Quarterly Report • May 23, 2017
Quarterly Report
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URBAN BENCHMARKS.
FINANCIAL REPORT AS AT 31 MARCH 2017
| 1.1.-31.3.2017 | 1.1.-31.3.2016 | ||
|---|---|---|---|
| Rental income | € m | 43.8 | 40.2 |
| EBITDA | € m | 30.4 | 28.8 |
| Operating result (EBIT) | € m | 43.4 | 46.5 |
| Net result before taxes (EBT) | € m | 31.2 | 19.1 |
| Consolidated net income | € m | 23.2 | 13.2 |
| Operating cash flow | € m | 24.5 | 34.4 |
| Capital expenditure | € m | 31.9 | 22.1 |
| FFO I (excl. Trading and pre taxes) | € m | 23.6 | 20.9 |
| FFO II (incl. Trading and after taxes) | € m | 20.2 | 14.9 |
| 31.3.2017 | 31.12.2016 | ||
|---|---|---|---|
| Total assets | € m | 4,437.0 | 4,309.1 |
| Shareholders' equity | € m | 2,228.4 | 2,204.5 |
| Long and short term interest-bearing liabilities | € m | 1,663.0 | 1,565.6 |
| Net debt | € m | 1,225.2 | 1,167.7 |
| Net asset value (EPRA NAV) | € m | 2,518.2 | 2,497.5 |
| Triple Net asset value (EPRA NNNAV) | € m | 2,314.9 | 2,294.4 |
| Gearing | % | 55.0 | 53.0 |
| Equity ratio | % | 50.2 | 51.2 |
| Gross LTV | % | 47.0 | 45.9 |
| Net LTV | % | 34.6 | 34.2 |
| 31.3.2017 | 31.12.2016 | ||
|---|---|---|---|
| Total usable space (excl. parking, excl. projects) 3) | sqm | 1,569,855 | 1,609,242 |
| Gross yield investment properties | % | 6.0 | 6.1 |
| Fair value of properties | € m | 3,887.5 | 3,819.9 |
| Occupancy rate | % | 91.1 | 92.4 |
| 1.1.-31.3.2017 | 1.1.-31.3.2016 | ||
|---|---|---|---|
| Rental income / share | € | 0.47 | 0.42 |
| Operating cash flow / share | € | 0.26 | 0.36 |
| Earnings per share | € | 0.25 | 0.14 |
| FFO 1 / share | € | 0.25 | 0.22 |
| 31.3.2017 | 31.12.2016 | ||
| NAV/share | € | 23.87 | 23.60 |
| EPRA NAV/share | € | 26.97 | 26.74 |
| EPRA NNNAV/share | € | 24.79 | 24.56 |
| 31.3.2017 | 31.12.2016 | ||
|---|---|---|---|
| Number of shares | pcs. | 98,808,336 | 98,808,336 |
| Treasury shares | pcs. | 5,438,046 | 5,403,319 |
| number of shares outstanding | pcs. | 93,370,290 | 93,405,017 |
| Ø number of shares | pcs. | 98,808,336 | 98,808,336 |
| Ø Treasury shares | pcs. | 5,433,036 | 3,813,021 |
| Ø number of shares outstanding | pcs. | 93,375,300 | 94,995,315 |
| Ø price/share | € | 18.65 | 16.40 |
| Closing price (31.03.) | € | 20.60 | 17.47 |
| Highest price | € | 20.60 | 19.50 |
| Lowest price | € | 17.30 | 14.35 |
1) Key figures include all fully consolidated properties, i.e. all properties wholly owned by CA Immo
2) Includes fully consolidated real estate (wholly owned by CA Immo) and real estate in which CA Immo holds a proportionate share (at equity) 3) incl. land leases and rentable open landscapes
Frank Nickel (CEO), Dr. Hans Volckens (CFO)
CA Immo has made a successful start to business year 2017 and sustained the positive earnings trend of recent quarters.
In the first three months of 2017, rental income for CA Immo rose by a significant 9% to € 43.8m. The positive trend was essentially sustained through the acquisition of Millennium Towers in Budapest and the procurement of a minority holding from joint venture partner Union Investment, which in turn generated an increase in rent. The result from renting stood at € 38.2 m, compared to € 35.3m in 2016. As a result of the positive operational development, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by around 6% to €30.4m (compared to € 28.8m in 2016).
The revaluation result totalled € 9.5m on the key date (2016: € 16.7m). The largest contributions to the revaluation gain in terms of amount came from properties in Munich and Berlin. Earnings before interest and taxes (EBIT) of € 43.4m were around 7% below last year's figure (€ 46.5m in 2016), largely due to a lower revaluation result in yearly comparison. The financial result after the first three months stood at € -12.2m, a significant improvement on the previous year's value of € -27.4m. The Group's financing costs, a key element in long-term revenue, fell by approximately 9% on the 2016 value to € -10.2m.
Earnings before taxes (EBT) stood at € 31.2m, up 63% on the previous year's value of €19.1m. Aside from the higher operational result, a significantly improved financial result compensated for the lower revaluation result. The result for the period was € 23.2 m, a substantial improvement of roughly 76% on last year's figure. Earnings per share amounted to € 0.25 on the balance sheet date (€ 0.14 per share in 2016).
FFO I, a key indicator of the Group's long-term earning power, reported before taxes and adjusted for the sales result and other non-permanent effects, totalled € 23.6m in quarter one of 2017 (€ 20.9m in 2016). FFO I per share was € 0.25 on the key date, more than 16% up on the 2016 figure of € 0.22 per share. As in preceding quarters, this underlines operational development that was both robust and independent of the valuation result and
which forms the basis for the long-term dividend policy of CA Immo. FFO II, which includes the sales result and applicable taxes, stood at €20.2m on the key date (€ 14.9m in 2016). FFO II per share was € 0.15 (against € 0.51 per share in 2016).
CA Immo has upheld a robust balance sheet with an equity ratio of 50% and a conservative loan-to-value ratio (net debt to property assets) of 35%. On the key date, NAV (shareholders' equity) per share was €23.87 (against € 22.12 per share on 31.3.2016). The EPRA NAV per share stood at € 26.97 (€ 24.61 per share on 31.3.2016).
In February 2017 CA Immo issued a corporate bond with a volume of € 175m, a seven-year term and an interest rate of 1.875%. Proceeds from this transaction helped to optimise the financing structure further, which will entail an increase in long-term revenue for the Group.
At the request of the Supervisory Board, Professor Sven Bienert and Professor Klaus Hirschler, the two Supervisory Board members formerly appointed by means of registered shares, were elected as new members of the Supervisory Board along with Gabriele Düker at this year's Ordinary General Meeting. Their mandates will extend to the Ordinary General Meeting that rules on the approval of actions in business year 2021.
At the 30th Ordinary General Meeting, shareholders approved the proposal of the Management Board to raise the dividend for the fourth time in succession on the basis of the strong operational result and pay 65 cents per share for business year 2016 (50 cents in 2015). This was equivalent to a payment of around 70% of long-term revenue (FFO I), the established objective of the company.
The strategic focus has turned to expansion of real estate portfolios in the core cities. This will enable CA Immo to pursue its central objective of steadily raising recurring earnings over the long term and thereby increasing the dividend for shareholders. In-house development of high quality office properties on the core markets of CA Immo as a driver of organic growth, especially in Germany, has accelerated over recent quarters; the monetisation of existing land reserves (mainly in inner city areas of Munich, Frankfurt and Berlin) will pick up pace. Moreover, the company is currently investigating the possibility of developing land earmarked for residential construction in future, which would enable it to generate profits associated with sales completely independently. The significant organic growth potential has thereby expanded to include a high-yield element.
The acquisition of the 49% share of the Eastern Europe portfolio from joint venture partner Union Investment is consistently in line with the strategic goal of eliminating minority holdings from the routine business of CA Immo. As part of the implementation of this strategy, CA Immo together with both joint venture partners PPG and WPV decided to evaluate the sale of the Tower 185 office building in Frankfurt (CA Immo holding: 33%) within what is presently an ideal market environment. In parallel, all internal approvals for the realisation of the Tower ONE project, another high-quality office tower in Frankfurt, have been obtained.
The annual target for long-term revenue – an increase in FFO I on last year's value of € 91.7m to over € 100m (> € 1.05 per share) – is hereby confirmed.
Vienna, May 2017 The Management Board
Frank Nickel (Chief Executive Office)
Dr. Hans Volckens (Member of the Management Board)
The CA Immo share price opened business year 2017 at €17.51 and performed strongly throughout the first quarter. On key date 31 March 2017 the rate had risen to a high for the year of €20.60, an approximate rise of 18% since the start of the year. The low for the year so far was €17.30. By comparison EPRA, the European index for real estate, reported growth of just over 2%. Thanks to this positive rate development, the discount to NAV (intrinsic value) has also halved since the end of 2016; on the final day it was around –14% (31.12.2016: –26%).
As at the balance sheet date, market capitalisation for CA Immo was approximately €2.0bn (€1.7bn on 31.12.2016). Since the end of 2016, the average trading volume has risen marginally to 367,000 shares (against 360,200 on 31.12.2016). In the first three months, the average liquidity of the share was €6,862.6K (€5,885.5K on 31.12.2016).
At the end of November 2016 the company launched a new share buyback programme for up to 1,000,000 shares (approximately 1% of the company's capital stock) with an upper limit of €17.50 per share. 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 November 2018 at the latest. In the first quarter of 2017, another 34,727 shares had been acquired through the programme at a weighted equivalent value per share of approximately €17.49. As at the balance sheet date, therefore, CA Immobilien Anlagen AG held 5,438,046 treasury 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 | 19.22% |
|---|---|
| ATX | 24.60% |
| IATX | 15.56% |
| EPRA Developed Europe | -1.32% |
Source: Vienna Stock Exchange
CA Immo is assessed by eight investment companies. After publication of the annual results for 2016, analysts from Erste Group, Kepler Chreuvreux and SRC Research confirmed their recommendation to purchase, raising their target prices to €23.50 or €24.00. Overall, the most recent 12-month target rates were in the range of €17.70 to €24.00, with the valuation median at €21.80.
| Baader-Helvea Bank | 14.5.2017 | 23.00 | Buy |
|---|---|---|---|
| Erste Group | 30.3.2017 | 24.00 | Buy |
| Goldman Sachs | 25.1.2017 | 19.20 | Neutral |
| HSBC | 12.10.2016 | 19.60 | Neutral |
| Kepler Cheuvreux | 23.3.2017 | 23.50 | Buy |
| Raiffeisen Centrobank | 13.3.2017 | 20.60 | Hold |
| SRC Research | 22.3.2017 | 24.00 | Buy |
| Wood & Company | 3.5.2017 | 17.70 | Neutral |
| Average | 21.45 | ||
| Median | 21.80 |
In February 2017 the company issued a new seven-year corporate bond with a volume of €175m and a coupon of 1.875%. The bond was given an investment grade rating of Baa2 with negative prospects by Moody's Investors Service Ltd ('Moody's'), the international rating agency. As at 31 March 2017, therefore, four CA Immo 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 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). The registered shares are held by IM-MOFINANZ Group, the biggest shareholder in CA Immo with a holding of 26%. The remaining shares of CA Immo (approximately 74% of the capital stock) are in free float with both institutional and private investors. The company is not aware of any other shareholders with a stake of more than 4%.
| 31.3.2017 | 31.12.2016 | ||
|---|---|---|---|
| EPRA NNNAV/share | € | 24.79 | 24.56 |
| NAV/share | € | 23.87 | 23.60 |
| Price (key date)/NAV per share – 11) | % | –13.70 | –26.00 |
| Price (key date)/NNNAV per share –11) | % | –16.93 | –28.90 |
| Number of shares | pcs. | 98,808,336 | 98,808,336 |
| Treasury shares | pcs. | 5,438,046 | 5,403,319 |
| number of shares outstanding | pcs. | 93,370,290 | 93,405,017 |
| Ø number of shares | pcs. | 98,808,336 | 98,808,336 |
| Ø Treasury shares | pcs. | 5,433,036 | 3,813,021 |
| Ø number of shares outstanding | pcs. | 93,375,300 | 94,995,315 |
| Ø price/share | € | 18.65 | 16.40 |
| Market capitalisation (key date) | € m | 2,035 | 1,726 |
| Highest price | € | 20.60 | 19.50 |
| Lowest price | € | 17.30 | 14.35 |
| Closing price | € | 20.60 | 17.47 |
1) before deferred taxes
The 30th Ordinary General Meeting of CA Immo was held on 11 May 2017. In terms of the company's capital stock, attendance was around 52% (roughly 530 shareholders and shareholder representatives). Taking account of the 5,438,046 treasury shares held by the company, which do not confer voting rights, attendance was approximately 55%.
At the request of the Supervisory Board, Professor Sven Bienert and Professor Klaus Hirschler, the two Supervisory Board members formerly appointed by means of registered shares, were elected along with Gabriele Düker as a new member of the Supervisory Board at this year's Ordinary General Meeting. Their mandates expire after the Ordinary General Meeting that rules on the approval of actions in business year 2021. The number of Supervisory Board members appointed by the Ordinary General Meeting had been reduced from nine to eight in future. At present, the Supervisory Board of CA Immo comprises eight members elected by the Ordinary General Meeting,
two members appointed by IMMOFINANZ Group by means of registered shares and four employee representatives.
Payment of a dividend of €0.65 per share with dividend entitlement was resolved for business year 2016 (an increase of 30% year-on-year). Under Austrian taxation law, the distribution of net retained earnings partially (in the amount of €0.22 per share) qualified as a capital repayment according to article 4 subsection 12 of the Income Tax Act (EStG). The dividend payment day was 17 May 2017.
The results of voting may be viewed in detail at http://www.caimmo.com/en/investor-relations/ordinarygeneral-meeting/.
| Type of shares: | No-par value shares |
|---|---|
| Stock market listing: | Vienna Stock Exchange, Prime Market |
| Indices: | ATX, ATX-Prime, IATX, FTSE EPRA/NAREIT Europe, GPR 250, WBI |
| Specialist: | Raiffeisen Centrobank AG |
| Market Maker: | Baader Bank AG, Erste Group Bank AG |
| Stock exchange symbol / ISIN: | CAI / AT0000641352 |
| Reuters: | CAIV.VI |
| Bloomberg: | CAI:AV |
| Email: | [email protected] |
| Web site: | www.caimmo.com |
| Christoph Thurnberger | Claudia Höbart |
|---|---|
| Tel. +43 1532 5907-504 | Tel. +43 1532 5907-502 |
| Fax: +43 1532 5907-550 | Fax: +43 1532 5907-550 |
| [email protected] | [email protected] |
PUBLICATION OF ANNUAL RESULTS FOR 2016 PRESS CONFERENCE ON FINANCIAL STATEMENTS
VERIFICATION DATE FOR THE 30TH ORDINARY GE-NERAL MEETING
30TH ORDINARY GENERAL MEETING
EX-DIVIDEND DATE / RECORD DATE (DIVIDEND) / DIVIDEND PAYMENT DAY
INTERIM REPORT FOR THE FIRST QUARTER 2017
SEMI-ANNUAL REPORT 2017
INTERIM REPORT FOR THE THIRD QUARTER 2017
PUBLICATION OF ANNUAL RESULTS FOR 2017 PRESS CONFERENCE ON FINANCIAL STATEMENTS
In 2016 the global economy and Europe in particular had to cope with numerous challenges including geopolitical tensions, terrorist attacks, stressed banking sectors, UK's vote to leave the European Union. That notwithstanding, the European economy has shown resilience and delivered economic growth as well as strong dynamics regarding the creation of new jobs. GDP growth picked up towards the end of 2016 and is expected to maintain its momentum into 2017. European economies enjoyed a number of favourable factors, such as the low oil price, a depreciating euro (especially against the US dollar) and in particular accommodative monetary policies. According to the European Commission, private consumption has been the main growth driver in Europe while investment continued to be subdued, which "casts a shadow of doubt over the sustainability of the recovery and the economy's potential growth".
THE MONEY MARKET AND INTEREST ENVIRONMENT2)
Monetary policy continues to be highly expansive and is characterised by the continuance of historically low interest rates. In March 2016, the European Central Bank
1) European Commission, Bloomberg, Financial Times, The Economist
2) Sources: Eurostat, Central Statistical Offices, Bloomberg
(ECB) under Mario Draghi announced a package of measures that exceeded market expectations. The policy of quantitative easing was extended with a further reduction in the deposit rate to -0.4%. Starting in April, €80bn (up from the previous level of €60bn) were invested in the purchase programme for government bonds and other securities. The programme was extended at least to the end 2017 at the reduced rate of € 60 bn per month. In a repeated responses to criticism about the policy in Germany, the ECB said that it is still not the time to start tapering the stimulus programme.
The European Central Bank (ECB) has maintained its interest rates at record lows at its April 2017 policy meeting. The marginal refinancing rate stands at 0.0%, while the marginal lending rate stands slight above at 0.25%. The interest rate on deposit facilities (deposit rate) for the euro zone stands at -0.4%. The rate remained negative during the whole year to make lending more attractive to banks.
The 3 month Euribor rate remained in negative territory, fluctuating between -0.32% and -0.33% in the period under review. As a result of the expansive policy of the European Central Bank (ECB), yields on government bonds from eurozone countries and corporate bonds with good credit ratings remain at historic lows. The 10-year German federal bond produced a negative yield for the first time in the second quarter of 2016. Corporate bonds with a negative yield of -0.05% were issued for the first time in quarter three of 2016.
| Growth rate of real GDP 1) | Annual inflation rates 2) |
Rate of unemployment 3) |
Public budget balance |
Gross public debt |
Current account balance |
||
|---|---|---|---|---|---|---|---|
| 2016 | 2017 | in % | in % | as % of GDP 2016 |
as % of GDP 2016 |
as % of GDP 2016 |
|
| EU –28 | 1.9 | 1.8 | 2.0 | 8.0 | -1.9 | 85.1 | 2.1 |
| Euro zone –19 | 1.7 | 1.6 | 1.9 | 9.5 | -1.7 | 91.5 | 3.6 |
| AT | 1.5 | 1.6 | 2.3 | 5.9 | -1.4 | 83.5 | 2.4 |
| GER | 1.9 | 1.6 | 2.0 | 3.9 | 0.6 | 68.2 | 8.7 |
| PL | 2.8 | 3.2 | 1.8 | 5.3 | -2.3 | 53.6 | 0.2 |
| CZ | 2.4 | 2.6 | 2.3 | 3.2 | 0.3 | 37.8 | -0.2 |
| HU | 1.9 | 3.5 | 2.3 | 4.3 | -1.8 | 73.5 | 5.4 |
| RO | 4.9 | 4.4 | 2.3 | 5.3 | -2.8 | 39.1 | -2.2 |
Source: European Commission, Eurostat, Bloomberg
1) Forecast, change versus prior year (in %); 2) by April 2017; 3) by March 2017 (seasonally adjusted)
The European Commission raised its growth forecast for the euro zone slightly to 1.6% in 2017 and 1.8% in 2018. At the same time, it pointed to "exceptional risks" surrounding its forecast, such as the start of "Brexit" negotiations between Britain and the European Union and "to be clarified" intentions of the new administration of the United States in key policy areas. The unemployment rate in the euro area is expected to decline further, from 10.0% in 2016 to 9.6% in 2017.
1) Sources: European Commission Winter 2017 Economic Forecast, Bloomberg, Financial Times, The Economist
Euro zone inflation has reached its highest level in four years (above the targeted ECB rate) in spring 2017 driven by rising energy costs, which has intensified the discussion on whether the bank should reduce its stimulative monetary policy. Annual inflation up to 2.5% in the US in January 2017 (up from 2.1% in December) led to another interest rate hike up 0.25 points in March and consequently to a policy turnaround of the Federal Reserve's towards a more aggressive monetary tightening path. However, US economic growth slowed to an annual rate of 0.7% in the opening quarter of the year, which led the Fed to keep its target range for the federdal funds rate at 0.75% to 1%.
During the first quarter of 2017, transaction activity on the European investment market for commercial real estate was roughly equivalent to last year's level at €56.1bn (+1%). Around 40% of the volume was invested in the office property sector (-2% compared to Q1 2016). While the UK faced a downturn on the same quarter of last year, investment markets on continental Europe reported stable growth despite elections in several key real estate markets. In particular, Germany, the Czech Republic, Hungary, Spain and Sweden reported record results in quarter one.
Germany posted the strongest first quarter result since records began with total investment in commercial real estate of €12.6bn (up 49% on Q1 2016). Offices remained the segment producing the greatest demand, with the proportion of foreign investors rising sharply to 43% (against 32% in quarter one of 2016). Returns are continuing to diminish: in the first quarter, the peak yield for offices was 3.80% for Frankfurt (Q1 2016: 4.40%), with Berlin currently at 3.25% (4.00%) and Munich reporting 3.20% (3.65%).
Peak yields for offices in Vienna stood at 4.0% at the end of 2016 and remain under pressure. In 2017, demand is expected to remain strong with a total transaction volume (forecast) of around €3.5m (2016: €2.8m).
Commercial property markets in the CEE region generated €12.6bn in 2016, the highest investment volume on record. Poland (46%) followed by the Czech Republic (29%) and Hungary (13%) continue to deliver the largest contributions while displaying high dynamism and strong growth rates. The year 2017 has also got off to a dynamic start: according to estimates of Colliers International, the transaction volume for the CEE-6 was €2.3bn in quarter one, equivalent to an increase of 41% on the previous year's quarter. Office properties accounted for some 40% of this total. At year end of 2016, peak yields for offices stood at 5.35% in Warsaw, 5.0% in Prague, 6.75% in Budapest and 7.5% in Bucharest, with further downturns expected for Prague and Budapest.
Turnover on the German office rental market was marginally up as the new year began, although hampered by the limited supply of well equipped office premises. Vacancy levels continued to fall on the core CA Immo markets of Berlin, Frankfurt and Munich in the first quarter. At the same time, the completion volume in the Big 7 was virtually unchanged on the figure for quarter one of 2016 with just over 200,000 sqm. The low volume was associated with a high proportion of owner occupation, further limiting the availability of premises and pushing office markets towards full occupancy. Lettings performance in Berlin declined by 13% on the previous quarter at just under 216,000 sqm; despite this, the vacancy rate fell further to 4.2% (Q1 2016: 5.1%). Floor space turnover in Frankfurt was 116,300 sqm in quarter one, 10% lower than the figure for the prior quarter; the vacancy rate was stable at 9% (Q1 2016: 8.9%; Q4 2016: 9.1%). Munich reclaimed its place as the most dynamic office market with office space take-up of 260,000 sqm, a rise of 39% on quarter one of 2016. The vacancy rate has fallen to an historic low of 4.2% (5.3% in Q1 2016).
The very strong lettings performance of 2016 in Vienna (329,000 sqm) will be maintained at a high level during 2017 according to the forecasts of CBRE. The vacancy rate was 5.3% at the end of 2016.
The office market in Warsaw continues to be characterised by extensive construction activity and consistently strong lettings performance. Office space take-up of 140,000 sqm in the first quarter broadly matched the level of the same period last year. The vacancy rate was 14.2% at the end of 2016. The vacancy rate in Budapest has fallen further to 9.2%, a record low in terms of the longterm average of 16%. Following a very strong final quarter of 2016, floor space turnover was just under 67,000 sqm (down 21% on Q1 2016). Lettings activity of approximately 90,100 sqm was reported in Prague during the first quarter; the anticipated completion volume for 2017 is 151,000 sqm. The vacancy rate continued to decline to 9.4%. The healthy lettings performance in Bucharest was sustained in the first quarter (94,000 sqm). The vacancy rate fell further to 9.5% owing to the low completion volume.
1) CBRE: European Investment Market Snapshot, Q1 2017; MarketView Snapshot Investment Market Germany, Q1 2017; Austria Investment Market View Q4 2016; JLL: CEE Investment Pulse H2 2016; Colliers International: CEE Real Estate Investment Compass 2017
2) JLL: Office Market Overview Germany Q1 2017; CEE Investment Pulse H2 2016; Prague, Budapest Office Pulse Q1 2017; CBRE: Vienna Office Market View 2016; Bucharest Office Q1 2017; C&W: Poland Office Market Snapshot Q1 2017
As at key date 31 March 2017, CA Immo's total property assets stood at €3.9bn (31.12.2016: €3.8bn). 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 (84% of the total portfolio) and investment properties under development (12% of the total portfolio). Properties intended for trading (reported under short-term property assets) account for the remaining 4% of property assets.
As at 31 March 2017, the investment property portfolio had an approximate market value of €3.3bn (of which fully consolidated: €3.0bn) and incorporated a total rentable effective area1) of 1.4m sqm. Around 47% of the portfolio (based on book value) is located in CEE and SEE nations, with 36% of the remaining investment properties in Germany and 17% in Austria.
In the first three months of the year, the Group generated rental income of €47.3m; the portfolio produced a yield of 6.0%. The occupancy rate was 91.1% as at 31 March 2017 (against 92.4% on 31.12.2016). For details, please see the 'Changes to the Portfolio' section.
1) Including properties used for own purposes and land leases
Of investment properties under development with a total book value of around €475.8m, development projects and land reserves in Germany account for 88%, while the Eastern Europe segment represents 11% and Austria 1%. Investment properties under development in Germany with a total market value of €417.5m include projects under construction with a value of €150.0m and land reserves with a book value of €267.5m.
| in € m | Investment properties 1) Investment properties | Short-term | Property Assets | Property Assets | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| under development | property assets 2) | in % | |||||||||||||||
| full | at | ∑ | full | at | ∑ | full | at | ∑ | full | at | ∑ | full | at | ∑ | |||
| equity | equity | equity | equity | equity | |||||||||||||
| Austria | 551 | 0 | 551 | 7 | 0 | 7 | 0 | 13 | 13 | 558 | 13 | 572 | 16 | 4 | 15 | ||
| Germany | 994 | 196 | 1,190 | 417 | 0 | 417 | 48 | 79 | 127 | 1,459 | 275 | 1,734 | 41 | 79 | 45 | ||
| Czechia | 265 | 0 | 265 | 14 | 0 | 14 | 0 | 0 | 0 | 278 | 0 | 278 | 8 | 0 | 7 | ||
| Hungary | 469 | 0 | 469 | 1 | 0 | 1 | 0 | 0 | 0 | 470 | 0 | 470 | 13 | 0 | 12 | ||
| Poland | 288 | 16 | 304 | 0 | 0 | 0 | 0 | 0 | 0 | 288 | 16 | 304 | 8 | 4 | 8 | ||
| Romania | 259 | 0 | 259 | 25 | 5 | 30 | 0 | 0 | 0 | 284 | 5 | 289 | 8 | 2 | 7 | ||
| Serbia | 96 | 0 | 96 | 0 | 0 | 0 | 0 | 0 | 0 | 96 | 0 | 96 | 3 | 0 | 2 | ||
| Others | 101 | 37 | 137 | 6 | 0 | 4 | 0 | 0 | 0 | 107 | 37 | 141 | 3 | 11 | 4 | ||
| Total | 3,023 | 248 | 3,271 | 470 | 5 | 476 | 48 | 93 | 140 | 3,541 | 347 | 3,888 | 100 | 100 | 100 | ||
| Share of total | |||||||||||||||||
| portfolio | 84% | 12% | 4% | 100% |
Full: Fully consolidated properties wholly owned by CA Immo
At equity: Includes all properties partially owned by CA Immo accounted for using the equity method (appears under 'Income from joint ventures' in the income statement); pro-rata-share
1) Includes properties used for own purposes
2) Short-term property assets including properties intended for trading or sale
DISTRIBUTION OF BOOK VALUE TOTAL PROPERTY ASSETS BY COUNTRY (Basis: € 3.9 bn)
In Germany, CA Immo held investment properties with an approximate value of €1,187.7m1) on 31 March 2017 (31 December 2016: €1,173.2m). The occupancy rate for the german investment property assets on the key date was 93.1% (against 93.9% on 31.12.2016). 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 €14.9m was generated in the first three months.
Approximately 3,700 sqm of office space was newly let in Germany between January and the end of March. Thereof, rental agreements in Tower 185 in Frankfurt accounted for 1,400 sqm of rentable space. Consequently, the occupancy rate for the building now stands at around 92%.
Based on total investment costs, the volume of investment properties under construction in Germany (excluding land reserves) is approximately €639.7m (value after completion) as at key date 31 March 2017. In total, CA Immo holds investment properties under development (including land reserves) with a book value of €417.5m; therof, land reserves account for €267.5m and projects under construction account for €150.0m (please see table on the next page for details).
In March, CA Immo has received a construction permit for the NEO office, hotel and residential complex with 21,000m² of gross floor space in the Baumkirchen Mitte quarter in Munich. Construction work has started in March. In advance, the tristar GmbH Hotelgruppe has been signed as long-term tenant for the hotel occupying the first six floors of the NEO property. In addition, CA Immo has acquired the 50% stake in the development project previously held by joint venture partner PATRI-ZIA and is now the sole owner. CA Immo's total investment in the building complex is €86m.
In March, CA Immo decided on realization of a further office building in the Berlin city district Europacity. My.B, spanning around 16,500 sqm, will be constructed directly on the Heidestraße.
1) Includes fully consolidated properties (wholly owned by CA Immo) and properties in which CA Immo holds a proportionate share (at equity); excl. properties used for own purposes
During the first three months, trading income from German properties totalled €6.10m.
| Book value | Rentable area | Occupancy rate | Annualised rental | income | Yield | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in € m | in sqm | in % | in € m | in % | |||||||||||
| full | at | ∑ | full | at | ∑ | full | at | ∑ | full | at | ∑ | full | at | ∑ | |
| equity | equity | equity | equity | equity | |||||||||||
| Austria | 547.0 | 0.0 | 547.0 | 332,076 | 0 | 332,076 | 94.5 | 0.0 | 94.5 | 30.6 | 0.0 | 30.6 | 5.6 | 0.0 | 5.6 |
| Germany | 991.8 | 195.9 | 1187.7 | 297,154 | 34,158 | 331,312 | 94.8 | 85.2 | 93.1 | 48.3 | 9.4 | 57.7 | 4.9 | 4.8 | 4.9 |
| Czechia | 264.6 | 0.0 | 264.6 | 105,866 | 0 | 105,866 | 95.1 | 0.0 | 95.1 | 17.9 | 0.0 | 17.9 | 6.7 | 0.0 | 6.7 |
| Hungary | 468.7 | 0.0 | 468.7 | 248,340 | 0 | 248,340 | 86.4 | 0.0 | 86.4 | 33.2 | 0.0 | 33.2 | 7.1 | 0.0 | 7.1 |
| Poland | 288.3 | 15.8 | 304.1 | 93,663 | 7,047 | 100,710 | 89.1 | 97.5 | 89.6 | 19.0 | 1.2 | 20.2 | 6.6 | 7.4 | 6.6 |
| Romania | 258.9 | 0.0 | 258.9 | 105,781 | 0 | 105,781 | 92.6 | 0.0 | 92.6 | 19.8 | 0.0 | 19.8 | 7.6 | 0.0 | 7.6 |
| Serbia | 96.3 | 0.0 | 96.3 | 46,680 | 0 | 46,680 | 79.2 | 0.0 | 79.2 | 6.8 | 0.0 | 6.8 | 7.0 | 0.0 | 7.0 |
| Others | 100.7 | 36.7 | 137.5 | 69,305 | 23,591 | 92,896 | 88.1 | 94.0 | 89.8 | 7.2 | 3.2 | 10.4 | 7.1 | 8.8 | 7.6 |
| Total | 3,016.4 | 248.5 | 3,264.8 | 1,298,865 | 64,796 | 1,363,661 | 91.4 | 88.1 | 91.1 | 182.7 | 13.8 | 196.5 | 6.1 | 5.6 | 6.0 |
Full: Includes all fully consolidated real estate, i.e. all properties wholly owned by CA Immo
At equity: Includes all real estate (pro-rata-share) partially owned by CA Immo accounted for using the equity method (appears under 'Income from joint ventures' in the income statement)
1) Excludes properties used for own purposes
2) incl. superaedificates in Austria (approximately 106,000 sqm)
As at 31 March 2017, CA Immo held investment properties in Austria with a value of €547.0m and an occupancy rate of 94.5% (94.8% on 31.12.2016). The company's asset portfolio generated rental income of €7.7m in the first three months. Between January and the end of March, some 2,600 sqm of usable space was newly let in Austria (approximately 1,000 sqm of this was office space); contract extensions have been agreed for around 440 sqm of usable space.
In March CA Immo laid the symbolic foundation stone for its latest construction project on Erdberger Lände in Vienna. The ViE office building, which spans approximately 14,700 sqm, is being constructed next to the Donaukanal and the Wiener Prater. It will be the final building block in the Lände 3 urban development project. The total investment is approximately €38m, with completion scheduled for 2018.
Trading income for Austria amounted to €18.5m in the first three months.
| Projects (own stock) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| in € m | Total | Outstanding | Planned rent | Gross | City | Main usage | Share2) | Utilisation | Start of | Scheduled |
| invest | construction | able effective | yield on | in % | rate in % | construc | comple | |||
| ment1) | costs | area in sqm | cost in % | tion | tion | |||||
| VIE | 37.8 | 30.4 | 14,727 | 6.3 | Vienna | Residential | 100 | 6 | Q3 2016 | Q3 2018 |
| MY.O | 96.0 | 77.2 | 26,183 | 6.0 | Munich | Office | 100 | 0 | Q2 2017 | Q4 2019 |
| KPMG building | 56.3 | 24.3 | 12,705 | 5.8 | Berlin | Office | 100 | 90 | Q4 2015 | Q2 2018 |
| Rieck 1, phase 2 | 10.4 | 8.9 | 2,786 | 6.4 | Berlin | Office | 100 | 0 | Q4 2016 | Q2 2019 |
| ZigZag | 16.3 | 13.0 | 4,389 | 5.7 | Mainz | Office | 100 | 0 | Q3 2017 | Q1 2019 |
| Steigenberger ¹) | 57.5 | 40.2 | 17,347 | 6.3 | Frankfurt | Hotel | 100 | 94 | Q3 2016 | Q3 2018 |
| NEO | 60.6 | 45.5 | 12,662 | 5.4 | Munich | Office | 100 | 26 | Q1 2017 | Q3 2019 |
| Orhideea Towers | 73.9 | 55.4 | 36,918 | 8.3 | Bucharest | Office | 100 | 22 | Q4 2015 | Q1 2018 |
| Total | 408.8 | 294.7 | 127,717 | 6.2 | ||||||
| Projects (for sale) | ||||||||||
| Cube | 99.2 | 72.4 | 16,990 | n.m. | Berlin | Office | 100 | 100 | Q4 2016 | Q4 2019 |
| Rieck I/ABDA | 25.7 | 21.3 | 5,215 | n.m. | Berlin | Office | 100 | 100 | Q4 2016 | Q2 2019 |
| Rheinallee III | 59.2 | 42.2 | 19,668 | n.m. | Mainz | Residential | 100 | 95 | Q3 2016 | Q3 2018 |
| Baumkirchen WA 2 | 66.1 | 14.7 | 11,232 | n.m. | Munich | Residential | 50 | 99 | Q2 2015 | Q3 2017 |
| Baumkirchen WA 3 | 66.4 | 39.6 | 13,631 | n.m. | Munich | Residential | 50 | 82 | Q3 2016 | Q4 2018 |
| Baumkirchen | ||||||||||
| Residential | 26.0 | 19.5 | 5,426 | n.m. | Munich | Residential | 100 | 0 | Q1 2017 | Q3 2019 |
| Laendyard Living | 58.1 | 32.1 | 18,834 | n.m. | Vienna | Residential | 50 | 100 | Q3 2016 | Q3 2018 |
| Wohnbau Süd | 32.9 | 13.1 | 14,023 | n.m. | Vienna | Residential | 100 | 100 | Q2 2016 | Q2 2018 |
| Total | 433.7 | 254.8 | 105,020 | |||||||
| Total | 842.4 | 549.5 | 232,737 |
1) Incl. plot 2) All figures refer to the project share held by CA Immo 3) The Mannheimer Strasse bus station next to the hotel (now completed with a value of € 4.2 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 properties is €1,530.2m as at 31 March 2017 (thereof fully consolidated: €1,477.6m). In the first three months, property assets let with a total effective area of 700,273 sqm generated rental income of 24.7m. The occupancy rate on the key date was 89.3% (31 December 2016: 91.0%).
New lease agreements relating to around 9,800 sqm rentable area were concluded in Eastern Europe during the first three months, as well as contract extensions for some 27,800 sqm rentable area.
In January, CA Immo has successfully completed negotiations with joint venture partner Union Investment Real Estate GmbH on acquiring its 49% shares each in the office buildings Danube House in Prague and Infopark in Budapest. With this acquisition, CA Immo increases its share in the buildings from previously 51% to 100%; the transaction has already been closed. This acquisition represents another major step towards expanding the core office property portfolio in CA Immo core cities.
The following activities after key date 31 March 2017 are reported:
The number of Supervisory Board members elected by the shareholders' meeting of CA Immobilien Anlagen AG was reduced from nine to eight in the 30th shareholders' meeting. Additionally, Prof. Dr. Sven Bienert, Univ.-Prof. MMag. Dr. Klaus Hirschler and Dipl. BW Gabriele Düker were elected as members of the Supervisory Board of CA Immobilien Anlagen AG until the conclusion of the shareholders' meeting, which resolves on the discharge for the business year 2021.
In the 30th ordinary shareholders' meeting of CA Immobilien Anlagen AG, held on 11.5.2017, a dividend distribution for the 2016 financial year of €0.65 per no-par share entitled to a dividend, was resolved upon.
As at 19.5.2017, IMMOFINANZ AG transferred its 25,690,163 bearer shares as well as its four registered shares in CA Immobilien Anlagen AG to its 100% owned subsidiary GENA ELF Immobilienholding GmbH.
In April, CA Immo concluded the sale of its 51% stake in the Aerozone logistics park in Budapest. With this transaction, CA Immo has completed the strategic withdrawal from the logistics segment that began in 2012. Over the past few years, almost 500,000 sqm of logistical space in total has been sold in Poland, Romania, Hungary and Germany. CA Immo held a 51% stake in the recently sold Aerozone logistics park in Budapest, which spans approximately 65,000 sqm, through a joint venture with Union Investment Real Estate. After the acquisition of 49% minority holdings in one office building in Prague and another in Budapest (finalised in January 2017), the Aerozone logistics park in Budapest became the last remaining property in the C1 portfolio held with joint venture partner Union. The joint venture launched in 2005 was disbanded with the closing of this transaction.
In the first three months of 2017, rental income for CA Immo rose by a significant 8.9% to €43,781K. The positive trend was essentially sustained through the acquisition of Millennium Towers in Budapest and the acquisition of a minority holding from joint venture partner Union Investment, which in turn generated an increase in rent.
In year-on-year comparison, property expenses directly attributable to the asset portfolio, including own operating expenses, rose to € -5,531K (€ -4,940K in 2016). The result from renting stood at €38,249K after the first three months (€35,253K in 2016). The efficiency of letting activity, measured as the operating margin in rental business (net rental income in relation to rental income), was 87.4%, just below the previous year's value of 87.7% .
Other expenditure directly attributable to project development stood at € –982K after the first three months, against € –960K in 2016. Gross revenue from services stood at €2,715K, below the previous year's level of €3,077K. Alongside development revenue for third parties via the subsidiary omniCon, this item contains revenue from asset management and other services to joint venture partners.
After the first quarter, the sales result from property assets held as current assets was €390K (€ –584K in 2016). The result from the sale of investment properties stood at €358K on 31 March 2017 (€1,202K in 2016).
After the first three months, indirect expenditures stood at € –10,460K, 10.4% above the 2016 level of € –9,474 K. This item also contains expenditure counterbalancing the aforementioned gross revenue from services. Other operating income stood at €177K compared to the 2016 value of €285K.
As a result of the positive operational development, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 5.7% to €30,447K (compared to €28,799K in 2016).
After the first three months, the total revaluation gain of €17,264K was counterbalanced by a revaluation loss of
€ –7,732K. The cumulative revaluation result of €9,532K as at key date 31 March 2017 was below last year's reference value of €16,743K. The largest contributions to the revaluation gain in terms of amount came from properties in Munich and Berlin.
Current results of joint ventures consolidated at equity are reported under 'Earnings of joint ventures' in the consolidated income statement. Amongst other things, the result of €4,190K (€1,796K in 2016) reflects the sale of the 51% share in the Aerozone logistics park in Budapest, which successfully completed the strategic withdrawal from logistical segment.
Earnings before interest and taxes (EBIT) of €43,370K were –6.8% below last year's figure (€46,543K in 2016), largely due to a lower revaluation result in yearly comparison.
The financial result stood at € –12,192K after the first three months (€ –27,405K in 2016). The Group's financing costs, a key element in long-term revenue, fell by –8.6% on the 2016 value to € –10,217K. The result from interest rate derivative transactions improved from € –1,557K last year to €1,007K. The result from financial investments stood at €544K, somewhat lower than the figure for the reference period of 2016 (€858 K).
Other items in the financial result (other financial income/expense, result from other financial assets and result from associated companies and exchange rate differences) totalled € -3,526K (€ -15,525K in 2016). The result from other financial assets includes depreciation linked to the subsequent valuation of securities available for sale of € -3,398K (posted in the first quarter).
Earnings before taxes (EBT) stood at €31,177K, up 62.9% on the previous year's value of €19,139K. Aside from the higher operational result, a significantly improved financial result compensated for the lower valuation result. After the first three months, taxes on earnings stood at € –7,955K (€ –5,926K in 2016).
The result for the period was €23,222K, a substantial 75.7% improvement on last year's figure. Earnings per share amounted to €0.25 on the balance sheet date (€0.14 per share in 2016).
An FFO I of €23,622K was generated in the first three months of 2017, 13.1% above the previous year's value of €20,982K. 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 €0.25 on the key date, an increase of 16.4% on the 2016 value of €0.22 per share. FFO II, which includes the sales result and applicable taxes, stood at €20,242K on the key date, 35.9% above the 2016 value of €14,897K. FFO II per share was €0.22 per share (€0.15 per share in 2016).
| € m | 1st Quarter | 1st Quarter |
|---|---|---|
| 2017 | 2016 | |
| Net rental income (NRI) | 38.2 | 35.3 |
| Result from hotel operations | 0.0 | 0.0 |
| Income from services rendered | 2.7 | 3.1 |
| Other expenses directly related to | ||
| properties under development | –1.0 | –1.0 |
| Other operating income | 0.2 | 0.3 |
| Other operating income/expenses | 1.9 | 2.4 |
| Indirect expenses | –10.5 | –9.5 |
| Result from investments in joint | ||
| ventures 1) | 1.5 | 2.3 |
| Finance costs | –10.2 | –11.2 |
| Result from financial investments | 0.5 | 0.9 |
| Other adjustment 2) | 2.1 | 0.8 |
| FFO I (excl. Trading and pre taxes) | 23.6 | 20.9 |
| Trading result | 0.4 | –0.6 |
| Result from the sale of investment | ||
| properties | 0.4 | 1.2 |
| Result from sale of joint ventures | 0.8 | 0.6 |
| At-Equity result property sales | –0.1 | –1.5 |
| Result from property sales | 1.4 | –0.3 |
| Other financial results | 0.0 | 0.0 |
| Current income tax | –2.6 | –3.8 |
| current income tax of joint ventures | –0.1 | –1.0 |
| Other adjustments | –2.2 | –0.9 |
| Other adjustments FFO II | 0.0 | 0.0 |
| FFO II | 20.2 | 14.9 |
1) Adjustment for real estate sales and non-sustainable results 2) Adjustment for other non-sustainable results
As at the balance sheet date, long-term assets amounted to €3,754,821K (85% of total assets). Investment property assets on balance sheet amounted to €3,016,396K on the key date (€2,923,676K in 2016).
The balance sheet item 'Property assets under development' was €470,369K on 31 March 2017 (€433,049K in 2016). Total property assets (investment properties, properties used for own purposes, property assets under development and property assets held as current assets) amounted to €3,540,877K on the key date (€3,424,269 K on 31.12.2016).
The net assets of joint ventures are shown in the balance sheet item 'Investments in joint ventures', which stood at €158,386K on the key date (€191,369K in 2016).
Cash and cash equivalents stood at €433,671K on the balance sheet date, a significant rise on the level for 31 December 2016 (€395,088K).
As at the key date, shareholders' equity on the Group balance sheet stood at €2,228,377K (€2,204,541K on 31.12.2016). The equity ratio of 50.2% remained stable and within the strategic target range (the comparative value for the end of 2016 was 51.2%).
The Group's financial liabilities stood at €1,663,018K on the key date (against €1,565,639K on 31.12.2016). Net debt (interest-bearing liabilities less cash and cash equivalents) increased by 4.9% on the value for the start of the year (€1,167,656K), amounting to €1,225,234K at end of March 2017. 100% of interest-bearing financial liabilities are in euros.
In February 2017 CA Immo issued a corporate bond with a volume of €175m, a seven-year term and an interest rate of 1.875%. The issue was assessed at Baa2 by the rating agency Moody's, in line with the issuer rating. Proceeds from this transaction helped to optimise the financing structure further, which will entail an increase in long-term revenue for the Group.
The loan-to-value ratio based on market values as at 31 March 2017 was 34.6% (net, taking account of Group cash and cash equivalents) compared to 34.2% at the start of the year. On the key date, gearing was 55.0% (53.0% on 31.12.2016).
NAV (shareholders' equity) was €2,228,377K on 31 March 2017 (€23.87 per share) compared to the value for the end of 2016 of €2.204.541K (€23.60 per share); this represented an increase per share of 1.1%.
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 €26.97 per share as at the key date (€26.74 per share on 31.12.2016). The EPRA NNNAV per share after adjustments for financial instruments, liabilities and deferred taxes, stood at €24.79 per share as at 31 March 2017 (€24.56 per share on 31.12.2016). The number of shares outstanding on the key date was 93,370,290 (93,405,017 on 31.12.2016).
| € m | 31.3.2017 | 31.12.2016 |
|---|---|---|
| Equity (NAV) | 2,228.4 | 2,204.5 |
| Exercise of options | 0.0 | 0.0 |
| NAV after exercise of options | 2,228.3 | 2,204.5 |
| NAV/share in € | 23.87 | 23.60 |
| Value adjustment for 1) | ||
| - Own used properties | 6.1 | 6.0 |
| - short-term property assets | 35.2 | 39.9 |
| - Financial instruments | 2.5 | 3.2 |
| Deferred taxes | 246.1 | 243.9 |
| EPRA NAV after adjustments | 2,518.2 | 2,497.5 |
| EPRA NAV per share in € | 26.97 | 26.74 |
| Value adj. for financial instruments | –2.5 | –3.2 |
| Value adjustment for liabilities | –24.5 | –24.2 |
| Deferred taxes | –176.3 | –175.7 |
| EPRA NNNAV | 2,314.9 | 2,294.4 |
| EPRA NNNAV per share in € | 24.79 | 24.56 |
| Change of NNNAV against previous year | 0.9% | 8.3% |
| Price (31.03.) / NNNAV per share – 1 | –16.9 | –28.9 |
| Number of shares excl. treasury shares | 93,370,290 | 93,405,017 |
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 2016 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 2016 ('Risk report') is therefore unchanged.
In 2017, the economic environment will be defined by political challenges. The ongoing tensions have the potential to throw economic development in Europe into considerable doubt. The possibility that the resultant increase in volatility on capital and financial markets will spread even to economically powerful countries like Austria and Germany – and their financial and real estate markets – cannot be ruled out. Many of these risks are not actively manageable; where they arise, CA Immo has a range of precautions in place to minimise the risk.
| € 1,000 | 1st Quarter 2017 | 1st Quarter 2016 |
|---|---|---|
| Rental income | 43,781 | 40,193 |
| Operating costs charged to tenants | 16,227 | 13,821 |
| Operating expenses | –18,258 | –16,496 |
| Other expenses directly related to properties rented | –3,499 | –2,265 |
| Net rental income | 38,249 | 35,253 |
| Other expenses directly related to properties under development | –982 | –960 |
| Income from the sale of properties and construction works | 3,538 | 168 |
| Book value of properties sold incl. ancillary and construction costs | –3,148 | –752 |
| Result from trading and construction works | 390 | –584 |
| Result from the sale of investment properties | 358 | 1,202 |
| Income from services rendered | 2,715 | 3,077 |
| Indirect expenses | –10,460 | –9,474 |
| Other operating income | 177 | 285 |
| EBITDA | 30,447 | 28,799 |
| Depreciation and impairment of long-term assets | –799 | –823 |
| Changes in value of properties held for trading | 0 | 29 |
| Depreciation and impairment/reversal | –799 | –794 |
| Revaluation gain | 17,264 | 20,493 |
| Revaluation loss | –7,732 | –3,750 |
| Result from revaluation | 9,532 | 16,743 |
| Result from joint ventures | 4,190 | 1,796 |
| Result of operations (EBIT) | 43,370 | 46,543 |
| Finance costs | –10,217 | –11,182 |
| Foreign currency gains/losses | –67 | –143 |
| Result from interest rate derivative transactions | 1,007 | –1,557 |
| Result from financial investments | 544 | 858 |
| Result from other financial assets | –3,459 | –14,946 |
| Result from associated companies | 0 | –435 |
| Financial result | –12,192 | –27,405 |
| Net result before taxes (EBT) | 31,177 | 19,139 |
| Current income tax | –2,551 | –3,786 |
| Deferred taxes | –5,403 | –2,140 |
| Income tax expense | –7,955 | –5,926 |
| Consolidated net income | 23,222 | 13,213 |
| thereof attributable to non-controlling interests | 1 | –5 |
| thereof attributable to the owners of the parent | 23,222 | 13,217 |
| Earnings per share in € (basic) | € 0.25 | € 0.14 |
| Earnings per share in € (diluted) | € 0.25 | € 0.14 |
| € 1,000 | 1st Quarter 2017 | 1st Quarter 2016 |
|---|---|---|
| Consolidated net income | 23,222 | 13,213 |
| Other comprehensive income | ||
| Cash flow hedges - changes in fair value | 936 | 419 |
| Reclassification cash flow hedges | 0 | 177 |
| Foreign currency gains/losses | 130 | 571 |
| Assets available for sale - changes in fair value | 600 | 571 |
| Income tax related to other comprehensive income | –446 | –286 |
| Other comprehensive income for the period (realised through profit or loss) | 1,221 | 1,452 |
| Other comprehensive income for the period | 1,221 | 1,452 |
| Comprehensive income for the period | 24,443 | 14,665 |
| thereof attributable to non-controlling interests | 1 | –5 |
| thereof attributable to the owners of the parent | 24,442 | 14,669 |
| € 1,000 | 31.3.2017 | 31.12.2016 |
|---|---|---|
| ASSETS | ||
| Investment properties | 3,016,396 | 2,923,676 |
| Investment properties under development | 470,369 | 433,049 |
| Own used properties | 6,554 | 6,643 |
| Office furniture and equipment | 5,400 | 5,599 |
| Intangible assets | 7,822 | 8,195 |
| Investments in joint ventures | 158,386 | 191,369 |
| Financial assets | 88,099 | 89,713 |
| Deferred tax assets | 1,796 | 1,563 |
| Long-term assets | 3,754,821 | 3,659,806 |
| Long-term assets as a % of total assets | 84.6% | 84.9% |
| Assets held for sale | 0 | 26,754 |
| Properties held for trading | 47,558 | 34,147 |
| Receivables and other assets | 86,228 | 76,235 |
| Current income tax receivables | 16,592 | 15,552 |
| Securities | 98,157 | 101,555 |
| Cash and cash equivalents | 433,671 | 395,088 |
| Short-term assets | 682,206 | 649,332 |
| Total assets | 4,437,027 | 4,309,138 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Share capital | 718,337 | 718,337 |
| Capital reserves | 818,460 | 819,068 |
| Other reserves | 327 | –894 |
| Retained earnings | 691,206 | 667,984 |
| Attributable to the owners of the parent | 2,228,330 | 2,204,495 |
| Non-controlling interests | 47 | 46 |
| Shareholders' equity | 2,228,377 | 2,204,541 |
| Shareholders' equity as a % of total assets | 50.2% | 51.2% |
| Provisions | 12,375 | 13,242 |
| Interest-bearing liabilities | 1,502,884 | 1,412,635 |
| Other liabilities | 83,756 | 87,180 |
| Deferred tax liabilities | 245,666 | 239,969 |
| Long-term liabilities | 1,844,682 | 1,753,026 |
| Current income tax liabilities | 17,130 | 16,736 |
| Provisions | 92,002 | 84,766 |
| Interest-bearing liabilities | 160,135 | 153,004 |
| Other liabilities | 94,702 | 97,064 |
| Short-term liabilities | 363,969 | 351,571 |
| Total liabilities and shareholders' equity | 4,437,027 | 4,309,138 |
| € 1,000 | 1st Quarter 2017 | 1st Quarter 2016 |
|---|---|---|
| Operating activities | ||
| Net result before taxes | 31,177 | 19,139 |
| Revaluation result incl. change in accrual and deferral of rental income | –9,564 | –17,055 |
| Depreciation and impairment/reversal | 799 | 794 |
| Result from the sale of long-term properties and office furniture and other | ||
| equipment | –385 | –1,206 |
| Taxes paid/refunded excl. taxes for the sale of long-term properties | –1,974 | 6,115 |
| Finance costs, result from financial investments and other financial result | 9,673 | 10,324 |
| Foreign currency gains/losses | 67 | 143 |
| Result from interest rate derivative transactions | –1,007 | 1,557 |
| Result from other financial assets and non-cash income from investments in at | ||
| equity consolidated entities | –731 | 13,585 |
| Cash flow from operations | 28,056 | 33,396 |
| Properties held for trading | –4,404 | –2,489 |
| Receivables and other assets | –2,988 | –133 |
| Provisions | 1,309 | 1,797 |
| Other liabilities | 2,525 | 1,792 |
| Cash flow from change in net current assets | –3,558 | 967 |
| Cash flow from operating activities | 24,498 | 34,363 |
| Investing activities | ||
| Acquisition of and investment in long-term properties incl. prepayments | –22,749 | –23,434 |
| Acquisition of property companies, less cash and cash equivalents of € 2,387 K | ||
| (2016: € 0 K) | –27,536 | 0 |
| Acquisition of office equipment and intangible assets | –229 | –179 |
| Repayment/acquisition of financial assets | –208 | 0 |
| Acquisition of assets available for sale | 0 | –9,073 |
| Investments in joint ventures | –295 | –1,250 |
| Disposal of investment properties and other assets | 9,745 | 12,708 |
| Disposal of investment property companies, less cash and cash equivalents of | ||
| € 0 K (2016: € 0 K) | –1,972 | –52 |
| Disposal of joint ventures | 11,983 | 1,900 |
| Loans made to joint ventures | –267 | –412 |
| Loan repayments made by joint ventures | 1,607 | 0 |
| Taxes paid/refunded relating to the sale of long-term properties and loans granted | –1,392 | 815 |
| Dividend distribution/capital repayment from at equity consolidated entities and | ||
| assets available for sale | 5,799 | 408 |
| Interest paid for capital expenditure in investment properties | –789 | 0 |
| Interest received from financial investments | 788 | 166 |
| Cash flow from investing activities | –25,516 | –18,403 |
| € 1,000 | 1st Quarter 2017 | 1st Quarter 2016 |
|---|---|---|
| Financing Activities | ||
| Cash inflow from loans received | 2,998 | 0 |
| Cash inflow from the issuance of bonds | 173,447 | 149,318 |
| Acquisition of treasury shares | –1,496 | –15,393 |
| Payment related to the acquisition of shares from non-controlling interests and | ||
| dividends to minority interests | 0 | –1,394 |
| Repayment of loans incl. interest rate derivatives | –119,411 | –65,640 |
| Other interest paid | –16,215 | –10,899 |
| Cash flow from financing activities | 39,323 | 55,992 |
| Net change in cash and cash equivalents | 38,306 | 71,952 |
| Cash and cash equivalents as at 1.1. | 395,088 | 207,112 |
| Changes in the value of foreign currency | 277 | –8 |
| Cash and cash equivalents as at 31.3 | 433,671 | 279,056 |
The interests paid in the 1st Quarter 2017 totalled € – 17,004 K (1st Quarter 2016: € – 10,899K). The income taxes paid in the 1st Quarter 2017 added up to € – 3,366 K (1st Quarter 2016: € 6,930 K).
| € 1,000 | Share capital | Capital reserves - Others | Capital reserves - Treasury share reserve |
|
|---|---|---|---|---|
| As at 1.1.2016 | 718,337 | 954,052 | –32,306 | |
| Valuation / reclassification cash flow hedges | 0 | 0 | 0 | |
| Foreign currency gains/losses | 0 | 0 | 0 | |
| Revaluation of assets available for sale | 0 | 0 | 0 | |
| Consolidated net income | 0 | 0 | 0 | |
| Comprehensive income for 2016 | 0 | 0 | 0 | |
| Acquisition of treasury shares | 0 | 0 | –15,393 | |
| As at 31.3.2016 | 718,337 | 954,052 | –47,699 | |
| As at 1.1.2017 | 718,337 | 906,148 | –87,080 | |
| Valuation / reclassification cash flow hedges | 0 | 0 | 0 | |
| Foreign currency gains/losses | 0 | 0 | 0 | |
| Revaluation of assets available for sale | 0 | 0 | 0 | |
| Consolidated net income | 0 | 0 | 0 | |
| Comprehensive income for 2017 | 0 | 0 | 0 | |
| Acquisition of treasury shares | 0 | 0 | –608 | |
| As at 31.3.2017 | 718,337 | 906,148 | –87,687 |
| Retained | Valuation result | Other | Attributable to | Non-controlling | Shareholders' |
|---|---|---|---|---|---|
| earnings | (hedging - reserve) | reserves | shareholders of the | interests | equity (total) |
| parent company | |||||
| 484,074 | –5,131 | 1,385 | 2,120,410 | 40 | 2,120,450 |
| 0 | 470 | 0 | 470 | 0 | 470 |
| 0 | 0 | 571 | 571 | 0 | 571 |
| 0 | 0 | 412 | 412 | 0 | 412 |
| 13,217 | 0 | 0 | 13,217 | –5 | 13,213 |
| 13,217 | 470 | 982 | 14,669 | –5 | 14,665 |
| 0 | 0 | 0 | –15,393 | 0 | –15,393 |
| 497,291 | –4,661 | 2,367 | 2,119,686 | 35 | 2,119,722 |
| 667,984 | –3,201 | 2,307 | 2,204,495 | 46 | 2,204,541 |
| 0 | 667 | 0 | 667 | 0 | 667 |
| 0 | 0 | 130 | 130 | 0 | 130 |
| 0 | 0 | 423 | 423 | 0 | 423 |
| 23,222 | 0 | 0 | 23,222 | 1 | 23,222 |
| 23,222 | 667 | 553 | 24,442 | 1 | 24,443 |
| 0 | 0 | 0 | –608 | 0 | –608 |
| 691,206 | –2,533 | 2,860 | 2,228,330 | 47 | 2,228,377 |
| € 1,000 | Austria | Germany | ||||||
|---|---|---|---|---|---|---|---|---|
| 1st Quarter 2017 | Income | Development | Total | Income | Development | Total | Income | |
| producing | producing | producing | ||||||
| Rental income | 7,693 | 0 | 7,693 | 17,636 | 1,362 | 18,998 | 22,211 | |
| Rental income with other operating | ||||||||
| segments | 131 | 0 | 131 | 214 | 3 | 216 | 0 | |
| Operating costs charged to tenants | 2,216 | 0 | 2,216 | 6,126 | 130 | 6,256 | 9,907 | |
| Operating expenses | –2,451 | 0 | –2,451 | –6,696 | –285 | –6,982 | –11,134 | |
| Other expenses directly related to | ||||||||
| properties rented | –796 | 0 | –796 | –1,509 | –77 | –1,586 | –1,833 | |
| Net rental income | 6,793 | 0 | 6,793 | 15,770 | 1,132 | 16,903 | 19,152 | |
| Result from hotel operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Other expenses directly related to | ||||||||
| properties under development | 0 | –147 | –147 | 0 | –1,042 | –1,042 | 0 | |
| Result from trading and construction | ||||||||
| works | 0 | 622 | 622 | 0 | –478 | –478 | 0 | |
| Result from the sale of investment | ||||||||
| properties | 109 | 0 | 109 | 145 | 27 | 172 | 828 | |
| Income from services rendered | 0 | 0 | 0 | 82 | 2,637 | 2,719 | 177 | |
| Indirect expenses | –325 | –176 | –501 | –1,769 | –4,442 | –6,211 | –2,463 | |
| Other operating income | 8 | 0 | 8 | 67 | 29 | 97 | 56 | |
| EBITDA | 6,584 | 300 | 6,884 | 14,295 | –2,137 | 12,159 | 17,751 | |
| Depreciation and impairment/reversal | –379 | 0 | –379 | –31 | –138 | –169 | –108 | |
| Result from revaluation | –1,167 | 1 | –1,166 | 11,809 | 6,858 | 18,667 | –3,954 | |
| Result from joint ventures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Result of operations (EBIT) | 5,038 | 301 | 5,339 | 26,073 | 4,583 | 30,657 | 13,689 |
| Property assets1) | 551,196 | 33,838 | 585,034 | 1,643,835 | 563,245 2,207,080 | 1,376,855 | ||
|---|---|---|---|---|---|---|---|---|
| Other assets | 38,307 | 20,215 | 58,521 | 293,083 | 467,063 | 760,146 | 177,294 | |
| Deferred tax assets | 0 | 0 | 0 | 802 | 609 | 1,411 | 739 | |
| Segment assets | 589,503 | 54,053 | 643,556 | 1,937,720 | 1,030,917 2,968,637 | 1,554,888 | ||
| Interest-bearing liabilities | 227,981 | 39,635 | 267,616 | 916,058 | 147,702 1,063,760 | 674,698 | ||
| Other liabilities | 17,624 | 6,438 | 24,062 | 44,319 | 292,127 | 336,446 | 42,323 | |
| Deferred tax liabilities incl. current | ||||||||
| income tax liabilities | 44,462 | 1,917 | 46,379 | 188,971 | 52,564 | 241,535 | 32,379 | |
| Liabilities | 290,067 | 47,990 | 338,057 | 1,149,349 | 492,394 1,641,742 | 749,401 | ||
| Shareholders' equity | 299,436 | 6,063 | 305,499 | 788,372 | 538,523 1,326,895 | 805,488 | ||
| Capital expenditures2) | 1,211 | 4,455 | 5,666 | 5,328 | 30,231 | 35,559 | 3,374 | |
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 € 4,404 K (31.12.2016: € 14,906 K) in properties held for trading.
| Eastern | Eastern | Total | Transition | Total | ||||
|---|---|---|---|---|---|---|---|---|
| Europe | Europe | segments | ||||||
| core regions | other regions | |||||||
| Development | Total | Income | Development | Total | Holding | Consolidation | ||
| producing | ||||||||
| 538 | 22,750 | 3,280 | 0 | 3,280 | 52,721 | 0 | –8,940 | 43,781 |
| 0 | 0 | 0 | 0 | 0 | 347 | 0 | –347 | 0 |
| 237 | 10,143 | 1,266 | 0 | 1,266 | 19,881 | 0 | –3,655 | 16,227 |
| –210 | –11,343 | –1,357 | 0 | –1,357 | –22,133 | 0 | 3,875 | –18,258 |
| –36 | –1,868 | –165 | 0 | –165 | –4,415 | 0 | 916 | –3,499 |
| 530 | 19,681 | 3,024 | 0 | 3,024 | 46,401 | 0 | –8,152 | 38,249 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| –47 | –47 | 0 | –14 | –14 | –1,250 | 0 | 268 | –982 |
| 0 | 0 | 0 | 0 | 0 | 144 | 0 | 246 | 390 |
| 0 | 828 | 0 | 0 | 0 | 1,110 | 0 | –752 | 358 |
| 0 | 177 | 0 | 0 | 0 | 2,897 | 1,700 | –1,881 | 2,715 |
| –171 | –2,635 | –208 | –33 | –241 | –9,588 | –3,939 | 3,066 | –10,460 |
| 0 | 56 | 0 | 0 | 0 | 161 | 81 | –65 | 177 |
| 311 | 18,062 | 2,816 | –47 | 2,769 | 39,874 | –2,158 | –7,269 | 30,447 |
| –1 | –109 | 0 | 0 | 0 | –657 | –143 | 2 | –799 |
| 146 | –3,808 | –336 | 0 | –336 | 13,357 | 0 | –3,825 | 9,532 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4,190 | 4,190 |
| 456 | 14,145 | 2,480 | –47 | 2,433 | 52,573 | –2,301 | –6,903 | 43,370 |
| 77,709 | 1,454,564 | 175,350 | 5,830 | 181,180 | 4,427,859 | 0 | –886,981 | 3,540,877 |
|---|---|---|---|---|---|---|---|---|
| 13,616 | 190,911 | 8,493 | 8,823 | 17,315 | 1,026,894 | 796,472 | –929,012 | 894,354 |
| 43 | 782 | 223 | 0 | 223 | 2,416 | 36,712 | –37,332 | 1,796 |
| 91,368 | 1,646,256 | 184,066 | 14,653 | 198,719 | 5,457,168 | 833,184 | –1,853,325 | 4,437,027 |
| 64,254 | 738,953 | 127,879 | 14,837 | 142,716 | 2,213,045 | 835,782 | –1,385,808 | 1,663,018 |
| 6,709 | 49,032 | 4,141 | 15 | 4,157 | 413,697 | 11,299 | –142,160 | 282,836 |
| 2,276 | 34,655 | 2,782 | 561 | 3,343 | 325,912 | 1,671 | –64,787 | 262,796 |
| 73,239 | 822,639 | 134,802 | 15,414 | 150,216 | 2,952,654 | 848,752 | –1,592,755 | 2,208,650 |
| 18,130 | 823,617 | 49,264 | –761 | 48,503 | 2,504,514 | –15,567 | –260,569 | 2,228,377 |
| 1,716 | 5,090 | 852 | 0 | 852 | 47,167 | 40 | –15,284 | 31,922 |
| € 1,000 | Austria | Germany | ||||||
|---|---|---|---|---|---|---|---|---|
| 1st Quarter 2016 | Income | Development | Total | Income | Development | Total | Income producing | |
| producing | producing | restated | ||||||
| Rental income | 8,209 | 0 | 8,209 | 15,037 | 3,568 | 18,605 | 20,841 | |
| Rental income with other operating | ||||||||
| segments | 130 | 0 | 130 | 154 | 0 | 154 | 0 | |
| Operating costs charged to tenants | 2,461 | 0 | 2,461 | 4,723 | 985 | 5,708 | 8,271 | |
| Operating expenses | –2,648 | 0 | –2,648 | –5,677 | –1,449 | –7,125 | –9,398 | |
| Other expenses directly related to | ||||||||
| properties rented | –572 | 0 | –572 | –861 | –338 | –1,200 | –1,050 | |
| Net rental income | 7,581 | 0 | 7,581 | 13,376 | 2,766 | 16,142 | 18,663 | |
| Result from hotel operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Other expenses directly related to | ||||||||
| properties under development | 0 | –89 | –89 | –35 | –727 | –762 | 0 | |
| Result from trading and construction | ||||||||
| works | 0 | 39 | 39 | 0 | –553 | –553 | 0 | |
| Result from the sale of investment | ||||||||
| properties | 0 | –71 | –71 | 1,510 | –3,235 | –1,725 | 574 | |
| Income from services rendered | 19 | 0 | 19 | 64 | 2,661 | 2,725 | 93 | |
| Indirect expenses | –339 | –113 | –452 | –1,225 | –3,241 | –4,466 | –2,281 | |
| Other operating income | 8 | 0 | 8 | 160 | –215 | –55 | 78 | |
| EBITDA | 7,269 | –234 | 7,035 | 13,850 | –2,544 | 11,306 | 17,128 | |
| Depreciation and impairment/reversal | –445 | 0 | –445 | –19 | –123 | –142 | –85 | |
| Result from revaluation | 2,961 | 67 | 3,028 | 15,852 | 1,520 | 17,373 | –3,163 | |
| Result from joint ventures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Result of operations (EBIT) | 9,785 | –166 | 9,619 | 29,683 | –1,146 | 28,537 | 13,880 | |
| 31.12.2016 | ||||||||
| Property assets1) | 566,323 | 29,382 | 595,705 | 1,205,942 | 946,504 2,152,446 | 1,413,305 | ||
| Other assets | 23,287 | 15,928 | 39,215 | 259,594 | 463,588 | 723,181 | 212,373 | |
| Deferred tax assets | 0 | 0 | 0 | 499 | 692 | 1,191 | 660 | |
| Segment assets | 589,610 | 45,311 | 634,920 | 1,466,034 | 1,410,784 2,876,819 | 1,626,338 | ||
| Interest-bearing liabilities | 230,104 | 34,051 | 264,154 | 676,212 | 336,364 1,012,576 | 745,618 | ||
| Other liabilities | 14,402 | 4,669 | 19,071 | 33,129 | 277,335 | 310,464 | 43,191 | |
| Deferred tax liabilities incl. current | ||||||||
| income tax liabilities | 48,025 | 1,690 | 49,715 | 129,673 | 106,471 | 236,144 | 39,691 | |
| Liabilities | 292,531 | 40,409 | 332,941 | 839,014 | 720,170 1,559,184 | 828,500 | ||
| Shareholders' equity | 297,078 | 4,902 | 301,980 | 627,021 | 690,614 1,317,635 | 797,837 | ||
| Capital expenditures2) | 3,081 | 12,095 | 15,176 | 10,918 | 133,609 | 144,528 | 189,953 |
| Eastern | Eastern | Total | Transition | Total | ||||
|---|---|---|---|---|---|---|---|---|
| Europe | Europe | segments | ||||||
| core regions | other regions | |||||||
| Development | Total | Income producing | Development | Total | Holding | Consolidation | ||
| restated | restated | restated | restated | restated | restated | restated | ||
| 418 | 21,259 | 3,228 | 7 | 3,234 | 51,308 | 0 | –11,115 | 40,193 |
| 0 | 0 | 0 | 0 | 0 | 284 | 0 | –284 | 0 |
| 245 | 8,516 | 1,159 | 0 | 1,159 | 17,845 | 0 | –4,024 | 13,821 |
| –205 | –9,603 | –1,276 | 0 | –1,276 | –20,652 | 0 | 4,156 | –16,496 |
| –9 | –1,059 | –182 | –4 | –186 | –3,016 | 0 | 751 | –2,265 |
| 450 | 19,113 | 2,929 | 2 | 2,931 | 45,768 | 0 | –10,515 | 35,253 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| –70 | –70 | 0 | –14 | –14 | –935 | 0 | –25 | –960 |
| 0 | 0 | 0 | 0 | 0 | –514 | 0 | –70 | –584 |
| 0 | 574 | 0 | 0 | 0 | –1,222 | 0 | 2,424 | 1,202 |
| 0 | 93 | 0 | 0 | 0 | 2,837 | 1,522 | –1,282 | 3,077 |
| –208 | –2,489 | –277 | –29 | –306 | –7,713 | –3,527 | 1,767 | –9,474 |
| 1 | 79 | 0 | 0 | 0 | 32 | 64 | 189 | 285 |
| 173 | 17,300 | 2,652 | –41 | 2,611 | 38,253 | –1,942 | –7,512 | 28,799 |
| 0 | –85 | 0 | 0 | 0 | –671 | –125 | 2 | –794 |
| 53 | –3,110 | –411 | –52 | –463 | 16,828 | 0 | –86 | 16,743 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,796 | 1,796 |
| 226 | 14,106 | 2,241 | –93 | 2,148 | 54,410 | –2,067 | –5,800 | 46,543 |
| 75,829 | 1,489,134 | 174,860 | 5,830 | 180,690 | 4,417,975 | 0 | –1,005,397 | 3,412,579 |
|---|---|---|---|---|---|---|---|---|
| 11,809 | 224,183 | 7,707 | 8,870 | 16,576 | 1,003,156 | 655,295 | –763,455 | 894,997 |
| 88 | 747 | 277 | 0 | 277 | 2,215 | 40,182 | –40,834 | 1,563 |
| 87,726 | 1,714,064 | 182,844 | 14,700 | 197,543 | 5,423,346 | 695,477 | –1,809,686 | 4,309,138 |
| 62,861 | 808,480 | 128,436 | 14,796 | 143,232 | 2,228,443 | 653,677 | –1,316,480 | 1,565,639 |
| 6,428 | 49,619 | 3,685 | 15 | 3,699 | 382,854 | 12,177 | –112,778 | 282,253 |
| 2,227 | 41,919 | 2,735 | 561 | 3,296 | 331,074 | 1,401 | –75,770 | 256,705 |
| 71,517 | 900,018 | 134,856 | 15,372 | 150,229 | 2,942,370 | 667,255 | –1,505,028 | 2,104,597 |
| 16,209 | 814,047 | 47,988 | –672 | 47,315 | 2,480,976 | 28,223 | –304,658 | 2,204,541 |
| 12,429 | 202,382 | 1,859 | 52 | 1,911 | 363,995 | 472 | –72,824 | 291,644 |
The condensed consolidated interim financial statements of CA Immobilien Anlagen Aktiengesellschaft ("CA Immo AG"), Vienna as at 31.3.2017 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 2016, except of new or amended standards.
The condensed consolidated interim financial statements, for the reporting period from 1.1. to 31.3.2017 have been neither fully audited nor reviewed by an auditor.
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 31.3.2017 were prepared in accordance with all IASs, IFRSs and IFRIC and SIC interpretations (existing standards as amended and new standards). Amended and new standards are not applicable for financial year beginning 1.1.2017, in the EU.
CA Immo Group has changed the presentation of the segment reporting compared to 2016 Group consolidated financial statements. Following the decision of the Management Board, the main decision maker, the internal reporting was changed, so that Serbia will now be part of the Eastern Europe core region segment, while Slovakia will be part of the Eastern Europe other region segment. Consequently, we have the transfer between the two reported regions: Serbia will be included in Eastern Europe core region segment (until now Eastern Europe other region segment) and Slovakia will be included in Eastern Europe other region segment (until now in Eastern Europe core region segment).
Reporting segment Eastern Europe core region will now comprise Czech Republic, Hungary, Poland, Romania and Serbia, while the reporting segment Eastern Europe other region will include Bulgaria, Croatia, Slovenia, Russia, Ukraine and Slovakia. The comparative amounts for 2016 were correspondingly restated.
| € 1,000 | Eastern | Eastern | ||||||
|---|---|---|---|---|---|---|---|---|
| Europe | Europe | |||||||
| core regions | other regions | |||||||
| Income | Develop | Income | Develop | Income | ||||
| producing | ment | Total | producing | ment | Total | producing | ||
| 1st Quarter 2016 | (as reported) | (as reported) | (as reported) | (as reported) | (as reported) | (as reported) | adjustment | |
| Rental income | 20,299 | 425 | 20,724 | 3,769 | 0 | 3,769 | 542 | |
| Rental income with other | ||||||||
| operating segments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Operating costs charged to | ||||||||
| tenants | 7,541 | 245 | 7,787 | 1,889 | 0 | 1,889 | 730 | |
| Operating expenses | –8,623 | –205 | –8,828 | –2,051 | 0 | –2,051 | –775 | |
| Other expenses directly related | ||||||||
| to properties rented | –1,172 | –13 | –1,185 | –59 | 0 | –59 | 122 | |
| Net rental income | 18,045 | 452 | 18,497 | 3,547 | 0 | 3,547 | 618 | |
| Result from hotel operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Other expenses directly related | ||||||||
| to properties under | ||||||||
| development | 0 | –71 | –71 | 0 | –12 | –12 | 0 | |
| Result from trading and | ||||||||
| construction works | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Result from the sale of | ||||||||
| investment properties | 574 | 0 | 574 | 0 | 0 | 0 | 0 | |
| Income from services rendered | 93 | 0 | 93 | 0 | 0 | 0 | 0 | |
| Indirect expenses | –2,235 | –215 | –2,450 | –323 | –23 | –346 | –46 | |
| Other operating income | 78 | 1 | 78 | 0 | 0 | 0 | 0 | |
| EBITDA | 16,554 | 167 | 16,722 | 3,225 | –35 | 3,190 | 573 | |
| Depreciation and | ||||||||
| impairment/reversal | –84 | 0 | –84 | 0 | 0 | 0 | –1 | |
| Result from revaluation | –2,926 | 1 | –2,925 | –648 | 0 | –648 | –237 | |
| Result from joint ventures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Result of operations (EBIT) | 13,544 | 168 | 13,713 | 2,577 | –35 | 2,542 | 335 | |
| 31.12.2016 | ||||||||
| Property assets | 1,358,965 | 79,739 | 1,438,704 | 229,200 | 1,920 | 231,120 | 54,340 | |
| Other assets | 255,894 | 11,859 | 267,753 | 7,624 | 8,820 | 16,444 | –43,521 | |
| Deferred tax assets | 936 | 88 | 1,024 | 0 | 0 | 0 | –276 | |
| Segment assets | 1,615,795 | 91,686 | 1,707,481 | 236,824 | 10,740 | 247,564 | 10,543 | |
| Interest-bearing liabilities | 780,914 | 62,861 | 843,775 | 136,578 | 14,796 | 151,374 | –35,296 | |
| Other liabilities | 41,740 | 6,435 | 48,175 | 5,135 | 8 | 5,143 | 1,451 | |
| Deferred tax liabilities incl. | ||||||||
| current income tax liabilities | 34,806 | 2,789 | 37,594 | 7,621 | 0 | 7,621 | 4,885 |
Liabilities 857,460 72,085 929,545 149,334 14,804 164,138 –28,960 Shareholders' equity 758,335 19,601 777,936 87,490 –4,064 83,426 39,502
Capital expenditures 184,696 12,481 197,177 7,115 0 7,115 5,257
| Eastern | Eastern | Eastern | Eastern | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Europe | Europe | Europe | Europe | |||||||
| core regions | other regions | core regions | other regions | |||||||
| Develop | Total | Income | Develop | Total | Income | Develop | Total | Income | Develop | Total |
| ment | producing | ment | producing | ment | producing | ment | ||||
| adjustment | adjustment | adjustment | adjustment | adjustment | restated | restated | restated | restated | restated | restated |
| –7 | 535 | –541 | 7 | –535 | 20,841 | 418 | 21,259 | 3,228 | 7 | 3,234 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 730 | –730 | 0 | –730 | 8,271 | 245 | 8,516 | 1,159 | 0 | 1,159 |
| 0 | –775 | 775 | 0 | 775 | –9,398 | –205 | –9,603 | –1,276 | 0 | –1,276 |
| 4 | 126 | –123 | –4 | –127 | –1,050 | –9 | –1,059 | –182 | –4 | –186 |
| –2 | 616 | –619 | 2 | –617 | 18,663 | 450 | 19,113 | 2,929 | 2 | 2,931 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 1 | 1 | 0 | –2 | –2 | 0 | –70 | –70 | 0 | –14 | –14 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 | 574 | 0 | 574 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 | 93 | 0 | 93 | 0 | 0 | 0 |
| 7 | –39 | 46 | –6 | 40 | –2,281 | –208 | –2,489 | –277 | –29 | –306 |
| 0 | 0 | 0 | 0 | 0 | 78 | 1 | 79 | 0 | 0 | 0 |
| 6 | 578 | –573 | –6 | –579 | 17,128 | 173 | 17,300 | 2,652 | –41 | 2,611 |
| 0 | –1 | 0 | 0 | 0 | –85 | 0 | –85 | 0 | 0 | 0 |
| 52 | –185 | 237 | 0 | 237 | –3,163 | 53 | –3,110 | –411 | –52 | –463 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 58 | 393 | –336 | –6 | –342 | 13,880 | 226 | 14,106 | 2,241 | –93 | 2,148 |
| –3,910 | 50,430 | –54,340 | 3,910 | –50,430 | 1,413,305 | 75,829 | 1,489,134 | 174,860 | 5,830 | 180,690 |
|---|---|---|---|---|---|---|---|---|---|---|
| –50 | –43,570 | 83 | 50 | 133 | 212,373 | 11,809 | 224,183 | 7,707 | 8,870 | 16,577 |
| 0 | –277 | 277 | 0 | 277 | 660 | 88 | 747 | 277 | 0 | 277 |
| –3,960 | 6,583 | –53,980 | 3,960 | –50,021 | 1,626,338 | 87,726 | 1,714,064 | 182,844 | 14,700 | 197,543 |
| 0 | –35,295 | –8,142 | 0 | –8,142 | 745,618 | 62,861 | 808,480 | 128,436 | 14,796 | 143,232 |
| –7 | 1,444 | –1,450 | 7 | –1,444 | 43,191 | 6,428 | 49,619 | 3,685 | 15 | 3,699 |
| –562 | 4,324 | –4,886 | 561 | –4,325 | 39,691 | 2,227 | 41,919 | 2,735 | 561 | 3,296 |
| –568 | –29,527 | –14,478 | 568 | –13,910 | 828,500 | 71,517 | 900,018 | 134,856 | 15,372 | 150,228 |
| –3,392 | 36,111 | –39,502 | 3,392 | –36,110 | 797,837 | 16,209 | 814,047 | 47,988 | –672 | 47,316 |
| –52 | 5,205 | –5,256 | 52 | –5,204 | 189,953 | 12,429 | 202,382 | 1,859 | 52 | 1,911 |
In the first quarter of 2017 the Hungarian joint venture entity, EUROPOLIS ABP Kft., which owned a logistics property, was sold.
Additionally, during the first quarter of 2017, CA Immo Group bought the remaining stake in four joint venture companies in Hungary, Czech Republic and Germany from its joint venture partners. Following the acquisition of the remaining stakes, consisting of properties with a fair value of approximately € 105 m, these entities are fully consolidated. Given the purchase, the stake of CA Immo Group increased from 50% (respectively 51%) to 100%.
The financial assets (long term assets) consist of the following items:
| 31.3.2017 | 31.12.2016 | |
|---|---|---|
| Loans to joint ventures | 3,343 | 3,608 |
| Loans to associated companies | 8,750 | 8,750 |
| Other investments | 56,629 | 57,774 |
| Other financial assets | 19,377 | 19,581 |
| Financial assets | 88,099 | 89,713 |
As at 31.3.2017, CA Immo Group held cash and cash equivalents amounting to € 433,671 K, cash and cash equivalents contain bank balances of € 18,813 K (31.12.2016: € 20,260 K) to which CA Immo Group only has restricted access for a period of at most 3 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 | 31.3.2017 | 31.12.2016 |
|---|---|---|
| Maturity > 1 year | 7,932 | 8,288 |
| Maturity from 3 to 12 months | 5,065 | 7,800 |
| Cash at banks with drawing restrictions | 12,997 | 16,088 |
The result from revaluation in the first quarter of 2017 results from revaluation gain of € 17,264 K (mainly from segment Germany) and revaluation loss of € 7,732 K, which mainly results from the segment Eastern Europe core regions.
The acquisition of entities in Czech Republic, Hungary and Germany led to a revaluation of the before held investment of € 2,441 K which is presented in the result from joint ventures. The immediate revaluation after the acquisition of properties – in amount of the difference between acquisition costs and fair value of properties at acquisition date – amounts to €2,282 K.
CA Immo Group presents in the result from other financial assets an impairment of available for sale securities amounting to € - 3,398 K.
The result from derivative interest rate transactions comprises the following:
| € 1,000 | 1st Quarter 2017 | 1st Quarter 2016 |
|---|---|---|
| Valuation interest rate derivative transactions | 1,007 | –1,380 |
| Reclassification of valuation results recognised in equity | 0 | –177 |
| Result from interest rate derivative transactions | 1,007 | –1,557 |
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. Reclassifications mainly arised from the refinancing of variable interest bearing loans (into fixed interest bearing loans) or their early repayment.
Tax expenses comprise the following:
| € 1,000 | 1st Quarter 2017 | 1st Quarter 2016 |
|---|---|---|
| Current income tax (current year) | –2,072 | –3,276 |
| Current income tax (previous years) | –479 | –510 |
| Current income tax | –2,551 | –3,786 |
| Change in deferred taxes | –5,583 | –2,171 |
| Tax benefit on valuation of assets available for sale in equity | 180 | 31 |
| Income tax expense | –7,955 | –5,926 |
| Effective tax rate (total) | 25.5% | 31.0% |
Current income tax (current year) arises in the segment Germany (€ 904 K) and segment Eastern Europe core region (€ 830 K).
| 1st Quarter 2017 | 1st Quarter 2016 | ||
|---|---|---|---|
| Weighted average number of shares outstanding | pcs. | 93,375,300 | 96,144,993 |
| Consolidated net income | € 1,000 | 23,222 | 13,217 |
| basic earnings per share | € | 0.25 | 0.14 |
Another share buyback programme 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 was launched at the end of November 2016. The equivalent value to be attained must be within the range stipulated in the enabling resolution passed by the Ordinary General Meeting and may be no more than 30% below and 10% above the average non-weighted stock exchange closing price 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. By the balance sheet date, further 34,727 shares (ISIN AT0000641352) had been acquired through the programme at a weighted equivalent value per share of approximately € 17.49.
As at 31.3.2017, CA Immobilien Anlagen AG held 5,438,046 treasury shares in total; given the total number of voting shares issued (98,808,336), this is equivalent to around 5.5% of the voting stock.
| Category | Book value | Fair value | Book value | Fair value |
|---|---|---|---|---|
| € 1,000 | 31.3.2017 | 31.3.2017 | 31.12.2016 | 31.12.2016 |
| Cash at banks with drawing | ||||
| restrictions | 7,932 | 7,932 | 8,288 | 8,288 |
| Derivative financial instruments | 10 | 10 | 12 | 12 |
| Primary financial instruments | 80,157 | 81,413 | ||
| Financial assets | 88,099 | 89,713 | ||
| Cash at banks with drawing | ||||
| restrictions | 5,065 | 5,065 | 7,800 | 7,800 |
| Derivative financial instruments | 14 | 14 | 17 | 17 |
| Other receivables and other financial | ||||
| assets | 47,468 | 44,031 | ||
| Non financial assets | 33,681 | 24,387 | ||
| Receivables and other assets | 86,228 | 76,235 | ||
| Current income tax receivables | 16,592 | 15,552 | ||
| Securities | 98,157 | 98,157 | 101,555 | 101,555 |
| Cash and cash equivalents | 433,671 | 395,088 | ||
| 722,746 | 678,144 |
The fair value of the other receivables and financial assets as well as the primary financial instruments in the category of loans and amounts receivable essentially equals the book value due to short-term maturities. Financial assets are partially mortgaged as security for financial liabilities.
| Category € 1,000 |
Book value 31.3.2017 |
Fair value 31.3.2017 |
Book value 31.12.2016 |
Fair value 31.12.2016 |
|---|---|---|---|---|
| Bonds | 639,513 | 667,700 | 471,658 | 498,201 |
| Other interest-bearing liabilities | 1,023,505 | 1,020,077 | 1,093,981 | 1,092,266 |
| Interest-bearing liabilities | 1,663,018 | 1,565,639 | ||
| Derivative financial instruments | 9,637 | 9,637 | 11,583 | 11,583 |
| Other primary liabilities | 168,822 | 172,661 | ||
| Total other liabilities | 178,458 | 184,244 | ||
| 1,841,477 | 1,749,883 |
The fair value of other primary liabilities essentially equals the book value due to daily and/or short-term maturities.
| 31.3.2017 | 31.12.2016 | |||||
|---|---|---|---|---|---|---|
| € 1,000 | Nominal | Fair value | Book value | Nominal value | Fair value | Book value |
| value | ||||||
| Interest rate swaps | 425,314 | –9,637 | –9,637 | 397,766 | –11,583 | –11,583 |
| Swaption | 20,000 | 14 | 14 | 20,000 | 17 | 17 |
| Interest rate caps | 43,919 | 10 | 10 | 44,196 | 12 | 12 |
| Total | 489,233 | –9,613 | –9,613 | 461,962 | –11,554 | –11,554 |
| - thereof hedging (cash flow hedges) | 91,561 | –3,370 | –3,370 | 92,360 | –4,151 | –4,151 |
| - thereof stand alone (fair value derivatives) | 397,672 | –6,242 | –6,242 | 369,602 | –7,403 | –7,403 |
Interest rate swaps are concluded for the purpose of hedging future cash flows. The effectiveness of the hedge relationship between hedging instruments and hedged items is assessed on a regular basis by measuring effectiveness.
| € 1,000 | Nominal value |
Fair value | 31.3.2017 Book value |
Nominal value | Fair value | 31.12.2016 Book value |
|---|---|---|---|---|---|---|
| - Cash flow hedges (effective) | 89,432 | –3,294 | –3,294 | 90,626 | –4,069 | –4,069 |
| - Cash flow hedges (ineffective) - Fair value derivatives (HFT) |
2,129 333,753 |
–76 –6,266 |
–76 –6,266 |
1,734 305,406 |
–82 –7,432 |
–82 –7,432 |
| Interest rate swaps | 425,314 | –9,637 | –9,637 | 397,766 | –11,583 | –11,583 |
| Currency | Nominal | Start | End | Fixed | Reference | Fair value |
|---|---|---|---|---|---|---|
| value | interest rate | interest rate | ||||
| as at | ||||||
| 31.3.2017 | 31.3.2017 | |||||
| in € 1,000 | in € 1,000 | |||||
| Interest rate swaps | ||||||
| EUR - CFH | 91,561 | 11/2007 | 9/2018 | 2.25%–4.50% | 3M-Euribor | –3,370 |
| EUR - stand alone | 333,753 | 9/2013 | 12/2024 | –0.18%–2.28% | 3M-Euribor | –6,266 |
| Total interest swaps = variable in fixed | 425,314 | –9,637 | ||||
| Swaption | 20,000 | 11/2015 | 11/2017 | 1.25% | 6M-Euribor | 14 |
| Interest rate caps | 43,919 | 3/2014 | 9/2019 | 1.50%–2.00% | 3M-Euribor | 10 |
| Total | 489,233 | –9,613 |
| Currency | Nominal value | Start | End | Fixed | Reference | Fair value |
|---|---|---|---|---|---|---|
| interest rate | interest rate | |||||
| as at | ||||||
| 31.12.2016 | 31.12.2016 | |||||
| Interest rate swaps | in € 1,000 | in € 1,000 | ||||
| EUR - CFH | 92,360 | 11/2007 | 9/2018 | 2.25%–4.50% | 3M-Euribor | –4,151 |
| EUR - stand alone | 305,406 | 9/2013 | 12/2024 | –0.18%–2.28% | 3M-Euribor | –7,432 |
| Total interest swaps = variable in fixed | 397,766 | –11,583 | ||||
| Swaption | 20,000 | 11/2015 | 11/2017 | 1.25% | 6M-Euribor | 17 |
| Interest rate caps | 44,196 | 3/2014 | 9/2019 | 1.50%–2.00% | 3M-Euribor | 12 |
| Total | 461,962 | –11,554 |
| € 1,000 | 2017 | 2016 |
|---|---|---|
| As at 1.1. | –3,201 | –5,131 |
| Change in valuation of cash flow hedges | 936 | 419 |
| Reclassification cash flow hedges | 0 | 177 |
| Income tax cash flow hedges | –269 | –126 |
| As at 31.3. | –2,533 | –4,661 |
| thereof: attributable to the owners of the parent | –2,533 | –4,661 |
Financial instruments measured at fair value relate to derivative financial instruments as well as available for sale securities and other investments (AFS). 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 available for sale 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 | 31.3.2017 | 31.12.2016 |
|---|---|---|
| Interest-bearing liabilities | ||
| Long-term interest-bearing liabilities | 1,502,884 | 1,412,635 |
| Short-term interest-bearing liabilities | 160,135 | 153,004 |
| Interest-bearing assets | ||
| Cash and cash equivalents | –433,671 | –395,088 |
| Cash at banks with drawing restrictions | –4,114 | –2,894 |
| Net debt | 1,225,234 | 1,167,656 |
| Shareholders' equity | 2,228,377 | 2,204,541 |
| Gearing ratio (Net debt/equity) | 55.0% | 53.0% |
Cash at banks with drawing restrictions were considered in the calculation of net debt, as long as they are mainly used to secure the repayments of financial liabilities.
| € 1,000 | 31.3.2017 | 31.12.2016 |
|---|---|---|
| Investments in joint ventures | 158,386 | 191,369 |
| Investments in joint ventures held for sale | 0 | 11,690 |
| Loans | 3,343 | 3,608 |
| Receivables | 5,411 | 6,970 |
| Liabilities | 22,855 | 35,145 |
| Provisions | 19,211 | 18,406 |
| 1st Quarter 2017 | 1st Quarter 2016 | |
| Joint ventures result | 3,361 | 1,227 |
| Result from sale of joint ventures | 828 | 569 |
| Result from joint ventures | 4,190 | 1,796 |
| Other income | 572 | 558 |
| Other expenses | –265 | –282 |
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. Partial securities exist in connection with these loans.
| € 1,000 | 31.3.2017 | 31.12.2016 |
|---|---|---|
| Loans | 8,750 | 8,750 |
| 1st Quarter 2017 | 1st Quarter 2016 | |
| Expenses due to associated companies | 0 | –435 |
| Result from associated companies | 0 | –435 |
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 partially exist in connection with these loans. In the book value of loans to associated companies, a cumulated impairment amounting to € 13,652 K (31.12.2016: € 13,652 K) is included.
Since 2.8.2016, IMMOFINANZ AG holds 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.
Between IMMOFINANZ AG and CA Immo AG there is a reciprocal shareholding. The CA Immo Group holds 54,805,566 bearer shares of IMMOFINANZ AG (equivalent to approximately 5.6% of the capital stock of IMMOFINANZ AG).
CA Immo AG and IMMOFINANZ AG have agreed to enter into constructive dialogue concerning a potential merger of the two companies. IMMOFINANZ AG had advocated selling or spinning off its Russian portfolio as a precondition to potentially successful merger negotiations; in mid-December 2016, the company announced that talks on the possible merger (including separation of the Russia portfolio) would be suspended and the timetable would be adjusted.
From 20.2.2015 until its disposal to IMMOFINANZ AG on 2.8.2016 (closing date), O1 Group Limited directly or indirectly held 25,690,163 bearer shares and four registered shares of CA Immo AG.
As at 31.3.2017, 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 € 616 K (31.12.2016: € 566 K). In addition, letters of support exist for a joint venture in Germany, amounting to € 2,000 K (31.12.2016: € 2,000 K). As security for liabilities from loans guarantees, letters of comfort and declarations for joint liabilities were issued for two (2016: four) joint ventures in an extent of €2,500 K (31.12.2016: € 10,650 K). Furthermore, as security for warranty risks in Germany a guarantee was issued in an amount of € 11,066 K (31.12.2016: € 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 € 8,469 K (31.12.2016: € 11,299 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.
Following the disposal of Tower 185, Frankfurt, as at 31.12.2013 CA Immo Group granted a guarantee for compensation of rent-free periods as well as rent guarantees for which adequate provisions have been recognised in the balance sheet. The shares in CA Immo Frankfurt Tower 185 GmbH & Co KG as well as the shares in CA Immo Frankfurt 185 Betriebs GmbH were pledged as security for loans.
For the purpose of recognising tax provisions, estimates have to be made. Uncertainties exist concerning the interpretation of complex tax regulations 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. CA Immo Group recognises appropriate provisions for known and probable charges arising from ongoing tax audits. Concerning a tax audit in Eastern Europe uncertainties about the possible prescription of default interest exist. CA Immo Group estimates the possibility of actual expenses due to these default interests as low.
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 € 8,342 K (31.12.2016: € 13,300 K), in Germany in the amount of €50,162 K (31.12.2016: € 50,400 K) and in Eastern Europe in the amount of € 28,731 K (31.12.2016: € 31,716 K). In addition as at 31.3.2017, 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 € 42,947 K (31.12.2016: € 44,136 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 (31.12.2016: € 6,035 K) in Germany to € 5,500 K (31.12.2016: € 6,471 K) and in Eastern Europe to € 457 K (31.12.2016: € 191 K) as per 31.3.2017. 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 31.3.2017, 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 31.3.2017, this applied to no loan (31.12.2016: no loan).
The number of Supervisory Board members elected by the shareholders' meeting of CA Immobilien Anlagen AG was reduced from nine to eight in the 30th shareholders' meeting. Additionally, Prof. Dr. Sven Bienert, Univ.-Prof. MMag. Dr. Klaus Hirschler and Dipl. BW Gabriele Düker were elected as members of the Supervisory Board of CA Immobilien Anlagen AG until the conclusion of the shareholders' meeting, which resolves on the discharge for the business year 2021.
In the 30th ordinary shareholders' meeting of CA Immobilien Anlagen AG, held on 11.5.2017, a dividend distribution for the 2016 financial year of € 0.65 per no-par share entitled to a dividend, was resolved upon.
As at 19.5.2017, IMMOFINANZ AG transferred its 25,690,163 bearer shares as well as its four registered shares in CA Immobilien Anlagen AG to its 100% owned subsidiary GENA ELF Immobilienholding GmbH.
Vienna, 19.5.2017
The Management Board
Frank Nickel (Chief Executive Officer)
Dr. Hans 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 Marion Naderer 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 Graphic design: Marion Naderer, Photographs: CA Immo, Production: 08/16; this report is set inhouse with FIRE.sys
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