Quarterly Report • Aug 22, 2018
Quarterly Report
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URBAN BENCHMARKS.
FINANCIAL REPORT AS AT 30 JUNE 2018
| 1.1.-30.6.2018 | 1.1.-30.6.2017 restated | ||
|---|---|---|---|
| Rental income | € m | 93.8 | 88.6 |
| EBITDA | € m | 79.3 | 70.3 |
| Operating result (EBIT) | € m | 149.8 | 148.5 |
| Net result before taxes (EBT) | € m | 123.3 | 135.2 |
| Consolidated net income | € m | 89.6 | 106.7 |
| Operating cash flow | € m | 61.6 | 67.2 |
| Capital expenditure | € m | 189.4 | 74.9 |
| FFO I (excl. Trading and pre taxes) | € m | 63.2 | 56.0 |
| FFO II (incl. Trading and after taxes) | € m | 63.4 | 54.8 |
| 30.6.2018 | 31.12.2017 restated | ||
|---|---|---|---|
| Total assets | € m | 4,842.9 | 4,743.4 |
| Shareholders' equity | € m | 2,420.7 | 2,419.3 |
| Long and short term interest-bearing liabilities | € m | 1,697.8 | 1,749.3 |
| Net debt | € m | 1,364.0 | 1,365.1 |
| Net asset value (EPRA NAV) | € m | 2,829.9 | 2,805.1 |
| Triple Net asset value (EPRA NNNAV) | € m | 2,555.0 | 2,543.8 |
| Gearing | % | 56.3 | 56.4 |
| Equity ratio | % | 50.0 | 51.0 |
| Gross LTV | % | 42.6 | 45.9 |
| Net LTV | % | 34.3 | 35.8 |
| 30.6.2018 | 31.12.2017 restated | ||
|---|---|---|---|
| Total usable space (excl. parking, excl. projects) 2) | sqm | 1,493,291 | 1,466,057 |
| Gross yield investment properties 3) | % | 6.1 | 6.1 |
| Fair value of properties | € m | 3,982.3 | 3,813.8 |
| Occupancy rate 3) | % | 94.6 | 95.2 |
| 1.1.-30.6.2018 | 1.1.-30.6.2017 restated | ||
|---|---|---|---|
| Rental income / share | € | 1.01 | 0.95 |
| Operating cash flow / share | € | 0.66 | 0.72 |
| Earnings per share | € | 0.96 | 1.14 |
| FFO I / share | € | 0.68 | 0.60 |
| FFO II / share | € | 0.68 | 0.59 |
| 30.6.2018 | 31.12.2017 restated | ||
| NAV/share | € | 26.02 | 25.95 |
| EPRA NAV/share | € | 30.42 | 30.09 |
| EPRA NNNAV/share | € | 27.46 | 27.29 |
| Dividend paid in the business year/per share | € | 0.80 | 0.65 |
| Dividend yield | % | 2.80 | 2.52 |
| 30.6.2018 | 31.12.2017 | ||
|---|---|---|---|
| Number of shares | pcs. | 98,808,336 | 98,808,336 |
| Treasury shares | pcs. | 5,780,037 | 5,582,054 |
| number of shares outstanding | pcs. | 93,028,299 | 93,226,282 |
| Ø number of shares | pcs. | 98,808,336 | 98,808,336 |
| Ø Treasury shares | pcs. | 5,730,402 | 5,479,394 |
| Ø number of shares outstanding | pcs. | 93,077,934 | 93,328,942 |
| Ø price/share | € | 26.74 | 21.80 |
| Closing price | € | 28.54 | 25.81 |
| Highest price | € | 30.04 | 26.00 |
| Lowest price | € | 21.40 | 17.30 |
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. properties used for own purposes and the office building Vi-sionary in Prague, which is still in the stabilization phase (completed in April 2018 and acquired by CA Immo in June 2018)
Left to right: Andreas Quint (CEO), Dr. Hans Volkert Volckens (CFO)
CA Immo can report highly positive progress as of 30 June 2018. During the first half, we have prepared the ground for profitable expansion over the long term. Realisation of the development pipeline remains dynamic, with the acquisition of Campus 6.1 in Bucharest followed by the procurement of Visionary, another high quality office building in Prague.
Long-term revenue (FFO I) increased by 12.8% on the 2017 figure of €56.0 m to €63.2 m. FFO I per share totalled €0.68, up 13.2% on last year's reference value. As in preceding quarters, this underlines operational development that was both highly robust and independent of the valuation result and which forms the basis for the long-term dividend policy of CA Immo. FFO II stood at €63.4 m (€54.8 m in 2017). FFO II per share stood at €0.68 (€0.59 per share in 2017), an increase of 16.1% year-on-year.
Rental income for CA Immo increased by 5.9% to €93.8 m in the first half of 2018. This positive development was mainly the result of the acquisition of the Warsaw Spire Building B in the Polish capital and the associated increase in rent. Completion of the KPMG building and a new large-scale letting in Berlin delivered further growth momentum. The net rental income after the first
two quarters was €86.8 m, up 8.4% on the 2017 value of €80.1 m.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at €79.3 m, a significant 12.8% above the previous year's level. This positive development was made possible thanks to higher long-term revenue as well as a higher sales result in yearly comparison.
The revaluation result was highly positive at €48.7 m on key date 30 June 2018, above the 2017 figure of €39.9 m. The largest contributions to the revaluation gain in terms of amount came from value adjustments to the German real estate portfolio on the basis of higher land values. The result from joint ventures was €22.9 m after the first six months (2017: €39.7 m) thanks to a positive effect linked to the sale of Tower 185.
Earnings before interest and taxes (EBIT) were €149.8 m, 0.9% above the corresponding figure for last year of €148.5 m. The financial result of €-26.5 m (€-13.3 m last year) contained a non-cash valuation effect in connection with the outstanding convertible bond of €-16.8 m. Earnings before taxes (EBT) of €123.3 m were 8.9% down on the 2017 value of €135.2 m. Adjusted to take account of the convertible bond valuation effect, however, there was an increase of 3.6%.
The result for the period totalled €89.6 m or €0.96 per share (2017: €106.7 m or €1.14 per share).
With an equity ratio of 50.0% and a conservative loanto-value ratio (net debt to property assets) of 34.3%, the strength of CA Immo's balance sheet provides an extremely sound basis on which to implement the Group's growth strategy.
Net asset value (shareholders' equity) was €26.02 on the key date (€25.95 per share on 31.12.2017). The EPRA NAV was up 1.1% at €30.42 per share as of 30 June 2018 (€30.09 per share in 2017). Adjusted to take account of the dividend payment of 80 cents per share in May 2018, the EPRA NAV rose by 3.8%.
The in-house development of high quality properties on core markets and subsequent transfer to the asset portfolio is a significant driver of organic growth for the CA Immo Group, enabling long-term earning power and thus the dividend paid to shareholders to be steadily raised. Following completion of the KPMG building in Berlin's Europacity, three more newly developed buildings will be added to the portfolio in 2018: Office properties ViE in Vienna, Orhideea in Bucharest and the Steigenberger Hotel at Frankfurt's main station.
Selective acquisitions on CA Immo's core Eastern European markets are sustaining the strong pace of organic
growth. Following on from successful acquisitions in Budapest, Warsaw and Bucharest in previous quarters, another value-generating purchase was confirmed in Prague in quarter two of 2018. Acquisition of the new Visionary office building (approximate transaction volume of €65 m) with gross rentable space of 23,000 sqm has brought about an increase in annual rental revenue of around €4 m (given full occupancy).
In July 2018, IMMOFINANZ AG announced the sale of its share package amounting to 26.00% (including four registered shares) to Starwood for a total price of €757.9 m (equivalent on average to €29.5 per share). The purchase agreement should now have been signed. The transaction remains subject to conditions precedent for antitrust clearances and the approval of the Management Board of the issuing party to transfer the registered shares (which was granted on 18 July 2018). Closing of the transaction is expected in the third quarter of 2018.
General conditions are expected to remain favourable on the core markets of CA Immo in the second half of the year. The annual target for long-term revenue – an increase in FFO I on last year's value of €106.6 m to over €115 m – is hereby confirmed.
Vienna, August 2018
The Executive Board
Andreas Quint (Chairman)
Dr. Hans Volkert Volckens (Member of the Management Board)
The CA Immo share price opened business year 2018 at € 25.80 and maintained the positive trend throughout the first half of the year. On key date 30 June 2018, the rate closed at € 28.54 (up approximately 11%). By comparison EPRA (excluding the UK), the European index for real estate, reported growth of just under 3%. The high for the year of € 30.04 was recorded at the end of May, while the lowest price was € 21.40. The CA Immo share is currently trading with a premium to NAV of around 10% (intrinsic value).
As at 30 June 2018, market capitalisation for CA Immo was approximately € 2.8 bn (€ 2.5 bn on 31.12.2017). Since the end of 2017, the average trading volume has fallen slightly by 2% to stand at 265,800 shares (against 272,600 on 31.12.2017). Since the end of 2017, the average liquidity of the share has risen 22% to stand at € 7,112.4 K (€ 5,823.1 K on 31.12.2017).
The share buyback programme initiated in November 2016 for up to 1,000,000 shares (approximately 1% of the company's capital stock) with an upper limit of € 24.20 per share continued in the first half of 2018. The repurchase is aimed at supporting purposes permitted by resolution of the Ordinary General Meeting and will end on 2 November 2018 at the latest. In the first quarter of the current business year, 197,983 shares were acquired through the programme at a weighted equivalent value per share of approximately € 23.55; no repurchases took place in quarter two. As at the balance sheet date, therefore, CA Immobilien Anlagen AG held 5,780,037 own shares in total; given the total number of voting shares issued (98,808,336), this is equivalent to around 6% of the voting shares. Details of transactions completed, along with any changes to the programme, will be published at http://www.caimmo.com/en/investor-relations/sharebuy-back-ca-immo/.
| CA Immo share | 33.61% |
|---|---|
| ATX | 4.81% |
| IATX | 18.63% |
| EPRA Developed Europe | 9.07% |
Now that Deutsche Bank has resumed coverage (with a recommendation to purchase and a target price of € 40.00), CA Immo is assessed by nine investment companies. Baader-Helvea, HSBC and Kepler Cheuvreux confirmed their purchase recommendations in the first half and raised their target prices. While Goldman Sachs and SRC Research remained 'neutral' and 'hold' respectively, they also revised their target prices for CA Immo upwards. Currently, the most recent 12-month target rates were in the range of € 27.40 to € 40.00, with the valuation median at € 29.00. The closing rate for the balance sheet date 30 June 2018 implies price potential of approximately 2%.
| Baader-Helvea Bank | 17.8.2018 | € 33.00 | Hold |
|---|---|---|---|
| Deutsche Bank | 2.8.2018 | € 40.00 | Buy |
| Erste Group | 29.11.2017 | € 30.00 | Buy |
| Goldman Sachs | 2.7.2018 | € 27.50 | Neutral |
| HSBC | 5.3.2018 | € 30.00 | Buy |
| Kepler Cheuvreux | 3.4.2018 | € 28.00 | Buy |
| Raiffeisen Centrobank | 8.1.2018 | € 27.40 | Hold |
| SRC Research | 24.5.2018 | € 29.00 | Hold |
| Wood & Company | 11.1.2018 | € 29.00 | Hold |
| Average | € 30.43 | ||
| Median | € 29.00 |
As at the balance sheet date, four CA Immo corporate bonds were trading on the unlisted securities market of the Vienna Stock Exchange and 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
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 holding of 26% and four registered shares, the IMMOFINANZ Group is still the largest shareholder in CA Immo. There is a reciprocal shareholding between the IMMOFINANZ Group and the CA Immo Group. The CA Immo Group holds 5,480,556 bearer shares (approximately 5%) in IMMOFINANZ AG.
The remaining shares of CA Immo are in free float with both institutional and private investors. Other major shareholders include AXA S.A., BlackRock Inc. (each with approximately 4%) and the S IMMO Group (with around 6%). The company also held 5,780,037 own shares as at the balance sheet date.
On 18 April 2018, SOF-11 Starlight 10 EUR S.à r.l. of Luxembourg (the 'bidder'), an indirect, wholly owned subsidiary of SOF-11 International, SCSp, part of the group of companies known as Starwood Global Opportunity Fund XI and a member of the Starwood Capital
Group ('Starwood'), presented a voluntary public takeover bid in accordance with article 4ff of the Austrian Takeover Act to the shareholders of CA Immo.
The takeover bid envisaged the acquisition of up to 25,690,167 bearer shares of CA Immo (ISIN AT0000641352), equivalent to as much as 26% of company shares issued to the bearer. The offer price of € 27.50 per share was linked to the dividend for business year 2017, i.e. the offer price was reduced by the amount of any dividend declared between the announcement of the takeover bid and the processing thereof. The offer could be accepted from 18 April 2018 until 5:00pm (Vienna local time) on 30 May 2018. By the end of the acceptance period, 153,489 shares in CA Immo had been delivered. For full details of the takeover bid, including statements by the Management Board and Supervisory Board of CA Immo, please visit
http://www.caimmo.com/en/investor-relations/takeoveroffers/.
Following the abortive takeover bid by Starwood, IM-MOFINANZ AG announced on 2 July 2018 that the company's Supervisory Board had approved the block sale of a holding in CA Immo amounting to approximately 26%. The acquirer of the 25,690,163 bearer shares and four registered shares in CA Immo is SOF-11 Starlight 10 EUR S.à.r.l. The block sale value totals € 757.9 m, equivalent to a calculated value per share of € 29.50. The purchase agreement has already been signed according to IM-MOFINANZ. The transaction remains subject to conditions precedent for antitrust clearances and the approval of the CA Immo Management Board for the transfer of the four registered shares; the latter consent was issued on 18 July 2018. IMMOFINANZ expects to close the transaction during the third quarter of 2018.
CA Immo welcomes the efforts of Starwood to become the new core shareholder of CA Immo. Starwood, a financial investor specialising in global real estate investment, has an excellent reputation. The interest shown by this
renowned international investor underlines the positive development experienced by CA Immo over recent years.
The 31st Ordinary General Meeting of CA Immo was held on 9 May 2018. Taking account of own shares held by the company, which do not confer voting rights, attendance was 489 shareholders and their delegates (representing approximately 55% of the capital stock).
Alongside the usual agenda items (distribution of profit, approval of the actions of Management and Supervisory Board members, the definition of Supervisory Board remuneration and confirmation of Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H. as the (Group) auditor for business year 2018), the agenda included authorisations to undertake capital increases, issue convertible bonds and acquire and sell own shares. With the exception of the enabling resolution for the acquisition and sale of own shares, all resolutions proposed by the company had the legally required majority.
The results of voting may be viewed in detail at www.caimmo.com/hauptversammlung.
| 30.6.2018 31.12.2017 restated | |||
|---|---|---|---|
| EPRA NNNAV/share | € | 30.42 | 27.29 |
| NAV/share | € | 26.02 | 25.95 |
| Price (key date)/NAV per share –11) | % | 9.68 | –0.56 |
| Price (key date)/NNNAV per share –11) | % | 3.92 | –5.43 |
| Number of shares | pcs. | 98,808,336 | 98,808,336 |
| Treasury shares | pcs. | 5,780,037 | 5,582,054 |
| Number of shares outstanding | pcs. | 93,028,299 | 93,226,282 |
| Ø number of shares | pcs. | 98,808,336 | 98,808,336 |
| Ø Treasury shares | pcs. | 5,730,402 | 5,479,394 |
| Ø number of shares outstanding | pcs. | 93,077,934 | 93,328,942 |
| Ø price/share | € | 26.74 | 21.80 |
| Market capitalisation (key date) | € m | 2,819.99 | 2,549.75 |
| Highest price | € | 30.04 | 26.00 |
| Lowest price | € | 21.40 | 17.30 |
| Closing price | € | 28.54 | 25.81 |
| Dividend paid in the business year/per share | € | 0.80 | 0.65 |
| Dividend yield | % | 2.80 | 2.52 |
1) before deferred taxes
| Type of shares | No-par value shares |
|---|---|
| Stock market listing: | Vienna Stock Exchange, prime market |
| Indices: | ATX, ATX-Prime, IATX, FTSE EPRA/NAREIT Europe, WBI |
| Specialist: | Raiffeisen Centrobank AG |
| Market maker: | Baader Bank AG, Erste Group Bank AG, Hudson River Trading Europe Ltd., Société Générale |
| S.A., Tower Research Capital Europe Limited | |
| Stock exchange symbol/ISIN: | CAI/AT0000641352 |
| Reuters: | CAIV.VI |
| Bloomberg: | CAI:AV |
| Email: | [email protected] |
| Web site: | www.caimmo.com |
Christoph Thurnberger Tel. +43 1 532 59 07-504 Fax: +43 1 532 59 07-550 [email protected] Claudia Höbart Tel. +43 1 532 59 07-502 Fax: +43 1 532 59 07-550 [email protected]
PUBLICATION OF ANNUAL RESULTS FOR 2017 / PRESS CONFERENCE ON FINANCIAL STATEMENTS
VERIFICATION DATE FOR THE 31ST ORDINARY GENERAL MEETING
31ST ORDINARY GENERAL MEETING
EX-DIVIDEND DATE / RECORD DATE (DIVIDEND) / DIV-IDEND PAYMENT DAY
INTERIM REPORT FOR THE FIRST QUARTER 2018
PRESS CONFERENCE ON SEMI-ANNUAL RESULT
21 NOVEMBER INTERIM REPORT FOR THE THIRD QUARTER 2018
PUBLICATION OF ANNUAL RESULTS FOR 2018 / PRESS CONFERENCE ON FINANCIAL STATEMENTS
Most recent economic data and survey outcomes underline the recovery seen in the European Union, which has also gained momentum in recent quarters. The increase of 2.3% of the eurozone over the year 2017 represented the highest growth rate since 2007. Prospects for growth have been revised upward despite persistent geopolitical and economic uncertainties at the global level. The unemployment rate in the EU-28 has reached its lowest level since 2008. That notwithstanding, the IMF warned that the tariffs on imports threatened by both President Donald Trump and his trading partners could lower the annual growth rate of the global economy by 0.5% by 2020. The Fund left its forecasts for global economic growth in 2018 unchanged.
Growth in the eurozone in 2017 came to 2.3% (1Q 2018: 2.5%), and across the entire EU to 2.4% (2.4%). Preliminary estimates for the second quarter 2018 report a growth rate of 2.1% for the eurozone and 2.2% for the EU-28. Compared to the previous three months, 2Q 2018 GDP in the eurozone expanded by 0.3%, which is the lowest rate in two years, raising concerns that the prospect of an escalating trade war between Europe and the USA might be hurting the region's exports.
The (seasonally adjusted) unemployment rate was 8.3% (down from 9.0% in June 2017) in the eurozone and 6.9% (down from 7.6% in June 2017) for the EU as a whole in June 2018, which is the lowest rate since October 2008. The government debt stood at 86.8% in the eurozone at the end of the first quarter of 2018 (81.5% in the EU-28). Annual inflation in the eurozone is estimated at 2.1% in July 2018, slightly above the rate targeted by the ECB of below, but close to 2.0% (June 2018: 2.0%).
Standing at 3.4%, the unemployment rate has reached a new record low in Germany, according to the most recent publication of Eurostat (June 2018). The German economy recorded a GDP growth of 2.2% in 2017 and 2.3% in 1Q 2018. Strong export figures based on global economic recovery, rising tax revenues and a combination of real wage growth and a historically low interest rate level have also stimulated consumer spending in Europe's largest economy. The inflation rate for Germany was reported at 2.1% in June 2018. The economy of Austria grew strongly with real GDP rising by 2.9% in 2017
and 3.4% in 1Q 2018. The inflation rate stood at 2.3% in June 2018, the unemployment rate at 4.7%.
As observed in preceding years, the positive economic trend in the core CA Immo markets in the CEE region gained further momentum throughout 2017 and sustained this trend into 2018. Supported by the tailwind of the positive development of the German economy, Eastern Europe posted its steepest growth in 9 years. Strong increases in employment combined with real wage growth stimulate private consumption. Additionally, there is a massive effect from large inflows of EU funds, representing an essential lever for the Eastern European economies.
Within the CEE core markets, Romania reported the highest GDP growth of 7.0% in 2017, clearly exceeding expectations (1Q 2018: 4.2%). The economy of Poland also developed extremely well, as the GDP rose by 4.6% (1Q 2018: 5.0%). The gross domestic product in the Czech Republic grew by 4.3% in 2017 and by 4.4% in the first quarter of 2018, and in Hungary by 4.0% and 4.7% in the same period. The unemployment rate in the CEE countries is significantly lower than in the EU-28 and the euro area average; it was reported for June 2018 at 2.4% in the Czech Republic, 3.6% in Hungary, 3.7% in Poland and 4.5% in Romania.
Following the economic recovery in Europe, the European Central Bank (ECB) announced at its meeting in June 2018 that the ECB's policy of quantitative easing will be gradually ended by the end of 2018. In July, the ECB's president Mario Draghi gave an upbeat take on the outlook for the eurozone. However, he also emphasised that interest rates would remain ultra-low until at least September 2019. At its latest meeting held on 8 March 2018, the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and –0.40%, The 3-month Euribor remained in negative territory throughout the first half of 2018.
1) International Monetary Fund, Bloomberg, Financial Times, The Economist, Eurostat
2) Sources: ECB, Eurostat, Financial Times, Bloomberg
After six months, transaction activity on the European investment market for commercial real estate had climbed to €128 bn, broadly matching last year's high level (2017: € 132 bn).
The investment market in Germany remains highly dynamic: after two quarters, the transaction volume was approximately €25.6 bn, 1% below the previous year's value. Returns are continuing to diminish: in the second quarter, the peak yield for offices was 3.25% for Frankfurt (Q2 2017: 3.50%), with Berlin currently at 2.90% (3.00%) and Munich reporting 3.20% (3.30%). Positive development on the office rental markets is sustaining high demand on the part of investors. Some €12.1 bn was invested in German office properties over the first six months, a 3% increase on last year (up €0.4 bn).
Peak yields for offices in Vienna stood at 3.80% in the second quarter of 2018. Demand is expected to be consistently high in 2018, although levels may be suppressed by a lack of product availability. Present market activity in the CEE region is indicative of record investment levels in 2018. As at the key date, peak yields for offices stood at 5.00% in Warsaw, 4.75% in Prague, 6.00% in Budapest and 7.50% in Bucharest.
The German office rental market continues to develop very strongly, with steadily falling vacancy and rising rental rates.
Office space take-up in Berlin totalled approximately 378,000 sqm in the first half of 2018 (down 7% on last year's level). With the demand trend remaining positive and completion figures low, the vacancy rate has declined to the present level of around 2.7%. According to CBRE figures, vacancy has fallen by 30% to approximately 480,000 sqm within one year (vacancy level of 2.7%). The continuing shortage of floor space is driving the upward trend in the peak rent, which is currently reported at €31.50/sqm per month. The office completion volume is relatively low; for 2018 it is estimated at 273,000 sqm, of which a large proportion (>80%) is already absorbed according to CBRE.
Floor space turnover in Frankfurt was approximately 254,000 sqm for the first six months, up 13% on the previous year. The vacancy rate fell 210 base points in yearly comparison to stand at 8.5% currently. CBRE expects market developments to remain positive, with demand for centrally located office premises with top quality fixtures and fittings remaining strong. In yearly comparison, the peak rent level rose only slightly to €40.0/sqm per month (€39.50/sqm in 2017).
Office space take-up in Munich was around 479,000 sqm in the first six months, making this the strongest half for 15 years. This market remains characterised by a shortage of supply in prime locations. The vacancy level has fallen further to 3.2%, 30 base points below last year's value. The attainable peak rent is reported as €37.0/sqm per month. According to the completion forecast, the situation is not expected to ease over the next two years.
Lettings performance in Vienna was approximately 60,000 sqm after the first quarter (17% above the 2017 level). The vacancy rate currently stands at 4.9%.
On the office market in Warsaw, some 425,000 sqm of floor space was let in the first six months, the highest half-year figure reported so far. The CBRE also expects a record value for the year as a whole. The market continues to be characterised by extensive construction activity, with 15 office properties (offering some 174,000 sqm of floor space) completed in the first six months. The vacancy rate fell 2.8 percentage points to 11.1% in yearly comparison. Strong demand for office space was also noted in Budapest in the second quarter of 2018 (106,800 sqm, up 64% on last year). The vacancy rate has stabilised at 7.6%. Development activity is gaining pace, with appr. 460,000 sqm currently under construction.
Lettings activity of around 213,000 sqm was reported in Prague during the first six months. The vacancy rate has continued to decline to 6.9%. The current development volume is appr. 330,000 sqm (with about 38% preleased). Lettings performance in Bucharest after six months totalled appr. 149,000 sqm (70% preleased). 158,000 sqm of floor space are currently under construction and shall be delivered by the end of the year. The vacancy rate is reported at a new record low (8.0%).
1) CBRE: European Investment Market Snapshot Q1 2018; MarketView Investment Market Germany Q2 2018/Q2 2017; CEE Investment Market Snapshot Q1 2018; Real Estate Market Outlook 2018 Austria; JLL: Investment Market Overview Germany, 2nd Quarter 2018
2) CBRE: European Investment Quarterly MarketView Q1/Q2 2018, Austria Office Market Snapshot Q1 2018, Germany Investment MarketView Q1 2018, Germany Office Investment MarketView Q2 2018, Office Market View Vienna, Berlin, Munich, Frankfurt, Budapest, Bucharest, Warsaw Q2 2018; Prague Office Market Snapshot Q2 2018
In the course of the company´s strategic portfolio optimisation, CA Immo has continuously reduced the proportion of minority holdings in the portfolio. These property investments held in joint ventures are consolidated at equity and shown in the income statement under 'Result from joint ventures'. Since 2018, these minority holdings are no longer presented separately in the tables of the 'Property assets' sections alongside fully consolidated properties (wholly owned by CA Immo); instead, they are added as footnotes where necessary. Unless otherwise stated, therefore, all indicators in this report refer exclusively to fully consolidated properties wholly owned by CA Immo; the comparative values for 31 December 2017 have been adjusted accordingly. As at 30 June 2018, the portfolio value of partially owned real estate amounted to € 132.2 m1) (€ 390.4 m1) on 31 December 2017); the buildings are 94.7%1) let and show a yield of 94.7%1).
The application of IFRS 9 and IFRS 15 accounting standards – which is mandatory as of January 1st 2018 – has material impact on the consolidated financial statements, which is explained in the notes from page 35 onwards. Comparative figures were adapted accordingly.
As at key date 30 June 2018, CA Immo's total property assets stood at € 4.0 bn (31.12.2017: € 3.8 bn2)). The company's core business is commercial real estate, with a clear focus on office properties in Germany, Austria and
Eastern Europe; it deals with both investment properties (83% of the total portfolio) and investment properties under development (16% of the total portfolio). Properties intended for trading (reported under short-term property assets) account for the remaining 1% of property assets.
As at 30 June 2018, the investment property portfolio had an approximate book value of € 3.3 bn (31 December 2017: € 3.2 bn) and incorporated a total rentable effective area3) of 1.3 m sqm. Around 49% of the portfolio (based on book value) is located in CEE and SEE nations, with 36% 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 € 93.8 m (30 June 2017: € 88.6 m); unchanged to 31 December 2017, the portfolio produced a yield of 6.1%4). The occupancy rate was 94.6%4) as at 30 June 2018 (against 95.2% on 31 December 2017). For details, please see the 'Changes to the Portfolio' section.
Of investment properties under development with a total book value of around € 645.8 m, development projects and land reserves in Germany account for 84%, while the Eastern Europe segment represents 11% and Austria 5%. Investment properties under development in Germany with a book value of € 542.0 m include projects under construction (€ 312.2 m) and land reserves (€ 229.8 m).
| in € m | Investment | Investment properties | Short-term | Property assets | Property assets |
|---|---|---|---|---|---|
| properties 5) | under development | property assets 6) | in % | ||
| Austria | 498 | 30 | 0 | 528 | 13 |
| Germany | 1,180 | 542 | 39 | 1,762 | 44 |
| Czechia | 328 | 11 | 0 | 338 | 9 |
| Hungary | 470 | 2 | 0 | 472 | 12 |
| Poland | 371 | 0 | 0 | 371 | 9 |
| Romania | 260 | 58 | 0 | 317 | 8 |
| Serbia | 96 | 0 | 0 | 96 | 2 |
Share of total portfolio 83% 16% 1%
Others 93 4 0 97 3 Total 3,297 646 39 3,982 100
PROPERTY ASSETS OF THE CA IMMO GROUP AS AT 30 JUNE 2018
5) Includes properties used for own purposes
6) Short-term property assets including properties intended for trading or sale
1) Key figures include investment properties intended for trading or sale (IFRS 5)
2) Figure was adapted according to IFRS 9 and IFRS 15
3) Including properties used for own purposes and land leases
4) Excl. properties used for own purposes and the office building Visionary in Prague, which is still in the stabilization phase (completed in April 2018 and acquired by CA Immo in June 2018)
DISTRIBUTION OF BOOK VALUE TOTAL PROPERTY ASSETS BY COUNTRY (Basis: € 4.0 bn)
DISTRIBUTION OF BOOK VALUE INVESTMENT PROPERTIES BY MAIN USAGE (Basis: € 3,3 bn)
DISTRIBUTION OF BOOK VALUE INVESTMENT PROPERTIES BY SEGMENT (Basis: € 3.3 bn)
DISTRIBUTION OF BOOK VALUE TOTAL PROPERTY ASSETS BY SEGMENT (Basis: € 4.0 bn)
DISTRIBUTION OF BOOK VALUE PROPERTY ASSETS BY BUSINESS AREA (Basis: € 4.0 bn)
In Germany, CA Immo held investment properties with an approximate value of € 1,178.9 m1) on 30 June 2018 (31 December 2017: € 1,099.7 m). The occupancy rate for the german investment property assets on the key date was 98.3% (against 98.2% on 31.12.2017). 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 € 28.2 m was generated in the first six months (30 June 2017: € 25.8 m).
In Germany, approximately 24,800 sqm of usable area were newly let or extended between January and the end of June. Thereof, around 8,000 sqm accounted for prelettings of development projects.
CA Immo completed the office building for the tenant KPMG in Berlin's Europacity district in March; the nearly fully let structure, which spans some 12,800 sqm, represented a total investment of approximately € 57 m and is now part of the CA Immo investment portfolio.
Based on total investment costs, the volume of projects under development in Germany (excluding land reserves) is approximately € 927.9 m as at key date 30 June 2018
(please see table on the next page for details). In total, CA Immo holds investment properties under development2) (including land reserves) with a book value of € 542.0 m; therof, land reserves account for € 229.8 m and projects under construction account for € 312.2 m.
During the first six months, trading income from German properties totalled € 40.6 m.
As at 30 June 2018, CA Immo held investment properties in Austria with a value of € 494.6 m1 (31 December 2017: € 494.2 m) and an occupancy rate of 92.4% (96.2% on 31.12.2017). The company's asset portfolio generated rental income of € 13.9 m in the first six months (30 June 2017: € 15.5 m).
Between January and the end of June, some 3,700 sqm of usable space was newly let or extended in Austria. At the end of June, the market research institute GfK signed a lease for 2,200 sqm in the office building ViE by the Vienna Donaukanal, which will be completed and transferred to the own stock in autumn 2018.
OVERVIEW INVESTMENT PROPERTIES KEY DATA AS AT 30 JUNE 2018 3)
| Investment properties | Rentable area 4) | Occupancy rate | Annualised rental income | Yield | |
|---|---|---|---|---|---|
| in € m | in sqm | in % | in € m | in % | |
| Austria | 494.6 | 318,263 | 92.4 | 27.9 | 5.6 |
| Germany | 1,178.9 | 307,961 | 98.3 | 56.0 | 4.7 |
| Czechia | 266.7 | 105,892 | 97.1 | 18.4 | 6.9 |
| Hungary | 470.4 | 234,525 | 89.5 | 33.1 | 7.0 |
| Poland | 370.9 | 115,302 | 96.3 | 25.9 | 7.0 |
| Romania | 259.9 | 105,480 | 95.1 | 20.5 | 7.9 |
| Serbia | 96.4 | 46,130 | 91.0 | 7.6 | 7.9 |
| Others | 93.2 | 69,305 | 90.4 | 7.4 | 7.9 |
| Total | 3,230.9 | 1,302,857 | 94.6 | 196.8 | 6.1 |
3) Excludes properties used for own purposes and short term property assets; excl. of the office building Visionary in Prague, which is still in the stabilisation phase (completed in April 2018, acquired by CA Immo in June 2018)
4) incl. land leases in Austria (around 106,000 sqm)
1) Excl. properties used for own purposes and properties intended for trading or sale
2) Excl. projects and land reserves intended for trading or sale
In January, CA Immo handed over 220 rental apartments to the investor ESTRELLA Immobilien Invest AG as part of the Laendyard residential project on Vienna's Donaukanal. Development of the remaining 270 owner-occupied and investment apartments being built on an adjacent plot in a joint venture between CA Immo and JP Immobilien was also completed in summer 2018. The final
building block in the project, situated close to the Lände and Wiener Prater recreation areas, is the ViE office building, which is due for completion by the autumn of 2018.
Trading income for Austria amounted to € 25.1 m in the first six months.
| in € m | Planned | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Total | Outstanding | rentable | Gross | Utili | Start of | |||||
| investment | construction | effective area | yield on | Share3) | sation | construc | Scheduled | |||
| volume 2) | costs | in sqm | cost in % | City | Main usage | in % | in % | tion | completion | |
| Projects (for own stock) | ||||||||||
| Erdberger Lände, ViE | 37.6 | 11.8 | 14,727 | 6.4 | Vienna | Office | 100 | 23 | Q3 2016 | Q3 2018 |
| MY.O | 96.0 | 62.9 | 26,986 | 6.4 | Munich | Office | 100 | 19 | Q2 2017 | Q4 2019 |
| Europacity, Bürogebäude | ||||||||||
| am Kunstcampus (BT2) | 13.4 | 8.3 | 2,710 | 5.7 | Berlin | Office | 100 | 0 | Q4 2016 | Q2 2019 |
| Europacity, MY.B | 67.6 | 43.2 | 14,533 | 5.5 | Berlin | Office | 100 | 0 | Q3 2017 | Q4 2019 |
| Hafenspitze | 15.9 | 15.7 | 4,000 | 4.2 | Mainz | Office | 100 | 0 | Q2 2018 | Q4 2019 |
| Steigenberger ² | 58.3 | 12.2 | 17,347 | 6.2 | Frankfurt | Office | 100 | 99 | Q3 2016 | Q4 2018 |
| Baumkirchen, NEO | 64.3 | 40.2 | 13,490 | 4.9 | Munich | Office | 100 | 28 | Q1 2017 | Q2 2020 |
| Europaviertel, ONE | 353.6 | 296.4 | 66,187 | 5.3 | Frankfurt | Office | 100 | 27 | Q3 2017 | Q2 2021 |
| Orhideea Towers | 73.9 | 26.9 | 36,918 | 8.6 | Bucharest | Office | 100 | 55 | Q4 2015 | Q3 2018 |
| Subtotal | 780.6 | 517.6 | 196,897 | 5.8 | ||||||
| Projects (for sale) | ||||||||||
| Europacity, cube berlin | 104.2 | 59.4 | 16,876 | n.m. | Berlin | Office | 100 | 100 | Q4 2016 | Q4 2019 |
| Europacity, Bürogebäude | ||||||||||
| am Kunstcampus (BT1) | 32.2 | 18.8 | 5,215 | n.m. | Berlin | Office | 100 | 100 | Q4 2016 | Q2 2019 |
| Rheinallee III | 59.7 | 15.0 | 19,682 | n.m. | Mainz | Residential | 100 | 100 | Q3 2016 | Q4 2018 |
| JV Baumkirchen WA 3 | 35.4 | 10.8 | 6,831 | n.m. | Munich | Residential | 50 | 100 | Q3 2016 | Q2 2019 |
| Baumkirchen Mitte (MK) | 27.6 | 17.2 | 5,782 | n.m. | Munich | Residential | 100 | 0 | Q1 2017 | Q2 2020 |
| Subtotal | 259.0 | 121.2 | 54,386 | |||||||
| Total | 1,039.5 | 638.9 | 251,283 |
1) This table includes projects intended for trading or sale as well as projects held in joint ventures
2) Incl. plot
3) The Mannheimer Strasse bus station next to the hotel (with a value of € 4.7 m) is still assigned to property assets under development as temporary usage and is not included in the table
The value of the CA Immo investment properties1) is € 1,618.3 m as at 30 June 2018 (31 December 2017: € 1,561.8 m). In the first six months, property assets let with a total effective area of 701,906 sqm generated rental income of 51.7 m (30 June 2017: € 47.3 m). The occupancy rate on the key date was 93.4%2) (31 December 2017: 93.6%).
New lease agreements relating to around 26,400 sqm rentable area were concluded in the first six months, as well as contract extensions for some 39,000 sqm rentable area.
Beginning of May, CA Immo has acquired Campus 6.1 office building in Bucharest from Skanska; the transaction volume is approx. € 53 m. The closing is subject to the conditions usual for such transactions and is expected end of 2018. Campus 6.1 is an A-class office development, offering 22,000 sqm GLA. The development is located in the Central West area of Bucharest. Completion is scheduled for Q3 2018; full occupancy of the building is expected by the end of the year.
At the end of June, CA Immo acquired another Skanska office building in Prague; the gross transaction volume was approximately € 65 m. A-class office building Visionary was completed in April 2018 and spans 23,000 sqm of gross leasable area. Located in Prague 7, one of the most dynamically developing districts in Prague, the building is currently around 91% occupied. The transaction was closed when the contract was signed.
As at 30 June 2018, CA Immo had a total of 374 employees3), compared to 3784) on 31 December 2017. 20% of the overall workforce was based in Austria, with 55% in Germany and 25% in Eastern Europe. Of the total staff members, 53% are female.
| Headcounts | Headcounts | Change to | |
|---|---|---|---|
| as at | as at | 31.12.2017 | |
| 30.6.2018 | 31.12.2017 | ||
| Austria | 77 | 81 | -5% |
| Germany/Switzerland 6) | 205 | 195 | 5% |
| Eastern Europe | 92 | 102 | -11% |
| Total | 374 | 378 | -1% |
5) Includes staff on unpaid leave
6) Includes employees of CA Immo Deutschland GmbH, the wholly owned subsdiary omniCon as well as 21 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
The following activities after key date 30 June 2018 are reported:
With a holding of 26% and four registered shares, the IMMOFINANZ Group is the largest shareholder in CA Immo. On 2 July 2018 IMMOFINANZ AG informed, that they sold their investment in CA Immo to SOF-11 Starlight 10 EUR S.á.r.l., a member company of the Starwood Capital Group. On 18 July 2018 the Management Board of CA Immo AG approved the transfer of the four registered shares to SOF-11 Starlight 10 EUR S.á.r.l. The transaction is subject to the release by the cartel authorities.
In July, the sale of CA Immo´s 49% stake in the Megapark office building in the Bulgarian capital of Sofia, spanning around 48,000 sqm, was closed. The sale of this minority holding confirmed the company's exit from the secondary market and a further reduction in minority shareholdings.
1) Excl. properties used for own purposes and properties intended for trading or sale
2) Exclusive of the office building Visionary in Prague, which is still in the stabilisation phase (completed in April 2018, acquired by CA Immo in June 2018)
3) Around 11% were part-time employees; includes staff on unpaid leave, excl. 12 Headcounts in Joint Ventures (DRG, Mainzer Zollhafen GmbH & Co. KG
4) Of this figure, around 9% were part-time employees; includes staff on unpaid leave, excludes Headcounts in Joint Ventures
In the first six months of 2018, rental income for CA Immo rose by a significant 5.9% to €93,761 K. This positive development was mainly the result of the acquisition of the Warsaw Spire Building B in the Polish capital and the associated increase in rent. Completion of the KPMG building and a new large-scale letting in Berlin delivered further growth momentum.
In year-on-year comparison, property expenses directly attributable to the asset portfolio, including own operating expenses, fell to €–6,965 K (€–8,479 in 2017). The result from renting after the first two quarters was €86,796 K (€80,082 K in 2017), up 8.4% on the previous year. The efficiency of letting activity, measured as the operating margin in routine business (result from renting in relation to rental income), was 92.6%, above with the previous year's value of 90.4%.
Other expenditure directly attributable to project development stood at €–1,375 K after six months, against €–1,858 K in 2017. Gross revenue from services stood at €7,333 K, below the previous year's level of €5,759 K. Alongside development revenue for third parties via the subsidiary omniCon, this item contains revenue from asset management and other services to joint venture partners.
As at the key date, the sales result from property assets held as current assets was €5,074 K (€2,216 K in 2017). The result from the sale of investment properties stood at €4,383 K on 30 June 2018 (€4,222 K in 2017). Within this, the biggest contribution to earnings was from the sale of a non-strategic site in Munich.
After the first six months, indirect expenditures stood at €–23,341 K, 13.8% above the 2017 level of €–20,502 K. This item also contains expenditure counterbalancing the aforementioned gross revenue from services. Other operating income stood at €445 K compared to the 2017 value of €380 K.
As a result of the positive operational development, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 12.8% to €79,316 K (compared to €70,298 K in 2017).
After the first six months, the total revaluation gain of €62,030 K was counterbalanced by a revaluation loss of €–13,324 K. The cumulative revaluation result of €48,706 K on the key date was above the previous year's reference value (€39,899 K in 2017). The largest contributions to the revaluation gain in terms of amount came from value adjustments to the German real estate portfolio on the basis of higher land values.
Current results of joint ventures consolidated at equity are reported under 'Earnings of joint ventures' in the consolidated income statement. The result of €22,943 K (2017: €39,682 K) includes a positive effect linked to the sale of Tower 185 in Frankfurt (closing in quarter one of 2018) amounting to €10,166 K (of which the reversal of deferred taxes accounted for €8,531 K).
Earnings before interest and taxes (EBIT) of €149,816 were 0.9% above the 2017 result of €148,504 K.
The financial result stood at €–26,549 K after the first six months (€–13,269 K in 2017). The Group's financing costs, a key element in long-term revenue, fell by –0.9% on the 2017 value to €–18,331 K.
The result from interest rate derivative transactions, which contains a non-cash valuation effect in connection with the convertible bond, amounted to €–16,800 K (€774 K in 2017). The convertible bond issued in 2017 comprises a loan capital 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 loan capital component.
The result from financial investments of €5,902 K exceeded the reference value for the previous period (€4,519 K in 2017). Other items in the financial result (result from other financial assets and result from associated companies and exchange rate differences) totalled €2,679 K (€–59 K in 2017). Last year's result from other financial assets includes depreciation linked to the subsequent valuation of securities available for sale.
Earnings before taxes (EBT) stood at €123,266 K, –8.9% below the previous year's value of €135,235 K. On the key date, taxes on earnings stood at €–33,687 K (€–28,494 K in 2017).
The result for the period was €89,577 K, 16.1% below the 2017 value of €106,741 K. Earnings per share amounted to € 0.96 on the balance sheet date (€ 1.14 per share in 2017).
An FFO I of €63,200 K was generated in the first six months of 2018, 12.8% above the previous year's value of €56,010 K. 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 €0.68 on the key date, an increase of 13.2% on the 2017 value of €0.60 per share.
FFO II, which includes the sales result and applicable taxes, stood at €63,429 K on the key date, 15.7% above the 2017 value of €54,815. FFO II per share was €0.68 per share (against €0.59 per share in 2017).
| € m | Half-year 2018 |
Half-year 2017 restated |
|---|---|---|
| Net rental income (NRI) | 86.8 | 80.1 |
| Income from services rendered | 7.3 | 5.8 |
| Other expenses directly related to | ||
| properties under development | –1.4 | –1.9 |
| Other operating income | 0.4 | 0.4 |
| Other operating income/expenses | 6.4 | 4.3 |
| Indirect expenses | –23.3 | –20.5 |
| Result from investments in joint | ||
| ventures 1) | 3.7 | 3.5 |
| Finance costs | –18.3 | –18.5 |
| Result from financial investments | 4.7 | 4.5 |
| Other adjustment 2) | 3.3 | 2.6 |
| FFO I (excl. Trading and pre taxes) | 63.2 | 56.0 |
| Trading result | 5.1 | 2.2 |
| Result from the sale of investment | ||
| properties | 4.4 | 4.2 |
| Result from sale of joint ventures | –0.1 | 0.9 |
| At-Equity result property sales | 9.0 | 2.6 |
| Result from property sales | 18.4 | 9.9 |
| Current income tax | –31.6 | –7.7 |
| Current income tax of joint ventures | –0.4 | –0.1 |
| Other adjustments | –6.0 | –3.3 |
| Other adjustments FFO II | 19.8 | 0.0 |
| FFO II | 63.4 | 54.8 |
1) Adjustment for real estate sales and non-sustainable results
2) Adjustment for other non-sustainable results
3) Taxes in the context of the Tower 185 sale
As at the balance sheet date, long-term assets amounted to €4,237,425 K (87.5% of total assets). Investment property assets on balance sheet amounted to €3,291,745 K on the key date (€3,155,677 K on 31.12.2017).
The balance sheet item 'Property assets under development' was €645,810 K on 30 June 2018 (€579,274 K on 31.12.2017). Total property assets (investment properties, properties used for own purposes, property assets under development and property assets held as current assets) amounted to €3,982,011 K on the key date (€3,813,811 on 31.12.2017).
The net assets of joint ventures are shown in the balance sheet item 'Investments in joint ventures', which stood at €197,163 K on the key date (€214,950 K on 31.12.2017).
Cash and cash equivalents stood at €332,691 K on the balance sheet date (€383,288 K on 31.12.2017).
As at the key date, shareholders' equity on the Group balance sheet stood at €2,420,674 K (€2,419,270 K on 31.12.2017). The equity ratio of 50.0% remained stable and within the strategic target range (the comparative value for the end of 2017 was 51.0%).
The Group's financial liabilities stood at €1,697,757 K on the key date (31.12.2017: €1,749,330 K). Net debt (interest-bearing liabilities less cash and cash equivalents) was stable year-on-year, amounting to €1,364,043 K at the end of June 2018 against €1,365,068 K in 2017. 100% of interest-bearing financial liabilities are in euros.
The loan-to-value ratio based on market values as at 30 June 2018 was 34.3% (net, taking account of Group cash and cash equivalents) compared to 35.8% at the start of the year. On the key date, gearing was 56.3% (56.4% on 31.12.2017).
NAV (shareholders' equity) was €2,420,674 K as at 30 June 2018 (€26.02 per share), broadly equivalent to the value for the end of 2017 of €2,419.219 K (€25.95 per share). Amongst other things, the value for 30 June 2018 reflects the dividend payment of €74,423 K in May 2018.
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 EPRA NAV was €30.42 per share as at the key date (€30.09 per share on 31.12.2017). The EPRA NNNAV per share after adjustments for financial instruments, liabilities and deferred taxes stood at €27.46 per
share as at 30 June 2018 (€27.29 per share on 31.12.2017). The number of shares in circulation was 93,028,299 on the key date (93,226,282 on 31.12.2017).
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 EPRA NAV was €30.42 per share as at the key date (€30.09 per share on 31.12.2017). The EPRA NNNAV per share after adjustments for financial instruments, liabilities and deferred taxes stood at €27.46 per share as at 30 June 2018 (€27.29 per share on 31.12.2017). The number of shares in circulation was 93,028,299 on the key date (93,226,282 on 31.12.2017).
| € m | 30.6.2018 31.12.2017 restated | |
|---|---|---|
| Equity (NAV) | 2,420.6 | 2,419.2 |
| Exercise of options | 0.0 | 0.0 |
| NAV after exercise of options | 2,420.6 | 2,419.2 |
| NAV/share in € | 26.02 | 25.95 |
| Value adjustment for 1) | ||
| - Own used properties | 6.5 | 6.3 |
| - short-term property assets | 109.5 | 79.8 |
| - Financial instruments | 0.3 | 0.8 |
| Deferred taxes | 293.1 | 298.9 |
| EPRA NAV after adjustments | 2,829.9 | 2,805.1 |
| EPRA NAV per share in € | 30.42 | 30.09 |
| Value adj. for financial instruments | –0.3 | –0.8 |
| Value adjustment for liabilities | –57.8 | –41.8 |
| Deferred taxes | –216.9 | –218.6 |
| EPRA NNNAV | 2,555.0 | 2,543.8 |
| EPRA NNNAV per share in € | 27.46 | 27.29 |
| Change of NNNAV against previous year | 0.6% | 10.9% |
| Price (key date)/NNNAV per share –1 | 3.9% | –5.4% |
| Number of shares excl. treasury shares | 93,028,299 | 93,226,282 |
1) Includes proportionate values from joint ventures
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 2017 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 2017 ('Risk report') is therefore unchanged.
| € 1,000 | Half-year 2018 | Half-year 2017 | 2nd Quarter 2018 | 2nd Quarter 2017 |
|---|---|---|---|---|
| restated | restated | |||
| Rental income | 93,761 | 88,560 | 47,576 | 44,780 |
| Operating costs charged to tenants | 29,346 | 27,442 | 12,308 | 11,216 |
| Operating expenses | –31,807 | –29,527 | –13,242 | –11,268 |
| Other expenses directly related to properties rented | –4,504 | –6,394 | –2,559 | –2,895 |
| Net rental income | 86,796 | 80,082 | 44,083 | 41,832 |
| Other expenses directly related to properties | ||||
| under development | –1,375 | –1,858 | 538 | –876 |
| Income from the sale of properties and construction works | 23,790 | 16,776 | 9,837 | 9,376 |
| Book value of properties sold | ||||
| incl. ancillary and construction costs | –18,716 | –14,560 | –9,277 | –8,455 |
| Result from trading and construction works | 5,074 | 2,216 | 560 | 921 |
| Result from the sale of investment properties | 4,383 | 4,222 | 783 | 6,241 |
| Income from services rendered | 7,333 | 5,759 | 3,619 | 3,044 |
| Indirect expenses | –23,341 | –20,502 | –11,229 | –10,042 |
| Other operating income | 445 | 380 | 209 | 203 |
| EBITDA | 79,316 | 70,298 | 38,564 | 41,322 |
| Depreciation and impairment of long-term assets | –1,150 | –1,376 | –584 | –577 |
| Depreciation and impairment/reversal | –1,150 | –1,376 | –584 | –577 |
| Revaluation gain | 62,030 | 79,660 | 60,164 | 62,555 |
| Revaluation loss | –13,324 | –39,760 | –10,865 | –32,028 |
| Result from revaluation | 48,706 | 39,899 | 49,299 | 30,526 |
| Result from joint ventures | 22,943 | 39,682 | 5,962 | 34,472 |
| Result of operations (EBIT) | 149,816 | 148,504 | 93,241 | 105,743 |
| Finance costs | –18,331 | –18,503 | –8,758 | –8,198 |
| Foreign currency gains/losses | 3,997 | –354 | 3,969 | –287 |
| Result from derivatives | –16,800 | 774 | –7,508 | –233 |
| Result from financial investments | 5,902 | 4,519 | 4,853 | 3,947 |
| Result from other financial assets | 0 | –3,459 | 0 | 0 |
| Result from associated companies | –1,319 | 3,754 | –1,112 | 3,754 |
| Financial result | –26,549 | –13,269 | –8,557 | –1,017 |
| Net result before taxes (EBT) | 123,266 | 135,235 | 84,684 | 104,727 |
| Current income tax | –31,611 | –7,745 | –2,593 | –5,193 |
| Deferred taxes | –2,076 | –20,749 | –21,353 | –15,952 |
| Income tax expense | –33,687 | –28,494 | –23,947 | –21,145 |
| Consolidated net income | 89,579 | 106,741 | 60,737 | 83,581 |
| thereof attributable to non-controlling interests | 2 | 6 | 1 | 5 |
| thereof attributable to the owners of the parent | 89,577 | 106,735 | 60,736 | 83,576 |
| Earnings per share in € (basic) | €0.96 | €1.14 | €0.65 | €0.89 |
| Earnings per share in € (diluted) | €0.96 | €1.14 | €0.65 | €0.89 |
| € 1,000 | Half-year 2018 | Half-year 2017 | 2nd Quarter 2018 | 2nd Quarter 2017 |
|---|---|---|---|---|
| restated | restated | |||
| Consolidated net income | 89,579 | 106,741 | 60,737 | 83,581 |
| Other comprehensive income | ||||
| Cash flow hedges - changes in fair value | 0 | 1,390 | 0 | 454 |
| Reclassification cash flow hedges | 742 | 393 | 375 | 393 |
| Foreign currency gains/losses | –4,090 | 292 | –4,029 | 162 |
| Revaluation other investments | 0 | 1,802 | 0 | 1,202 |
| Income tax related to other comprehensive income | –179 | –956 | –91 | –510 |
| Other comprehensive income for the period | ||||
| (realised through profit or loss) | –3,527 | 2,921 | –3,745 | 1,701 |
| Revaluation securities | –5,864 | 11,509 | –4,056 | 11,509 |
| Revaluation IAS 19 | 178 | 406 | 178 | 406 |
| Income tax related to other comprehensive income | 122 | –818 | –35 | –818 |
| Other comprehensive income for the period | ||||
| (not realised through profit or loss) | –5,564 | 11,097 | –3,913 | 11,097 |
| Other comprehensive income for the period | –9,091 | 14,018 | –7,658 | 12,798 |
| Comprehensive income for the period | 80,488 | 120,759 | 53,079 | 96,379 |
| thereof attributable to non-controlling interests | 2 | 6 | 1 | 5 |
| thereof attributable to the owners of the parent | 80,486 | 120,753 | 53,078 | 96,373 |
| € 1,000 | 30.6.2018 | 31.12.2017 | 1.1.2017 |
|---|---|---|---|
| restated | restated | ||
| ASSETS | |||
| Investment properties | 3,291,745 | 3,155,677 | 2,923,676 |
| Investment properties under development | 645,810 | 579,274 | 433,049 |
| Own used properties | 5,347 | 5,500 | 6,643 |
| Office furniture and equipment | 5,234 | 5,462 | 5,599 |
| Intangible assets | 6,300 | 6,703 | 8,195 |
| Investments in joint ventures | 197,163 | 214,950 | 194,838 |
| Financial assets | 83,756 | 86,466 | 90,199 |
| Deferred tax assets | 2,070 | 1,934 | 1,563 |
| Long-term assets | 4,237,425 | 4,055,966 | 3,663,761 |
| Long-term assets as a % of total assets | 87.5% | 85.5% | 85.1% |
| Assets held for sale and relating to disposal groups | 6,373 | 40,106 | 26,754 |
| Properties held for trading | 39,401 | 36,459 | 15,549 |
| Receivables and other assets | 103,312 | 90,583 | 84,934 |
| Current income tax receivables | 11,849 | 19,343 | 15,552 |
| Securities | 111,803 | 117,668 | 101,555 |
| Cash and cash equivalents | 332,691 | 383,288 | 395,088 |
| Short-term assets | 605,429 | 687,447 | 639,433 |
| Total assets | 4,842,854 | 4,743,413 | 4,303,194 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Share capital | 718,337 | 718,337 | 718,337 |
| Capital reserves | 789,832 | 794,493 | 819,068 |
| Other reserves | 9,636 | 18,727 | –894 |
| Retained earnings | 902,816 | 887,662 | 682,525 |
| Attributable to the owners of the parent | 2,420,621 | 2,419,219 | 2,219,036 |
| Non-controlling interests | 53 | 51 | 46 |
| Shareholders' equity | 2,420,674 | 2,419,270 | 2,219,082 |
| Shareholders' equity as a % of total assets | 50.0% | 51.0% | 51.6% |
| Provisions | 29,650 | 36,756 | 56,058 |
| Interest-bearing liabilities | 1,573,334 | 1,680,410 | 1,412,635 |
| Other liabilities | 62,837 | 50,911 | 36,965 |
| Deferred tax liabilities | 298,851 | 296,871 | 245,312 |
| Long-term liabilities | 1,964,672 | 2,064,948 | 1,750,970 |
| Current income tax liabilities | 39,619 | 17,638 | 16,736 |
| Provisions | 120,928 | 127,386 | 111,311 |
| Interest-bearing liabilities | 124,423 | 68,920 | 153,004 |
| Other liabilities | 172,537 | 45,182 | 52,091 |
| Liabilities relating to disposal groups | 0 | 71 | 0 |
| Short-term liabilities | 457,509 | 259,196 | 333,142 |
| Total liabilities and shareholders' equity | 4,842,854 | 4,743,413 | 4,303,194 |
| € 1,000 | Half-year 2018 | Half-year 2017 restated |
|---|---|---|
| Operating activities | ||
| Net result before taxes | 123,266 | 135,235 |
| Revaluation result incl. change in accrual and deferral of rental income | –49,316 | –41,126 |
| Depreciation and impairment/reversal | 1,150 | 1,376 |
| Result from the sale of long-term properties and office furniture and other equipment | –4,400 | –4,264 |
| Taxes paid excl. taxes for the sale of long-term properties and investments | –430 | –5,581 |
| Finance costs, result from financial investments and other financial result | 13,655 | 13,984 |
| Foreign currency gains/losses | –3,997 | 354 |
| Result from derivatives | 16,800 | –774 |
| Result from other financial assets and non-cash income | ||
| from investments in at equity consolidated entities | –22,852 | –39,977 |
| Cash flow from operations | 73,877 | 59,227 |
| Properties held for trading | –1,210 | –1,427 |
| Receivables and other assets | –8,401 | 10,328 |
| Provisions | –3,664 | –3,822 |
| Other liabilities | 950 | 2,859 |
| Cash flow from change in net current assets | –12,326 | 7,939 |
| Cash flow from operating activities | 61,552 | 67,166 |
| Investing activities | ||
| Acquisition of and investment in long-term properties incl. prepayments | –108,954 | –56,459 |
| Acquisition of property companies, less cash and cash equivalents of € 190 K | ||
| (2017: € 2,387 K) | –59,260 | –27,667 |
| Acquisition of office equipment and intangible assets | –372 | –454 |
| Repayment/acquisition of financial assets | 11 | –203 |
| Investments in joint ventures | 0 | –3,322 |
| Disposal of investment properties and other assets | 18,456 | 10,177 |
| Disposal of investment property companies, less cash and cash equivalents of € 954 K | ||
| (2017: € 0 K) | 38,805 | 6,527 |
| Disposal of joint ventures | 2,147 | 12,008 |
| Loans made to joint ventures | –5,451 | –250 |
| Loan repayments made by joint ventures | 30 | 1,814 |
| Taxes paid relating to the sale of long-term properties and investments | –2,181 | –1,648 |
| Dividend distribution/capital repayment from at equity consolidated entities and other | ||
| investments | 154,415 | 9,075 |
| Interest paid for capital expenditure in investment properties | –3,413 | –1,929 |
| Interest received from financial investments | 2,602 | 913 |
| Cash flow from investing activities | 36,834 | –51,418 |
| € 1,000 | Half-year 2018 | Half-year 2017 |
|---|---|---|
| restated | ||
| Financing activities | ||
| Cash inflow from loans received | 44,490 | 8,056 |
| Cash inflow from the issuance of bonds | 0 | 173,388 |
| Costs paid for issuance of convertible bonds | –112 | 0 |
| Repayment of loans received from joint ventures | –600 | 0 |
| Acquisition of treasury shares | –4,662 | –1,496 |
| Dividend payments to shareholders | –74,423 | –60,691 |
| Repayment related to the acquisition of shares from non-controlling interests and | ||
| dividends to minority interests | 0 | 1,409 |
| Repayment of loans incl. interest rate derivatives | –92,758 | –181,911 |
| Other interest paid | –19,240 | –22,483 |
| Cash flow from financing activities | –147,304 | –83,729 |
| Net change in cash and cash equivalents | –48,919 | –67,980 |
| Fund of cash and cash equivalents 1.1. | 383,512 | 395,088 |
| Changes in the value of foreign currency | –1,732 | 683 |
| Fund of cash and cash equivalents 30.6. | 332,861 | 327,791 |
| Expected credit losses cash and cash equivalents | –170 | 0 |
| Cash and cash equivalents 30.6. (balance sheet) | 332,691 | 327,791 |
The interests paid in the first half of 2018 totalled € –22,654 K (first half 2017: € –24,412 K). The income taxes paid in the first half of 2018 added up to € –2,610 K (first half 2017: € –7,228 K).
| € 1,000 | Share capital | Capital reserves - Others |
Capital reserves - Treasury share reserve |
|
|---|---|---|---|---|
| As at 1.1.2017 (as reported) | 718,337 | 906,148 | –87,080 | |
| Change due to IFRS 15 | 0 | 0 | 0 | |
| As at 1.1.2017 (restated) | 718,337 | 906,148 | –87,080 | |
| Valuation / reclassification cash flow hedges | 0 | 0 | 0 | |
| Foreign currency gains/losses | 0 | 0 | 0 | |
| Revaluation securities and other investments | 0 | 0 | 0 | |
| Revaluation IAS 19 | 0 | 0 | 0 | |
| Consolidated net income | 0 | 0 | 0 | |
| Comprehensive income for 2017 restated | 0 | 0 | 0 | |
| Dividend payments to shareholders | 0 | –20,541 | 0 | |
| Acquisition of treasury shares | 0 | 0 | –608 | |
| As at 30.6.2017 restated | 718,337 | 885,607 | –87,687 | |
| As at 31.12.2017 (as reported) | 718,337 | 885,607 | –91,113 | |
| Change due to IFRS 9/IFRS 15 | 0 | 0 | 0 | |
| As at 1.1.2018 | 718,337 | 885,607 | –91,113 | |
| Valuation / reclassification cash flow hedges | 0 | 0 | 0 | |
| Foreign currency gains/losses | 0 | 0 | 0 | |
| Revaluation securities | 0 | 0 | 0 | |
| Revaluation 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 |
| Retained | Valuation result | Other reserves | Attributable to shareholders | Non-controlling | Shareholders' equity |
|---|---|---|---|---|---|
| earnings | (hedging - reserve) | of the parent company | interests | (total) | |
| 667,984 | –3,201 | 2,307 | 2,204,495 | 46 | 2,204,541 |
| 14,541 | 0 | 0 | 14,541 | 0 | 14,541 |
| 682,525 | –3,201 | 2,307 | 2,219,036 | 46 | 2,219,082 |
| 0 | 1,271 | 0 | 1,271 | 0 | 1,271 |
| 0 | 0 | 292 | 292 | 0 | 292 |
| 0 | 0 | 12,179 | 12,179 | 0 | 12,179 |
| 0 | 0 | 277 | 277 | 0 | 277 |
| 106,735 | 0 | 0 | 106,735 | 6 | 106,741 |
| 106,735 | 1,271 | 12,747 | 120,753 | 6 | 120,759 |
| –40,149 | 0 | 0 | –60,691 | 0 | –60,691 |
| 0 | 0 | 0 | –608 | 0 | –608 |
| 749,111 | –1,930 | 15,054 | 2,278,491 | 52 | 2,278,543 |
| 862,689 | –842 | 23,782 | 2,398,459 | 51 | 2,398,510 |
| 24,972 | 0 | –4,213 | 20,760 | 0 | 20,760 |
| 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 |
| € 1,000 Half-year 2018 |
Income producing |
Develop ment |
Austria Total |
Income producing |
Develop ment |
Germany Total |
Income producing |
|
|---|---|---|---|---|---|---|---|---|
| Rental income | 13,893 | 0 | 13,893 | 26,240 | 3,030 | 29,270 | 48,841 | |
| 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 | 17,789 | |
| Operating expenses | –3,956 | 0 | –3,956 | –7,072 | –463 | –7,536 | –19,183 | |
| Other expenses directly related to properties rented | –975 | 0 | –975 | –1,178 | –334 | –1,511 | –1,592 | |
| Net rental income | 12,691 | 0 | 12,691 | 24,849 | 2,581 | 27,430 | 45,855 | |
| 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 | –5,865 | |
| Other operating income | 10 | 0 | 10 | 305 | 80 | 386 | 53 | |
| EBITDA | 12,180 | 14,111 | 26,291 | 21,061 | 10,580 | 31,640 | 40,434 | |
| Depreciation and impairment/reversal | –335 | 0 | –335 | –51 | 197 | 146 | –215 | |
| Result from revaluation | –367 | 53 | –313 | 4,976 | 53,126 | 58,102 | –3,683 | |
| 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 | 36,535 | |
| Timing of revenue recognition | ||||||||
| Trading property - transferred at a point in time | 0 | 0 | 0 | 0 | 7,363 | 7,363 | 0 | |
| Sale of investment properties - transferred at a point in time | 22,053 | 0 | 22,053 | 760,010 | 20,902 | 780,912 | 86 | |
| Total income IFRS 15 - transferred at a point in time | 22,053 | 0 | 22,053 | 760,010 | 28,265 | 788,275 | 86 | |
| Trading property and contruction work - transferred over time | 0 | 26,457 | 26,457 | 0 | 38,898 | 38,898 | 0 | |
| Income from services - transferred over time | 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 | |
| 30.6.2018 | ||||||||
| Property assets1) | 498,438 | 34,966 | 533,403 | 1,108,863 | 796,328 | 1,905,191 | 1,556,968 | |
| Other assets | 41,764 | 55,442 | 97,206 | 525,201 | 541,696 | 1,066,897 | 125,266 | |
| Deferred tax assets | 0 | 0 | 0 | 239 | 1,455 | 1,694 | 688 | |
| Segment assets | 540,201 | 90,408 | 630,609 | 1,634,303 1,339,478 | 2,973,782 | 1,682,921 | ||
| Interest-bearing liabilities | 130,839 | 34,416 | 165,255 | 599,274 | 216,823 | 816,097 | 698,896 | |
| Other liabilities | 10,817 | 12,395 | 23,211 | 26,498 | 323,994 | 350,492 | 46,808 | |
| Deferred tax liabilities incl. current income tax liabilities | 40,492 | 1,743 | 42,235 | 209,156 | 74,460 | 283,615 | 38,625 | |
| Liabilities | 182,148 | 48,554 | 230,702 | 834,928 | 615,277 | 1,450,204 | 784,328 | |
| Shareholders' equity | 358,053 | 41,854 | 399,907 | 799,376 | 724,201 | 1,523,577 | 898,593 | |
Capital expenditures2) 935 13,871 14,806 3,107 104,447 107,554 64,897 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 € 22,433 K (31.12.2017 restated: € 29,264 K) in properties held for trading.
| Develop | Total | Income | Develop | Total | Holding Consolidation | |||
|---|---|---|---|---|---|---|---|---|
| ment | producing | ment | ||||||
| 0 | 48,841 | 7,034 | 0 | 7,034 | 99,038 | 0 | –5,277 | 93,761 |
| 0 | 0 | 0 | 0 | 0 | 529 | 0 | –529 | 0 |
| 0 | 17,789 | 2,364 | 0 | 2,364 | 30,560 | 0 | –1,214 | 29,346 |
| 0 | –19,183 | –2,549 | 0 | –2,549 | –33,224 | 0 | 1,417 | –31,807 |
| 0 | –1,593 | –282 | 0 | –282 | –4,360 | 0 | –143 | –4,504 |
| 0 | 45,855 | 6,567 | 0 | 6,567 | 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 | –6,113 | –328 | –50 | –377 | –20,133 | –10,214 | 7,006 | –23,341 |
| 340 | 394 | 0 | 0 | 0 | 789 | 86 | –429 | 445 |
| –19 | 40,415 | 6,239 | 26 | 6,265 | 104,611 | –3,460 | –21,835 | 79,316 |
| 0 | –215 | 0 | 0 | 0 | –403 | –223 | –523 | –1,150 |
| 474 | –3,210 | 1,785 | 0 | 1,785 | 56,364 | 0 | –7,657 | 48,706 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 22,943 | 22,943 |
| 455 | 36,990 | 8,024 | 26 | 8,050 | 160,572 | –3,683 | –7,073 | 149,816 |
| 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 |
| 69,949 | 1,626,917 | 178,636 | 3,910 | 182,546 | 4,248,057 | 0 | –265,753 | 3,982,304 |
| 8,388 | 133,653 | 9,078 | 12,278 | 21,356 | 1,319,112 | 880,953 | –1,341,584 | 858,480 |
| 205 | 893 | 876 | 0 | 876 | 3,463 | 28,785 | –30,178 | 2,070 |
| 78,542 | 1,761,463 | 188,590 | 16,188 | 204,778 | 5,570,632 | 909,738 | –1,637,516 | 4,842,854 |
| 47,662 | 746,557 | 122,182 | 9,238 | 131,420 | 1,859,330 | 1,011,501 | –1,173,073 | 1,697,757 |
| 14,651 | 61,459 | 3,904 | 6 | 3,910 | 439,072 | 45,209 | –98,329 | 385,952 |
| 123 | 38,748 | 3,591 | 562 | 4,153 | 368,752 | 6 | –30,287 | 338,471 |
| 62,436 | 846,764 | 129,678 | 9,806 | 139,483 | 2,667,154 | 1,056,717 | –1,301,690 | 2,422,180 |
| 16,106 | 914,699 | 58,913 | 6,382 | 65,295 | 2,903,478 | –146,979 | –335,826 | 2,420,674 |
| 14,696 | 79,594 | 1,111 | 0 | 1,111 | 203,065 | 187 | –13,875 | 189,377 |
Eastern Europe core regions Eastern Europe other regions Total segments Transition Total
| € 1,000 | Austria | Germany | ||||||
|---|---|---|---|---|---|---|---|---|
| Half-year 2017 restated | Income | Develop | Total | Income | Develop | Total | Income | |
| producing | ment | producing | ment | producing | ||||
| Rental income | 15,463 | 0 | 15,463 | 37,245 | 2,186 | 39,431 | 44,384 | |
| Rental income with other operating segments | 261 | 0 | 261 | 448 | 5 | 453 | 0 | |
| Operating costs charged to tenants | 3,839 | 0 | 3,839 | 9,777 | 210 | 9,987 | 16,769 | |
| Operating expenses | –4,239 | 0 | –4,239 | –10,081 | –46 | –10,127 | –18,260 | |
| Other expenses directly related to properties rented | –1,251 | 0 | –1,251 | –3,282 | –66 | –3,348 | –3,241 | |
| Net rental income | 14,073 | 0 | 14,073 | 34,107 | 2,289 | 36,397 | 39,652 | |
| Other expenses directly related to properties | ||||||||
| under development | 0 | –193 | –193 | 0 | –2,615 | –2,615 | 0 | |
| Result from trading and construction works | 0 | 5,148 | 5,148 | 0 | 1,646 | 1,646 | 0 | |
| Result from the sale of investment properties | 377 | 0 | 377 | 206 | 3,769 | 3,975 | 914 | |
| Income from services rendered | 0 | 0 | 0 | 171 | 5,934 | 6,105 | 446 | |
| Indirect expenses | –730 | –43 | –773 | –4,536 | –9,289 | –13,825 | –5,733 | |
| Other operating income | 74 | 0 | 74 | 67 | 98 | 165 | 122 | |
| EBITDA | 13,794 | 4,913 | 18,706 | 30,015 | 1,832 | 31,847 | 35,402 | |
| Depreciation and impairment/reversal | –521 | 0 | –521 | –62 | –247 | –310 | –246 | |
| Result from revaluation | –174 | –11 | –185 | 151,601 | 10,608 | 162,209 | –27,854 | |
| Result from joint ventures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Result of operations (EBIT) | 13,098 | 4,902 | 18,000 | 181,554 | 12,192 | 193,746 | 7,302 | |
| Timing of revenue recognition | ||||||||
| Trading property - transferred at a point in time | 0 | 0 | 0 | 0 | –35 | –35 | 0 | |
| Sale of investment properties - transferred at a point in time | 15,869 | 0 | 15,869 | 0 | 957 | 957 | 12,848 | |
| Total income IFRS 15 - transferred at a point in time | 15,869 | 0 | 15,869 | 0 | 923 | 923 | 12,848 | |
| Trading property and contruction work - transferred over time | 0 | 23,586 | 23,586 | 0 | 28,467 | 28,467 | 0 | |
| Income from services - transferred over time | 0 | 0 | 0 | 171 | 5,934 | 6,105 | 446 | |
| Total income IFRS 15 - transferred over time | 0 | 23,586 | 23,586 | 171 | 34,401 | 34,572 | 446 | |
| Total income IFRS 15 | 15,869 | 23,586 | 39,455 | 171 | 35,323 | 35,494 | 13,294 | |
| 31.12.2017 restated | ||||||||
| Property assets1) | 535,088 | 32,588 | 567,677 | 1,872,411 | 681,610 | 2,554,020 | 1,495,908 | |
| Other assets | 47,445 | 55,184 | 102,629 | 164,671 | 385,173 | 549,844 | 136,925 | |
| Deferred tax assets | 0 | 0 | 0 | 587 | 1,354 | 1,941 | 859 | |
| Segment assets | 582,533 | 87,773 | 670,305 | 2,037,670 | 1,068,136 | 3,105,806 | 1,633,692 | |
| Interest-bearing liabilities | 224,551 | 45,450 | 270,001 | 919,303 | 150,852 | 1,070,155 | 691,516 | |
| Other liabilities | 9,616 | 10,474 | 20,090 | 35,122 | 220,090 | 255,212 | 46,832 | |
| Deferred tax liabilities incl. current income tax liabilities | 43,068 | 6,417 | 49,486 | 232,671 | 60,658 | 293,328 | 35,696 | |
| Liabilities | 277,236 | 62,341 | 339,577 | 1,187,096 | 431,600 | 1,618,695 | 774,044 | |
| Shareholders' equity | 305,298 | 25,432 | 330,729 | 850,574 | 636,536 | 1,487,110 | 859,647 | |
| Capital expenditures2) | 4,872 | 36,981 | 41,854 | 16,059 | 195,876 | 211,936 | 155,601 |
| Eastern Europe core regions | Eastern Europe other regions | Total segments | Transition | Total | ||||
|---|---|---|---|---|---|---|---|---|
| Develop | Total | Income | Develop | Total | Holding | Consolidation | ||
| ment | producing | ment | ||||||
| 1,073 | 45,457 | 6,580 | 0 | 6,580 | 106,931 | 0 | –18,371 | 88,560 |
| 0 | 0 | 0 | 0 | 0 | 715 | 0 | –715 | 0 |
| 488 | 17,257 | 2,262 | 0 | 2,262 | 33,345 | 0 | –5,902 | 27,442 |
| –437 | –18,697 | –2,424 | 0 | –2,424 | –35,487 | 0 | 5,960 | –29,527 |
| –79 | –3,320 | –334 | 0 | –334 | –8,253 | 0 | 1,858 | –6,394 |
| 1,045 | 40,697 | 6,084 | 0 | 6,084 | 97,251 | 0 | –17,169 | 80,082 |
| –79 | –79 | 0 | –23 | –23 | –2,910 | 0 | 1,051 | –1,858 |
| 0 | 0 | 0 | 0 | 0 | 6,794 | 0 | –4,578 | 2,216 |
| 0 | 914 | 0 | 0 | 0 | 5,266 | 0 | –1,044 | 4,222 |
| 0 | 446 | 0 | 0 | 0 | 6,551 | 6,195 | –6,987 | 5,759 |
| –357 | –6,090 | –484 | –58 | –542 | –21,230 | –8,336 | 9,064 | –20,502 |
| 8 | 130 | 0 | 0 | 0 | 368 | 133 | –122 | 380 |
| 617 | 36,018 | 5,600 | –82 | 5,518 | 92,090 | –2,008 | –19,784 | 70,298 |
| –2 | –248 | 0 | 0 | 0 | –1,078 | –258 | –39 | –1,376 |
| 294 | –27,560 | –4,407 | 0 | –4,407 | 130,056 | 0 | –90,157 | 39,899 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 39,682 | 39,683 |
| 909 | 8,211 | 1,193 | –82 | 1,111 | 221,068 | –2,266 | –70,298 | 148,505 |
| 0 | 0 | 0 | 0 | 0 | –35 | 0 | 35 | 0 |
| 0 | 12,848 | 0 | 0 | 0 | 29,674 | 0 | –13,268 | 16,405 |
| 0 | 12,848 | 0 | 0 | 0 | 29,639 | 0 | –13,234 | 16,405 |
| 0 | 0 | 0 | 0 | 0 | 52,053 | 0 | –35,277 | 16,776 |
| 0 | 446 | 0 | 0 | 0 | 6,551 | 6,195 | –6,987 | 5,759 |
| 0 | 446 | 0 | 0 | 0 | 58,604 | 6,195 | –42,265 | 22,535 |
| 0 | 13,294 | 0 | 0 | 0 | 88,243 | 6,195 | –55,498 | 38,940 |
| 54,779 | 1,550,687 | 175,770 | 4,860 | 180,630 | 4,853,014 | 0 | –1,039,203 | 3,813,811 |
| 10,628 | 147,554 | 6,768 | 15,859 | 22,627 | 822,653 | 929,744 | –824,729 | 927,669 |
| 205 | 1,064 | 164 | 0 | 164 | 3,168 | 37,113 | –38,347 | 1,934 |
| 65,612 | 1,699,304 | 182,702 | 20,719 | 203,421 | 5,678,836 | 966,856 | –1,902,279 | 4,743,413 |
| 36,299 | 727,815 | 123,363 | 13,228 | 136,591 | 2,204,563 | 911,596 | –1,366,829 | 1,749,330 |
| 13,163 | 59,995 | 3,437 | 45 | 3,482 | 338,780 | 33,564 | –112,037 | 260,306 |
| 118 | 35,815 | 2,781 | 560 | 3,341 | 381,970 | 1,301 | –68,763 | 314,509 |
| 49,580 | 823,624 | 129,581 | 13,833 | 143,415 | 2,925,311 | 946,461 | –1,547,629 | 2,324,144 |
| 16,032 | 875,680 | 53,120 | 6,885 | 60,006 | 2,753,525 | 20,395 | –354,650 | 2,419,269 |
| 19,988 | 175,590 | 2,260 | 0 | 2,260 | 431,639 | 206 | –131,213 | 300,633 |
The condensed consolidated interim financial statements of CA Immobilien Anlagen Aktiengesellschaft ("CA Immo AG"), Vienna as at 30.6.2018 were prepared in accordance with the rules of 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 2017, except of new or amended standards.
The condensed consolidated interim financial statements, for the reporting period from 1.1. to 30.6.2018 (except for the quarterly information disclosed in the consolidated income statement and the consolidated statement of comprehensiv income) have been reviewed 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.
The condensed consolidated interim financial statements by 30.6.2018 were prepared in accordance with all IASs, IFRSs and IFRIC and SIC interpretations (existing standards as amended and new standards) as adopted by the EU and applicable for the financial year beginning 1.1.2018. The following amended standards are applicable for the first time in the business year 2018:
| Standard / Interpretation | Content | entry into force1) |
|---|---|---|
| IFRS 15 | Revenue from Contracts with Customers | 1.1.2018 |
| Clarifications to IFRS 15 Revenue from Contracts with | ||
| Amendments to IFRS 15 | Customers | 1.1.2018 |
| IFRS 9 | Financial instruments | 1.1.2018 |
| Amendments to IFRS 4 | Applying IFRS 9 with IFRS 4 Insurance Contracts | 1.1.2018 |
| Annual Improvements to IFRS | ||
| Standards 2014-2016 Cycle | Miscellaneous | 1.1.2018 |
| Classification and Measurement of Share-based Payment | ||
| Amendments to IFRS 2 | Transactions | 1.1.2018 |
| Amendments to IAS 40 | Transfers of Investment Property | 1.1.2018 |
| IFRIC 22 | Foreign Currency Transactions and Advance Considerations | 1.1.2018 |
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 have no essential impact on the consolidated financial statements. The first time application of IFRS 9 and IFRS 15 has material impact on the consolidated financial statements and is explained in more detail below.
"IFRS 9 Financial Instruments" replaces "IAS 39 Financial Instruments: Recognition and Measurement". CA Immo Group does not apply IFRS 9 retrospectively and therefore all necessary changes are reflected in the balance sheet as at 31.12.2017.
The subsequent measurement of financial assets/ liabilities is based on three categories with different valuations and a different recognition of changes in value. The categorization results both from the dependence of the contractual cash flows of the instrument and from the business model according to which the instrument is held/ managed. As financial instruments measured at "amortized cost" qualify only those, whose business model gives rise to cash flows that are solely payments of principal and interests (SPPI –"solely payments of principal and interest"). All other financial assets are measured at fair value through profit and loss. For equity instruments that are not held/ managed for trading purposes, i.e. for which the primary objective is not the short-term value appreciation/realization, an option for recognition of the changes in the
other comprehensive income continues to exist. CA Immo Group makes use of this option for the securities which were classified as available for sale (AFS – available for sale) according to IAS 39.
IFRS 9 provides a three-step model for the recognition of losses. Accordingly, in the first step an expected 12-month loss must be recognized at the recognition date. In the second step, a significant increase in the risk of default should lead to an increase in the risk provision for the expected loss of the entire residual term. In the third step, upon occurrence of an objective indication of impairment, the interest has to be recognized based on the net book value (book value less risk provision). For leasing receivables according to IAS 17 there is an option to recognize the risk provision in the amount of the expected loss over the entire residual term at the recognition date. CA Immo Group exercises this option: as at 31.12.2017 the additional recognition of the allowance for leasing receivables is € 56 K. The allowances for cash at banks is € 223 K and the allowances for other financial assets stands at € 71 K.
Consequences will result in the recognition in the profit and loss for the changes in value of German partnerships participations classified as "available for sale" according to IAS 39, since these changes in value have previously been recorded without affecting profit and loss. Now these changes are recorded through profit and loss. As at 31.12.2017 the change results only from a reclassification in shareholders' equity.
The application of IFRS 9 leads to changes in the financial statements of CA Immo Group in connection with the modification of debt instruments, since previous accounting method applied by the CA Immo Group under IAS 39 measured the liability at amortized cost (effective interest method). Now IFRS 9 regulates that changes in present value due to loan modifications are to be recognized immediately in the profit and loss and distributed over the residual term by means of the effective interest method. This change increases the shareholders' equity as at 31.12.2017 with € 3,291 K.
IFRS 15 supersedes IAS 11, IAS 18 and the related interpretations and stipulates when and in which amount revenue has to be recognized. Income from leases (rental income) are excluded from the new IFRS 15 standard, as they fall under IAS 17 or starting 2019, under IFRS 16. The new standard provides a single, principle-based five-step model, which, apart from certain exceptions, has to be applied to all contracts with customers.
CA Immo Group retrospectively applies IFRS 15 and makes use of practical easements for application, such as no restatement of completed contracts.
IFRS 15 requires, that if the entity's performance does not create an asset with alternative use to the entity and the entity has an enforceable right of payment, revenue is recognized over time. This assessment requires specific judgement. This applies, depending on the contract and on the legal environment, to the sale of residential projects as soon as they are sold. All capitalized cost according to IAS 2, including interest according to IAS 23, for the residential project are expensed as cost to fulfill the contract. On the other hand, the contractual payment according to the stage of completion is recognized as revenue. The incremental costs of obtaining a contract are also capitalized and expensed according to the stage of completion. Any received advance payment is netted off against the contract asset and might lead to a contract liability.
This also influences the result from joint ventures, since some of the residential projects are in joint ventures entities.
The identification of the stand-alone performance obligations in connection with the indentification of the customer also lead to a differentiated recognition of revenue in respect of public interest development contracts. As a consequence, amounts previously treated as deferred revenues are already recognized as realised and the costs for the public interest development contracts are recognized as provisions. The difference amounting to the margin increases the equity.
The initial application of IFRS 9 (retrospectively without restatement of previous year comparatives) and IFRS 15 (retrospectively with full restatement of previous year comparatives) has the following effects on consolidated profit and loss, consolidated comprehensive income, consolidated balance sheet and consolidated statement of cash flows:
| € 1,000 | Half-year 2017 | Change | Half-year 2017 |
|---|---|---|---|
| due to IFRS 15 | according to IFRS 15 | ||
| as reported | restated | ||
| Rental income | 88,560 | 0 | 88,560 |
| Operating costs charged to tenants | 27,442 | 0 | 27,442 |
| Operating expenses | –29,527 | 0 | –29,527 |
| Other expenses directly related to properties rented | –6,394 | 0 | –6,394 |
| Net rental income | 80,082 | 0 | 80,082 |
| Other expenses directly related to properties under | |||
| development | –1,858 | 0 | –1,858 |
| Income from the sale of properties and construction works | 7,874 | 8,902 | 16,776 |
| Book value of properties sold incl. ancillary and | |||
| construction costs | –6,546 | –8,014 | –14,560 |
| Result from trading and construction works | 1,328 | 888 | 2,216 |
| Result from the sale of investment properties | 7,279 | –3,057 | 4,222 |
| Income from services rendered | 5,759 | 0 | 5,759 |
| Indirect expenses | –20,502 | 0 | –20,502 |
| Other operating income | 380 | 0 | 380 |
| EBITDA | 72,467 | –2,169 | 70,298 |
| Depreciation and impairment of long-term assets | –1,376 | 0 | –1,376 |
| Depreciation and impairment/reversal | –1,376 | 0 | –1,376 |
| Revaluation gain | 79,818 | –159 | 79,660 |
| Revaluation loss | –39,760 | 0 | –39,760 |
| Result from revaluation | 40,058 | –159 | 39,899 |
| Result from joint ventures | 36,999 | 2,683 | 39,682 |
| Result of operations (EBIT) | 148,148 | 356 | 148,504 |
| Finance costs | –18,504 | 1 | –18,503 |
| Foreign currency gains/losses | –354 | 0 | –354 |
| Result from derivatives | 774 | 0 | 774 |
| Result from financial investments | 4,432 | 87 | 4,519 |
| Result from other financial assets | –3,459 | 0 | –3,459 |
| Result from associated companies | 3,754 | 0 | 3,754 |
| Financial result | –13,358 | 89 | –13,269 |
| Net result before taxes (EBT) | 134,790 | 445 | 135,235 |
| Current income tax | –7,745 | 0 | –7,745 |
| Deferred taxes | –21,794 | 1,045 | –20,749 |
| Income tax expense | –29,538 | 1,045 | –28,494 |
| Consolidated net income | 105,252 | 1,489 | 106,741 |
| thereof attributable to non-controlling interests | 6 | 0 | 6 |
| thereof attributable to the owners of the parent | 105,246 | 1,489 | 106,735 |
| Earnings per share in € (basic) | €1.13 | €0.01 | €1.14 |
| Earnings per share in € (diluted) | €1.13 | €0.01 | €1.14 |
| € 1,000 | Half-year 2017 | Change | Half-year 2017 |
|---|---|---|---|
| due to IFRS 15/ | according to IFRS 15/IFRS 9 | ||
| reclassification IFRS 9 | |||
| as reported | restated | ||
| Consolidated net income | 105,252 | 1,489 | 106,741 |
| Other comprehensive income | |||
| Cash flow hedges - changes in fair value | 1,390 | 0 | 1,390 |
| Reclassification cash flow hedges | 393 | 0 | 393 |
| Foreign currency gains/losses | 292 | 0 | 292 |
| Assets available for sale - changes in fair value | 13,312 | –13,312 | 0 |
| Revaluation other investments | 0 | 1,802 | 1,802 |
| Income tax related to other comprehensive income | –1,645 | 689 | –956 |
| Other comprehensive income for the period | |||
| (realised through profit or loss) | 13,741 | –10,820 | 2,921 |
| Revaluation securities | 0 | 11,509 | 11,509 |
| Revaluation IAS 19 | 406 | 0 | 406 |
| Income tax related to other comprehensive income | –130 | –689 | –818 |
| Other comprehensive income for the period | |||
| (not realised through profit or loss) | 277 | 10,820 | 11,097 |
| Other comprehensive income for the period | 14,018 | 0 | 14,018 |
| 0 | |||
| Comprehensive income for the period | 119,270 | 1,489 | 120,759 |
| thereof attributable to non-controlling interests | 6 | 0 | 6 |
| thereof attributable to the owners of the parent | 119,264 | 1,489 | 120,753 |
| € 1,000 | 31.12.2017 | Changes | Change | 31.12.2017 |
|---|---|---|---|---|
| due to IFRS 9 | due to IFRS 15 | according to | ||
| IFRS 9 and IFRS 15 | ||||
| as reported | restated | |||
| ASSETS | ||||
| Investment properties | 3,155,677 | 0 | 0 | 3,155,677 |
| Investment properties under development | 579,274 | 0 | 0 | 579,274 |
| Own used properties | 5,500 | 0 | 0 | 5,500 |
| Office furniture and equipment | 5,462 | 0 | 0 | 5,462 |
| Intangible assets | 6,703 | 0 | 0 | 6,703 |
| Investments in joint ventures | 207,182 | 0 | 7,768 | 214,950 |
| Financial assets | 85,570 | –35 | 931 | 86,466 |
| Deferred tax assets | 2,025 | 0 | –91 | 1,934 |
| Long-term assets | 4,047,393 | –35 | 8,608 | 4,055,966 |
| Long-term assets as a % of total assets | 84.9% | 85.5% | ||
| Assets held for sale and relating to disposal | ||||
| groups | 40,106 | 0 | 0 | 40,106 |
| Properties held for trading | 79,317 | 0 | –42,858 | 36,459 |
| Receivables and other assets | 81,314 | –92 | 9,361 | 90,583 |
| Current income tax receivables | 19,343 | 0 | 0 | 19,343 |
| Securities | 117,668 | 0 | 0 | 117,668 |
| Cash and cash equivalents | 383,512 | –223 | 0 | 383,288 |
| Short-term assets | 721,259 | –316 | –33,497 | 687,447 |
| Total assets | 4,768,653 | –351 | –24,888 | 4,743,413 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| Share capital | 718,337 | 0 | 0 | 718,337 |
| Capital reserves | 794,493 | 0 | 0 | 794,493 |
| Other reserves | 22,940 | –4,213 | 0 | 18,727 |
| Retained earnings | 862,689 | 7,153 | 17,819 | 887,662 |
| Attributable to the owners of the parent | 2,398,459 | 2,940 | 17,819 | 2,419,219 |
| Non-controlling interests | 51 | 0 | 0 | 51 |
| Shareholders' equity | 2,398,510 | 2,940 | 17,819 | 2,419,270 |
| Shareholders' equity as a % of total assets | 50.3% | 51.0% | ||
| Provisions | 5,646 | 0 | 31,110 | 36,756 |
| Interest-bearing liabilities | 1,684,170 | –3,760 | 0 | 1,680,410 |
| Other liabilities | 86,434 | 0 | –35,523 | 50,911 |
| Deferred tax liabilities | 291,305 | 468 | 5,098 | 296,871 |
| Long-term liabilities | 2,067,555 | –3,291 | 685 | 2,064,948 |
| Current income tax liabilities | 17,638 | 0 | 0 | 17,638 |
| Provisions | 100,658 | 0 | 26,728 | 127,386 |
| Interest-bearing liabilities | 68,920 | 0 | 0 | 68,920 |
| Other liabilities | 115,303 | 0 | –70,121 | 45,182 |
| Liabilities relating to disposal groups | 71 | 0 | 0 | 71 |
| Short-term liabilities | 302,588 | 0 | –43,393 | 259,196 |
| Total liabilities and shareholders' equity | 4,768,653 | –351 | –24,888 | 4,743,413 |
| € 1,000 | 31.12.2016 | Change | 31.12.2016 |
|---|---|---|---|
| due to IFRS 15 | according to IFRS 15 | ||
| as reported | restated | ||
| ASSETS | |||
| Investment properties | 2,923,676 | 0 | 2,923,676 |
| Investment properties under development | 433,049 | 0 | 433,049 |
| Own used properties | 6,643 | 0 | 6,643 |
| Office furniture and equipment | 5,599 | 0 | 5,599 |
| Intangible assets | 8,195 | 0 | 8,195 |
| Investments in joint ventures | 191,369 | 3,469 | 194,838 |
| Financial assets | 89,713 | 486 | 90,199 |
| Deferred tax assets | 1,563 | 0 | 1,563 |
| Long-term assets | 3,659,806 | 3,955 | 3,663,761 |
| Long-term assets as a % of total assets | 84.9% | 85.1% | |
| Assets held for sale and relating to disposal groups | 26,754 | 0 | 26,754 |
| Properties held for trading | 34,147 | –18,598 | 15,549 |
| Receivables and other assets | 76,235 | 8,699 | 84,934 |
| Current income tax receivables | 15,552 | 0 | 15,552 |
| Securities | 101,555 | 0 | 101,555 |
| Cash and cash equivalents | 395,088 | 0 | 395,088 |
| Short-term assets | 649,332 | –9,899 | 639,433 |
| Total assets | 4,309,138 | –5,943 | 4,303,194 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Share capital | 718,337 | 0 | 718,337 |
| Capital reserves | 819,068 | 0 | 819,068 |
| Other reserves | –894 | 0 | –894 |
| Retained earnings | 667,984 | 14,541 | 682,525 |
| Attributable to the owners of the parent | 2,204,495 | 14,541 | 2,219,036 |
| Non-controlling interests | 46 | 0 | 46 |
| Shareholders' equity | 2,204,541 | 14,541 | 2,219,082 |
| Shareholders' equity as a % of total assets | 51.2% | 51.6% | |
| Provisions | 13,242 | 42,816 | 56,058 |
| Interest-bearing liabilities | 1,412,635 | 0 | 1,412,635 |
| Other liabilities | 87,180 | –50,215 | 36,965 |
| Deferred tax liabilities | 239,969 | 5,343 | 245,312 |
| Long-term liabilities | 1,753,026 | –2,056 | 1,750,970 |
| Current income tax liabilities | 16,736 | 0 | 16,736 |
| Provisions | 84,766 | 26,545 | 111,311 |
| Interest-bearing liabilities | 153,004 | 0 | 153,004 |
| Other liabilities | 97,064 | –44,973 | 52,091 |
| Short-term liabilities | 351,571 | –18,429 | 333,142 |
| Total liabilities and shareholders' equity | 4,309,138 | –5,943 | 4,303,194 |
| € 1,000 | Half-year 2017 | Change | Half-year 2017 |
|---|---|---|---|
| due to IFRS 15 | according to IFRS 15 | ||
| as reported | restated | ||
| Operating activities | |||
| Net result before taxes | 134,790 | 445 | 135,235 |
| Revaluation result incl. change in accrual and deferral of | |||
| rental income | –41,284 | 158 | –41,126 |
| Depreciation and impairment/reversal | 1,376 | 0 | 1,376 |
| Result from the sale of long-term properties and office | |||
| furniture and other equipment | –7,321 | 3,057 | –4,264 |
| Taxes paid/refunded excl. taxes for the sale of long-term | |||
| properties | –5,581 | 0 | –5,581 |
| Finance costs, result from financial investments and other | |||
| financial result | 14,072 | –88 | 13,984 |
| Foreign currency gains/losses | 354 | 0 | 354 |
| Result from derivatives | –774 | 0 | –774 |
| Result from other financial assets and non-cash income | |||
| from investments in at equity consolidated entities | –37,294 | –2,683 | –39,977 |
| Cash flow from operations | 58,339 | 888 | 59,227 |
| Properties held for trading | –10,573 | 9,146 | –1,427 |
| Receivables and other assets | 5,198 | 5,130 | 10,328 |
| Provisions | –2,822 | –1,000 | –3,822 |
| Other liabilities | 17,024 | –14,165 | 2,859 |
| Cash flow from change in net current assets | 8,827 | –888 | 7,939 |
| Cash flow from operating activities | 67,166 | 0 | 67,166 |
| Investing activities | |||
| Acquisition of and investment in long-term properties incl. | |||
| prepayments | –56,459 | 0 | –56,459 |
| Acquisition of property companies, less cash and cash | |||
| equivalents of € 2,387 K | –27,667 | 0 | –27,667 |
| Acquisition of office equipment and intangible assets | –454 | 0 | –454 |
| Repayment/acquisition of financial assets | –203 | 0 | –203 |
| Investments in joint ventures | –3,322 | 0 | –3,322 |
| Disposal of investment properties and other assets | 10,177 | 0 | 10,177 |
| Disposal of investment property companies, less cash and | |||
| cash equivalents of € 0 K | 6,527 | 0 | 6,527 |
| Disposal of joint ventures | 12,008 | 0 | 12,008 |
| Loans made to joint ventures | –250 | 0 | –250 |
| Loan repayments made by joint ventures | 1,814 | 0 | 1,814 |
| Taxes paid/refunded relating to the sale of long-term | |||
| properties and loans granted | –1,648 | 0 | –1,648 |
| Dividend distribution/capital repayment from at equity | |||
| consolidated entities and other investments | 9,075 | 0 | 9,075 |
| Interest paid for capital expenditure in investment | |||
| properties | –1,929 | 0 | –1,929 |
| Interest received from financial investments | 913 | 0 | 913 |
| Cash flow from investing activities | –51,418 | 0 | –51,418 |
| € 1,000 | Half-year 2017 | Change | Half-year 2017 |
|---|---|---|---|
| due to IFRS 15 | according to IFRS 15 | ||
| as reported | restated | ||
| Financing activities | |||
| Cash inflow from loans received | 8,056 | 0 | 8,056 |
| Cash inflow from the issuance of bonds | 173,388 | 0 | 173,388 |
| Acquisition of treasury shares | –1,496 | 0 | –1,496 |
| Dividend payments to shareholders | –60,691 | 0 | –60,691 |
| Repayment/payment related to the acquisition of shares | |||
| from non-controlling interests | 1,409 | 0 | 1,409 |
| Repayment of loans incl. interest rate derivatives | –181,911 | 0 | –181,911 |
| Other interest paid | –22,483 | 0 | –22,483 |
| Cash flow from financing activities | –83,729 | 0 | –83,729 |
| Net change in cash and cash equivalents | –67,980 | 0 | –67,980 |
| Cash and cash equivalents as at 1.1. | 395,088 | 0 | 395,088 |
| Changes in the value of foreign currency | 683 | 0 | 683 |
| Cash and cash equivalents as at 30.6. | 327,791 | 0 | 327,791 |
| € 1,000 | Classification | Classification | Book value | Book value |
|---|---|---|---|---|
| IAS 39 1) | IFRS 9 2) | according to IAS 39 | according to IFRS 9 | |
| Cash and cash equivalents with | ||||
| drawing restrictions | L&R | AC | 10,066 | 10,031 |
| Derivative financial instruments | HFT | FVTPL | 293 | 293 |
| Primary financial instruments | L&R | AC | 3,160 | 3,160 |
| Loans to associated companies | L&R | FVTPL | 15,176 | 15,176 |
| Other investments | AFS | FVTPL | 56,875 | 56,875 |
| Financial assets | 85,570 | 85,535 | ||
| Cash and cash equivalents with | ||||
| drawing restrictions | L&R | AC | 3,679 | 3,655 |
| Other receivables and assets | L&R | AC | 58,639 | 58,571 |
| Receivables and other assets | 62,318 | 62,226 | ||
| Securities | AFS | FVOCI | 117,668 | 117,668 |
| Cash and cash equivalents | L&R | AC | 383,512 | 383,288 |
| Total | 649,068 | 648,717 |
The following tables show the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of financial assets and financial liabilities as at 31.12.2017:
| € 1,000 | Classification | Classification | Book value | Book value |
|---|---|---|---|---|
| IAS 39 1) | IFRS 9 2) | according to IAS 39 | according to IFRS 9 | |
| Convertible bond | FLAC | AC | 184,334 | 184,334 |
| Bonds | FLAC | AC | 648,447 | 648,447 |
| Other interest-bearing liabilities | FLAC | AC | 920,308 | 916,549 |
| Interest-bearing liabilities | 1,753,089 | 1,749,330 | ||
| Derivative financial instruments | HFT | FVTPL | 23,021 | 23,021 |
| Other primary liabilities | FLAC | AC | 55,098 | 55,098 |
| Other liabilities | 78,120 | 78,120 | ||
| 1,831,209 | 1,827,450 |
1) HFT – held for trading, AFS – available for sale, L&R – loans and receivables, FLAC – financial liabilities at amortised cost 2) FVTPL – fair value through profit orloss, FVOCI – fair value through other other comprehensive income, AC – amortised cost
CA Immo Group currently evaluates the effects of the new standard IFRS 16 (effective date 1.1.2019) in a project in order to assess the necessary adjustments for accounting as well as processes and systems.
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 for consideration. To be classified as lease, the contract needs to fulfill the following criteria:
Under IFRS 16, lessors classify all leases in the same manner as under IAS 17, distinguishing between two types of leases: 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 lease commencement and need to book a corresponding leasing liability. Leases of low-value assets and short-term leases are excepted.
The changes of IFRS 16 on the operating leases of CA Immo Group will have no material impact on the financial statements of CA Immo Group, since these mainly concern leases for furniture and office equipment and rental agreements in Germany.
The application of IFRS 16 may lead to the recognition of a right of use and a liability in those cases where CA Immo Group is lessee and not owner of a land plot. Currently the relevant contracts, which occur in Eastern Europe, are subject to a more detailed analysis. From the current perspective, the effect on the financial statements of the CA Immo Group is not material.
In the first half of 2018 the closing of the sale of the Tower 185 Betriebs GmbH (reclassified as held for sale as at 31.12.2017), the closing of the sale of a subsidiary with a property in Austria (reclassified as held for sale as at 31.12.2017) as well as the closing of the sale of a holding company and a subsidiary with a plot in Ukraine took place.
In June 2018 CA Immo Group acquired the office building Visionary in Prague. The preliminary purchase price for the recently completed property is approximately € 65 m. The acquisition does not qualify as a business combination according to IFRS 3. The closing of the transaction took place on 27.6.2018.
With respect to determination of the fair value of the properties, we refer to the detailed presentation in 2017 consolidated financial statements. CA Immo Group commissions external valuations for monitoring significant changes related to market and properties. Thus 5.6% of the properties in Austria as well as 31.7% in Germany and 5.3% of the properties in Eastern Europe, according to segment reporting, were subject to an external valuation as of reporting date 30.6.2018. The values of the other properties were determined based on binding purchase agreements or internally updated on basis of the previous year's valuations.
The financial assets (long term assets) consist of the following items:
| € 1,000 | 30.6.2018 | 31.12.2017 |
|---|---|---|
| restated | ||
| Loans to joint ventures | 2,988 | 3,061 |
| Loans to associated companies | 11,586 | 15,176 |
| Other investments | 58,102 | 56,875 |
| Other financial assets | 11,080 | 11,354 |
| Financial assets | 83,756 | 86,466 |
As at 30.6.2018, an investment in a joint venture in Bulgaria (segment Eastern Europe other regions) amounting to € 6,373 K was reclassified to assets held for sale and relating to disposal groups. The sale took place in July 2018.
As at 30.6.2018, CA Immo Group held cash and cash equivalents amounting to € 332,691 K, cash and cash equivalents contain bank balances of € 11,831 K (31.12.2017: € 16,140 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'.
| € 1,000 | 30.6.2018 | 31.12.2017 |
|---|---|---|
| restated | ||
| Maturity > 1 year | 9,178 | 10,031 |
| Maturity from 3 to 12 months | 10,121 | 3,655 |
| Cash at banks with drawing restrictions | 19,299 | 13,686 |
The result from revaluation in the first half of 2018 results from revaluation gain of € 62,030 K (mainly from segment Germany) and revaluation loss of € -13,324 K (mainly from the segment Eastern Europe core regions and Eastern Europa other regions).
The revaluation of the acquired building Visionary in Prague – in amount of the difference between the preliminary acquisition costs and fair value of the property – amounts to € 1,717 K.
The foreign currency gains/losses in the first half of 2018 contain the reclassification of the reserve for foreign currency translation in amount of € 4,090 K due to the sale of two Ukrainian entities.
The result from derivatives comprises the following:
| € 1,000 | Half-year 2018 | Half-year 2017 |
|---|---|---|
| Valuation interest rate derivative transactions | –816 | 1,146 |
| Ineffectiveness of interest rate swaps | 0 | 20 |
| Reclassification of valuation results recognised in equity | –742 | –393 |
| Valuation derivative convertible bond | –15,242 | 0 |
| Result from derivatives | –16,800 | 774 |
The result from the measurement of interest rate derivatives is attributable to the change in fair values of the interest rate swaps for which no cash flow hedge relationship exists or, in the case of "reclassification", no longer exists. The reclassifications result from early repayment of the borrowings.
| € 1,000 | Half-year 2018 | Half-year 2017 |
|---|---|---|
| restated | ||
| Current income tax (current year) | –30,521 | –3,677 |
| Current income tax (previous years) | –1,090 | –4,068 |
| Current income tax | –31,611 | –7,745 |
| Change in deferred taxes | –1,957 | –21,555 |
| Tax benefit on valuation of assets available for sale in equity | –119 | 806 |
| Income tax expense | –33,687 | –28,494 |
| Effective tax rate (total) | 27.3% | 21.1% |
Current income tax (current year) mainly arises in the segment Germany (€ -26,571 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 amount of € 22,072 K.
| Half-year 2018 | Half-year 2017 | ||
|---|---|---|---|
| restated | |||
| Weighted average number of shares outstanding | pcs. | 93,077,934 | 93,372,781 |
| Consolidated net income | € 1,000 | 89,577 | 106,735 |
| basic earnings per share | € | 0.96 | 1.14 |
| Half-year 2018 | Half-year 2017 | ||
|---|---|---|---|
| restated | |||
| Weighted average number of shares outstanding | pcs. | 93,077,934 | 93,372,781 |
| Dilution effect: | |||
| Convertible bond | pcs. | 6,551,574 | 0 |
| Weighted average number of shares | pcs. | 99,629,508 | 93,372,781 |
The diluted earnings per share for the first half of 2018 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.
At the end of November 2016, another share buyback programme was launched for up to 1,000,000 shares (approx. 1% of the company's current capital stock) with an upper limit of € 17.50 per share, which was raised to € 24.20 per share end of August 2017. Additionally, the price has to comply with the authorizing resolution of the Annual General Meeting, meaning that the lowest amount payable on repurchase is not to be less than 30% and not to exceed 10% of the average unweighted price at the close of the market on the ten trading days preceding the repurchase. As in previous instances, the repurchase will be undertaken to support the purposes permitted by resolution of the Ordinary General Meeting and will end on 2.11.2018 at the latest. In the first half of 2018 197,983 shares (ISIN AT0000641352) had been acquired through the programme at a weighted equivalent value per share of approximately € 23.55.
As at 30.6.2018, 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.
| Category | Book value | Fair value | Book value | Fair value |
|---|---|---|---|---|
| € 1,000 | 30.6.2018 | 30.6.2018 | 31.12.2017 | 31.12.2017 |
| restated | ||||
| Cash at banks with drawing | ||||
| restrictions | 9,178 | 9,224 | 10,031 | 10,066 |
| Derivative financial instruments | 809 | 809 | 293 | 293 |
| Primary financial instruments | 73,769 | 76,142 | ||
| Financial assets | 83,756 | 86,466 | ||
| Cash at banks with drawing | ||||
| restrictions | 10,121 | 10,150 | 3,655 | 3,679 |
| Other receivables and other financial | ||||
| assets | 55,932 | 59,264 | ||
| Non financial assets | 37,259 | 27,664 | ||
| Receivables and other assets | 103,312 | 90,583 | ||
| Securities | 111,803 | 111,803 | 117,668 | 117,668 |
| Cash and cash equivalents | 332,691 | 383,288 | ||
| 631,562 | 678,005 |
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 |
|---|---|---|---|---|
| € 1,000 | 30.6.2018 | 30.6.2018 | 31.12.2017 | 31.12.2017 |
| restated | ||||
| Convertible bond | 185,910 | 186,870 | 184,334 | 186,330 |
| Bonds | 643,977 | 682,836 | 648,447 | 687,811 |
| Other interest-bearing liabilities | 867,871 | 869,839 | 916,549 | 921,656 |
| Interest-bearing liabilities | 1,697,757 | 1,749,330 | ||
| Derivative financial instruments | 40,271 | 40,271 | 23,021 | 23,021 |
| Other primary liabilities | 195,103 | 73,072 | ||
| Total other liabilities | 235,374 | 96,093 | ||
| 1,933,131 | 1,845,423 |
The stock exchange price of the convertible bond amounts to € 222,046 K. The fair value of the embedded derivative of the convertible bond amounts to € 35,176 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.
| 30.6.2018 | 31.12.2017 | |||||
|---|---|---|---|---|---|---|
| € 1,000 | Nominal | Fair value | Book value | Nominal value | Fair value | Book value |
| value | ||||||
| Interest rate swaps - assets | 0 | 0 | 0 | 92,343 | 293 | 293 |
| Interest rate swaps - liabilities | 412,023 | –5,095 | –5,095 | 363,645 | –3,088 | –3,088 |
| Total interest rate swaps | 412,023 | –5,095 | –5,095 | 455,987 | –2,795 | –2,795 |
| Interest rate floors | 45,000 | 809 | 809 | 0 | 0 | 0 |
| Derivative convertible bond | 0 | –35,176 | –35,176 | 0 | –19,934 | –19,934 |
| Total derivatives | 457,023 | –39,462 | –39,462 | 455,987 | –22,729 | –22,729 |
| - thereof stand alone (fair value derivatives) | ||||||
| - assets | 45,000 | 809 | 809 | 92,343 | 293 | 293 |
| - thereof stand alone (fair value derivatives) | ||||||
| - liabilities | 412,023 | –40,271 | –40,271 | 363,645 | –23,021 | –23,021 |
The derivative of the convertible bond results from the repayment option of the convertible bond into shares of CA Immo AG and is reported at fair value.
| € 1,000 | Nominal value | Fair value | 30.6.2018 Book value |
Nominal value | Fair value | 31.12.2017 Book value |
|---|---|---|---|---|---|---|
| - fair value derivatives (HFT) - | ||||||
| assets | 0 | 0 | 0 | 92,343 | 293 | 293 |
| - fair value derivatives (HFT) - | ||||||
| liabilities | 412,023 | –5,095 | –5,095 | 363,645 | –3,088 | –3,088 |
| Interest rate swaps | 412,023 | –5,095 | –5,095 | 455,987 | –2,795 | –2,795 |
| Interest rate floors | 45,000 | 809 | 809 | 0 | 0 | 0 |
| Total interest rate derivatives | 457,023 | –4,286 | –4,286 | 455,987 | –2,795 | –2,795 |
| Interest rate derivatives | Nominal value in € 1,000 |
Start | End | Fixed interest rate as at 30.6.2018 |
Reference interest rate |
Fair value in € 1,000 30.6.2018 |
|---|---|---|---|---|---|---|
| EUR - stand alone - liabilities | 412,023 | 7/2016-5/2018 | 6/2019-12/2029 | –0.18%–1.12% | 3M-Euribor | –5,095 |
| Total interest swaps = variable in | ||||||
| fixed | 412,023 | –5,095 | ||||
| Interest rate floors | 45,000 | 5/2018 | 5/2028 | 0.00% | 3M-Euribor | 809 |
| Total interest rate derivatives | 457,023 | –4,286 |
| Interest rate derivatives | Nominal value | Start | End | Fixed interest rate as at |
Reference interest rate |
Fair value |
|---|---|---|---|---|---|---|
| in € 1,000 | in € 1,000 | |||||
| 31.12.2017 | 31.12.2017 | |||||
| EUR - stand alone - assets | 92,343 | 12/2016-6/2017 | 12/2023-6/2027 | 0.29%–0.66% | 3M-Euribor | 293 |
| EUR - stand alone - liabilities | 363,645 | 7/2016-12/2017 | 6/2019-12/2029 | –0.18%–1.12% | 3M-Euribor | –3,088 |
| Total interest swaps = variable in fixed | 455,987 | –2,795 |
| € 1,000 | 2018 | 2017 |
|---|---|---|
| As at 1.1. | –842 | –3,201 |
| Change in valuation of cash flow hedges | 0 | 1,411 |
| Change of ineffectiveness cash flow hedges | 0 | –20 |
| Reclassification cash flow hedges | 742 | 393 |
| Income tax cash flow hedges | –179 | –512 |
| As at 30.6. | –279 | –1,930 |
| thereof: attributable to the owners of the parent | –279 | –1,930 |
Financial instruments measured at fair value relate to derivative financial instruments as well as securities and other investments. As in 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 not listed investments is internally assessed and so represents level 3 of the fair value hierarchy. There were no reclassifications between the levels.
Net debt and gearing ratio:
| € 1,000 | 30.06.2018 | 31.12.2017 |
|---|---|---|
| restated | ||
| Interest-bearing liabilities | ||
| Long-term interest-bearing liabilities | 1,573,334 | 1,680,410 |
| Short-term interest-bearing liabilities | 124,423 | 68,920 |
| Interest-bearing assets | ||
| Cash and cash equivalents | –332,691 | –383,288 |
| Cash at banks with drawing restrictions | –1,024 | –974 |
| Net debt | 1,364,043 | 1,365,068 |
| Shareholders' equity | 2,420,674 | 2,419,270 |
| Gearing ratio (Net debt/equity) | 56.3% | 56.4% |
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.
| € 1,000 | 30.6.2018 | 31.12.2017 restated |
|---|---|---|
| Investments in joint ventures | 197,163 | 214,950 |
| Investments in joint ventures held for sale | 6,373 | 2,276 |
| Loans | 2,988 | 3,061 |
| Receivables | 12,903 | 8,582 |
| Liabilities | 124,757 | 9,409 |
| Provisions | 12,487 | 12,420 |
| Half-year 2018 | Half-year 2017 | |
|---|---|---|
| restated | ||
| Joint ventures result | 23,010 | 38,773 |
| Result from sale of joint ventures | –66 | 909 |
| Result from joint ventures | 22,943 | 39,682 |
| Other income | 1,802 | 863 |
| Other expenses | –488 | –634 |
| Interest income | 208 | 12 |
| Interest expense | –2 | 0 |
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 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 | |||||
|---|---|---|---|---|---|
| € 1,000 | 30.6.2018 | 31.12.2017 | |||
| Loans | 11,586 | 15,176 | |||
| Half-year 2018 | Half-year 2017 | ||||
| Expenses due to associated companies | –1,319 | 3,754 | |||
| Result from associated companies | –1,319 | 3,754 | |||
| Interest income from associated companies | 0 | 702 | |||
The loans to associated companies existing as of the reporting date serve to finance properties. All loans have interest rates at arm's length. No guarantees or other forms of security exist in connection with these loans. In the book value of loans to associated companies, a cumulated impairment amounting to € 10,816 K (31.12.2017: € 7,226 K) is included.
IMMOFINANZ Group holds through its 100% owned subsidiary GENA ELF Immobilienholding GmbH 25,690,163 bearer shares as well as four registered shares of CA Immo AG representing with approximately 26% of the capital stock the largest single shareholder of the company.
Between IMMOFINANZ Group and CA Immo Group there is a reciprocal shareholding. The CA Immo Group holds 5,480,556 bearer shares of IMMOFINANZ AG (equivalent to approximately 4.9% of the capital stock of IMMOFINANZ AG). In the first half of 2018 a dividend in amount of € 3,836 K for the IMMOFINANZ securities were recognized in the consolidated income statement.
In 2016 CA Immo AG and IMMOFINANZ AG had agreed to enter into a constructive dialogue concerning a potential merger of the two companies. On 28.2.2018, IMMOFINANZ AG announced to continue the suspension of detailed discussions over a possible merger between both companies for the time being and to also evaluate other strategic options, among others, the possible sale of its CA Immo AG investment. A corresponding bidding process for a package sale of its 26% investment in CA Immo AG had been started. On 2.7.2018 IMMOFINANZ AG informed, that they sold their investment in CA Immo to SOF-11 Starlight 10 EUR S.á.r.l., a member company of the Starwood Capital Group. On 18.7.2018 the Management Board of CA Immo AG approved the transfer of the four registered shares to SOF-11 Starlight 10 EUR S.á.r.l. The transaction is subject to the release by the cartel authorities.
As at 30.6.2018, contingent liabilities of CA Immo Germany Group resulting from concluded purchase agreements for cost assumptions in connection with contaminated sites or war damage amount to € 566 K (31.12.2017: € 608 K). In addition, letters of support exist for a joint venture in Germany, amounting to € 2,000 K (31.12.2017: € 2,000 K). As security for liabilities from loans guarantees, letters of comfort and declarations for joint liabilities were issued for two (2017: two) joint ventures in an extent of € 2,500 K (31.12.2017: € 2,500 K). Furthermore as security for warranty risks in Germany, guarantees were issued in an amount of € 15,066 K (31.12.2017: € 11,066 K).
CA Immo Group has agreed to adopt a guarantee in connection with the refunding of the project "Airport City St. Petersburg" in the extent of € 1,027 K (31.12.2017: € 8,469 K).
In connection with disposals, marketable guarantees exist between CA Immo Group and the buyer for coverage of possible warranty and liability claim for which in the expected extent financial dispositions were made. The actual claims may exceed the expected extent.
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 in practice and as regards the amount and timing of taxable income. Due to these uncertainties and the grade of 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.
The construction company for an Eastern European development project has filed out-of court claims for receivables related to additional construction costs cumulatively amounting to around € 24.5 million as well as a prolongation of the construction time. CA Immo Group has entirely rejected these claims as these have no substance or legal ground.
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 € 7,156 K (31.12.2017: € 8,789 K), in Germany in the amount of € 184,537 K (31.12.2017: € 153,549 K) and in Eastern Europe in the amount of € 6,079 K (31.12.2017: € 22,533 K). In addition as at 30.6.2018, 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 € 12,028 K (31.12.2017 restated: € 16,241 K).
The total obligation of the payments of equity in joint ventures for which no adequate provisions have been recognised amount in Austria to € 6,035 K (31.12.2017: € 6,035 K) in Germany to € 2,740 K (31.12.2017: € 1,990 K) and in Eastern Europe to € 0 K (31.12.2017: € 0 K) as per 30.6.2018. Besides the mentioned obligations of equity-payments, no further obligations to joint ventures exist.
Borrowings, for which the financial covenants have not been met as at 30.6.2018, 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 30.6.2018, this applied to no loan (31.12.2017: no loan).
In May 2018, the contract for the acquisition of Campus 6.1 office building in Bukarest with an area of 22,000 square meters and an estimated transaction volume of € 53 m was signed. The closing is expected for the 4th quarter 2018.
On 2.7.2018 IMMOFINANZ AG informed, that they sold their investment in CA Immo to SOF-11 Starlight 10 EUR S.á.r.l., a member company of the Starwood Capital Group. On 18.7.2018 the Management Board of CA Immo approved the transfer of the four registered shares to SOF-11 Starlight 10 EUR S.á.r.l. The transaction is subject to the release by the cartel authorities.
In July 2018 the closing of the sale of the investment in a joint venture in Bulgaria took place.
Vienna, 22.8.2018
The Management Board
Andreas Quint (Chief Executive Officer)
Dr. Hans Volkert Volckens (Member of the Management Board)
We have reviewed the accompanying condensed interim consolidated financial statements of
CA Immobilien Anlagen Aktiengesellschaft, Vienna, for the period from 1 January 2018 to 30 June 2018. These condensed interim consolidated financial statements comprise the consolidated statement of financial position as of 30 June 2018 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 2018 to 30 June 2018 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.
We conducted our review in accordance with Austrian Standards for Chartered Accountants, in particular in compliance with KFS/PG 11 "Prin-ciples 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.
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.
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 re-port 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.
Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H.
Mag. Alexander Wlasto eh Mag. (FH) Isabelle Vollmer eh Wirtschaftsprüfer Wirtschaftsprüferin
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, 22.8.2018
The Management Board
Andreas Quint (Chief Executive Officer)
Dr. Hans Volkert Volckens (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]
Listed on Vienna Stock Exchange ISIN: AT0000641352 Reuters: CAIV.VI Bloomberg: CAI: AV
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.
Published by: CA Immobilien Anlagen AG, 1030 Vienna, Mechelgasse 1 Text: Susanne Steinböck, Christoph Thurnberger, Claudia Höbart Layout: Cornelia Kellner, Photographs: CA Immo, Production: 08/16; this report is set inhouse with FIRE.sys
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