATED KEY FIGURES
| 1.1.-30.6.2019 | 1.1.-30.6.2018 | ||
|---|---|---|---|
| Rental income / share | € | 1.20 | 1.01 |
| Operating cash flow / share | € | 0.48 | 0.66 |
| Earnings per share | € | 1.11 | 0.96 |
| Earnings per share (diluted) | € | 1.11 | 0.96 |
| FFO I / share | € | 0.69 | 0.68 |
| FFO II / share | € | 0.66 | 0.68 |
| 30.6.2019 | 31.12.2018 | ||
| NAV/share | € | 28.70 | 28.37 |
| EPRA NAV/share | € | 34.06 | 33.30 |
| EPRA NNNAV/share | € | 30.31 | 30.08 |
| Price (key date)/NAV per share | % | 12.53 | –2.66 |
| Dividend paid in the business year / per share | € | 0.90 | 0.80 |
SHARES
| 30.6.2019 | 31.12.2018 | ||
|---|---|---|---|
| Number of shares | pcs. | 98,808,336 | 98,808,336 |
| Treasury shares | pcs. | 5,780,037 | 5,780,037 |
| Number of shares outstanding | pcs. | 93,028,299 | 93,028,299 |
| Average number of shares | pcs. | 98,808,336 | 98,808,336 |
| Average treasury shares | pcs. | 5,780,037 | 5,755,417 |
| Average number of shares outstanding | pcs. | 93,028,299 | 93,052,919 |
| Average price/share | € | 31.49 | 28.33 |
| Closing price | € | 32.30 | 27.62 |
| Highest price | € | 34.25 | 32.94 |
| Lowest price | € | 27.36 | 21.40 |
1) Key figures include all fully consolidated properties, i.e. all properties wholly owned by CA Immo 2) incl. land leases and rentable open landscapes 3) Excl. the recently completed office buildings Orhideea Towers (Bucharest), Visionary (Prague) and ViE (Vienna), which have been added to the portfolio and are still in the stabilisation phase 4) Closing price as at last year
FOREWORD BY THE MANAGEMENT BOARD
Andreas Quint (CEO) Dr. Andreas Schillhofer (CFO) Keegan Viscius (CIO)
DEAR SHAREHOLDERS,
With excellent operating results in the first half of the year, CA Immo has smoothly maintained the progress of 2018, itself a year of expansion. With a 19% increase in rental income, the company is reaping the benefit of last year's intensive developments and acquisitions. Given the strong support of a dynamic market environment in Germany, productive development activity is set to continue in 2019. The company's efficiently managed portfolio holdings, which are continually expanding as a result (occupancy rate: 95.3%), will provide a stable foundation for corporate performance based on long-term and quantifiable rental revenue.
Results of the first half-year 2019
FFO I, a key indicator of the Group's recurring earning power, reported before taxes and adjusted for the sales result and other non-permanent effects, rose 2.1% to €64.5 m in the first six months of 2019 (2018 value: €63.2 m). FFO I per share stood at €0.69 on the key date, an increase of 2.1% on the 2018 value of €0.68 per share.
In the first six months of 2019, rental income for CA Immo rose by a significant 18.9% to €111.4 m (€93.8 m in 2018). Adjusted for the IFRS 16 effects in the amount of €8.4 m, rental income stood at €103.1 m, a rise of 9.9% year-on-year. This positive development was linked to portfolio expansion in 2018. Completion of the KPMG building in Berlin, InterCity Hotel Frankfurt Hauptbahnhof and Orhideea Tower in Bucharest alongside the acquisition of the Warsaw Spire C office building in Warsaw, Campus 6.1 in Bucharest and the Visionary building in Prague delivered a highly positive contribution in terms of yearly comparisons.
The result from renting after the first two quarters was €96.1 m (2018: €86.8 m), an increase of 10.7% in year-onyear comparison. Adjusted to take account of IFRS 16 effects, the result from renting was €95.3 m (+9.8% year on year). The efficiency of letting activity (also adjusted for IFRS 16 effects), measured as the operating margin in rental business (net rental income in relation to rental income), was 92.5%, almost identical to the previous year's value of 92.6%.
As a result of the developments outlined above, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 4.3% to €82.7 m (2018: €79.3 m).
The revaluation result of €114.8 m on the key date was above the previous year's reference value (€48.7 m in 2018). The largest contributions to the revaluation gain in terms of amount came from value adjustments linked to construction progress on the development projects Cube and MY.B in Berlin, one site in Frankfurt and the portfolios in the Czech Republic and Hungary on the basis of positive market developments.
Earnings before interest and taxes (EBIT) were €195.8 m, 30.7% above the previous year's result (2018: €149.8 m).
The financial result stood at €–55.9 m after the first six months (2018: €–26.5 m). The Group's financing costs, a key element in long-term revenue, amounted to €–20.5 m, 12.1% above the value for 2018. The result from interest rate derivative transactions includes noncash valuation effects in connection with the convertible bond (€–15.7 m) plus interest rate hedges and amounted to €–40.1 m (€–16.8 m in 2018).
Earnings before taxes (EBT) totalled €140.0 m, 13.5% above the previous year's value of €123.3 m, largely because of the improved revaluation result. On the key date, taxes on earnings stood at €–36.7 m (2018: €–33.7 m). The result for the period was €103.3 m, 15.3% above the previous year's value (2018: €89.6 m). Earnings per share amounted to €1.11 on the balance sheet date (2018: €0.96 per share).An FFO I of €29.6 m was earned in the first three months of 2019, 6.6% above the previous year's value of €27.7 m. FFO I per share stood at €0.32 on the key date, an increase of 6.7% on the 2018 value of €0.30 per share.
The EPRA NAV (undiluted) stood at €34.06 per share on the key date (€33.30 per share on 31.12.2018). Adjusted to take account of the dividend payment of €0.90 per share in May 2019, NAV per share was up 5.0% since the start of the year.
CA Immo has maintained a robust balance sheet that serves as a sound basis for dynamic corporate growth. As at the key date, the equity ratio was 48.1% and the loanto-value ratio (net, taking account of Group cash and cash equivalents) stood at 36.9%.
Strong market performance
The CA Immo share also continued its positive development in the first half of 2019. The share price rose by 17% since the start of the year to stand at €32.30 on the final day. By comparison, the ATX and EPRA, the European index for real estate (excluding the UK), reported increases of approximately 8% and 6% respectively.
New Chief Financial Officer since 1 June 2019
Dr. Andreas Schillhofer (47), who was appointed a member of the Management Board and CFO of the company on 8 March 2019 by the Supervisory Board of CA Immobilien Anlagen AG, took up his post on 1 June. In this capacity he is responsible for the departments of Accounting and Taxation, Controlling and Risk Management, Financing, Capital Market and Investor Relations and Property Valuation.
High levels of pre-letting on projects
Demand for (office) projects developed by CA Immo remains high. Pre-letting for the three Berlin office projects due to be completed in the second half of 2019 was 93% (for MY.B) and 100% (for the Kunstcampus office building and Cube in Berlin) at the end of June. CA Immo will transfer two of the three buildings (MY.B and the Kunstcampus office building) to its own portfolio on completion.
In planning to commence the construction of another class A office high-rise adjacent to Berlin's main station in 2019, CA Immo is pushing ahead with its strategy of profitable expansion of the asset portfolio through its own development projects. The 84-metre structure has been fully pre-let to KPMG before construction work begins. As at the balance sheet date, CA Immo had an approximate volume of 151,500 sqm of rentable effective area under construction (equivalent to an investment volume of just under €820 m); some 129,000 sqm (appr. €680 m) is earmarked for the company's portfolio and the rest will be sold. With a project pipeline containing an additional 600,000 sqm of usable space on the basis of current land reserves (development horizon to 2028), CA Immo is a leading investor, asset manager and developer of high-quality office properties in Germany's top cities.
Outlook
The annual target for recurring earnings – an increase in FFO I on last year's value of €118.5 m to over €125 m – is hereby confirmed.
Vienna, 21 August 2019
The Management Board
Andreas Quint (Chairman)
Dr. Andreas Schillhofer (Member of the Management Board)
Keegan Viscius (Member of the Management Board)
SHARES
RATE DEVELOPMENT, STOCK EXCHANGE SALES AND MARKET CAPITALISATION FOR THE CA IMMO SHARES
Development on the CA Immo shares was strongly positive in the first half of the year. The share price has risen by 17% since the start of the year to stand at € 32.30 on the final day. By comparison, the ATX and EPRA, the European index for real estate (excluding the UK), reported increases of approximately 8% and 6% respectively. The share price recorded its annual peak of € 34.25 on 22 May 2019; the low for the year was € 27.36 at the start of the year. The CA Immo shares are currently trading with a premium to NAV (intrinsic value) of around 13%.
As at 30 June 2019, market capitalisation for CA Immo was approximately € 3.2 bn (€ 2.7 bn on 31.12.2018). Since the end of 2018, the average trading volume has fallen by 24% to stand at 175,500 shares (against 231,600 on 31 December 2018). The average liquidity of the shares has also declined by approximately 15% to stand at € 5.5 m since the end of 2018 (€ 6.5 m on 31.12.2018).
ANALYST COVERAGE
At present, CA Immo is assessed by eight investment companies. The most recently published 12-month target rates are in the range of € 32.50 to € 39.00, with the valuation median at € 37.00. The closing rate for 30 June 2019 implies price potential of approximately 15%.
ANALYST RECOMMENDATION
| Baader-Helvea Bank | 3.7.2019 | 34.00 € | Hold |
|---|---|---|---|
| Deutsche Bank | 22.5.2019 | 39.00 € | Buy |
| Erste Group | 2.7.2019 | 38.00 € | Buy |
| HSBC | 22.3.2019 | 39.00 € | Buy |
| Kepler Cheuvreux | 15.5.2019 | 38.00 € | Buy |
| Raiffeisen Centrobank | 11.3.2019 | 32.50 € | Hold |
| SRC Research | 22.5.2019 | 36.00 € | Hold |
| Wood & Company | 12.6.2019 | 34.30 € | Hold |
| Average | 36.35 € | ||
| Median | 37.00 € |
ONE YEAR PERFORMANCE (29.6.2018 TO 28.6.2019)
| CA Immo share | 13.17% |
|---|---|
| ATX | –8.55% |
| IATX | 10.06% |
| EPRA (ex UK) | –2.06% |
| Source: Vienna Stock Exchange |
BONDS
As at the balance sheet date, five CA Immo corporate bonds were trading on the second regulated market of the Vienna Stock Exchange and, to an extent, the regulated market of the Luxembourg Stock Exchange (Bourse de Luxembourg). The convertible bonds were registered for trading in the unregulated third market (multilateral trade system) of the Vienna Stock Exchange.
CAPITAL STOCK AND SHAREHOLDER STRUCTURE
SHAREHOLDER STRUCTURE
The company's capital stock amounted to € 718,336,602.72 on the balance sheet date. This was divided into four registered shares and 98,808,332 bearer shares each with a proportionate amount of the capital stock of € 7.27. The bearer shares trade on the prime market segment of the Vienna Stock Exchange (ISIN: AT0000641352).
With a shareholding of approximately 26% (25,843,652 bearer shares and four registered shares), SOF-11 Klimt CAI S.à r.l., Luxembourg, a company managed by Starwood Capital Group, is the largest shareholder in CA Immo. Starwood is a financial investor specialising in global real estate investment. The remaining shares of CA Immo are in free float with both institutional and private investors. Other major shareholders include the S IMMO Group (around 6%), AXA S.A. (around 5%) and BlackRock Inc. (around 4%). No other shareholders with a stake of more than 4% are known.
The company held 5,780,037 treasury shares as at the balance sheet date.
OUTCOME OF THE ANNUAL GENERAL MEETING
The 32nd Annual General Meeting of CA Immo was held on 9 May 2019. Taking account of the shares held by the company, which do not confer voting rights, attendance was approximately 67% of the capital stock with voting rights. Alongside the usual agenda items (distribution of profit, approval of the actions of Management and
Supervisory Board members, the approval of Supervisory Board remuneration and confirmation of Ernst & Young Wirtschaftsprüfungs-gesellschaft m.b.H. as the (Group) auditor for business year 2019), the agenda included the authorisation to acquire and dispose treasury shares and elections to the Supervisory Board. All resolutions proposed by the company had the legally required majority. Dr. Monika Wildner and Jeffrey G. Dishner were elected to the Supervisory Board of CA Immo until the end of the Annual General Meeting ruling on the approval of actions in business year 2023. The nomination of shareholder group Petrus Advisers et al to elect Dr. Martin Hagleitner to the Supervisory Board was rejected.
Relevant documents relating to Ordinary General Meetings may be viewed at https://www.caimmo.com/en/investor-relations/ordinary-general-meeting/.
| SHARE RELATED KEY FIGURES | ||
|---|---|---|
| 30.6.2019 | 31.12.2018 | ||
|---|---|---|---|
| NAV/share | € | 28.70 | 28.37 |
| EPRA NAV/share | € | 34.06 | 33.30 |
| EPRA NNNAV/share | € | 30.31 | 30.08 |
| Price (key date)/NAV per share | % | 12.53 | –2.66 |
| Price (key date)/EPRA NAV per share | % | –5.16 | –17.06 |
| Price (key date)/EPRA NNNAV per share | % | 6.58 | –8.19 |
| Number of shares | pcs. | 98,808,336 | 98,808,336 |
| Treasury shares | pcs. | 5,780,037 | 5,780,037 |
| Number of shares outstanding | pcs. | 93,028,299 | 93,028,299 |
| Average number of shares | pcs. | 98,808,336 | 98,808,336 |
| Average treasury shares | pcs. | 5,780,037 | 5,755,417 |
| Average number of shares outstanding | pcs. | 93,028,299 | 93,052,919 |
| Average price/share | € | 31.49 | 28.33 |
| Market capitalisation (key date) | € m | 3,191.51 | 2,729.09 |
| Highest price | € | 34.25 | 32.94 |
| Lowest price | € | 27.36 | 21.40 |
| Closing price | € | 32.30 | 27.62 |
| Dividend paid in the business year/per share | € | 0.90 | 0.80 |
| Dividend yield 1) | % | 3.26 | 3.10 |
1) Closing price as at last year
BASIC INFORMATION ON THE CA IMMO SHARES
| Type of shares: | No-par value shares |
|---|---|
| Stock market listing: | Vienna Stock Exchange, prime market |
| Indices: | ATX, ATX-Prime, IATX, FTSE EPRA/NAREIT Europe, GPR IPCM LFFS Sustainable GRES, WBI |
| Specialist: | Tower Research Capital Europe BV |
| Market maker: | Erste Group Bank AG, Hudson River Trading Europe Ltd., Raiffeisen Centrobank AG, Société |
| Générale S.A., Susquehanna International Securities Limited | |
| Stock exchange symbol/ISIN: | CAI/AT0000641352 |
| Reuters: | CAIV.VI |
| Bloomberg: | CAI:AV |
| Email: | [email protected] |
| Website: | www.caimmo.com |
Investor Relations contacts:
Christoph Thurnberger Head of Capital Markets Co-Head of Corporate Development Tel.: +43 1532 5907 504 Fax: +43 1532 5907 550 [email protected] Claudia Höbart Head of Corporate Office Tel.: +43 1532 5907 502 Fax: +43 1532 5907 550 [email protected]
FINANCIAL CALENDAR 2019
27 MARCH / 28 MARCH
PUBLICATION OF ANNUAL RESULTS FOR 2018 / PRESS CONFERENCE ON FINANCIAL STATEMENTS
29 APRIL
VERIFICATION DATE FOR THE 32ND ORDINARY GENERAL MEETING
9 MAY
32ND ORDINARY GENERAL MEETING
13 MAY / 14 MAY / 15 MAY
EX-DIVIDEND DATE / RECORD DATE (DIVIDEND) / DIV-IDEND PAYMENT DAY
21 MAY
INTERIM REPORT FOR THE FIRST QUARTER 2019
21 AUGUST / 22 AUGUST SEMI-ANNUAL REPORT 2019 / PRESS CONFERENCE ON SEMI-ANNUAL RESULT
20 NOVEMBER INTERIM REPORT FOR THE THIRD QUARTER 2019
25 MARCH / 26 MARCH (2020) PUBLICATION OF ANNUAL RESULTS FOR 2019 / PRESS CONFERENCE ON FINANCIAL STATEMENTS
PROPERTY ASSETS
As at key date 30 June 2019, CA Immo's total property assets stood at € 4.7 bn (31.12.2018: € 4.5 bn). The company's core business is commercial real estate, with a clear focus on office properties in Germany, Austria and Central Eastern Europe; it deals with both investment properties (82% of the total portfolio) and investment properties under development (17% of the total portfolio). Properties intended for trading (reported under short-term property assets) account for the remaining 1% of property assets.
CHANGES TO THE PORTFOLIO DURING FIRST HALF OF 2019
Sales
Property assets sold during the first six months of 2019 generated total trading revenue1) of € 47.8 m.
Project completions
In mid-June, CA Immo completed the first section (gross floor space of approximately 6,400 sqm) of the Kunstcampus office building in Berlin's Europacity district; this was duly handed over to the tenant, the Federal Union of German Associations of Pharmacists (ABDA). The remaining floor space (section 2) has also been let; the auditing and consulting firm KPMG will take up residence
in the autumn. After a two-year rental period, ABDA will incorporate the section into its own portfolio; the remaining floor space in the building will continue to be owned by CA Immo. The structure has 9,800 sqm of gross floor space in total, and the total investment for CA Immo is approximately € 47 m.
DISTRIBUTION OF BOOK VALUE TOTAL PROPERTY ASSETS BY SEGMENT (Basis: € 4.7 bn)
PROPERTY ASSETS OF THE CA IMMO GROUP AS AT 30 JUNE 2019
| in € m | Investment | Investment properties | Short-term | Property assets | Property assets |
|---|---|---|---|---|---|
| properties 2) | under development | property assets 3) | in % | ||
| Austria | 555.7 | 0.0 | 0.0 | 555.7 | 12 |
| Germany | 1,343.6 | 793.1 | 51.5 | 2,188.2 | 46 |
| Czechia | 361.2 | 10.6 | 0.0 | 371.8 | 8 |
| Hungary | 507.2 | 1.1 | 0.0 | 508.3 | 11 |
| Poland | 511.2 | 0.0 | 0.0 | 511.2 | 11 |
| Romania | 395.9 | 0.0 | 0.0 | 395.9 | 8 |
| Others | 180.4 | 0.0 | 0.0 | 180.4 | 4 |
| Total | 3,855.2 | 804.8 | 51.5 | 4,711.5 | 100 |
| Share of total | |||||
| portfolio | 82% | 17% | 1% |
2) Includes properties used for own purposes
3) Short-term property assets include properties intended for trading or sale
1) Incl. properties partially owned by CA Immo, consolidated at equity (prorata share)
INVESTMENT PROPERTIES
As at 30 June 2019, the investment property portfolio had an approximate book value of € 3.9 bn (31 December 2018: € 3.8 bn) and incorporated a total rentable effective area of 1.4 m sqm. Around 50% of the portfolio (based on book value) is located in CEE and SEE nations, with 35% of the remaining investment properties in Germany and 15% in Austria.
In the first six months of the year, the Group generated rental income of € 111.4 m (30 June 2018: € 93.8 m). Nearly unchanged to 31 December 2018, the portfolio produced a yield of 5.7%1). The occupancy rate was 95.3%1) as at 30 June 2019 (31 December 2018: 94.4%2)).
In total, approximately 83,400 sqm of rentable effective area was newly let or extended in the first half of 2019; of this, office premises accounted for 93%. Pre-letting on development projects accounted for some 18% of total lettings performance (see section 'Property assets under development'). New lettings and floor space expansions accounted for 32% of all rental agreements, while contract extensions represented 50%.
an approximate value of € 1,333.5 m 3) on 30 June 2019 (31 December 2018: € 1,311.3 m). The occupancy rate for the German investment property assets on the key date was 99.2% (against 99.0% on 31.12.2018). Where the rent contributions of properties intended for trading and temporarily let property reserves in the development segment are taken into account, rental income of € 33.2 m was generated in the first six months (30 June 2018: € 28.2 m).
AUSTRIA
As at 30 June 2019, CA Immo held investment properties in Austria with a value of € 552.0 m 2 (31 December 2018: € 560.2 m) and an occupancy rate of 89.6%4) (89.7%3) on 31.12.2018). This comparatively low occupancy rate is a result of a former anchor tenant moving out of one of the Lände 3 office buildings and will be continuously improved during the coming months by new tenants moving in, leasing contracts have already been signed accordingly. The company's asset portfolio generated rental income of € 14.6 m in the first six months (30 June 2018: € 13.9 m).
GERMANY
In Germany, CA Immo held investment properties with
| Investment properties | Rentable area 5) | Occupancy rate Annualised rental income | Yield | ||
|---|---|---|---|---|---|
| in € m | in sqm | in % | in € m | in % | |
| Austria | 504.6 | 308,840 | 89.6 | 26.5 | 5.3 |
| Germany | 1,333.5 | 336,867 | 99.2 | 60.3 | 4.5 |
| Czechia | 361.2 | 131,659 | 95.3 | 21.0 | 5.8 |
| Hungary | 507.2 | 218,628 | 93.6 | 34.9 | 6.9 |
| Poland | 511.2 | 137,154 | 96.6 | 31.4 | 6.2 |
| Romania | 317.9 | 128,201 | 93.5 | 23.7 | 7.4 |
| Others | 180.4 | 97,680 | 95.1 | 15.1 | 8.4 |
| Total | 3,716 | 1,359,030 | 95.3 | 213.0 | 5.7 |
OVERVIEW INVESTMENT PROPERTIES KEY DATA AS AT 30 JUNE 2019 5)
5) Excludes properties used for own purposes and short term property assets; excl. the office buildings Orhideea Towers (Bucharest) and ViE (Vienna), which have been completed and transferred to the investment portfolio in 2018 and are still in the stabilisation phase 6) Incl. land leases in Austria (around 106,000 sqm)
1) Excl. properties used for own purposes and the office buildings Orhideea Towers (Bucharest) and ViE (Vienna), which have been completed and transferred to the investment portfolio in 2018 and are still in the stabilisation phase
3) Excl. properties used for own purposes and properties intended for trading or sale
4) Excl. the office building ViE in Vienna, which has been completed and transferred to the investment portfolio in 2018 and is still in the stabilisation phase
2) Excl. properties used for own purposes and the office buildings Visionary (Prague), Orhideea Towers (Bucharest) and ViE (Vienna), which have been completed and transferred to the investment portfolio in 2018 and are still in the stabilisation phase
CENTRAL AND EASTERN EUROPE
The investment property portfolio
The value of the CA Immo investment properties1) is € 1,955.9 m as at 30 June 2019 (31 December 2018: € 1,883.7 m). In the first six months, property assets let with a total effective area of 750 k sqm generated rental income of 63.7 m (31 March 2018: € 51.7 m). The occupancy rate on the key date was 94.8%2) (31 December 2018: 93.4%3)).
The Bucharest office building Orhideea, developed by CA Immo, was completed and taken over to the investment portfolio at the end of 2018.
DISTRIBUTION OF BOOK VALUE INVESTMENT PROPERTIES BY MAIN USAGE (Basis: € 3,9 bn)
1) Excl. properties used for own purposes
- 2) Exclusive of the office building Orhideea Towers (Bucharest), which has been completed and transferred to the investment portfolio in 2018 and is still in the stabilisation phase
- 3) Exclusive of the office buildings Visionary (Prague), Orhideea Towers and Campus 6.1 (Bucharest), which have been completed and transferred to the investment portfolio in 2018 and were still in the stabilisation phase as at 31 December 2018
INVESTMENT PROPERTIES UNDER DEVELOPMENT
Of investment properties under development with a total book value of around € 804.8 m (31 December 2018: € 651.6 m), development projects and land reserves in Germany account for 99%, while the CEE segment represents 1% as at 30 June 2019. Investment properties under development in Germany with a book value of € 793.1 m include projects under construction (€ 562.0 m) and land reserves (€ 231.1 m).
Pre-leases of development projects
During the first half of the year, CA Immo pre-let almost 15,000 sqm of floor space through development projects in Germany. In May, CA Immo concluded a rental agreement with the global coworking supplier Spaces for 6,880 sqm of office space across five floors of the ONE high-rise office and hotel building under construction in Frankfurt. In April, CA Immo concluded two long-term lease agreements for 3,400 sqm of the MY.B office building, which is under construction in Berlin. The office building scheduled for completion in the final quarter of 2019 is already 93% let.
GERMANY: INVESTMENT PROPERTIES UNDER DEVELOPMENT
Berlin Projects 35% Munich Projects 20% Munich LR 2% Berlin LR 10%
LR: Land Reserve Projects: Projects under construction
| in € m | Total Investment 1) |
outstanding construction costs |
Planned rentable effective area in sqm |
Gross yield on cost in % |
City | Usage | Share in % 2) |
Utilisation in % 3) |
Construction phase |
|---|---|---|---|---|---|---|---|---|---|
| Projects (own stock) | |||||||||
| MY.O | 101.3 | 42.0 | 26,986 | 6.6 | Munich | Office | 100 | 82 | Q2 2017–Q2 2020 |
| Europacity, Bürogebäude | |||||||||
| am Kunstcampus (BT2) | 14.5 | 5.3 | 2,728 | 6.0 | Berlin | Office | 100 | 100 | Q4 2016–Q4 2019 |
| Europacity, MY.B | 68.5 | 28.8 | 14,719 | 7.1 | Berlin | Office | 100 | 93 | Q3 2017–Q4 2019 |
| Zollhafen Mainz, ZigZag | 16.6 | 13.2 | 4,695 | 5.4 | Mainz | Office | 100 | 0 | Q2 2018–Q4 2020 |
| Baumkirchen, NEO | 66.3 | 25.5 | 13,491 | 4.7 | Munich | Office | 100 | 27 | Q1 2017–Q2 2020 |
| Europaviertel, ONE | 412.0 | 320.2 | 66,249 | 5.3 Frankfurt | Office | 100 | 34 | Q3 2017–Q1 2022 | |
| Total | 679.2 | 435.1 | 128,868 | 5.6 | |||||
| Projects (for sale) | |||||||||
| Europacity, cube berlin | 109.8 | 34.1 | 16,829 | n.m. | Berlin | Office | 100 | 100 | Q4 2016–Q4 2019 |
| Baumkirchen Mitte (MK) | 28.4 | 10.9 | 5,782 | n.m. | Munich Residential | 100 | 0 | Q1 2017–Q2 2020 | |
| Total | 138.2 | 45.0 | 22,611 | ||||||
| Total | 817.4 | 480.1 | 151,478 |
PROJECTS UNDER CONSTRUCTION
1) Incl. plot (total investment cost excl. plot € 719.5 m)
2) All figures refer to the project share held by CA Immo
3) Utilisation of projects for own stock: pre-letting rate; utilisation of projects for sale: sale
SUPPLEMENTARY REPORT
The following activities after key date 30 June 2019 are reported:
Project pre-leases
In July, CA Immo concluded a long-term lease agreement with KPMG for approximately 23,000 sqm of rentable space in a planned class A office building in Berlin's Europacity. Construction of the modern, 84-metre, fully pre-let landmark building adjacent to Berlin's main station is expected to begin this year, with completion scheduled for the end of 2023. CA Immo will be investing an approximate total of €155 m.
Also in July, Munich city council granted preliminary planning approval and ruled on the key details of a new residential district on a 21-hectare site of the so-called Eggarten in the north of Munich. The structural concept sets out the benchmark data for a new residential quarter with 1,750 to 2,000 apartments to be brought to construction readiness in the next few years by joint venture partners CA Immo and the Büschl group of companies.
CHANGES IN PRESENTATION AND ACCOUNTING POLICIES
The IFRS 16 standard on the subject of leasing came into force on 1 January 2019. Amongst other things, the standard involves changes in connection with leasing agreements for cars, operating and office equipment, lease agreements and usufruct.
In cases where the CA Immo Group is a tenant and not the landowner, the application of IFRS 16 leads to recognition of a right of usage and a liability. The relevant agreements of the CA Immo Group relate to properties in Poland and Serbia. The leasing of parking spaces via subletting also results in recognition of a right of usage and a lease liability. In both situations, the usage rights are shown in the item 'Investment properties' and assessed under IAS 40. Amongst other things, the initial application of IFRS 16 led to an increase of €31.8 m in the item 'Investment properties' as of 1 January 2019.
Moreover, the CA Immo Group will post revenue from operating costs passed on to tenants separately, in line with the allocation of components to IFRS 16 or IFRS 15, as from 1 January 2019. The proportion of operating costs entered as a part of leasing income under IFRS 16 will be allocated to rental income. Associated expenditure will be entered in the item 'Other expenditure directly attributable to property assets'. As from 2019, the items 'Operating expenses' and 'Operating expenses passed on to the tenant' will only contain components assignable to IFRS 15.
The comparative values have not been adjusted. For details of the effects of IFRS 16 on the consolidated financial statements, please refer to the Interim Financial Statements, p. 32-33.
EMPLOYEES
As at 30 June 2019, CA Immo had a total of 393 employees1), compared to 3822) on 31 December 2018. 20% of the overall workforce was based in Austria, with 56% in Germany and 24% in Eastern Europe. Of the total staff members, 52% are female.
EMPLOYEES PER SEGMENT AS AT 30 JUNE 2019 3)
| Headcounts as at 30.6.2019 |
Headcounts as at 31.12.2018 |
Change to 31.12.2018 |
|
|---|---|---|---|
| Austria | 77 | 77 | 0% |
| Germany 4) | 219 | 210 | 4% |
| Eastern Europe | 97 | 95 | 2% |
| Total | 393 | 382 | 3% |
3) Includes staff on unpaid leave
4) Includes employees of CA Immo Deutschland GmbH, the wholly owned subsdiary omniCon as well as 22 staff members at the omniCon branch in Basel; excl. staff of the 49 %-owned subsidiary DRG and the 50%-owned subsidiary Mainzer Zollhafen GmbH & Co.KG
1) Around 13% were part-time employees; includes staff on unpaid leave, excl. 17 Headcounts in Joint Ventures (DRG, Mainzer Zollhafen GmbH & Co. KG
2) Of this figure, around 12% were part-time employees; includes staff on unpaid leave, excludes Headcounts in Joint Ventures
Sustained earnings
In the first six months of 2019, rental income for CA Immo rose by a significant 18.9% to € 111.4 m (€ 93.8 m in 2018). Adjusted for the IFRS 16 effect in the amount of € 8.4 m, rental income stood at € 103.1 m, a rise of 9.9% year-on-year. This positive development was linked to portfolio expansion in 2018. Completion of the KPMG building in Berlin, InterCity Hotel Frankfurt Hauptbahnhof and Orhideea Towers in Bucharest alongside the acquisition of the Warsaw Spire C office building in Warsaw, Campus 6.1 in Bucharest and the Visionary building in Prague delivered a positive contribution in terms of yearly comparisons.
Property expenses directly attributable to the asset portfolio – including own operating expenses – increased year-on-year (adjusted for an IFRS 16 effect in the amount of € 8.8 m) to € -7.8 m (2018: € -7.0 m). The net result from renting after the first two quarters was € 96.1 m (2018: € 86.8 m), a rise of 10.7% on the previous year. Adjusted for IFRS 16 effects, net rental income stood at € 95.3 m (+9.8% in yearly comparison). The efficiency of letting activity (also adjusted for IFRS 16 effects), measured as the operating margin in rental business (net rental income to rental income), was 92.5%, against the previous year's value of 92.6%.
Other expenditure directly attributable to project development stood at € –2.1 m after six months, against € –1.4 m in 2018. Gross revenue from services stood at € 4.3 m, below the previous year's value of € 7.3 m. Alongside development revenue for third parties via the subsidiary omniCon, this item contains revenue from asset management and other services to joint venture partners.
Sales result
As at the key date, the result from property trading and construction services stood at € –2.0 m (2018: € 5.1 m). The result from the sale of investment properties stood at € 8.5 m on 30 June 2019 (€ 4.4 m in 2018).
Indirect expenditures
After the first six months, indirect expenditures stood at € –22.3 m, –4.3% below the 2018 level of € –23.3 m. This item also contains expenditure counterbalancing the aforementioned gross revenue from services. Other operating income stood at € 0.2 m, compared to the 2018 value of € 0.4 m.
Earnings before interest, taxes, depreciation and amortisation (EBITDA)
As a result of the developments outlined above, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 4.3% to € 82.7 m (compared to € 79.3 m in 2018).
Revaluation result
After the first six months, the total revaluation gain of € 121.7 m was partially offset by a revaluation loss of € –6.9 m. The cumulative revaluation result of € 114.8 m on the key date exceeded the previous year's reference value (€ 48.7 m in 2018). The largest contributions to the revaluation gain in terms of amount came from value adjustments linked to construction progress on the development projects Cube and MY.B in Berlin, one site in Frankfurt and the portfolios in Czechia and Hungary on the basis of positive market developments.
Result from joint ventures
Current results of joint ventures consolidated at equity are reported under 'Earnings of joint ventures' in the consolidated income statement. The low contribution to earnings of € 0.6 m (€ 22.9 m in 2018) reflects the reduced volume of joint ventures as part of the strategic streamlining of the portfolio.
Earnings before interest and taxes (EBIT)
Earnings before interest and taxes (EBIT) were € 195.8 m, 30.7% above the 2018 result of € 149.8 m.
Net finance cost
The financial result stood at € –55.9 m after the first six months (2018: € –26.5 m). The Group's financing costs, a key element in recurring earnings, amounted to € – 20.5 m, 12.1% above the value for 2018.
The result from interest rate derivative transactions includes non-cash valuation effects in connection with the convertible bond (€ -15.7 m) plus interest rate hedges and amounted to € –40.1 m (€ –16.8 m in 2018). The convertible bond issued in 2017 comprises a debt component and a separable embedded derivative based on the option of repayment in CA Immo shares. The attributable fair value of the derivative corresponds to the difference at the time of issue between the attributable fair value of the convertible bond and the attributable fair value of the debt component.
The result from financial investments of € 8.2 m was above the reference value for the previous period (€ 5.9 m in 2018). The increase in the second quarter includes the dividend from the holding in Immofinanz AG. Other items in the financial result (result from other financial assets and result from associated companies and exchange rate differences) totalled € –3.5 m (€ 2.7 m in 2018). The result from associated companies relates to the valuation of loans granted to an associated company in Russia.
Taxes on income
Earnings before taxes (EBT) totalled € 140.0 m, above the previous year's value of € 123.3 m, largely because of the improved revaluation result of 13.5%. On the key date, taxes on earnings stood at € –36.7 m (2018: € –33.7 m).
Profit for the period
The result for the period was € 103.3 m, 15.3% above the 2018 value of € 89.6 m. Earnings per share amounted to € 1.11 on the balance sheet date (€ 0.96 per share in 2018).
Funds from operations (FFO)
An FFO I of € 64.5 m was generated in the first six months of 2019, 2.1% above the previous year's value of € 63.2 m. FFO I, a key indicator of the Group's long-term earning power, is reported before taxes and adjusted for the sales result and other non-permanent effects. FFO I per share stood at € 0.69 on the key date, an increase of 2.1% on the 2018 value of € 0.68 per share.
FFO II, which includes the sales result and applicable taxes, stood at € 61.3 m on the key date, -3.4% below the 2018 value of € 63.4 m. FFO II per share was € 0.66 per share (against € 0.68 per share in 2018).
FUNDS FROM OPERATIONS (FFO)
| € m | Half-year | Half-year |
|---|---|---|
| 2019 | 2018 | |
| Net rental income (NRI) | 96.1 | 86.8 |
| Income from services rendered | 4.3 | 7.3 |
| Other expenses directly related to | ||
| properties under development | –2.1 | –1.4 |
| Other operating income | 0.2 | 0.4 |
| Other operating income/expenses | 2.4 | 6.4 |
| Indirect expenses | –22.3 | –23.3 |
| Result from investments in joint | ||
| ventures 1) | 0.2 | 3.7 |
| Finance costs | –20.5 | –18.3 |
| Result from financial investments | 7.3 | 4.7 |
| Other adjustments 2) | 1.4 | 3.3 |
| FFO I (excl. trading and pre taxes) | 64.5 | 63.2 |
| Trading result | –2.0 | 5.1 |
| Result from the sale of investment | ||
| properties | 8.5 | 4.4 |
| Result from sale of joint ventures | –0.5 | –0.1 |
| At-Equity result property sales | 0.7 | 9.0 |
| Result from property sales | 6.8 | 18.4 |
| Current income tax | –8.4 | –31.6 |
| Current income tax of joint ventures | –0.1 | –0.4 |
| Other adjustments | –1.6 | –6.0 |
| Other adjustments FFO II 3) | 0.0 | 19.8 |
| FFO II (incl. trading and after taxes) | 61.3 | 63.4 |
1) Adjusted for real estate sales and non-sustainable results
2) Adjustment for other non-sustainable results
3) Taxes in connection with the sale of Tower 185
Balance sheet: assets
As at the balance sheet date, long-term assets amounted to € 4,925.8 m (88.7% of total assets). Investment property assets on balance sheet stood at € 3,841.4 m on the key date (31.12.2018: € 3,755.2 m).
The balance sheet item 'Property assets under development' was € 804.8 m on 30 June 2019 (31.12.2018: € 651.6 m). Total property assets (investment properties, properties used for own purposes, property assets under development and property assets held as current assets) amounted to € 4,711.5 m on the key date (€ 4,470.6 m on 31.12.2018).
The net assets of joint ventures are shown in the balance sheet item 'Investments in joint ventures', which stood at € 191.4 m on the key date (€ 200.0 m on 31.12.2018).
Cash and cash equivalents stood at € 317.5 m on the balance sheet date (€ 374.3 m on 31.12.2018).
Balance sheet: liabilities Equity
As at the key date, shareholders' equity on the Group balance sheet stood at € 2,670.3 m (€ 2,639.7 m on 31.12.2018). The equity ratio of 48.1% remained unchanged and within the strategic target range (the comparative value for the end of 2018 was 49.3%).
Interest-bearing liabilities
The Group's financial liabilities stood at € 2,058.0 m on the key date (against € 1,943.4 m on 31.12.2018). Net debt (interest-bearing liabilities less cash and cash equivalents) was € 1,737.1 m at the end of June 2019 (31.12.2018: € 1,566.9 m). 100% of interest-bearing financial liabilities are in euros.
The loan-to-value ratio based on market values as at 30 June 2019 was 36.9% (net, taking account of Group cash and cash equivalents) compared to 35.0% at the start of the year. Gearing was 65.1% on the key date (59.4% on 31.12.2018).
Net asset value
NAV (shareholders' equity) was € 2,670.2 m on 30 June 2019 (€ 28.70 per share, basic), 1.2% above the value for the end of 2018 (€ 2,639.6 m, €28.37 per share). Adjusted to take account of the dividend payment of € 0.90 per share in May 2019, NAV per share was up 4.3% since the start of the year.
The table below shows the conversion of NAV to NNNAV in compliance with the best practice policy recommendations of the European Public Real Estate Association (EPRA). The basic EPRA NAV stood at € 34.06 per share on the key date (€ 33.30 per share on
31.12.2018). The basic EPRA NNNAV per share after adjustments for financial instruments, liabilities and deferred taxes, stood at € 30.31 per share as at 30 June 2019 (€ 30.08 per share on 31.12.2018). The number of shares in circulation was 93,028,299 on the key date (93,028,299 on 31.12.2018).
The potential dilutive effect of the convertible bond issued by the Group (€ 200 m) was taken into consideration in the calculation of net asset value. The conversion price for the convertible bond was € 30.17 as of 30 June 2019, compared to the share price of € 32.30. Conversion at this price would raise the number of outstanding shares by around 6.6 million.
NET ASSET VALUE (NAV AND NNNAV AS DEFINED BY EPRA)
| € m | 30.6.2019 diluted |
30.6.2019 undiluted |
31.12.2018 |
|---|---|---|---|
| Equity (NAV) | 2,670.2 | 2,670.2 | 2,639.6 |
| Exercise of options | 214.1 | 0.0 | 0.0 |
| NAV after exercise of options | 2,884.3 | 2,670.2 | 2,639.6 |
| NAV/share in € | 28.94 | 28.70 | 28.37 |
| Value adjustment for 1) | |||
| - Own used properties | 7.4 | 7.4 | 7.3 |
| - Short-term property assets | 122.9 | 122.9 | 111.4 |
| - Financial instruments | 0.0 | 0.0 | 0.0 |
| Deferred taxes | 367.6 | 367.6 | 339.5 |
| EPRA NAV after adjustments | 3,382.3 | 3,168.2 | 3,097.8 |
| EPRA NAV per share in € | 33.94 | 34.06 | 33.30 |
| Value adj. for financial instruments | 0.0 | 0.0 | 0.0 |
| Value adjustment for liabilities | –40.4 | –80.7 | –47.1 |
| Deferred taxes | –275.3 | –268.1 | –252.1 |
| EPRA NNNAV | 3,066.7 | 2,819.3 | 2,798.7 |
| EPRA NNNAV per share in € | 30.77 | 30.31 | 30.08 |
| Share price (key date) | 32.30 | 32.30 | 27,62 |
| Number of shares excl. treasury shares | 99,657,313 | 93,028,299 | 93,028,299 |
1) Includes proportional values from joint ventures
RISK REPORT
OPPORTUNITIES AND THREATS
The Group is subject to all risks typically associated with the acquisition, development, management and sale of real estate. These include risks arising from unexpected changes in the macroeconomic market environment, general market fluctuations linked to the economic cycle, delays and budget overruns in project developments and risks linked to financing and interest rates.
As regards the profile of opportunities and risks, no major changes that could give rise to new opportunities or threats to the CA Immo Group have emerged since the consolidated financial statements for business year 2018 were drawn up; nor has there been any significant change in the company's assessment of the probability of damage occurring and the extent of such potential damage. The position as outlined in the Group management report for 2018 ('Risk report') is therefore unchanged.
CONSOLIDATED INCOME STATEMENT
| € K | Half-year 2019 | Half-year 2018 | 2nd Quarter 2019 | 2nd Quarter 2018 |
|---|---|---|---|---|
| Rental income | 111,437 | 93,761 | 53,166 | 47,576 |
| Operating costs charged to tenants | 26,154 | 29,346 | 12,893 | 12,308 |
| Operating expenses | –28,126 | –31,807 | –13,593 | –13,242 |
| Other expenses directly related to properties rented | –13,370 | –4,504 | –3,091 | –2,559 |
| Net rental income | 96,094 | 86,796 | 49,375 | 44,083 |
| Other expenses directly related to properties under | ||||
| development | –2,077 | –1,375 | –614 | 538 |
| Income from the sale of properties and construction | ||||
| works | 9,557 | 23,790 | 5,940 | 9,837 |
| Book value of properties sold incl. ancillary and | ||||
| construction costs | –11,546 | –18,716 | –7,560 | –9,277 |
| Result from trading and construction works | –1,989 | 5,074 | –1,620 | 560 |
| Result from the sale of investment properties | 8,522 | 4,383 | 7,209 | 783 |
| Income from services rendered | 4,265 | 7,333 | 2,411 | 3,619 |
| Indirect expenses | –22,344 | –23,341 | –11,903 | –11,229 |
| Other operating income | 250 | 445 | –266 | 209 |
| EBITDA | 82,720 | 79,316 | 44,592 | 38,564 |
| Depreciation and impairment of long-term assets | –2,226 | –1,150 | –1,121 | –584 |
| Changes in value of properties held for trading | –73 | 0 | –73 | 0 |
| Depreciation and impairment/reversal | –2,299 | –1,150 | –1,194 | –584 |
| Revaluation gain | 121,666 | 62,030 | 99,224 | 60,164 |
| Revaluation loss | –6,852 | –13,324 | –510 | –10,865 |
| Result from revaluation | 114,814 | 48,706 | 98,713 | 49,299 |
| Result from joint ventures | 601 | 22,943 | 244 | 5,962 |
| Result of operations (EBIT) | 195,836 | 149,816 | 142,355 | 93,241 |
| Finance costs | –20,547 | –18,331 | –11,063 | –8,758 |
| Foreign currency gains/losses | –493 | 3,997 | –626 | 3,969 |
| Result from derivatives | –40,077 | –16,800 | –11,876 | –7,508 |
| Result from financial investments | 8,211 | 5,902 | 7,405 | 4,853 |
| Result from associated companies | –2,963 | –1,319 | 24 | –1,112 |
| Financial result | –55,869 | –26,549 | –16,136 | –8,557 |
| Net result before taxes (EBT) | 139,966 | 123,266 | 126,219 | 84,684 |
| Current income tax | –8,391 | –31,611 | –4,452 | –2,593 |
| Deferred taxes | –28,288 | –2,076 | –23,902 | –21,353 |
| Income tax expense | –36,680 | –33,687 | –28,354 | –23,947 |
| Consolidated net income | 103,287 | 89,579 | 97,865 | 60,737 |
| thereof attributable to non-controlling interests | 2 | 2 | 1 | 1 |
| thereof attributable to the owners of the parent | 103,285 | 89,577 | 97,864 | 60,736 |
| Earnings per share in € (basic) | €1.11 | €0.96 | €1.05 | €0.65 |
| Earnings per share in € (diluted) | €1.11 | €0.96 | €1.05 | €0.65 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| € K | Half-year 2019 | Half-year 2018 | 2nd Quarter 2019 | 2nd Quarter 2018 |
|---|---|---|---|---|
| Consolidated net income | 103,287 | 89,579 | 97,865 | 60,737 |
| Other comprehensive income | ||||
| Reclassification of cash flow hedges | 0 | 742 | 0 | 375 |
| Foreign currency gains/losses | –2 | –4,090 | 5 | –4,029 |
| Income tax related to other comprehensive income | 0 | –179 | 0 | –91 |
| Other comprehensive income for the period (realised | ||||
| through profit or loss) | –2 | –3,527 | 5 | –3,745 |
| Revaluation securities | 11,111 | –5,864 | 4,315 | –4,056 |
| Revaluation IAS 19 | –1,356 | 178 | –1,356 | 178 |
| Income tax related to other comprehensive income | –262 | 122 | –51 | –35 |
| Other comprehensive income for the period (not | ||||
| realised through profit or loss) | 9,494 | –5,564 | 2,908 | –3,913 |
| Other comprehensive income for the period | 9,491 | –9,091 | 2,913 | –7,658 |
| Comprehensive income for the period | 112,778 | 80,488 | 100,778 | 53,079 |
| thereof attributable to non-controlling interests | 2 | 2 | 1 | 1 |
| thereof attributable to the owners of the parent | 112,776 | 80,486 | 100,777 | 53,078 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| € K | 30.6.2019 | 31.12.2018 |
|---|---|---|
| ASSETS | ||
| Investment properties | 3,841,374 | 3,755,196 |
| Investment properties under development | 804,806 | 651,575 |
| Own used properties | 13,791 | 5,223 |
| Office furniture and equipment | 7,033 | 5,938 |
| Intangible assets | 5,516 | 5,689 |
| Investments in joint ventures | 191,394 | 200,012 |
| Financial assets | 59,795 | 65,163 |
| Deferred tax assets | 2,071 | 1,951 |
| Long-term assets | 4,925,780 | 4,690,748 |
| Long-term assets as a % of total assets | 88.7% | 87.6% |
| Assets held for sale and relating to disposal groups | 5,976 | 15,144 |
| Properties held for trading | 51,499 | 44,468 |
| Receivables and other assets | 117,302 | 97,115 |
| Current income tax receivables | 22,823 | 19,184 |
| Securities | 114,235 | 114,544 |
| Cash and cash equivalents | 317,502 | 374,302 |
| Short-term assets | 629,337 | 664,757 |
| Total assets | 5,555,117 | 5,355,504 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Share capital | 718,337 | 718,337 |
| Capital reserves | 791,372 | 789,832 |
| Other reserves | 19,945 | 12,804 |
| Retained earnings | 1,140,573 | 1,118,663 |
| Attributable to the owners of the parent | 2,670,226 | 2,639,635 |
| Non-controlling interests | 64 | 62 |
| Shareholders' equity | 2,670,290 | 2,639,697 |
| Shareholders' equity as a % of total assets | 48.1% | 49.3% |
| Provisions | 29,305 | 29,327 |
| Interest-bearing liabilities | 1,892,306 | 1,723,749 |
| Other liabilities | 108,914 | 67,485 |
| Deferred tax liabilities | 375,036 | 346,793 |
| Long-term liabilities | 2,405,561 | 2,167,353 |
| Current income tax liabilities | 19,294 | 38,648 |
| Provisions | 119,128 | 119,646 |
| Interest-bearing liabilities | 165,713 | 219,645 |
| Other liabilities | 175,131 | 169,588 |
| Liabilities relating to disposal groups | 0 | 927 |
| Short-term liabilities | 479,266 | 548,454 |
| Total liabilities and shareholders' equity | 5,555,117 | 5,355,504 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| € K | Half-year 2019 | Half-year 2018 |
|---|---|---|
| Operating activities | ||
| Net result before taxes | 139,966 | 123,266 |
| Revaluation result incl. change in accrual and deferral of rental income | –116,354 | –49,316 |
| Depreciation and impairment/reversal | 2,299 | 1,150 |
| Result from the sale of long-term properties and office furniture and other equipment | –8,516 | –4,400 |
| Taxes paid excl. taxes for the sale of long-term properties and investments | –12,610 | –430 |
| Finance costs, result from financial investments and other financial result | 13,246 | 13,655 |
| Foreign currency gains/losses | 493 | –3,997 |
| Result from derivatives | 40,077 | 16,800 |
| Result from other financial assets, securities and non-cash income from investments in | 1,453 | –22,852 |
| at equity consolidated entities | ||
| Cash flow from operations | 60,055 | 73,877 |
| Properties held for trading | –6,814 | –1,210 |
| Receivables and other assets | –3,456 | –8,401 |
| Provisions | –2,205 | –3,664 |
| Other liabilities | –3,326 | 950 |
| Cash flow from change in net working capital | –15,802 | –12,326 |
| Cash flow from operating activities | 44,252 | 61,552 |
| Investing activities | ||
| Acquisition of and investment in long-term properties incl. prepayments | –100,529 | –108,954 |
| Acquisition of property companies, less cash and cash equivalents of € 0 K (2018: € 190 K) | –1,848 | –59,260 |
| Acquisition of office equipment and intangible assets | –1,509 | –372 |
| Repayment of financial assets | 309 | 11 |
| Disposal of securities | 11,419 | 0 |
| Investments in joint ventures | –10 | 0 |
| Disposal of investment properties and other assets | 8,823 | 18,456 |
| Disposal of investment property companies, less cash and cash equivalents of € 1,007 K | 14,784 | 38,805 |
| (2018: € 954 K) | ||
| Disposal of joint ventures | 460 | 2,147 |
| Loans made to joint ventures | –650 | –5,451 |
| Loan repayments made by joint ventures | 0 | 30 |
| Taxes paid relating to the sale of long-term properties and investments | –17,325 | –2,181 |
| Dividend distribution/capital repayment from at equity consolidated entities and | 18,221 | 154,415 |
| other investments | ||
| Interest paid for capital expenditure in investment properties | –2,477 | –3,413 |
| Interest received from financial investments | 1,300 | 2,602 |
| Cash flow from investing activities | –69,033 | 36,834 |
| € K | Half-year 2019 | Half-year 2018 | |
|---|---|---|---|
| Financing activities | |||
| Cash inflow from loans received | 90,130 | 44,490 | |
| Costs paid for issuance of convertible bonds | 0 | –112 | |
| Costs paid for issuance of bonds | –70 | 0 | |
| Repayment of loans received from joint ventures | 0 | –600 | |
| Acquisition of treasury shares | 0 | –4,662 | |
| Dividend payments to shareholders | –83,725 | –74,423 | |
| Dividends to shareholders of non-controlling interests | –129 | 0 | |
| Repayment of loans incl. interest rate derivatives | –16,646 | –92,758 | |
| Other interest paid | –21,769 | –19,240 | |
| Cash flow from financing activities | –32,210 | –147,304 | |
| Net change in cash and cash equivalents | –56,990 | –48,919 | |
| Fund of cash and cash equivalents 1.1. | 374,519 | 383,512 | |
| Changes in the value of foreign currency | 166 | –1,732 | |
| Fund of cash and cash equivalents 30.6. | 317,696 | 332,861 | |
| Expected credit losses cash and cash equivalents | –194 | –170 | |
| Cash and cash equivalents 30.6. (balance sheet) | 317,502 | 332,691 |
The interest paid in the first half of 2019 totalled € –24,246 K (first half 2018: € –22,654 K). The income taxes paid in the first half of 2019 totalled € –29,934 K (first half 2018: € –2,610 K).
STATEMENT OF CHANGES IN EQUITY
| € K | Share capital Capital reserves - Others |
Capital reserves - Treasury share reserve |
||
|---|---|---|---|---|
| As at 1.1.2018 | 718,337 | 885,607 | –91,113 | |
| Valuation/reclassification of cash flow hedges | 0 | 0 | 0 | |
| Foreign currency gains/losses | 0 | 0 | 0 | |
| Revaluation of securities | 0 | 0 | 0 | |
| Revaluation under IAS 19 | 0 | 0 | 0 | |
| Consolidated net income | 0 | 0 | 0 | |
| Comprehensive income for 2018 | 0 | 0 | 0 | |
| Dividend payments to shareholders | 0 | 0 | 0 | |
| Acquisition of treasury shares | 0 | 0 | –4,662 | |
| As at 30.6.2018 | 718,337 | 885,607 | –95,775 | |
| As at 1.1.2019 | 718,337 | 885,607 | –95,775 | |
| Foreign currency gains/losses | 0 | 0 | 0 | |
| Revaluation of securities | 0 | 0 | 0 | |
| Revaluation under IAS 19 | 0 | 0 | 0 | |
| Consolidated net income | 0 | 0 | 0 | |
| Comprehensive income for 2019 | 0 | 0 | 0 | |
| Dividend payments to shareholders | 0 | 0 | 0 | |
| Reclassification (other comprehensive income, not realised through profit or loss) | 0 | 0 | 0 | |
| Subsequent change of acquisition costs for shares in non-controlling interests | 0 | 1,540 | 0 | |
| As at 30.6.2019 | 718,337 | 887,147 | –95,775 |
| Retained | Valuation result | Other reserves Attributable to shareholders | Non-controlling | Shareholders' equity | |
|---|---|---|---|---|---|
| earnings | (hedging - reserve) | of the parent company | interests | (total) | |
| 887,662 | –842 | 19,569 | 2,419,219 | 51 | 2,419,270 |
| 0 | 563 | 0 | 563 | 0 | 563 |
| 0 | 0 | –4,090 | –4,090 | 0 | –4,090 |
| 0 | 0 | –5,685 | –5,685 | 0 | –5,685 |
| 0 | 0 | 121 | 121 | 0 | 121 |
| 89,577 | 0 | 0 | 89,577 | 2 | 89,579 |
| 89,577 | 563 | –9,654 | 80,486 | 2 | 80,488 |
| –74,423 | 0 | 0 | –74,423 | 0 | –74,423 |
| 0 | 0 | 0 | –4,662 | 0 | –4,662 |
| 902,816 | –279 | 9,915 | 2,420,621 | 53 | 2,420,674 |
| 1,118,663 | 0 | 12,804 | 2,639,635 | 62 | 2,639,697 |
| 0 | 0 | –2 | –2 | 0 | –2 |
| 0 | 0 | 10,417 | 10,417 | 0 | 10,417 |
| 0 | 0 | –923 | –923 | 0 | –923 |
| 103,285 | 0 | 0 | 103,285 | 2 | 103,287 |
| 103,285 | 0 | 9,491 | 112,776 | 2 | 112,778 |
| –83,725 | 0 | 0 | –83,725 | 0 | –83,725 |
| 2,350 | 0 | –2,350 | 0 | 0 | 0 |
| 0 | 0 | 0 | 1,540 | 0 | 1,540 |
| 1,140,573 | 0 | 19,945 | 2,670,226 | 64 | 2,670,290 |
SEGMENT REPORTING3)
| € K | Austria | Germany | ||||||
|---|---|---|---|---|---|---|---|---|
| Half-year 2019 | Income | Development | Total | Income | Development | Total | Income | |
| producing | producing | producing | ||||||
| Rental income | 14,577 | 3 | 14,581 | 31,538 | 2,523 | 34,061 | 53,598 | |
| Rental income with other operating segments | 272 | 0 | 272 | 225 | 5 | 230 | 0 | |
| Operating costs charged to tenants | 3,642 | 0 | 3,642 | 4,039 | 163 | 4,202 | 15,554 | |
| Operating expenses | –4,157 | 0 | –4,157 | –4,537 | –259 | –4,796 | –16,164 | |
| Other expenses directly related to properties rented | –1,468 | 0 | –1,468 | –3,267 | –133 | –3,399 | –6,596 | |
| Net rental income | 12,865 | 3 | 12,868 | 27,999 | 2,299 | 30,297 | 46,392 | |
| Other expenses directly related to properties under development | 0 | 1 | 1 | 0 | –2,014 | –2,014 | 0 | |
| Result from trading and construction works | 0 | 1,436 | 1,436 | 0 | –1,591 | –1,591 | 0 | |
| Result from the sale of investment properties | 4,899 | 0 | 4,899 | 0 | 2,581 | 2,581 | 436 | |
| Income from services rendered | 0 | 0 | 0 | 586 | 4,650 | 5,235 | 172 | |
| Indirect expenses | –592 | –84 | –676 | –3,094 | –7,461 | –10,555 | –6,404 | |
| Other operating income | 2 | 2 | 4 | 96 | 453 | 549 | 36 | |
| EBITDA | 17,174 | 1,358 | 18,532 | 25,586 | –1,083 | 24,502 | 40,631 | |
| Depreciation and impairment/reversal | –317 | 0 | –317 | –51 | –1,564 | –1,615 | –299 | |
| Result from revaluation | –298 | 0 | –298 | 1,745 | 82,455 | 84,200 | 33,155 | |
| Result from joint ventures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Result of operations (EBIT) | 16,559 | 1,358 | 17,917 | 27,281 | 79,807 | 107,088 | 73,488 | |
| Timing of revenue recognition | ||||||||
| Properties held for trading | 0 | 2,205 | 2,205 | 0 | 642 | 642 | 0 | |
| Sale of investment properties | 16,332 | 0 | 16,332 | 0 | 281 | 281 | 442 | |
| Total income IFRS 15 - transferred at a point in time | 16,332 | 2,205 | 18,537 | 0 | 924 | 924 | 442 | |
| Operating costs charged to tenants | 3,642 | 0 | 3,642 | 4,039 | 163 | 4,202 | 15,554 | |
| Income from the sale of properties and construction works | 0 | 0 | 0 | 0 | 15,848 | 15,848 | 0 | |
| Income from services rendered | 0 | 0 | 0 | 586 | 4,650 | 5,235 | 172 | |
| Total income IFRS 15 - transferred over time | 3,642 | 0 | 3,642 | 4,625 | 20,660 | 25,285 | 15,727 | |
| Total income IFRS 15 | 19,974 | 2,205 | 22,179 | 4,625 | 21,584 | 26,208 | 16,168 | |
| 30.6.2019 | ||||||||
| Property assets1) | 555,701 | 253 | 555,954 | 1,464,348 | 869,443 | 2,333,790 | 1,697,496 | |
| Other assets | 33,248 | 20,550 | 53,799 | 532,744 | 438,320 | 971,063 | 192,998 | |
| Deferred tax assets | 0 | 0 | 0 | 977 | 1,091 | 2,068 | 623 | |
| Segment assets | 588,949 | 20,803 | 609,753 | 1,998,068 | 1,308,853 | 3,306,921 | 1,891,117 | |
| Interest-bearing liabilities | 212,301 | 0 | 212,301 | 688,517 | 241,617 | 930,134 | 783,024 | |
| Other liabilities | 36,468 | 6,119 | 42,587 | 37,023 | 316,128 | 353,151 | 46,499 | |
| Deferred tax liabilities incl. current income tax liabilities | 48,012 | 1 | 48,013 | 230,269 | 104,735 | 335,004 | 45,328 | |
| Liabilities | 296,782 | 6,119 | 302,901 | 955,808 | 662,481 | 1,618,289 | 874,852 | |
| Shareholders' equity | 292,168 | 14,684 | 306,852 | 1,042,260 | 646,373 | 1,688,632 | 1,016,265 | |
| Capital expenditures2) | 3,198 | 0 | 3,198 | 5,080 | 113,212 | 118,292 | 6,981 | |
| 1) Property assets include rental investment properties, investment properties under development, own used properties, properties held for trading and |
properties available for sale. 2) Capital expenditures include all acquisitions of properties (long-term and short-term) including additions from initial consolidation, office furniture and
other equipment and intangible assets; thereof € 17,703 K (31.12.2018: € 44,882 K) in properties held for trading. 3) The segment reporting does not show a right of use asset and a corresponding lease liability resulting from an intercompany lease as per IFRS 16 between
the entities of the CA Immo Group. These intercompany contracts are recognized as regular income/expense in the segment reporting as before and eliminated in column "Transition Consolidation".
| Eastern Europe core regions | Eastern Europe other regions | Total segments | Transition | Total | |||||
|---|---|---|---|---|---|---|---|---|---|
| Development | Total | Income | Development | Total | Holding | Consolidation | |||
| producing | |||||||||
| 2,685 | 56,282 | 7,401 | 0 | 7,401 | 112,325 | 0 | –889 | 111,437 | |
| 0 | 0 | 0 | 0 | 0 | 502 | 0 | –502 | 0 | |
| 659 | 16,213 | 2,114 | 0 | 2,114 | 26,170 | 0 | –16 | 26,154 | |
| –778 | –16,943 | –2,278 | 0 | –2,278 | –28,175 | 0 | 48 | –28,126 | |
| –948 | –7,543 | –886 | 0 | –886 | –13,297 | 0 | –73 | –13,370 | |
| 1,618 | 48,010 | 6,350 | 0 | 6,350 | 97,526 | 0 | –1,431 | 96,094 | |
| –263 | –263 | 0 | –7 | –7 | –2,283 | 0 | 206 | –2,077 | |
| 0 | 0 | 0 | 0 | 0 | –155 | 0 | –1,834 | –1,989 | |
| 0 | 436 | –216 | 212 | –4 | 7,911 | 0 | 610 | 8,522 | |
| 0 | 172 | 0 | 0 | 0 | 5,408 | 4,772 | –5,914 | 4,265 | |
| –860 | –7,264 | –663 | –27 | –689 | –19,184 | –10,481 | 7,320 | –22,344 | |
| 0 | 36 | 33 | 15 | 48 | 636 | 20 | –406 | 250 | |
| 495 | 41,126 | 5,505 | 194 | 5,698 | 89,859 | –5,689 | –1,450 | 82,720 | |
| –12 | –310 | –4 | 0 | –4 | –2,247 | –142 | 90 | –2,299 | |
| –507 | 32,649 | –1,737 | 0 | –1,737 | 114,814 | 0 | 0 | 114,814 | |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 600 | 601 | |
| –23 | 73,464 | 3,763 | 194 | 3,957 | 202,427 | –5,831 | –759 | 195,836 | |
| 0 | 0 | 0 | 0 | 0 | 2,847 | 0 | –2,847 | 0 | |
| 0 | 442 | 13,150 | 3,466 | 16,617 | 33,672 | 0 | 541 | 34,213 | |
| 0 | 442 | 13,150 | 3,466 | 16,617 | 36,519 | 0 | –2,306 | 34,213 | |
| 659 | 16,213 | 2,114 | 0 | 2,114 | 26,170 | 0 | –16 | 26,154 | |
| 0 | 0 | 0 | 0 | 0 | 15,848 | 0 | –6,291 | 9,557 | |
| 0 | 172 | 0 | 0 | 0 | 5,408 | 4,772 | –5,914 | 4,265 | |
| 659 | 16,385 | 2,114 | 0 | 2,114 | 47,426 | 4,772 | –12,222 | 39,975 | |
| 659 | 16,827 | 15,264 | 3,466 | 18,730 | 83,945 | 4,772 | –14,528 | 74,189 | |
| 89,701 | 1,787,196 | 180,402 | 0 | 180,402 | 4,857,343 | 0 | –145,873 | 4,711,470 | |
| 17,885 | 210,883 | 8,420 | 5,332 | 13,752 | 1,249,497 | 975,281 | –1,383,203 | 841,576 | |
| 0 | 623 | 376 | 0 | 376 | 3,067 | 41,389 | –42,385 | 2,071 | |
| 107,586 | 1,998,703 | 189,198 | 5,332 | 194,530 | 6,109,907 | 1,016,671 | –1,571,460 | 5,555,117 | |
| 67,997 | 851,022 | 90,366 | 9,205 | 99,571 | 2,093,028 | 1,103,385 | –1,138,393 | 2,058,020 | |
| 9,030 | 55,529 | 4,968 | 0 | 4,968 | 456,236 | 44,120 | –67,878 | 432,478 | |
| 933 | 46,261 | 5,236 | 0 | 5,236 | 434,514 | 6,232 | –46,417 | 394,330 | |
| 77,961 | 952,812 | 100,571 | 9,205 | 109,776 | 2,983,778 | 1,153,737 | –1,252,688 | 2,884,827 | |
| 29,625 | 1,045,890 | 88,627 | –3,873 | 84,754 | 3,126,128 | –137,067 | –318,772 | 2,670,290 | |
| 944 | 7,925 | 1,529 | 0 | 1,529 | 130,944 | 196 | –5,931 | 125,210 | |
| € K | Austria | Germany | |||||
|---|---|---|---|---|---|---|---|
| Half-year 2018 restated | Income producing |
Development | Total | Income producing4) |
Development4) | Total4) | Income producing |
| Rental income | 13,893 | 0 | 13,893 | 26,240 | 3,030 | 29,270 | 45,359 |
| Rental income with other operating segments | 266 | 0 | 266 | 258 | 5 | 263 | 0 |
| Operating costs charged to tenants | 3,463 | 0 | 3,463 | 6,600 | 344 | 6,944 | 16,516 |
| Operating expenses | –3,956 | 0 | –3,956 | –7,072 | –463 | –7,536 | –17,584 |
| Other expenses directly related to properties rented | –975 | 0 | –975 | –1,178 | –334 | –1,511 | –1,557 |
| Net rental income | 12,691 | 0 | 12,691 | 24,849 | 2,581 | 27,430 | 42,734 |
| Other expenses directly related to | |||||||
| properties under development | 0 | –21 | –21 | 0 | –1,706 | –1,706 | 0 |
| Result from trading and construction works | 0 | 14,177 | 14,177 | 0 | 8,129 | 8,129 | 0 |
| Result from the sale of investment properties | 60 | 0 | 60 | –1,496 | 5,441 | 3,945 | 85 |
| Income from services rendered | 0 | 0 | 0 | 355 | 6,120 | 6,474 | 306 |
| Indirect expenses | –581 | –45 | –626 | –2,952 | –10,065 | –13,017 | –5,509 |
| Other operating income | 10 | 0 | 10 | 305 | 80 | 386 | 47 |
| EBITDA | 12,180 | 14,111 | 26,290 | 21,061 | 10,580 | 31,640 | 37,664 |
| Depreciation and impairment/reversal | –335 | 0 | –335 | –51 | 197 | 146 | –215 |
| Result from revaluation | –367 | 53 | –313 | 4,976 | 53,126 | 58,102 | –3,212 |
| Result from joint ventures | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Result of operations (EBIT) | 11,478 | 14,164 | 25,642 | 25,986 | 63,903 | 89,889 | 34,237 |
| Timing of revenue recognition Properties held for trading |
0 | 0 | 0 | 0 | 7,363 | 7,363 | 0 |
| Sale of investment properties | 22,053 | 0 | 22,053 | 760,010 | 20,902 | 780,912 | 86 |
| Total income IFRS 15 - transferred at a point in time Income from the sale of properties and construction works |
22,053 0 |
0 26,457 |
22,053 26,457 |
760,010 0 |
28,265 38,898 |
788,275 38,898 |
86 0 |
| Income from services rendered | 0 | 0 | 0 | 355 | 6,120 | 6,474 | 306 |
| Total income IFRS 15 - transferred over time | 0 | 26,457 | 26,457 | 355 | 45,017 | 45,372 | 306 |
| Total income IFRS 15 | 22,053 | 26,457 | 48,510 | 760,365 | 73,282 | 833,647 | 392 |
| 31.12.2018 restated | |||||||
| Property assets1) | 517,394 | 48,286 | 565,681 | 1,303,648 | 832,689 | 2,136,337 | 1,627,900 |
| Other assets | 12,669 | 37,579 | 50,249 | 516,317 | 554,266 | 1,070,583 | 174,601 |
| Deferred tax assets | 0 | 0 | 0 | 952 | 948 | 1,900 | 396 |
| Segment assets | 530,063 | 85,866 | 615,929 | 1,820,917 | 1,387,903 | 3,208,821 | 1,802,897 |
| Interest-bearing liabilities | 190,150 | 23,770 | 213,919 | 637,452 | 276,639 | 914,092 | 794,916 |
| Other liabilities | 5,086 | 12,113 | 17,198 | 18,862 | 317,077 | 335,939 | 45,773 |
| Deferred tax liabilities incl. current | |||||||
| income tax liabilities | 44,365 | 3,487 | 47,852 | 222,757 | 109,380 | 332,137 | 39,699 |
| Liabilities | 239,600 | 39,370 | 278,970 | 879,072 | 703,096 | 1,582,167 | 880,388 |
| Shareholders' equity | 290,464 | 46,496 | 336,959 | 941,845 | 684,807 | 1,626,652 | 922,508 |
| Capital expenditures2) | 2,440 | 21,759 | 24,199 | 72,724 | 207,372 | 280,096 | 224,676 |
| 4) In the segments Income Producing and Development in Germany the deferred tax liabilities as well as the shareholder's equity have been changed in the |
amount of € 9,420 K. The restatement was necessary due to a missing assignment in the deferred taxes. For the correct representation the column "Consolidation" changes by € -9,420 K. This restatement has no impact on the consolidated financial statement 2018.
| Eastern Europe | Eastern Europe | Total segments4) | Transition | Total | ||||
|---|---|---|---|---|---|---|---|---|
| core regions | other regions | |||||||
| Development | Total | Income | Development | Total | Holding | Consolidation4) | ||
| producing | ||||||||
| 0 | 45,359 | 10,516 | 0 | 10,516 | 99,038 | 0 | –5,277 | 93,761 |
| 0 | 0 | 0 | 0 | 0 | 529 | 0 | –529 | 0 |
| 0 | 16,516 | 3,637 | 0 | 3,637 | 30,560 | 0 | –1,214 | 29,346 |
| 0 | –17,584 | –4,149 | 0 | –4,149 | –33,224 | 0 | 1,417 | –31,807 |
| 0 | –1,557 | –317 | 0 | –317 | –4,360 | 0 | –143 | –4,503 |
| 0 | 42,734 | 9,687 | 0 | 9,687 | 92,542 | 0 | –5,747 | 86,796 |
| –111 | –111 | 0 | –13 | –13 | –1,852 | 0 | 477 | –1,375 |
| 0 | 0 | 0 | 0 | 0 | 22,306 | 0 | –17,232 | 5,074 |
| 0 | 85 | 0 | 89 | 89 | 4,178 | 0 | 205 | 4,383 |
| 0 | 306 | 0 | 0 | 0 | 6,780 | 6,669 | –6,115 | 7,333 |
| –248 | –5,756 | –684 | –50 | –734 | –20,133 | –10,214 | 7,006 | –23,341 |
| 340 | 388 | 6 | 0 | 6 | 789 | 86 | –429 | 446 |
| –19 | 37,645 | 9,009 | 26 | 9,035 | 104,611 | –3,460 | –21,835 | 79,316 |
| 0 | –215 | 0 | 0 | 0 | –403 | –223 | –523 | –1,150 |
| 474 | –2,739 | 1,314 | 0 | 1,314 | 56,364 | 0 | –7,657 | 48,706 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 22,943 | 22,944 |
| 455 | 34,692 | 10,322 | 26 | 10,348 | 160,572 | –3,683 | –7,073 | 149,817 |
| 0 | 0 | 0 | 0 | 0 | 7,363 | 0 | –7,038 | 325 |
| 0 | 86 | 0 | 1,118 | 1,118 | 804,169 | 0 | –760,989 | 43,180 |
| 0 | 86 | 0 | 1,118 | 1,118 | 811,532 | 0 | –768,027 | 43,505 |
| 0 | 0 | 0 | 0 | 0 | 65,354 | 0 | –41,889 | 23,465 |
| 0 | 306 | 0 | 0 | 0 | 6,780 | 6,669 | –6,115 | 7,333 |
| 0 | 306 | 0 | 0 | 0 | 72,134 | 6,669 | –48,005 | 30,798 |
| 0 | 392 | 0 | 1,118 | 1,118 | 883,667 | 6,669 | –816,032 | 74,303 |
| 88,755 | 1,716,655 | 193,014 | 3,900 | 196,914 | 4,615,586 | 0 | –144,981 | 4,470,606 |
| 18,153 | 192,755 | 7,857 | 16,245 | 24,102 | 1,337,687 | 1,041,202 | –1,495,943 | 882,947 |
| 0 | 396 | 452 | 0 | 452 | 2,748 | 38,499 | –39,296 | 1,951 |
| 106,908 | 1,909,805 | 201,323 | 20,145 | 221,468 | 5,956,023 | 1,079,702 | –1,680,220 | 5,355,504 |
| 66,214 | 861,130 | 90,345 | 9,448 | 99,792 | 2,088,934 | 1,089,893 | –1,235,433 | 1,943,394 |
| 9,005 | 54,778 | 4,462 | 7 | 4,469 | 412,385 | 45,608 | –71,021 | 386,973 |
| 817 | 40,517 | 5,698 | 559 | 6,257 | 426,763 | 4,494 | –45,815 | 385,442 |
| 76,036 | 956,424 | 100,505 | 10,014 | 110,519 | 2,928,081 | 1,139,995 | –1,352,269 | 2,715,808 |
| 30,873 | 953,381 | 100,818 | 10,131 | 110,949 | 3,027,941 | –60,294 | –327,951 | 2,639,696 |
24,971 249,647 3,104 0 3,104 557,046 264 –78,414 478,895
NOTES
GENERAL NOTES
The condensed consolidated interim financial statements of CA Immobilien Anlagen Aktiengesellschaft ("CA Immo AG") as at 30.6.2019 were prepared in accordance with IAS 34 (Interim Financial Reporting) and are based on the accounting policies and measurement basis described in the annual consolidated financial statements of CA Immobilien Anlagen Aktiengesellschaft for the year 2018, except for new or amended standards.
The condensed consolidated interim financial statements, for the reporting period from 1.1. to 30.6.2019 (excluding the quarterly figures presented in the consolidated income statement and the statement of comprehensive income) have been subject to a review by Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H., Vienna.
The use of automatic data processing equipment may lead to rounding differences in the addition of rounded amounts and percentage rates.
CHANGES IN PRESENTATION AND ACCOUNTING POLICIES
The condensed consolidated interim financial statements as at 30.6.2019 were prepared in accordance with all IASs, IFRSs, IFRIC and SIC interpretations (existing standards as amended and new standards) as adopted by the EU and applicable for the financial year beginning 1.1.2019. The following amended standards are applicable for the first time in the business year 2019:
| Standard / Interpretation | Content | Entry into force1) |
|---|---|---|
| IFRS 16 | Leasing | 1.1.2019 |
| Amendments to IFRS 9 | Prepayment Features with Negative Compensation | 1.1.2019 |
| IFRIC 23 | Uncertainty over Income Tax Treatments | 1.1.2019 |
| Amendments to IAS 28 | Investments in associated companies and joint ventures | 1.1.2019 |
| Amendments to IAS 19 | Plan Amendment, Curtailment or Settlement | 1.1.2019 |
| Annual Improvements (2015-2017) | Miscellaneous | 1.1.2019 |
1) The standards and interpretations are to be applied to business years commencing on or after the effective date.
The first time application of the amended standards and interpretations has no essential impact on the consolidated financial statements. The first time application of IFRS 16 has material impact on the consolidated financial statements and is explained in more detail below.
Impact of IFRS 16 on the consolidated financial statements
IFRS 16: Leasing
The new standard defines a lease as a contract that conveys the right to control the use of an identified asset for a period of time in exchange of consideration. To be classified as lease, the contract needs to fulfill the following criteria:
- The fulfillment of the contract depends on the use of an identified asset
- The contract must convey the right to control the use of an identified asset.
Under IFRS 16, lessors classify all leases in the same manner as under IAS 17, distinguishing between two types of leases, i.e. finance and operating. Lessees, however, do not need to separate between the types of leases but need to recognize an asset as a "right of use" for all lease contracts upon commencement and need to recognize a corresponding leasing liability. Leases of low-value assets as well as leasing of software are excluded.
The changes of IFRS 16 on the operating leases of CA Immo Group mainly refer to leases of cars, furniture and office equipment, rental agreements and usufruct. CA Immo Group applies the practical expedient not to recognize right of use assets/lease liabilities for short-term leases (less than 1 year) and leases with underlying asset of low value (< € 5,000) and software.
The application of IFRS 16 results in the recognition of a right of use asset and a corresponding lease liability in those cases where CA Immo Group is lessee and not owner of a land plot. Relevant contracts for CA Immo Group refer to land plots in Poland and Serbia. Additionally, the rent of parking spaces, which are further subleased, also leads to the recognition of a right of use asset and a lease liability. The right of use assets arising from both circumstances are presented as investment property and are accounted for according to IAS 40.
In the course of the implementation project of IFRS 16 and IFRS 15 the components of operating costs charged to tenants have been analysed. IFRS 16 differentiates between leasing components, other services (non-lease components in scope of IFRS 15) as well as components, within a contract, that do not result in a service performed by the lessor. The analysis of the service charges concluded that their individual components have to be assessed and recognized separately. The components of service charges are separated into those where CA Immo Group has an obligation to render a service (service charges within the scope of IFRS 15) and those where the lessees do not receive a separate service, but that have to be reimbursed as part of service charge reconciliation (for example property taxes, building insurance, usufruct related expenses). In 2018, CA Immo Group presented the service charges for properties in the income statement as operating expenses and the income as operating costs charged to tenants. Starting 2019, CA Immo Group separately presents the income from the reinvoiced service charges, depending on the allocation according to IFRS 16 or IFRS 15. Those service charge components, in the scope of IFRS 16, are allocated to the rental income (€ 8,362 K) and the respective costs are presented as other expenses directly related to properties rented (€ -8,802 K). Starting 2019, operating expenses and operating costs charged to tenants only include components within the scope of IFRS 15 where CA Immo Group rendered a service.
CA Immo Group does not apply IFRS 16 retrospectively (no restatement of previous years comparatives) and recognizes the right of use assets in the same amount as the lease liabilities as at 1.1.2019.
The initial application of IFRS 16 (not retrospective, no restatement of previous year's comparatives) has the following effects on the consolidated balance sheet:
| € K | 31.12.2018 as reported |
Change due to IFRS 16 |
1.1.2019 according to IFRS 16 |
|---|---|---|---|
| ASSETS | |||
| Investment properties | 3,755,196 | 31,835 | 3,787,031 |
| Own used properties | 5,223 | 9,561 | 14,784 |
| Office furniture and equipment | 5,938 | 957 | 6,895 |
| Long-term assets | 4,690,748 | 42,353 | 4,733,101 |
| Short-term assets | 664,757 | 0 | 664,757 |
| Total assets | 5,355,504 | 42,353 | 5,397,858 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Shareholders' equity | 2,639,697 | 0 | 2,639,697 |
| Shareholders' equity as a % of total assets | 49.3% | 48.9% | |
| Interest-bearing liabilities | 1,723,749 | 38,573 | 1,762,322 |
| Long-term liabilities | 2,167,353 | 38,573 | 2,205,926 |
| Interest-bearing liabilities | 219,645 | 3,780 | 223,426 |
| Short-term liabilities | 548,454 | 3,780 | 552,235 |
| Total liabilities and shareholders' equity | 5,355,504 | 42,353 | 5,397,858 |
Other changes
The first time application of the other new regulations does not have a material effect.
Presentation methods
CA Immo Group has changed the presentation of the segment reporting compared to the consolidated financial statements for 2018. Following the decision of the Management Board, the main decision maker, the internal reporting was changed so that Serbia will now be part of the Eastern Europe other regions segment. Consequently, a transfer between the two reported regions is recognized: Serbia will be included in Eastern Europe other regions (until now Eastern Europe core regions).
Reporting segment Eastern Europe core regions will now comprise Czech Republic, Hungary, Poland and Romania, while the reporting segment Eastern Europe other regions will include Croatia, Slovenia, Russia, Slovakia and Serbia. The 2018 comparative amounts (including the countries Bulgaria and Ukraine in the reporting segment Eastern Europe other regions) were correspondingly restated.
| € K | Eastern Europe core regions |
Eastern Europe other regions |
||||||
|---|---|---|---|---|---|---|---|---|
| Half-year 2018 | Income | Develop | Total | Income | Develop | Total | Income | |
| producing | ment | producing | ment | producing | ||||
| (as reported) | (as reported) | (as reported) | (as reported) | (as reported) | (as reported) | adjustment | ||
| Rental income | 48,841 | 0 | 48,841 | 7,034 | 0 | 7,034 | –3,482 | |
| Rental income with other operating segments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Operating costs charged to tenants | 17,789 | 0 | 17,789 | 2,364 | 0 | 2,364 | –1,273 | |
| Operating expenses | –19,183 | 0 | –19,183 | –2,549 | 0 | –2,549 | 1,600 | |
| Other expenses directly related | ||||||||
| to properties rented | –1,592 | 0 | –1,593 | –282 | 0 | –282 | 35 | |
| Net rental income | 45,855 | 0 | 45,855 | 6,567 | 0 | 6,567 | –3,120 | |
| Other expenses directly related | ||||||||
| to properties under development | 0 | –111 | –111 | 0 | –13 | –13 | 0 | |
| Result from trading and construction works | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Result from the sale of investment properties | 85 | 0 | 85 | 0 | 89 | 89 | 0 | |
| Income from services rendered | 306 | 0 | 306 | 0 | 0 | 0 | 0 | |
| Indirect expenses | –5,865 | –248 | –6,113 | –328 | –50 | –377 | 356 | |
| Other operating income | 53 | 340 | 394 | 0 | 0 | 0 | –6 | |
| EBITDA | 40,434 | –19 | 40,415 | 6,239 | 26 | 6,265 | –2,770 | |
| Depreciation and impairment/reversal | –215 | 0 | –215 | 0 | 0 | 0 | 0 | |
| Result from revaluation | –3,683 | 474 | –3,210 | 1,785 | 0 | 1,785 | 471 | |
| Result from joint ventures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Result of operations (EBIT) | 36,536 | 455 | 36,990 | 8,024 | 26 | 8,050 | –2,298 | |
| Timing of revenue recognition | ||||||||
| Properties held for trading | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Sale of investment properties | 86 | 0 | 86 | 0 | 1,118 | 1,118 | 0 | |
| Total income IFRS 15 - transferred at a point in | ||||||||
| time | 86 | 0 | 86 | 0 | 1,118 | 1,118 | 0 | |
| Income from the sale of properties and | ||||||||
| construction works | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Income from services rendered | 306 | 0 | 306 | 0 | 0 | 0 | 0 | |
| Total income IFRS 15 - transferred over time | 306 | 0 | 306 | 0 | 0 | 0 | 0 | |
| Total income IFRS 15 | 392 | 0 | 392 | 0 | 1,118 | 1,118 | 0 | |
| 31.12.2018 Properties |
1,723,900 | 88,755 | 1,812,655 | 97,014 | 3,900 | 100,914 | –96,000 | |
| Other assets | 136,613 | 18,153 | 154,767 | 4,718 | 16,245 | 20,963 | 37,988 | |
| Deferred tax assets | 401 | 0 | 401 | 447 | 0 | 447 | –5 | |
| Segment assets | 1,860,914 | 106,908 | 1,967,823 | 102,179 | 20,145 | 122,324 | –58,017 | |
| Interest-bearing liabilities | 794,916 | 66,214 | 861,130 | 49,218 | 9,448 | 58,666 | 0 | |
| Other liabilities | 47,690 | 9,005 | 56,695 | 2,546 | 7 | 2,553 | –1,917 | |
| Deferred tax liabilities incl. current income tax | ||||||||
| liabilities | 44,479 | 817 | 45,296 | 918 | 559 | 1,477 | –4,780 | |
| Liabilities | 887,085 | 76,036 | 963,121 | 52,682 | 10,014 | 62,696 | –6,697 | |
| Shareholders' equity | 973,829 | 30,873 | 1,004,702 | 49,498 | 10,131 | 59,628 | –51,321 |
Capital expenditure 225,926 24,971 250,897 1,854 0 1,854 –1,250
| Eastern Europe | Eastern Europe | Eastern Europe | Eastern Europe | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| core regions | other regions | core regions | other regions | |||||||
| Develop | Total | Income | Develop | Total | Income | Develop | Total | Income | Develop | Total |
| ment | producing | ment | producing | ment | producing | ment | ||||
| adjustment | adjustment | adjustment | adjustment | adjustment | restated | restated | restated | restated | restated | restated |
| 0 | –3,482 | 3,482 | 0 | 3,482 | 45,359 | 0 | 45,359 | 10,516 | 0 | 10,516 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | –1,273 | 1,273 | 0 | 1,273 | 16,516 | 0 | 16,516 | 3,637 | 0 | 3,637 |
| 0 | 1,600 | –1,600 | 0 | –1,600 | –17,584 | 0 | –17,584 | –4,149 | 0 | –4,149 |
| 0 | 35 | –35 | 0 | –35 | –1,557 | 0 | –1,557 | –317 | 0 | –317 |
| 0 | –3,120 | 3,120 | 0 | 3,120 | 42,734 | 0 | 42,734 | 9,687 | 0 | 9,687 |
| 0 | 0 | 0 | 0 | 0 | 0 | –111 | –111 | 0 | –13 | –13 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 | 85 | 0 | 85 | 0 | 89 | 89 |
| 0 | 0 | 0 | 0 | 0 | 306 | 0 | 306 | 0 | 0 | 0 |
| 0 | 356 | –356 | 0 | –356 | –5,509 | –248 | –5,756 | –684 | –50 | –734 |
| 0 | –6 | 6 | 0 | 6 | 47 | 340 | 388 | 6 | 0 | 6 |
| 0 | –2,770 | 2,770 | 0 | 2,770 | 37,664 | –19 | 37,645 | 9,009 | 26 | 9,035 |
| 0 | 0 | 0 | 0 | 0 | –215 | 0 | –215 | 0 | 0 | 0 |
| 0 | 471 | –471 | 0 | –471 | –3,212 | 474 | –2,739 | 1,314 | 0 | 1,314 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | –2,298 | 2,298 | 0 | 2,298 | 34,237 | 455 | 34,692 | 10,322 | 26 | 10,348 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 | 86 | 0 | 86 | 0 | 1,118 | 1,118 |
| 0 | 0 | 0 | 0 | 0 | 86 | 0 | 86 | 0 | 1,118 | 1,118 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 | 306 | 0 | 306 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 | 306 | 0 | 306 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 | 392 | 0 | 392 | 0 | 1,118 | 1,118 |
| 0 | –96,000 | 96,000 | 0 | 96,000 | 1,627,900 | 88,755 | 1,716,655 | 193,014 | 3,900 | 196,914 |
| 0 | 37,988 | 3,139 | 0 | 3,139 | 174,601 | 18,153 | 192,755 | 7,857 | 16,245 | 24,102 |
| 0 | –5 | 5 | 0 | 5 | 396 | 0 | 396 | 452 | 0 | 452 |
| 0 | –58,017 | 99,144 | 0 | 99,144 | 1,802,897 | 106,908 | 1,909,805 | 201,323 | 20,145 | 221,468 |
| 0 | 0 | 41,127 | 0 | 41,127 | 794,916 | 66,214 | 861,130 | 90,345 | 9,448 | 99,792 |
| 0 | –1,917 | 1,916 | 0 | 1,916 | 45,773 | 9,005 | 54,778 | 4,462 | 7 | 4,469 |
| 0 | –4,780 | 4,780 | 0 | 4,780 | 39,699 | 817 | 40,517 | 5,698 | 559 | 6,257 |
| 0 | –6,697 | 47,823 | 0 | 47,823 | 880,388 | 76,036 | 956,424 | 100,505 | 10,014 | 110,519 |
| 0 | –51,320 | 51,321 | 0 | 51,321 | 922,508 | 30,873 | 953,381 | 100,818 | 10,131 | 110,949 |
| 0 | –1,250 | 1,250 | 0 | 1,250 | 224,676 | 24,971 | 249,647 | 3,104 | 0 | 3,104 |
SCOPE OF CONSOLIDATION
In the first half of 2019 the closing of the sale of a subsidiary with a property in Slovenia (classified as held for sale as of 31.12.2018) and the sale of a subsidiary with a property in Slovakia took place. Moreover, the sale of a participation in a joint venture in Poland was closed.
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Statement of financial position
In respect of the fair value assessment of the properties, we refer to the detailed presentation in the 2018 consolidated financial statements. CA Immo Group commissions external valuations for monitoring significant changes related to market and properties. Thus 46 properties, thereof 29 in Germany and 17 in Eastern Europe, representing approximately 34% of properties value according to segment reporting, were subject to an external valuation as of reporting date 30.6.2019. The appreciation of fair values in Germany result mainly from increases in land value of development sites and building plots as well as from construction progress of development projects (reduction of risk leads to realization of developer profits). In Czechia and Hungary fair value increases were noted due to changes in observed yields and market rents. The values of the other properties were determined based on binding purchase agreements or internally updated on basis of the previous year's valuations, as no material market- or property-related changes occurred.
The financial assets (long term assets) consist of the following items:
| € K | 30.6.2019 | 31.12.2018 |
|---|---|---|
| Loans to joint ventures | 111 | 109 |
| Loans to associated companies | 0 | 10,067 |
| Other investments | 42,008 | 41,098 |
| Other financial assets | 17,677 | 13,888 |
| Financial assets | 59,795 | 65,163 |
As at 30.6.2019, the investment as well as the loans granted to an associated company (Eastern Europe other regions) amounting to € 5,976 K were reclassified to assets held for sale and relating to disposal groups. A sale within one year from the date of reclassification is regarded as highly probable.
As at 30.6.2019, CA Immo Group held cash and cash equivalents amounting to € 317,502 K, cash and cash equivalents contain bank balances of € 4,747 K (31.12.2018: € 5,385 K) to which CA Immo Group only has restricted access for a period of at most three months and act as collateral for ongoing loan repayments and investments in ongoing development projects.
These balances serve the purpose of securing current loan repayments (principal and interest), current investments in projects under development and cash deposits as guarantees. In addition, cash and cash equivalents subject to drawing restrictions from 3 up to 12 months are presented in caption 'receivables and other assets'. Restricted cash with a longer lock-up period (over 12 months) is presented under 'financial assets'.
| € K | 30.6.2019 | 31.12.2018 |
|---|---|---|
| Maturity > 1 year | 13,421 | 9,750 |
| Maturity from 3 to 12 months | 12,236 | 14,686 |
| Cash at banks with drawing restrictions | 25,657 | 24,436 |
Income Statement
The result from revaluation in the first half of 2019 results from revaluation gain of € 121,666 K (mainly from the segment Germany and from Hungary and Czechia in the segment Eastern Europe core regions) and revaluation loss of € -6,852 K (mainly from Poland and Romania in the segment Eastern Europe core regions and from the segment Eastern Europe other regions).
The result from derivatives comprises the following:
| € K | Half-year 2019 | Half-year 2018 |
|---|---|---|
| Valuation interest rate derivative transactions | –24,411 | –816 |
| Reclassification of valuation results recognised in equity | 0 | –742 |
| Valuation derivative convertible bond | –15,665 | –15,242 |
| Result from derivatives | –40,077 | –16,800 |
Tax expenses comprise the following:
| € K | Half-year 2019 | Half-year 2018 |
|---|---|---|
| Current income tax (current year) | –6,684 | –30,521 |
| Current income tax (previous years) | –1,707 | –1,090 |
| Current income tax | –8,391 | –31,611 |
| Change in deferred taxes | –26,908 | –1,957 |
| Tax on valuation of securities in equity | –1,381 | –119 |
| Income tax expense | –36,680 | –33,687 |
| Effective tax rate (total) | 26.2% | 27.3% |
Current income tax (current year) mainly arises in the segment Germany (€ -3,779 K). The change in income tax (previous years) is mainly explained by provisions for findings during tax audits in Germany.
The changes in deferred taxes in the first half of 2018 include opposite effects on income tax (current year) resulting from sales of real estate and project realization in the amount of € 22,072 K.
Earnings per share
| Half-year 2019 | Half-year 2018 | ||
|---|---|---|---|
| Weighted average number of shares outstanding | pcs. | 93,028,299 | 93,077,934 |
| Consolidated net income | € K | 103,285 | 89,577 |
| Basic earnings per share | € | 1.11 | 0.96 |
| Half-year 2019 | Half-year 2018 | ||
|---|---|---|---|
| Weighted average number of shares outstanding | pcs. | 93,028,299 | 93,077,934 |
| Dilution effect: Convertible bond |
pcs. | 6,590,671 | 6,551,574 |
| Weighted average number of shares | pcs. | 99,618,970 | 99,629,508 |
The diluted earnings per share for the first half of 2019 corresponds to the undiluted earnings per share. The effect of the convertible bond on the income statement increases the earnings per share, thus there is no dilution.
SHARES BUY - BACK PROGRAM, DIVIDENDS AND TREASURY SHARES
Currently, CA Immobilien Anlagen AG does not conduct any shares buy-back programmes.
On 15.5.2019 a dividend of € 0.90 per share entitled to dividends, i.e. a total of € 83,725 K, was distributed to the shareholders.
As at 30.6.2019, CA Immobilien Anlagen AG held 5,780,037 treasury shares in total; given the total number of voting shares issued (98,808,336), this is equivalent to around 5.8% of the voting stock.
FINANCIAL INSTRUMENTS
| Category € K |
Book value 30.6.2019 |
Fair value 30.6.2019 |
Book value 31.12.2018 |
Fair value 31.12.2018 |
|---|---|---|---|---|
| Cash at banks with drawing | ||||
| restrictions | 13,421 | 13,493 | 9,750 | 9,799 |
| Derivative financial instruments | 1,462 | 1,462 | 827 | 827 |
| Primary financial instruments | 44,913 | 54,586 | ||
| Financial assets | 59,795 | 65,163 | ||
| Cash at banks with drawing | ||||
| restrictions | 12,236 | 12,287 | 14,686 | 14,737 |
| Other receivables and other financial | ||||
| assets | 56,253 | 50,170 | ||
| Non financial assets | 48,813 | 32,259 | ||
| Receivables and other assets | 117,302 | 97,115 | ||
| Securities | 114,235 | 114,235 | 114,544 | 114,544 |
| Cash and cash equivalents | 317,502 | 374,302 | ||
| 608,835 | 651,124 |
The fair value of the other receivables and financial assets as well as the primary financial instruments essentially equals the book value due to short-term maturities. The book values of the other investments that are included in the primary financial instruments correspond to their fair values. Financial assets are partially mortgaged as security for financial liabilities.
| Category | Book value | Fair value | Book value | Fair value |
|---|---|---|---|---|
| € K | 30.6.2019 | 30.6.2019 | 31.12.2018 | 31.12.2018 |
| Convertible bond | 189,126 | 190,227 | 187,505 | 188,690 |
| Bonds | 792,037 | 838,710 | 796,269 | 826,418 |
| Other interest-bearing liabilities | 1,076,857 | 1,084,548 | 959,620 | 963,359 |
| Interest-bearing liabilities | 2,058,020 | 1,943,394 | ||
| Derivative financial instruments | 85,189 | 85,189 | 44,429 | 44,429 |
| Other primary liabilities | 198,856 | 192,643 | ||
| Total other liabilities | 284,046 | 237,072 | ||
| 2,342,065 | 2,180,466 |
The stock exchange price of the convertible bond amounts to € 240,370 K (31.12.2018: € 223,530 K). The fair value of the embedded derivative of the convertible bond amounts to € 50,505 K (31.12.2018: € 34,839 K). The debt component of the convertible bond and the embedded derivative of the convertible bond are separately reported.
The fair value of other primary liabilities essentially equals the book value due to daily and/or short-term maturities.
| 30.6.2019 | 31.12.2018 | |||||
|---|---|---|---|---|---|---|
| € K | Nominal | Fair value | Book value | Nominal | Fair value | Book value |
| value | value | |||||
| Interest rate swaps - liabilities | 536,116 | –34,685 | –34,685 | 506,558 | –9,590 | –9,590 |
| Total interest rate swaps | 536,116 | –34,685 | –34,685 | 506,558 | –9,590 | –9,590 |
| Interest rate floors | 44,325 | 1,462 | 1,462 | 44,775 | 827 | 827 |
| Derivative convertible bond | 0 | –50,505 | –50,505 | 0 | –34,839 | –34,839 |
| Total derivatives | 580,441 | –83,727 | –83,727 | 551,333 | –43,602 | –43,602 |
| thereof stand alone (fair value derivatives) - | ||||||
| assets | 44,325 | 1,462 | 1,462 | 44,775 | 827 | 827 |
| thereof stand alone (fair value derivatives) - | ||||||
| liabilities | 536,116 | –85,189 | –85,189 | 506,558 | –44,429 | –44,429 |
Derivative financial instruments and hedging transactions
The derivative of the convertible bond results from the cash settlement option of the convertible bond of CA Immo AG and is reported at fair value.
| Fixed interest rate |
Reference | |||||
|---|---|---|---|---|---|---|
| Interest rate derivatives | Nominal value | Start | End | as at | interest rate | Fair value |
| in € K | in € K | |||||
| 30.6.2019 | 30.6.2019 | |||||
| EUR - stand alone - liabilities | 536,116 | 12/2016-4/2019 | 12/2021-12/2032 | 0.25%–1.19% | 3M-Euribor | –34,685 |
| Total interest swaps = variable in | ||||||
| fixed | 536,116 | –34,685 | ||||
| Interest rate floors | 44,325 | 5/2018 | 5/2028 | 0.00% | 3M-Euribor | 1,462 |
| Total interest rate derivatives | 580,441 | –33,223 |
| Fixed | ||||||
|---|---|---|---|---|---|---|
| interest rate | Reference | |||||
| Interest rate derivatives | Nominal value | Start | End | as at | interest rate | Fair value |
| in € K | in € K | |||||
| 31.12.2018 | 31.12.2018 | |||||
| EUR - stand alone - liabilities | 506,558 | 7/2016-12/2018 | 6/2019-12/2032 –0.18%–1.19% | 3M-Euribor | –9,590 | |
| Total interest swaps = variable in | ||||||
| fixed | 506,558 | –9,590 | ||||
| Interest rate floors | 44,775 | 5/2018 | 5/2028 | 0.00% | 3M-Euribor | 827 |
| Total interest rate derivatives | 551,333 | –8,763 |
Gains and losses in other comprehensive income of cash flow hedges
| € K | 2019 | 2018 |
|---|---|---|
| As at 1.1. | 0 | –842 |
| Change in valuation of cash flow hedges | 0 | 0 |
| Change of ineffectiveness cash flow hedges | 0 | 0 |
| Reclassification of cash flow hedges | 0 | 742 |
| Income tax cash flow hedges | 0 | –179 |
| As at 30.6. | 0 | –279 |
| thereof: attributable to the owners of the parent | 0 | –279 |
Since 31.12.2018, there are no reserves from cash flow hedges.
Hierarchy of fair values
Financial instruments measured at fair value relate to derivative financial instruments as well as securities and other investments. As in the prior year, the valuation of derivative financial instruments is based on inputs which can be observed either directly or indirectly (e.g. interest rate curves or foreign exchange forward rates). This represents level 2 of the fair value hierarchy in accordance with IFRS 13.81. The valuation of securities is based on stock market prices and therefore represents level 1 of the fair value hierarchy. The fair value of other non listed investments is internally assessed and so represents level 3 of the fair value hierarchy. There were no reclassifications between the levels.
Capital structure
Net debt and gearing ratio:
| € K | 30.6.2019 | 31.12.2018 |
|---|---|---|
| Interest-bearing liabilities | ||
| Long-term interest-bearing liabilities | 1,892,306 | 1,723,749 |
| Short-term interest-bearing liabilities | 165,713 | 219,645 |
| Interest-bearing assets | ||
| Cash and cash equivalents | –317,502 | –374,302 |
| Cash at banks with drawing restrictions | –3,434 | –2,204 |
| Net debt | 1,737,084 | 1,566,888 |
| Shareholders' equity | 2,670,290 | 2,639,697 |
| Gearing ratio (Net debt/equity) | 65.1% | 59.4% |
For the calculation of the gearing ratio the book value of cash and cash equivalents is taken into consideration for practical easement. Cash at banks with drawing restrictions were considered in the calculation of net debt, in case they are used to secure the repayments of financial liabilities.
BUSINESS RELATIONSHIPS WITH RELATED PARTIES
Balances/transactions with Joint Ventures
| € K | 30.6.2019 | 31.12.2018 |
|---|---|---|
| Investments in joint ventures | 191,394 | 200,012 |
| Loans | 111 | 109 |
| Receivables | 11,802 | 10,374 |
| Liabilities | 129,357 | 127,190 |
| Provisions | 11,122 | 12,858 |
| Half-year 2019 | Half-year 2018 | |
|---|---|---|
| Joint ventures result | 1,060 | 23,010 |
| Result from sale of joint ventures | –460 | –66 |
| Result from joint ventures | 601 | 22,943 |
| Other income | 546 | 1,802 |
| Other expenses | –515 | –488 |
| Interest income | 262 | 208 |
| Interest expense | 0 | –2 |
The loans to and a large portion of the receivables from joint ventures existing at the reporting date, serve to finance properties. The interest rates are at arm's length. No guarantees or other forms of securities exist in connection with these loans. The liabilities to joint ventures in the amount of € 118,084 K result from a dividend prepayment due to the sale of the Tower 185, held by a joint venture.
Balances/transactions with associated companies
| € K | 30.6.2019 | 31.12.2018 |
|---|---|---|
| Loans | 0 | 10,067 |
| Loans (held for sale) | 5,976 | 0 |
| Half-year 2019 | Half-year 2018 | |
| Expenses due to associated companies | –2,963 | –1,319 |
| Result from associated companies | –2,963 | –1,319 |
All loans have interest rates at arm's length. No guarantees or other forms of security exist in connection with these loans. The cumulative impairment loss recognized on loans to associated companies, including interests amounts to € 19,249 K (31.12.2018: € 15,836 K).
IMMOFINANZ Group, Vienna
During the period from 2.8.2016 to 27.9.2018, the IMMOFINANZ Group held 25,690,163 bearer shares as well as four registered shares of CA Immo AG through its 100% owned subsidiary GENA ELF Immobilienholding GmbH; with approximately 26% of the capital stock it represented the largest single shareholder of the company.
Between IMMOFINANZ Group and the CA Immo Group, there was a reciprocal shareholding until 27.9.2018. As at 30.6.2019 CA Immo Group holds 4,984,096 bearer shares (31.12.2018: 5,480,556 bearer shares) of IMMOFINANZ AG (equivalent to approximately 4.4% of the capital stock
of IMMOFINANZ AG as at 30.6.2019 and 4.9% as at 31.12.2018 respectively). In the first half of 2019 a dividend in amount of € 4,658 K for the IMMOFINANZ securities were recognized in the consolidated income statement.
On 2.7.2018 IMMOFINANZ AG informed, that it sold its investment in CA Immo AG to SOF-11 Klimt CAI S.á r.l. (formerly SOF-11 Starlight 10 EUR S.á r.l.), a company managed by Starwood Capital Group. The transaction was closed on 27.9.2018 after release by the competition authorities in charge and approval of the Management Board of CA Immo AG for the transfer of the four registered shares.
Starwood Capital Group (Starwood)
Since 27.9.2018, SOF-11 Klimt CAI S.á r.l. (formerly SOF-11 Starlight 10 EUR S.à r.l.) holds 25,843,562 bearer shares and four registered shares of CA Immo AG, with approximately 26.16% of the capital stock representing now the largest single shareholder of the company. SOF-11 Klimt CAI S.á r.l. is an indirect wholly owned subsidiary of SOF-11 International SCSp. SOF-11 International SCSp is part of a group of companies known as SOF-XI, a fund with approximately USD 7.56 bn discretionary equity raised. SOF-XI is controlled by Starwood, a privately owned global alternative investment company with more than 80 partners. Starwood Capital Group is an investor focusing on global real estate investments.
OTHER LIABILITIES AND CONTINGENT LIABILITIES
As at 30.6.2019, CA Immo Germany Group is subject to guarantees and other commitments resulting from purchase agreements for decontamination costs and war damage costs amounting to € 106 K (31.12.2018: € 91 K). Furthermore, comfort letters and securities have been issued for one joint venture in Germany amounting to € 2,000 K (31.12.2018: € 2,000 K). As a security for the liabilities of two (2018: two) joint ventures loan guarantees, letters of comfort and declarations were issued totalling € 2,500 K (31.12.2018: € 2,500 K) in Germany. Furthermore, as security for warranty risks in Germany a guarantee was issued in an amount of € 15,066 K (31.12.2018: € 15,066 K).
CA Immo Group has agreed to adopt a guarantee in connection with the refunding of the project "Airport City St. Petersburg" to the extent of € 1,027 K (31.12.2018: € 1,027 K).
In connection with disposals, marketable guarantees between CA Immo Group and the buyer for coverage of possible warranty- and liability claims were entered into. The actual claims may exceed the expected level. Furthermore, comfort letters and securities have been issued for two (31.12.2018: one) joint ventures in Austria amounting to € 15,443 K (31.12.2018: € 6,743 K) and for one joint venture in Eastern Europe amounting to € 15,699 K (31.12.2018: € 15,699 K).
For the purpose of recognising tax provisions, estimates have to be made. Uncertainties exist concerning the interpretation of complex tax regulations as well as calculation methods to determine the amount and timing of taxable income. Due to these uncertainties and the complexity, estimates may vary from the real tax expense also in a material amount. This may include amended interpretations of tax authorities for previous periods. CA Immo Group recognises appropriate provisions for known and probable charges arising from ongoing tax audits.
Uncertainties also relate to the retrospective application of subsequent tax changes concerning completed and law-aligned restructurings in Eastern Europe. CA Immo Group estimates the possibility of incurring actual expenses due to the subsequent change of tax law and their implications for past restructurings, as low.
In connection with a development project in Eastern Europe a main contractor has filed an arbitration action at the Vienna International Arbitral Center on 15.2.2019. The claim contains alleged claims for the payment of additional costs and compensation for work performed in the amount of € 26.27 m. CA Immo Group considers the chances of this action succeeding as minimal. The expected cash outflows in this respect have been recognized in the statement of financial position accordingly.
Existing uncertainties are continually evaluated and may lead to adjustments of estimates.
Mortgages, pledges of rental receivables, bank accounts and share pledges as well as similar guarantees are used as market collateral for bank liabilities.
In addition, there are other financial obligations of order commitments related to building site liabilities for work carried out in the course of developing real estate in Austria in the amount of € 10,867 K (31.12.2018: € 0 K), in Germany in the amount of € 148,915 K (31.12.2018: € 212,331 K) and in Eastern Europe in the amount of € 2,744 K (31.12.2018: € 2,668 K). In addition as at 30.6.2019, CA Immo Group is subject to other financial commitments resulting from construction costs from urban development contracts which can be capitalised in the future with an amount of € 6,486 K (31.12.2018: € 8,782 K).
The total obligation of the payments of equity in joint ventures for which no adequate provisions have been recognised amount in Germany to € 0 K (31.12.2018: € 1,990 K) as of 30.6.2019. Besides the disclosed obligations of equity-payments, no further obligations to joint ventures exist.
Borrowings, for which the financial covenants have not been met as at 30.6.2019, thus enabling the lender in principle to prematurely terminate the loan agreement, have to be recognised in short-term financial liabilities irrespective of the remaining term under the contract. This classification applies notwithstanding the status of negotiations with the banks concerning the continuation or amendment of the loan agreements. As at 30.6.2019, this applied to no loan (31.12.2018: no loan).
SIGNIFICANT EVENTS AFTER THE END OF THE INTERIM REPORTING PERIOD
In August 2019 the closing of the sale of shares in an associated company in Russia (incl. loans granted to this entity) took place.
Vienna, 21.8.2019
The Management Board
Andreas Quint (Chief Executive Officer)
Dr. Andreas Schillhofer (Member of the Management Board)
Keegan Viscius (Member of the Management Board)
REPORT ON THE REVIEW OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Introduction
We have reviewed the accompanying condensed interim consolidated financial statements of CA Immobilien Anlagen Aktiengesellschaft, Vienna, for the period from 1 January 2019 to 30 June 2019. These condensed interim consolidated financial statements comprise the consolidated statement of financial position as of 30 June 2019 and the consolidated income statement and consolidated statement of comprehensive income, the consolidated cash flow statement and consolidated statement of changes in equity for the period from 1 January 2019 to 30 June 2019 and the condensed notes, summarizing the significant accounting policies and other explanatory notes.
Management is responsible for the preparation of the condensed interim consolidated financial statements in accordance with International Financial Reporting Standards (IFRS's) for Interim Reporting as adopted by the EU.
Our responsibility is to express a conclusion on these condensed consolidated interim financial statements. Our liability towards the Company and towards third parties is limited with a total of 12 million Euro.
Scope of review
We conducted our review in accordance with Austrian Standards for Chartered Accountants, in particular in compliance with KFS/PG 11 "Principles of Engagements to Review Financial Statements", and with the International Standard on Review Engagements (ISRE 2410) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity".
A review of interim financial statements is limited primarily to making inquiries, primarily of Company personnel, responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Austrian Standards on Auditing or International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing came to our attention that causes us to believe that the accompanying condensed interim consolidated financial statements are not prepared, in all material respects, in accordance with International Financial Reporting Standards (IFRS's) for Interim Reporting as adopted by the EU.
Statement on the condensed interim consolidated management report and on management's statement in accordance with § 125 Austrian Stock Exchange Act (BörseG)
We have read the condensed interim consolidated management report and evaluated whether it does not contain any apparent inconsistencies with the condensed interim consolidated financial statements. Based on our evaluation, the condensed interim consolidated management report does not contain any apparent inconsistencies with the condensed interim consolidated financial statements.
The interim financial information contains the statement by management in accordance with § 125 par. 1 subpar. 3 Austrian Stock Exchange Act.
Vienna, 21 August 2019
Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H.
Mag. Alexander Wlasto mp Mag. (FH) Isabelle Vollmer mp Wirtschaftsprüfer Wirtschaftsprüferin
DECLARATION OF THE MANAGING BOARD IN ACCORDANCE WITH SECTION 125 OF THE AUSTRIAN STOCK EXCHANGE ACT
The managing board confirms to the best of their knowledge that the condensed consolidated interim financial statements of CA Immobilien Anlagen Aktiengesellschaft, which were prepared in accordance with International Financial Reporting Standards (IFRS) for interim financial reporting (IAS 34) as adopted by the EU, give a true and fair view of the assets, liabilities, financial position and profit or loss of the group as required by the applicable accounting standards and that the group management report gives a true and fair view of important events that have occurred during the first six months of the financial year and their impact on the condensed consolidated interim financial statements of the principal risks and uncertainties for the remaining six months of the financial year and of the major related party transactions to be disclosed.
Vienna, 21.8.2019
The Management Board
Andreas Quint (Chief Executive Officer)
Dr. Andreas Schillhofer (Member of the Management Board)
Keegan Viscius (Member of the Management Board)
CA Immobilien Anlagen AG Mechelgasse 1, 1030 Vienna
Phone +43 1 532 59 07–0 Fax +43 1 532 59 07–510 [email protected] www.caimmo.com
Investor Relations
Free info hotline in Austria: 0800 01 01 50 Christoph Thunberger Claudia Höbart Phone +43 1 532 59 07–0 Fax +43 1 532 59 07–595 [email protected]
Corporate Communications
Susanne Steinböck Cornelia Kellner Phone +43 1 532 59 07–0 Fax +43 1 532 59 07–595 [email protected]
CONTACT GENERAL INFORMATION ON CA IMMO SHARE
Listed on Vienna Stock Exchange ISIN: AT0000641352 Reuters: CAIV.VI Bloomberg: CAI: AV
DISCLAIMER
This Interim Report contains statements and forecasts which refer to the future development of CA Immobilien Anlagen AG and their companies. The forecasts represent assessments and targets which the Company has formulated on the basis of any and all information available to the Company at present. Should the assumptions on which the forecasts have been based fail to occur, the targets not be met, then the actual results may deviate from the results currently anticipated. This Interim Report does not constitute an invitation to buy or sell the shares of CA Immobilien Anlagen AG.
We ask for your understanding that gender-conscious notation in the texts of this Interim Report largely had to be abandoned for the sake of undisturbed readability of complex economic matters.
IMPRINT
Published by: CA Immobilien Anlagen AG, 1030 Vienna, Mechelgasse 1 Text: Susanne Steinböck, Christoph Thurnberger, Claudia Höbart Layout: Cornelia Kellner, Photo credits: CA Immo; this report is set inhouse with FIRE.sys
