Quarterly Report • Nov 23, 2016
Quarterly Report
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URBAN BENCHMARKS.
FINANCIAL REPORT AS AT 30. SEPTEMBER 2016
| 1.1.-30.9.2016 | 1.1.-30.9.2015 | ||
|---|---|---|---|
| Rental income | $f$ m | 122.6 | |
| EBITDA | €m | 1118 | 80.5 |
| Operating result (EBIT) | €m | 217.8 | 187.5 |
| Net result before taxes (EBT) | €m | 172.6 | -34.5 |
| Consolidated net income | €m | 126.4 | |
| Operating cash flow | €m | 82.4 | 78. |
| Capital expenditure | €m | 255.6 | |
| FFO I (excl. Trading and pre taxes) | €m | 69.9 | |
| FFO II (incl. Trading and after taxes) | 86.6 |
| 30.9.2016 | 31.12.2015 | ||
|---|---|---|---|
| Total assets | f m | 4.234.5 | |
| Shareholders' equity | ք m | 2.166.4 | |
| Long and short term interest-bearing liabilities | $\mathbf{r}$ | 1.543.3 | |
| Net debt | 1.249.8 | ||
| Net asset value (EPRA NAV) | m | 2.462.0 | |
| Triple Net asset value (EPRA NNNAV) | €m | 2.258.9 | 2.196.3 |
| Gearing | $\Omega$ | ||
| Equity ratio | $\Omega$ | 51.2 | |
| Gross LTV | 44 Q | ||
| Net LTV | $\%$ | 36.4 | 37.2 |
| 30.9.2016 | 31.12.2015 | ||
|---|---|---|---|
| Total usable space (excl. parking, excl. projects) 3) | san | 1.641.665 | .655.187 |
| Gross yield investment properties | 6.1 | ||
| Fair value of properties | 3.798.1 BRITISHILLERILLER |
||
| Occupancy rate | 91.5 |
$\mathcal{L}^{\mathcal{L}}$
$\mathcal{L}^{\text{max}}$
$\sim$
$\mathbf{r}$
$\mathbb{R}^2$
| 1.1.-30.9.2016 | 1.1.-30.9.2015 | |
|---|---|---|
| Rental income / share | 1.29 | |
| Operating cash flow / share | 0.86 | |
| Earnings per share | 1.32 | |
| FFO 1 / share | 0.73 | |
| 30.9.2016 | 31.12.2015 | |
| NAV/share | 23.09 | 21.90 |
| EPRA NAV/share | 26.25 | 24.32 |
| EPRA NNNAV/share | 24.08 | |
| Dividend | 0.50 | |
| Dividend vield | 2.95 |
| -------- | |||
|---|---|---|---|
| 30.9.2016 | 31.12.2015 | ||
| Number of shares | DCS. | 98.808,336 | 98.808.336 |
| Treasury shares | DCS. | 5.000,000 | 2.000,000 |
| Number of shares outstanding | DCS. | 93.808.336 | 96.808.336 |
| Ø Number of shares | DCS. | 98.808,336 | 98.808,336 |
| Ø Treasury shares | DCS. | 3.385,372 | 866.601 |
| Ø Number of shares outstanding | DCS | 95.422,964 | 97.941.735 |
| Ø Price/share | 16.28 | 16.80 | |
| Closing price (30.09.) | 16.97 | 16.83 | |
| Highest price | 19.50 | 18.59 | |
| Lowest price | 14.35 | 14.82 |
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 propo
In the third quarter of business year 2016, CA Immo managed to maintain the positive pace of earnings established in previous quarters as the company stayed firmly on course to meet its strategic and operational targets.
In the first nine months, rental income for CA Immo increased by a solid 9.8% to $£122.6$ m. This positive trend was essentially made possible by the acquisition of the minority share of the EBRD early in quarter three 2015 and the increase in rent this entailed. Net rental income stood at $£108.8m$ , up 10.9% on the 2015 figure of $€98.1m$ .
The overall result from property sales amounted to €24.3m after the first three quarters of 2016 (€0.7m in 2015). This result contains the highly profitable sales of smaller properties in Austria or a property in Stuttgart (agreed in the first half but concluded in quarter three).
Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at €111.8m, 38.9% above the previous year's level of $\epsilon$ 80.5m. In addition to a strong operational result, a significantly positive revaluation result of €100.3m on key date 30 September 2016 was recorded. This result reflects the extremely positive market environment specifically in Germany, the most important core market of CA Immo. Earnings before interest and taxes (EBIT) stood at €217.8m on key date 30 September 2016, up by a significant 16.1% on the 2015 figure of $£187.5$ m.
The Group's financing costs, a key element in long-term earnings, decline despite an expansion of the balance sheet to $\epsilon$ -32.2 m (against $\epsilon$ -46.6 m in 2015). Earnings before taxes (EBT) increased significantly from $\epsilon$ 134.5 m in 2015 to $\epsilon$ 172.6 m. The result for the period stood at €126.4 m or €1.32 per share (2015: €88.7 m or €0.90 per share in 2015).
FFO I, a key indicator of the Group's long-term earnings power, reported before taxes and adjusted for the sales result and other non-permanent effects, totalled $\epsilon$ 69.9m after the first nine months of 2016 ( $\epsilon$ 55.8m in 2015). FFO I per share amounted to $\epsilon$ 0.73, an increase of 29.0% on the previous half-year value of $\epsilon$ 0.57 per share). This underlines operational development that was both extremely robust and independent of the valuation result.
thereby forming the basis for our long-term dividend policy. FFO II, which includes the sales result and applicable taxes, was €86,6m on the key date (2015: €50.3m). FFO II per share was $\epsilon$ 0.91, up 77.3% from the figure for 2015 amounting to $\epsilon$ 0.51 per share in 2015).
CA Immo has upheld a robust balance sheet with an equity ratio of 51% and a conservative loan-to-value ratio (net debt to property assets) of 36%. On the key date, NAV (shareholders' equity) per share was $\epsilon$ 23.09 (against €21.90 per share on 31.12.2015). EPRA NAV stood at €26.25 per share (against €24.32 per share on 31.12.2015), an increase of 10.0% (adjusted for the dividend payment of $\epsilon$ 0.50 per share in May 2016) since the beginning of the business year.
O1 Group Limited sold 25,690,163 bearer shares (indirectly held through Terim Limited of Cyprus and representing approximately 26% of the total capital stock of CA Immo) along with four registered shares in CA Immo, directly held by O1 to IMMOFINANZ AG on the basis of the share purchase agreement of 17 April 2016. The purchase price was $\epsilon$ 23.50 per share, with the total transaction volume approximately $604$ m. The closing of the transaction took place in August 2016.
CA Immo and IMMOFINANZ have agreed to enter into constructive dialogue concerning a potential amalgamation of the two companies. CA Immo has mandated J.P. Morgan and Ithuba Capital as financial advisors and is well prepared for negotiations. In the interest of our shareholders we will carefully evaluate the advantages and disadvantages of a potential merger.
In line with the Austrian Stock Corporation Act, such a merger must be approved by the Ordinary General Meetings of both organisations with a 75% majority. A fair and transparent process allied with corporate governance that conforms to international conventions are key elements in establishing a sound basis on which our shareholders can make decisions on the transaction. IM-MOFINANZ advocates selling or spinning off the Russia portfolio as a precondition to potentially successful merger negotiations. From today's point of view, the process is expected to last around one year.
Florian Nowotny stepped down as a Management Board member and CFO of CA Immo on 30 September 2016. He was succeeded with immediate effect by Dr. Hans Volkert Volckens, who took the reins of the finance division from 1 October 2016. As an expert in the fields of law, taxation and accounting, Dr. Volckens has a wealth of managerial experience in the real estate sector. Between October 2011 and April 2014, he was the Chief Financial Officer of IVG Immobilien AG, guiding the company through a period of financial restructuring. Prior to this, Dr. Volckens served on the management boards of companies including Hannover Leasing GmbH & Co KG.
The Supervisory Board members Dr. Wolfgang Ruttenstorfer, Barbara Knoflach and Dr. Maria Doralt resigned their Supervisory Board mandates in line with the deadline stipulated in the company's Articles of Association (with effect from 10 November 2016).
Between May 2015 and September 2016, CA Immo acquired five million of its own shares for approximately €80m through the Vienna Stock Exchange. As at the balance sheet date, CA Immobilien Anlagen AG therefore held 5.06% of the voting shares.
The market environment - especially on the core market of Germany – is expected to remain robust in the last quarter of the year. Given the extremely positive operational development, strong consolidated net income is anticipated for the current business year. We hereby confirm the annual target for recurring earnings of a 10% increase in FFO I per share compared to the previous year ( $> \text{\textsterling} 0.90$ per share).
The development of high quality core office properties on the core markets of CA Immo gains momentum as a driver of organic growth, especially in Germany. Alongside development projects currently under construction (KPMG in Berlin, Mannheimer Strasse in Frankfurt, Orhideea Towers in Bucharest and Lände 3 in Vienna), dates for the commencement of construction work will soon be confirmed for development projects at the preparation stage (in particular the prime office projects MY.O in Munich and Cube in Berlin).
Sales of non-strategic properties were largely concluded with the sale of the Šestka shopping centre in Prague. The strategic focus now fully turns to expansion of real estate portfolios in the company's core cities. This will enable CA Immo to pursue its main objective of steadily raising recurring earnings power over the long term and thereby increasing the dividends for shareholders.
Vienna, November 2016
The Management Board
Frank Nickel (Chief Executive Officer)
Dr. Hans Volkert Volckens (Member of the Management Board)
Following a first six months characterised by many political uncertainties (including the China crisis and Brexit) and low levels of economic growth in Europe, the CA Immo share maintained positive development in line with the ATX in quarter three, compensating for the downward trend of earlier months. The share closed at a rate of $\epsilon$ 16.97 on 30 September 2016. As at 30 September 2016, market capitalisation for CA Immo stood at €1,676.8m (compared to €1,662.9m on 31.12.2015). Since the end of 2015, the average trading volume has fallen to 362,300 shares (against 431,700 on 31 December 2015). In the first nine months, the average liquidity of the share was $\text{\ensuremath{\mathfrak{E}}}$ 5,863.8K ( $\text{\ensuremath{\mathfrak{E}}}$ 7,319.1K on 31.12.2014). CA Immo is currently weighted at approximately 3.6% on the ATX.
On the basis of the enabling resolution passed at the 27th Ordinary General Meeting on 8 May 2014 in accordance with article 65 subsection 1 line 8 of the Stock Corporation Act, a total of 1,000,000 bearer shares of the company were acquired for an approximate purchase price of €15.4m in the period from 13 January to 19 February 2016. The weighted equivalent value was approximately $\epsilon$ 15.3929 per share. The highest/lowest equivalent values per share in the buyback programme were €16.38/€14.385 respectively. In another buyback programme, CA Immo acquired another 2,000,000 treasury shares for a total purchase price of $\epsilon$ 32.3m between 25 March and 30 September 2016. The weighted equivalent value per share was thus $£16.1735$ , with the highest and lowest equivalent values per share at $\epsilon$ 17.50 and €14.655. As at the balance sheet date, CA Immobilien Anlagen AG held 5,000,000 treasury shares in total; given the total number of voting shares issued (98,808,336), this is equivalent to around 5.06% of the voting shares. Details of transactions completed,
along with any changes to the programme, will be published at http://www.caimmo.com/en/investorrelations/share-buy-back-ca-immo/.
. . . . . . . . . . . . . . . . . . . .
CA Immo is currently assessed by eight investment companies. HSBC recently reaffirmed its recommendation to 'hold' for CA Immo and raised the target price
| CA Immo share | $3.04\%$ |
|---|---|
| ATX | 7.88% |
| TATX | 16.08% |
| EPRA Developed Europe | $-2,14%$ |
Source: Bloomberg
from $£18.60$ to $£19.60$ ; analysts at RCB confirmed their recommendation to purchase and revised their target price from €20.10 to €20.50. Overall, the most recent 12month target rates were in the range of $\epsilon$ 16.40 and €21.50, with the valuation median at €19.60. The closing rate for 30 September implies price potential of 13.1%.
| Baader-Helvea Bank | 28.9.2016 | 18.00 | Buy |
|---|---|---|---|
| Erste Group | 6.10.2016 | 19.50 | Buy |
| Goldman Sachs | 26.9.2016 | 16.40 | Neutral |
| HSBC | 12.10.2016 | 19.60 | Neutral |
| Kepler Cheuvreux | 5.10.2016 | 21.50 | Buy |
| Raiffeisen Centrobank | 20.9.2016 | 21.50 | Buy |
| SRC Research | 25.8.2016 | 21.00 | Buy |
| Wood & Company | 19.9.2016 | 17.70 | Neutral |
| Average | 19.69 | ||
| Median | 19.60 |
Following the repayment of the 5.125% CA Immo bond 06-16 (ISIN: AT0000A026P5) in September, three CA Immo bonds were trading on the unlisted securities market of the Vienna Stock Exchange as at 30 September 2016. Apart from the 2.75% CA Immo bond 16-23 issued in February 2016 with a volume of $£150$ m, CA Immo issued another corporate bond with a volume of $€140m$ and a five-year term in July 2016. The coupon for the fixed-rate bond was 1.875%, with the division into shares at $\epsilon$ 1,000. The international rating agency Moody's Investors Service Ltd ('Moody's') rated both bonds with an investment grade rating of Baa2 and a negative outlook; they are registered for trading on the unlisted securities market of the Vienna Stock Exchange (ISIN: AT0000A1JVU3 and AT0000A1LJH1) 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 $\epsilon$ 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 AG, now 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%.
| 30.9.2016 | 31.12.2015 | ||
|---|---|---|---|
| EPRA NNNAV/share | € | 24.08 | 22.69 |
| NAV/share | € | 23.09 | 21.90 |
| Price (key date)/NAV per share $-1^{1}$ | $\%$ | $-26.52$ | $-23.16$ |
| Price (key date)/NNNAV per share $-1$ 1) | $-29.53$ | $-25.82$ | |
| Number of shares | pcs. | 98,808,336 | 98,808,336 |
| Treasury shares | pcs. | 5,000,000 | 2,000,000 |
| Number of shares outstanding | pcs. | 93,808,336 | 96,808,336 |
| Ø Number of shares | pcs. | 98,808,336 | 98,808,336 |
| Ø Treasury shares | pcs. | 3,385,372 | 866,601 |
| $\emptyset$ Number of shares outstanding | pcs. | 95,422,964 | 97,941,735 |
| Ø Price/share | € | 16.28 | 16.80 |
| Market capitalisation (key date) | $\epsilon$ m | 1,677 | 1,663 |
| Highest price | € | 19.50 | 18.59 |
| Lowest price | € | 14.35 | 14.82 |
| Closing price | € | 16.97 | 16.83 |
| Dividend | € | 0.50 | 0.45 |
| Dividend yield | $\%$ | 2.95 | 2.67 |
1) before deferred taxes
| Type of shares: | No-par value shares |
|---|---|
| Stock market listing: | Vienna Stock Exchange, Prime Market |
| Indices: | ATX, ATX-Prime, IATX, FTSE EPRA/NAREIT Europe, GPR 250, WBI |
| Specialist: | Raiffeisen Centrobank AG |
| Market Maker: | Baader Bank AG, Erste Group Bank AG, Société Générale S.A., Spire Europe Limited, |
| WOOD & Company Financial Services a.s. | |
| Stock exchange symbol / ISIN: | CAI / AT0000641352 |
| Reuters: | CAIV.VI |
| Bloomberg: | CAI:AV |
| Email: | [email protected] |
| Website: | www.caimmo.com |
Christoph Thurnberger T: +43 1 532 59 07-504 Fax: +43 1 532 59 07-550 [email protected] Claudia Höbart T: +43 1 532 59 07-502 Fax: +43 1 532 59 07-550 [email protected]
PUBLICATION OF ANNUAL RESULTS FOR 2016
PRESS CONFERENCE ON FINANCIAL STATEMENTS
VERIFICATION DATE FOR THE 29TH ORDINARY GENERAL MEETING
30TH ORDINARY GENERAL MEETING
$\begin{array}{l} \text{EX-DIVIDEND}\ \text{DATE} / \ \text{RECORD}\ \text{DATE}\ \text{(DIVIDEND)} \ / \ \text{DIVIDEND}\ \text{PAYMENT}\ \text{DAY} \end{array}$
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 its most recent Economic Outlook in September 2016, the OECD predicted that the global economy would expand at a slower rate than last year. Global economic growth of 2.9% is envisioned for 2016, with the figure for 2017 forecast as 3.2%. The reduction in the figures compared to the last publication in June 2016 is largely based on a deceleration in industrialised nations. The forecast for the eurozone is $1.5\%$ in 2016 and $1.4\%$ in 2017. While somewhat stronger growth is foreseen in Germany $(1.8\% \text{ in } 2016)$ , this will fall to 1.5% in 2017. The OECD also warns against the excessive dependence of countries on the monetary policy of central banks and the extremely low (or even negative) interest rates, which are serving to distort financial markets and increase risks.
Following the presidential election in the USA in November 2016, the mood brightened on international capital markets after an initially negative reaction. The infrastructure investment and tax cuts signalled have prompted many investors to factor in higher expectations of growth and inflation and, by extension, interest rates. Yields on 10-year US Treasury bonds and other government bonds, and especially those in emerging nations and the eurozone, have posted the biggest gains since the financial crisis in some instances. Heightened expectations of an interest rate rise in the USA and the possibility of interest rate changes in Europe as a consequence have given rise to significant volatility in the listed real estate sector.
In the third quarter of 2016, seasonally adjusted GDP in the eurozone rose on the previous quarter by a moderate 0.3%, and by 0.4% for the EU28 area; growth in the reference period of last year was 1.6% and 1.8% respectively. Germany reported GDP growth of 1.7% in yearly comparison (and $0.2\%$ on the previous quarter). Austria reported growth of 1.7% year-on-year and growth of 0.5% in the third quarter compared to the second quarter of 2016.
In March 2016, the European Central Bank (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 $\epsilon$ 60bn) will be invested in the purchase programme for government bonds and other securities. The programme was extended at least to the end of March 2017 last December. The inflation rate in the eurozone remains at a low level; a figure of 0.5% was reported for October 2016, against 0.4% in September 2016.
The unemployment rate in the eurozone was 10.0% in September 2016, compared to 10.6% in June 2015; the figure for the EU28 was 8.5% (against 9.2% in September 2015). The lowest unemployment rates on the core markets of CA Immo (all of which stood well below the European average) are in Czechia (4.0%) and Germany $(4.1\%)$ , where the rate has also fallen significantly over the last quarter. Unemployment was also relatively low in Hungary (5.0%), followed by Poland and Romania at 5.7% and 5.9% respectively and Austria with 6.3%.
The 3 month Euribor rate remains in negative territory, fluctuating between -0.29% and -0.30% 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.
As in preceding quarters, the core CA Immo markets in the CEE region displayed positive growth trends, although the pace of growth has slowed somewhat (with the exception of Romania). In quarter three, GDP in Poland expanded by 2.1% on the previous year, with minimal growth of 0.2% on the previous quarter reported. Hungary reported GDP growth of 0.2% on the second quarter and 1.4% year-on-year. In quarter three of 2016, GDP growth decelerated on the previous three quarters in the Czechia (by 1.9% year-on-year), while growth continues to surge in Romania: in the third quarter of 2016, realterms GDP rose by 0.6% on the previous quarter and by 4.6% on quarter three of 2015.
$^{\rm 2)}$ Eurostat; European Central Bank; Bloomberg
<sup>3) Central Statistical Offices of Poland (GUS), Hungary (KSH), Czech Republic (CZSO); National Institute of Statistics in Romania (NIS); Eurostat
$^{\rm 1)}$ Eurostat; OECD; Deistatis; Bloomberg; The Economist; Financial Times
After a record year in 2015, transaction activity on the European investment market for commercial real estate made a dynamic start to 2016. Although the investment volume of $\epsilon$ 51.6bn in the third quarter was below the previous year's value of €66.7bn, the transaction level in Europe is currently in excess of the 10-year average. Around 80% of the volume was invested in the office property sector. With the UK market highly uncertain in the wake of the Brexit vote, Germany overtook the United Kingdom in the third quarter to become Europe's biggest marketplace for real estate with 29% of all completed transactions. Demand for core properties remains very strong in Germany, leading to a more restricted supply and an ongoing compression of yields.
In the first three quarters, the investment volume for commercial real estate in Germany was €32.7bn (-15% yoy). The asset class of office properties remains the segment displaying the strongest demand. The yield spread between government bonds and peak yields remains at an all-time high; returns are continuing to diminish, albeit at a slower rate. As of quarter three 2016, the peak yield for offices was 4.10% for Frankfurt (Q2 2016: 4.20%), with Berlin currently at 3.50% (3.75%) and Munich reporting 3.30% (3.60%).
The total investment volume on the Austrian commercial property market was appr. $\epsilon$ 314m in the third quarter (down 52% on last year). Office properties accounted for roughly 43% of the invested volume. The peak yield in the office sector remains under pressure at 4.75% for good locations, while the yield for prime properties may fall by as much as 4.05%.
In the CEE region, the pace of investment varies according to country. Transaction activity in Poland, for example, is appr. $\epsilon$ 4.6bn this year (up 61% yoy) while the investment volume in the Czech Republic is down by a considerable 42.8% at $\epsilon$ 1.58bn. Peak yields for offices are currently reported as follows: Warsaw 5.5%, Prague 4.75%, Budapest 6.75% and Bucharest 7.5%.
The good performance of the office rental market in Germany continued in Q3. Lettings activity remained stable or increased in Berlin, Frankfurt and Munich, the core markets of CA Immo. Lettings performance in Berlin reached a record level in of excess of 670,900 sqm, with the third quarter accounting for 255,400 sqm of this figure (up 21% yoy). The vacancy rate dropped below the 6% mark for the first time to stand at $5.5\%$ (Q1 2015: 7.4%). Floor space turnover in Frankfurt was 121,600 sqm in Q3 (up 12% yoy), with a stable vacancy rate of 11.7%. The office rental market in Munich showed the best halfyearly result for five years, the turnover volume of 169,200 sqm in Q3 was around 15% below last year's value; however, the full-year forecast for 2016 of 750,000 sqm (similar to the 2015 level) is regarded as realistic. The vacancy rate at the end of Q3 stood at an all-time low of 4.3%.
By the third quarter, lettings performance in Vienna had more than trebled to a total of 112,000 sqm (Q3 2015: 33,000 sqm). The vacancy rate continued to fall to stand at 5.4%. Just 16,000 sqm of new office space was completed in Vienna during the third quarter.
The office market in Warsaw continues to be characterised by extensive construction activity. Office space take-up remained at high levels, totalling appr. 531,000 sqm in Q1-3. A total of 378,000 sqm of new office space has been completed in 2016 so far (thereof 350,000 sqm in the first six months). The vacancy rate has fallen slightly to 14.6%. The vacancy rate in Budapest has stabilised at 10.3% with a slightly increasing trend. Floor space turnover remains at a healthy level in Q3, showing a total of 308,800 for Q1-3 (Q1-2: appr. 214,000 sqm). Lettings activity in Prague was reported at some 109,600 sqm in Q3, of which new lettings represented 86,300 sqm (up 4%) on Q2). The average vacancy rate fell to 11.7%. The highly dynamic start to the year in Bucharest was not maintained as lettings performance declined by around 12% voy in Q3; however, the total result of 268,300 sqm (Q1-3) exceeded the value of 2015 by 11%. The vacancy rate stands at 12.3%.
$^{\rm 1)}$ CBRE: European Investment Quarterly MarketView Q3 2016, Austria Investment MarketView Q3 2016, Germany Investment MarketView Q3 2016. Germany Office Investment MarketView O3 2016
<sup>2) Jones Lang LaSalle: Budapest, Warsaw City Report Q3 2016; CBRE: Vienna, Berlin, Frankfurt, Munich, Prague, Bucharest Office MarketView O3 2016
As at key date 30 September 2016, CA Immo's total property assets stood at €3.8bn (31.12.2015: €3.7bn). 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 (85% of the total portfolio) and investment properties under development (12% of the total portfolio). Properties intended for trading (reported under shortterm property assets) account for the remaining 3% of property assets.
As at 30 September 2016, the investment property portfolio had an approximate market value of $\epsilon$ 3.2bn (of which fully consolidated: $\epsilon$ 2.9bn) and incorporated a total rentable effective area1 of 1.4m sqm. Around 47% of the portfolio (on the basis of book value) is located in CEE and SEE nations, with 35% of the remaining investment properties in Germany and 18% in Austria.
In the first nine months of the year, the Group generated rental income of $£122.6m$ ; the portfolio produced a yield of 6.1%. The occupancy rate was $91.5\%$ 2) as at 30 September 2016. For details, please see the 'Changes to the Portfolio' section.
Of investment properties under development with a total market value of around €460.0m, 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 $\epsilon$ 413.0 m include projects under construction with a value of $\epsilon$ 120.2 m and land reserves with a book value of $\epsilon$ 292.8m.
1) Including properties used for own purposes and land leases
2) Including the project completions Kontorhaus (Munich), Monnet 4 and
John F.-Kennedy-Haus (Berlin)
| in $\epsilon$ m | Investment properties 1) | Investment properties | Short-term property | Total property assets | Total property assets | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| under development | assets 2) | in $%$ | ||||||||||||||
| full | at | Σ | full | at | Σ | full | at | Σ | full | at | Σ | full | at | Σ | ||
| equity | equity | equity | equity | equity | ||||||||||||
| Austria | 566 | $\overline{0}$ | 566 | 4 | $\Omega$ | $\overline{4}$ | $\Omega$ | 8 | 8 | 571 | 8 | 578 | 17 | $\overline{2}$ | 15 | |
| Germany | 941 | 188 | 1,129 | 413 | $\mathbf{0}$ | 413 | 30 | 46 | 76 | 1,384 | 235 | 1,619 | 40 | 64 | 43 | |
| Czechia | 206 | 30 | 236 | 13 | $\Omega$ | 13 | 27 | 0 | 27 | 246 | 30 | 276 | 7 | 8 | ||
| Hungary | 450 | 35 | 485 | $\Omega$ | $\mathbf{1}$ | $\Omega$ | $\Omega$ | $\Omega$ | 452 | 35 | 486 | 13 | 10 | 13 | ||
| Poland | 291 | 15 | 306 | $\Omega$ | $\Omega$ | $\Omega$ | $\Omega$ | 0 | 291 | 15 | 306 | 9 | 4 | 8 | ||
| Romania | 261 | 0 | 261 | 21 | 7 | 27 | $\Omega$ | 0 | $\Omega$ | 282 | 7 | 288 | 8 | 2 | 8 | |
| Others | 201 | 36 | 237 | 8 | $\Omega$ | 8 | $\Omega$ | 0 | 0 | 209 | 36 | 245 | 6 | 10 | 6 | |
| Total | 2,917 | 304 | 3,221 | 460 | 7 | 467 | 57 | 54 | 111 | 3.434 | 365 | 3.798 | 100 | 100 | 100 | |
| Share of total | ||||||||||||||||
| assets | $85\%$ | $12\%$ | $3\%$ | $100\%$ |
Full: Fully consolidated properties wholly owned by CA Immo
At equity: Includes all real estate partially owned by CA Immo accounted for using the equity method (appears under 'Income from joint ventures' in the
income statement); pro-rata-share
$^{\rm 1)}$ Includes properties used for own purposes
2)Short-term property assets including properties intended for trading or sale
DISTRIBUTION OF BOOK VALUE INVESTMENT PROPERTIES BY COUNTRY (Basis: € 3.2 bn)
DISTRIBUTION OF BOOK VALUE TOTAL PROPERTIES BY COUNTRY (Basis: € 3.8 bn)
In Germany, CA Immo held investment properties with an approximate value of $\epsilon$ 1,127.0m1) on 30 September 2016 (30 June 2016: €857.3m). The significant increase of the German investment portfolio is due to the recent reclassification of the office project completions Kontorhaus, Monnet 4 and John F.-Kennedy-Haus in the standing portfolio. The occupancy rate for the German investment property assets on the key date was 92.6%2). 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 $\epsilon$ 42.5m was generated in the first nine months. Approximately 16,300 sqm of office, logistics and retail space was newly let in Germany between January and the end of September. Rental agreements on 2,100 sqm of
$^{\rm 1)}$ Includes fully consolidated real estate (fully owned by CA Immo) and real estate in which CA Immo holds a proportionate share (at equity); excl. properties used for own purposes
2) The office projects Kontorhaus (Munich), John F. Kennedy Haus and Monnet 4 (Berlin; all completed in 2015) excluded, the occupancy rate in Germany is 95.7%.
rentable space in Tower 185 in Frankfurt were concluded in August. Consequently, the occupancy rate for the building now stands at around 92%.
As at key date 30 September, CA Immo had invested $62.8$ m in development projects in Germany (excl. developments for trading). On the basis of total investment costs, the volume of investment properties under construction in Germany (excluding land reserves) is approximately €463.9m (value after completion, excl. developments for trading). In total, CA Immo holds investment properties under development (including land reserves) with a book value of $\epsilon$ 413.0m; thereof, land reserves account for €292.8m and projects under construction account for €120.2m (please see table on the next page for details).
The town planning and landscaping competition organised by CA Immo in partnership with the state capital of Munich to develop a 14-hectare site on Ratoldstrasse in the Munich district of Feldmoching was decided in July. Around 900 apartments are now to be built on what are largely brownfield property reserves at present. The result of the competition will form the basis of the forthcoming land use plan.
| Fair value | Rentable area 2) Occupancy rate 3) |
Annualised rental | Yield | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| investment properties | income | ||||||||||||||
| in $\epsilon$ m | in sqm | in $\%$ | in $\epsilon$ m | in $%$ | |||||||||||
| full | at | Σ | full | at | Σ | full | at 1 | Σ | full | at i | Σ | full | at i | Σ | |
| equity | equity | equity | equity | equity | |||||||||||
| Austria | 561.9 | 0.0 | 561.9 | 363,330 | $\overline{0}$ | 363,330 | 93.4 | 0.0 | 93.4 | 30.7 | 0.0 | 30.7 | 5.5 | 0.0 | 5.5 |
| Germany | 938.8 | 188.2 | 1127.0 | 296,607 | 34,132 | 330,740 | 93.3 | 89.4 | 92.6 | 46.6 | 10.0 | 56.6 | 5.0 | 5.3 | 5.0 |
| Czechia | 206.4 | 29.8 | 236.2 | 84,471 | 10,911 | 95,382 | 93.2 | 97.1 | 93.7 | 13.8 | 1.9 | 15.7 | 6.7 | 6.5 | 6.7 |
| Hungary | 450.3 | 34.7 | 485.1 | 233,343 | 39,912 | 273,256 | 92.5 | 85.7 | 91.9 | 33.5 | 3.0 | 36.5 | 7.4 | 8.6 | 7.5 |
| Poland | 291.2 | 14.6 | 305.8 | 93,551 | 5.820 | 99,371 | 86.5 | 100.0 | 87.1 | 19.0 | 1.0 | 20.0 | 6.5 | 6.6 | 6.5 |
| Romania | 260.9 | 0.0 | 260.9 | 106,379 | $\overline{0}$ | 106,379 | 91.3 | 0.0 | 91.3 | 20.3 | 0.0 | 20.3 | 7.8 | 0.0 | 7.8 |
| Others | 200.7 | 36.1 | 236.8 | 114,633 | 23,591 | 138,224 | 87.3 | 92.8 | 88.2 | 14.7 | 3.1 | 17.8 | 7.3 | 8.6 | 7.5 |
| Total | 2,910.2 | $303.5$ 3,213.8 | 1,292,315 | 114,367 | 1,406,681 | 91.7 | 90.6 | 91.5 | 178.6 | 19.0 | 197.6 | 6.1 | 6.3 | 6.1 |
Full: Includes all fully consolidated real estate, i.e. all properties fully 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 Result from joint ventures' in the income statement)
$^{\rm 1)}$ Excludes properties used for own purposes
$^{\rm 2)}$ incl. land leases in Austria (approximately 135,000 sqm)
3) The office projects Kontorhaus (Munich), John F. Kennedy Haus and Monnet 4 (Berlin; all completed in 2015) excluded, the total occupancy rate is 92.2%
During the first nine months, trading income from German real estate totalled $€104.7$ m. Sales included the 13,400 sqm site of the Alte Bahndirektion building adjacent to Stuttgart station as well as a number of plots for residential usage in the Berlin Europacity district. With these transactions, CA Immo is pushing ahead with the steady utilisation of its German land reserves as it concentrates on the core regions of Berlin, Frankfurt and Munich.
As at 30 September 2016, CA Immo held investment properties in Austria with a value of €561.9m and an occupancy rate of 93.4% (96.5% on 31.12.2015). The company's asset portfolio generated rental income of $E$ 24.4m in the first nine months. Between January and the end of September, some 19,700 sqm of usable space was newly let in Austria (approximately 17,700 sqm of this was used for offices); contract extensions have been agreed for around 4,800 sqm of usable space.
| in $\epsilon$ m | Investment | Out- | Rentable | Gross | City | Main usage | Share | Pre- | Start of | Sche- |
|---|---|---|---|---|---|---|---|---|---|---|
| volume 1) | standing | area in | vield on | in $%$ | leting | con- | duled | |||
| investment | sqm | cost in $%$ | rate i struction | com- | ||||||
| in $%$ | pletion | |||||||||
| VIE | 37.8 | 33.4 | 14,715 | 6.3 | Vienna | Office | 100 | $\overline{0}$ | Q3 2016 | O3 2018 |
| MY.O | 97.0 | 86.6 | 26,183 | 6.0 | Munich | Office | 100 | $\mathbf{0}$ | Q4 2016 | Q2 2019 |
| Cube | 93.3 | 72.5 | 16,921 | 5.5 | Berlin | Office | 100 | $\Omega$ | Q4 2016 | Q4 2019 |
| KPMG building | 56.3 | 31.0 | 12,705 | 5.8 | Berlin | Office | 100 | 90 | Q4 2015 | Q2 2018 |
| Rieck 1, constr. phase 1 | 10.0 | 9.0 | 2,786 | 6.7 | Berlin | Office | 100 | $\mathbf{0}$ | O 4 2015 | Q2 2019 |
| ZigZag | 16.3 | 13.0 | 4,389 | 5.8 | Mainz | Office | 100 | $\mathbf{0}$ | Q2 2017 | Q3 2018 |
| Mannheimer Straße | ||||||||||
| Steigenberger | 56.1 | 44.2 | 17,347 | 6.4 | Frankfurt | Hotel | 100 | 93 | Q3 2016 | Q3 2018 |
| Bus terminal | 6.1 | 5.5 | $\overline{0}$ | 6.6 | Frankfurt | Other | 100 | $\mathbf{0}$ | Q3 2016 | Q1 2019 |
| Car park central station 2) | 17.2 | 0.0 | 804 | 6.3 | Frankfurt | Parking | 100 | 100 | Q3 2015 | Q2 2016 |
| Orhideea Towers | 74.0 | 61.2 | 36,918 | 8.3 | Bucharest | Office | 100 | 22 | Q4 2015 | Q4 2017 |
| Subtotal | 463.9 | 356.5 | 132,769 | |||||||
| Development - for Trading 3) | ||||||||||
| Rieck I/ABDA | 25.1 | 22.2 | 5,215 | n.m. | Berlin | Office | 100 | 100 | Q4 2015 | Q1 2019 |
| Rheinallee III | 59.2 | 48.7 | 19,668 | n.m. | Mainz | Residential | 100 | 95 | Q3 2016 | Q3 2018 |
| Baumkirchen WA 1 | 63.3 | 3.1 | 13,823 | n.m. | Munich | Residential | 50 | 99 | Q2 2014 | Q3 2016 |
| Baumkirchen WA 2 | 65.1 | 24.2 | 11,232 | n.m. | Munich | Residential | 50 | 99 | Q2 2015 | Q3 2017 |
| Baumkirchen WA 3 | 66.4 | 40.6 | 13,631 | n.m. | Munich | Residential | 50 | 80 | Q1 2016 | Q3 2018 |
| Baumkirchen NEO | 78.4 | 58.1 | 18,088 | n.m. | Munich | Mixed | 50 | 26 | Q1 2017 | Q2 2019 |
| Laendyard Living | 57.2 | 44.8 | 19,441 | n.m. | Vienna | Residential | 50 | $\mathbf{0}$ | Q3 2016 | Q3 2018 |
| Wohnbau Süd | 34.0 | 20.6 | 14,100 | n.m. | Vienna | Residential | 100 | 100 | Q2 2016 | Q2 2018 |
| Subtotal | 448.6 | 262.4 | 115,199 | |||||||
| Total | 912.5 | 618.9 | 247,968 |
$1)$ Incl. plot
21 Inc. poor
2) The car park at Frankfurt central station has been completed in 2016 - since the car park is an interim use of the plot, the project is still included in the
development section
3) Developments scheduled for sale; numbers refer to 100% in case of joint venture
Largest single rentals were the leasing contracts concluded with the Federation of Austrian Social Security Institutions (9,800 sqm) and the Vienna's Transport Authority (2,500 sqm); both companies will be new tenants in CA Immo's investment property located on Erdberger Lände 26-32, Vienna.
CA Immo commenced development of the last free construction sites for the Lände 3 district development project in Vienna during the second quarter. A total of 490 rented and owner-occupied flats (residential project Laendyard) and the ViE office building will be built on the site by 2018. After construction work began in May on the 220 privately financed rental apartments and roughly 140 parking spaces, wich CA Immo will complete for a local investor by early 2018 under the terms of a forward sale, the joint venture partner CA Immo and JP Immobilien started construction of further 250 apartments and 170 parking spaces in September. In the same district CA Immo is preparing to realise the ViE office building, which spans approximately 13,800 sqm.
Trading income for Austria amounted to $\epsilon$ 57.1m in the first nine months.
The value of the CA Immo investment properties is $£1,524.9$ m as at 30 September 2016 (thereof fully consolidated: $\epsilon$ 1,409.5m). In the first nine months, property assets let with a total effective area of around 712,600 sqm generated rental income of 68.7m. The occupancy rate on the key date was 90.5% (31 December 2015: 91.1%).
New lease agreements relating to around 45,300 sqm rentable area (thereof some 39,800 sqm office space) were concluded in the first nine months, as well as contract extensions for some 51,750 sqm rentable area (thereof some 45,580 sqm office space).
In mid-September, CA Immo signed the acquisition of the centrally located Millennium Towers office complex comprising 70,400 sqm in Budapest. The transaction volume for the fully rented asset with an annual rental income of $\epsilon$ 12m amounts to $\epsilon$ 172m. The sellers are TriGranit and an affiliate of Heitman LLC. With this transaction, CA Immo expands its presence in the core market Hungary, where it currently holds the largest property portfolio following Germany and Austria. The transaction was closed at the end of September.
The following activities after key date 30 September 2016 are reported:
On October 12th, the supervisory board members Dr. Wolfgang Ruttenstorfer, Ms. Barbara Knoflach and Dr. Maria Doralt informed CA Immobilien Anlagen Aktiengesellschaft that they will resign from the Company's supervisory board effective 10 November 2016 in line with the applicable period set-forth in the Company's articles of association.
In October, CA Immo has concluded an agreement with WOOD & Company to sell the Šestka Shopping Center in Prague, continuing its strategic withdrawal from segments that do not belong to the core business. The center covers more than 27,300 sqm of retail space and had been part of the asset portfolio of CA Immo since 2011. The buyer is a fund of WOOD & Company. The transaction was closed on October 20th 2016.
New in the CA Immo investment portfolio: The Millennium Towers in Budapest
Under construction: KPMG building in Berlin
In the first nine months of 2016, rental income for CA Immo rose by a significant 9.8% to $\text{\textsterling}122,647K$ . This positive trend was essentially made possible by the acquisition of the minority share of the EBRD early in quarter three 2015 and the increase in rent this entailed.
In year-on-year comparison, property expenses directly attributable to the asset portfolio, including own operating expenses, rose to $\epsilon$ – 13.807K ( $\epsilon$ – 8.291 in 2015). The net rental income result stood at €108,841K after the first nine months ( $\epsilon$ 98,120K in 2015). The efficiency of letting activity, measured as the operating margin on letting activities (net rental income in relation to rental income), was 88.7%, above the previous year's value of 87.9%.
Other expenditure directly attributable to project development stood at $\epsilon$ – 2,011K after the first three quarters, against € - 1,501 K in 2015. Income from services rendered stood at $\epsilon$ 9,857K, up on the previous year's level of $\epsilon$ 4.531K. 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 three quarters, the sales result from property assets held as current assets was $\text{\textsterling}4,840\,\text{\textsf{K}}$ ( $\text{\textsterling}-41\,\text{\textsf{K}}$ in 2015). The result from the sale of investment properties stood at €19,418K on 30 September 2016 (€727K in $2015$ ).
After the first nine months, indirect expenditures stood at $\epsilon$ – 29,937K, slightly below the 2015 level of $\epsilon$ – 30,763K. This item also contains expenditure counterbalancing the aforementioned income from services. Other operating income stood at $\epsilon$ 825K compared to the 2015 value of €795K.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) substantially rose by 39.0% to €111,833K (compared to €80.473K in 2015). This figure, which exceeds that of the previous year, is essentially based on the higher rental and trading income of the Group.
After the first nine months, the total revaluation gain of $£118,086K$ was counterbalanced by a revaluation loss of $\epsilon$ -17,778K. The cumulative revaluation result of €100,308K as at key date 30 September 2016 was more positive than last year's reference value of $\epsilon$ 78,464K. This results reflects the extremely positive market environment specifically in Germany, the most important core market of CA Immo. In the German real estate market, as in the previous year, the booming investment activity and further yield compression continued in 2016 - in combination with strong fundamental data of the letting markets - which is also reflected in the valuation result of CA Immo. The biggest contribution to the revaluation gain was delivered by undeveloped properties in Frankfurt and Munich, the newly acquired Millenium Towers in Budapest and by the investment properties of Skygarden, Ambigon and Kontorhaus in Munich as well as John. F. Kennedy-Haus in Berlin.
Current results of joint ventures consolidated at equity are reported under 'Earnings of joint ventures' in the consolidated income statement. The declining result of €7,259K (down on the 2015 value of €30,659K) was mainly due to the full takeover of shares in joint ventures and the subsequent full consolidation and sale of such shares.
Earnings before interest and taxes (EBIT) reflected the positive operational developments with a significant increase of 16.2% to €217,821K (2015: €187,524K).
The financial result stood at $\epsilon$ – 45,198K after the first nine months $(\epsilon - 52,992K)$ in 2015). The Group's financing costs, a key element in long-term revenue, fell sharply $(-31.0\%$ down on the 2015 value of € - 46.643K to $\epsilon$ – 32,172K). The result from interest rate derivative transactions improved from the previous year to $\epsilon$ – 2,081 K (2015: $\epsilon$ – 15,288 K).
The result from financial investments stood at $\epsilon$ 5,909K, lower than the figure for the reference period of 2015 $(\text{\ensuremath{\mathfrak{E}}\,10,507\mathrm{K}})$ . The value for last year primarily includes accrued interest on loans to joint venture companies repurchased below par by the financing bank. This year's result contains a positive effect of a dividend payment linked to securities available for sale in the third quarter.
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 €-16,854K (€1,568K in 2015). The result from other financial assets includes depreciation linked to the subsequent valuation of securities available for sale of $\epsilon$ -14,946K. The increase in value of available for sale securities in the second respectively third quarter 2016 amounted to $£12,167K$ and is recognized in other comprehensive income.
Earnings before taxes (EBT) stood at €172,623K, up 28.3% on the previous year's value of $\epsilon$ 134,531K. After the first nine months, taxes on earnings stood at € – 46,203K (€ – 45,837K in 2015).
The result for the period was 42.5% up on last year's value, to $\epsilon$ 126,420K. Earnings per share amounted to €1.32 on the balance sheet date (€0.90 per share in 2015).
An FFO I of $\epsilon$ 69,875K was generated in the first nine months of 2016, 25,7% above the previous year's value of €55,816K. 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. As at the key date, FFO I per share stood at €0.74, an increase of 29.0% year-on-year (€0.57 per share in 2015). FFO II, which includes the sales result and applicable taxes, was €86,587K on the key date, up 72.7% from the figure for 2015 amounting to €50,299K. FFO II per share was €0.91 per share ( $\epsilon$ 0.51 per share in 2015).
| €m | $1st - 3rd$ Quarter 2016 |
$1st - 3rd$ Quarter 2015 |
|---|---|---|
| Net rental income (NRI) | 108.8 | 98.1 |
| Result from hotel operations | 0.0 | 0.3 |
| Income from services rendered | 9.9 | 12.9 |
| Other expenses directly related to | ||
| properties under development | $-2.0$ | $-1.5$ |
| Other operating income | 0.8 | 0.8 |
| Other operating income/expenses | 8.7 | 12.4 |
| Indirect expenses | $-29.9$ | $-30.8$ |
| Result from investments in joint | ||
| ventures $1$ | 6.8 | 10.6 |
| Finance costs | $-32.2$ | $-46.6$ |
| Result from financial investments | 5.9 | 10.5 |
| Other adjustment 2) | 1.7 | 1.6 |
| FFO I (excl. Trading and pre taxes) | 69.9 | 55.8 |
| Trading result | 4.8 | 0.0 |
| Result from the sale of investment | ||
| properties | 19.4 | 0.7 |
| Result from sale of joint ventures | 0.9 | 0.8 |
| At-Equity result property sales | 2.5 | $-0.8$ |
| Result from property sales | 27.6 | 0.7 |
| Other financial results | 0.0 | 0.2 |
| Current income tax | $-7.2$ | $-38.3$ |
| Current income tax of joint ventures | $-1.1$ | $-0.3$ |
| Other adjustments | $-2.6$ | $-1.6$ |
| Other adjustments FFO II | 0.0 | 33.8 |
| FFO II | 86.6 | 50.3 |
$1)$ 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 $\epsilon$ 3,649,477K (86% of total assets). Investment property assets on balance sheet amounted to $\epsilon$ 2,910,230K on the key date (€2,714,305K in 2015).
The balance sheet item 'Property assets under development' was €459,919K on 30 September 2016 (€408,979K in 2015). Total property assets (investment properties, properties used for own purposes, property assets under development and property assets held as current assets) amounted to $\epsilon$ 3,433,512K on the key date.
The net assets of joint ventures are shown in the balance sheet item 'Investments in joint ventures', which stood at €160,711K on the key date (€172,286K in 2015).
Cash and cash equivalents stood at $\epsilon$ 289,141K on the balance sheet date, substantially up on the level for 31 December 2015 (€207,112K).
As at the key date, shareholders' equity on the Group balance sheet stood at $\epsilon$ 2,166,437K ( $\epsilon$ 2,120,450K on 31.12.2015). The equity ratio of 51.2% remained stable and within the strategic target range (the comparative value for the end of 2015 was 53.2%).
The Group's financial liabilities stood at $\epsilon$ 1,543,299K on the key date against $\epsilon$ 1,403,989K on 31.12.2015). Net debt (interest-bearing liabilities less cash and cash equivalents) increased by 4.9% on the value for the start of the year ( $\epsilon$ 1,191,446K), amounting to $\epsilon$ 1,249,839K at end of September 2016.
After being granted an investment grade rating by the rating agency Moody's in December 2015, CA Immo issued a corporate bond in February 2016 with a volume of $£150m$ , a term of seven years and an interest rate of 2.75%. In July 2016, another corporate bond with a volume of €140m, a term of 5 years and an interest rate of 1.875% was issued. Both issues were assessed at Baa2 by the rating agency Moody's, in line with the issuer rating. Proceeds from the issue of these two transactions were mainly used to refinance the bond 2006-2016 due in September 2016 ( $\epsilon$ 186m) and for increasing the sustainable result of the Group, such as by further optimizing the financing structure.
The loan-to-value ratio based on market values as at 30 September 2016 was 36.4% (net, taking account of Group cash and cash equivalents) compared to 37.2% at the start of the year. Gearing was 57.7% on the key date (56.2% on 31.12.2015).
NAV (shareholders' equity) was $\epsilon$ 2,166,437K on 30 September 2016 ( $\epsilon$ 23.09 per share), compared to the figure for the end of 2015 (€2,120,410K, €21.90 per share), representing an increase per share of 5.4%. Apart from the annual result, this change reflects also the other changes in equity as described above. Adjusted for the dividend distributed in May 2016 amounting to $£47,904K$ , growth of the NAV per share for the first three quarters of 2016 arrived at 7.7%.
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 €26.25 per share as at the key date ( $\epsilon$ 24.32 per share on 31.12.2015). The EPRA NNNAV per share after adjustments for financial instruments, liabilities and deferred taxes, stood at €24.08 per share as at 30 September 2016 (€22.69 per share on 31.12.2015). The share buyback programme carried out during the course of the year 2016 has further reduced the number of shares outstanding to 93,808,336 on the key date (96,808,336 on 31.12.2015).
| €m | 30.9.2016 | 31.12.2015 |
|---|---|---|
| Equity (NAV) | 2,166.4 | 2,120.5 |
| Exercise of options | 0.0 | 0.0 |
| NAV after exercise of options | 2,166.4 | 2,120.5 |
| NAV/share in $\epsilon$ | 23.09 | 21.90 |
| Value adjustment for 1) | ||
| - Own use properties | 5.8 | 5.1 |
| - Short-term property assets | 47.2 | 24.3 |
| - Financial instruments | 3.6 | 5.1 |
| Deferred taxes | 239.1 | 199.4 |
| EPRA NAV after adjustments | 2,462.0 | 2,354.4 |
| EPRA NAV per share in $\epsilon$ | 26.25 | 24.32 |
| Value adj. for financial instruments | $-3.6$ | $-5.1$ |
| Value adjustment for liabilities | $-26.4$ | $-8.9$ |
| Deferred taxes | $-173.2$ | $-144.1$ |
| EPRA NNNAV | 2,258.9 | 2,196.3 |
| EPRA NNNAV per share in $\epsilon$ | 24.08 | 22.69 |
| Change of NNNAV against previous year | 6.1% | |
| Price $(30.09.)$ / NNNAV per share $-1$ | $-29.5$ | $-25.8$ |
| Number of shares excl. treasury shares | 93,808,336 | 96,808,336 |
$^{\rm 1)}$ 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 general market fluctuations linked to the economic cycle, delays and budget overruns in land development, project realisations and redevelopments 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 2015 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 2015 ('Risk report') is therefore unchanged.
According to the latest OECD outlook, economic growth is set to slow in both 2016 and 2017. The OECD also warned against the excessive dependence of countries on the monetary policy of central banks and the extremely low (or even negative) interest rates, which are serving to distort financial markets and increase risks. Heightened expectations of an interest rate rise in the USA and the possibility of interest rate changes in Europe as a consequence have given rise to significant volatility in the listed real estate sector. The consequence of an interest rate rise could be that yields on properties are revised upwards once again; for CA Immo, this could lead to lower real estate prices, a negative impact on valuation and ultimately disinvestment plans. Raising equity and loan capital could also become significantly more difficult, making expansion plans impossible or only partially feasible.
| $\in$ 1,000 | 1st - 3rd Quarter 2016 | 1st – 3rd Quarter 2015 | 3rd Quarter 2016 | 3rd Quarter 2015 |
|---|---|---|---|---|
| Rental income | 122,647 | 111,687 | 41,305 | 42,907 |
| Operating costs charged to tenants | 34,795 | 28,674 | 9,854 | 9,597 |
| Operating expenses | $-40,225$ | $-33,924$ | $-10,584$ | $-11,014$ |
| Other expenses directly related to properties | ||||
| rented | $-8,377$ | $-8,317$ | $-3,855$ | $-3,860$ |
| Net rental income | 108,841 | 98,120 | 36,720 | 37,630 |
| Revenues hotel operations | $\boldsymbol{0}$ | 1,681 | 0 | 0 |
| Expenses related to hotel operations | $\boldsymbol{0}$ | $-1,429$ | $\mathbf 0$ | 0 |
| Result from hotel operations | $\bf{0}$ | 252 | $\bf{0}$ | $\bf{0}$ |
| Other expenses directly related to properties | ||||
| under development | $-2,011$ | $-1,501$ | $-549$ | - 788 |
| Income from the sale of properties and | ||||
| construction works | 15,526 | 1,510 | 9,216 | 411 |
| Book value of sold properties incl. ancillary and | ||||
| construction costs | $-10,686$ | $-1,551$ | $-4,933$ | $-406$ |
| Result from trading and construction works | 4,840 | - 41 | 4,283 | |
| Result from the sale of investment properties | 19,418 | 727 | 17,023 | $-126$ |
| Income from services rendered | 9,857 | 12,884 | 3,707 | 4,011 |
| Indirect expenses | $-29,937$ | $-30,763$ | $-11,133$ | $-10,231$ |
| Other operating income | 825 | 795 | 400 | $-275$ |
| EBITDA | 111,833 | 80,473 | 50,451 | 30,225 |
| Depreciation and impairment of long-term assets | $-1,608$ | $-2,072$ | 48 | $-722$ |
| Changes in value of properties held for trading | 29 | 0 | $\overline{0}$ | $\Omega$ |
| Depreciation and impairment/reversal | $-1,580$ | $-2,072$ | 48 | $-722$ |
| Revaluation gain | 118,086 | 103,342 | $-6,520$ | 36,599 |
| Revaluation loss | $-17,778$ | $-24,878$ | $-6,222$ | $-4,546$ |
| Result from revaluation | 100,308 | 78,464 | $-12,742$ | 32,052 |
| Result from joint ventures | 7,259 | 30,659 | 4,513 | 24,704 |
| Result of operations (EBIT) | 217,821 | 187,524 | 42,270 | 86,260 |
| Finance costs | $-32,172$ | $-46,643$ | $-10,244$ | $-15,330$ |
| Other financial results | $\overline{0}$ | 178 | $\overline{0}$ | 178 |
| Foreign currency gains/losses | $-533$ | $-1,746$ | $-498$ | $-2,364$ |
| Result from interest rate derivative transactions | $-2,081$ | $-15,288$ | $-141$ | $-7,676$ |
| Result from financial investments | 5,909 | 10,507 | 4,025 | 792 |
| Result from other financial assets | $-14,946$ | 0 | $\overline{0}$ | $\Omega$ |
| Result from associated companies | $-1,375$ | $\overline{0}$ | $-188$ | $-436$ |
| Financial result | $-45,198$ | $-52,992$ | $-7,045$ | - 24,836 |
| Net result before taxes (EBT) | 172,623 | 134,531 | 35,225 | 61,424 |
| Current income tax | $-7,229$ | $-38,257$ | $-3,427$ | $-36,614$ |
| Deferred taxes | $-38,974$ | $-7,580$ | $-4,240$ | 8,888 |
| Income tax expense | $-46,203$ | $-45,837$ | $-7,668$ | - 27,726 |
| Consolidated net income | 126,420 | 88,694 | 27,557 | 33,698 |
| thereof attributable to non-controlling interests | $\boldsymbol{0}$ | $\bf{0}$ | $\,1\,$ | $\mathbf{0}$ |
| thereof attributable to the owners of the parent | 126,420 | 88,694 | 27,556 | 33,698 |
| Earnings per share in $\epsilon$ (basic) | €1.32 | € 0.90 | €0.29 | €0.34 |
| Earnings per share in $\epsilon$ (diluted) | €1.32 | € 0.90 | €0.29 | €0.34 |
.......................................
| €1,000 | 1st - 3rd Quarter 2016 | 1st - 3rd Quarter 2015 | 3rd Quarter 2016 | 3rd Quarter 2015 |
|---|---|---|---|---|
| Consolidated net income | 126,420 | 88.694 | 27,557 | 33.698 |
| Other comprehensive income | ||||
| Cash flow hedges - changes in fair value | 1.899 | 1,129 | 824 | 823 |
| Reclassification cash flow hedges | 177 | 25,725 | ∩ | 6.746 |
| Foreign currency gains/losses | 503 | $-1,493$ | 339 | 2,165 |
| Assets available for sale - changes in fair value | 13,962 | $-10,185$ | 9,775 | $-2,049$ |
| Income tax related to other comprehensive income | $-1.053$ | $-6,642$ | $-393$ | $-2,522$ |
| Other comprehensive income for the period | ||||
| (realised through profit or loss) | 15,488 | 8,535 | 10,544 | 5,162 |
| Revaluation IAS 19 | $-312$ | 21 | $\Omega$ | $\Omega$ |
| Income tax related to other comprehensive income | 100 | $-7$ | $\Omega$ | $\Omega$ |
| Other comprehensive income for the period (not | ||||
| realised through profit or loss) | $-213$ | 14 | O | $\Omega$ |
| Other comprehensive income for the period | 15.275 | 8,549 | 10,544 | 5,162 |
| Comprehensive income for the period | 141,695 | 97,243 | 38,102 | 38,859 |
| thereof attributable to non-controlling interests | 0 | ſ | $\Omega$ | |
| thereof attributable to the owners of the parent | 141,695 | 97,243 | 38,100 | 38,859 |
| €1,000 | 30.9.2016 | 31.12.2015 |
|---|---|---|
| ASSETS | ||
| Investment properties | 2,910,230 | 2,714,305 |
| Investment properties under development | 459,919 | 408,979 |
| Own used properties | 6,731 | 7,016 |
| Office furniture and Equipment | 5,615 | 5,710 |
| Intangible assets | 10,276 | 11,567 |
| Investments in joint ventures | 160,711 | 172,286 |
| Financial assets | 94,118 | 134,824 |
| Deferred tax assets | 1,877 | 2.376 |
| Long-term assets | 3,649,477 | 3,457,063 |
| Long-term assets as a $\%$ of total assets | 86.2% | 86.8% |
| Assets held for sale and relating to disposal groups | 28,578 | 54,048 |
| Properties held for trading | 29,848 | 22,069 |
| Receivables and other assets | 237,495 | 243,691 |
| Cash and cash equivalents | 289,141 | 207,112 |
| Short-term assets | 585,062 | 526,920 |
| Total assets | 4,234,539 | 3.983.983 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Share capital | 718,337 | 718,337 |
| Capital reserves | 826,038 | 921,746 |
| Other reserves | 11,529 | $-3,746$ |
| Retained earnings | 610,493 | 484,074 |
| Attributable to the owners of the parent | 2,166,397 | 2,120,410 |
| Non-controlling interests | 40 | 40 |
| Shareholders' equity | 2,166,437 | 2,120,450 |
| Shareholders' equity as a % of total assets | 51.2% | 53.2% |
| Provisions | 15,146 | 15,980 |
| Interest-bearing liabilities | 1,287,308 | 858,776 |
| Other liabilities | 97,597 | 84,911 |
| Deferred tax liabilities | 236,078 | 197,365 |
| Long-term liabilities | 1,636,129 | 1,157,032 |
| Current income tax liabilities | 13,142 | 16,382 |
| Provisions | 74,582 | 69,177 |
| Interest-bearing liabilities | 255,991 | 545,214 |
| Other liabilities | 87,184 | 75,728 |
| Liabilities relating to disposal groups | 1,074 | 0 |
| Short-term liabilities | 431,973 | 706.501 |
| Total liabilities and shareholders' equity | 4,234,539 | 3,983,983 |
.......................................
| €1,000 | 1st - 3rd Quarter 2016 | 1st - 3rd Quarter 2015 |
|---|---|---|
| Operating activities | ||
| Net result before taxes | 172,623 | 134,531 |
| Revaluation result incl. change in accrual and deferral of rental income | $-100,009$ | $-81,407$ |
| Depreciation and impairment/reversal | 1,580 | 2,072 |
| Result from the sale of long-term properties and office furniture and other equipment | $-19,458$ | $-730$ |
| Taxes paid/refunded excl. taxes for the sale of long-term properties | 3,211 | $-2,925$ |
| Finance costs, result from financial investments and other financial result | 26,263 | 35,958 |
| Foreign currency gains/losses | 533 | 1,746 |
| Result from interest rate derivative transactions | 2,081 | 15,288 |
| Result from other financial assets and non-cash income from investments in at equity consolidated | ||
| entities | 9,062 | $-30,659$ |
| Cash flow from operations | 95,886 | 73,874 |
| Properties held for trading | $-7,750$ | $-3,334$ |
| Receivables and other assets | $-751$ | 8,418 |
| Provisions | 1,641 | $-1.449$ |
| Other liabilities | $-6,610$ | 633 |
| Cash flow from change in net current assets | $-13,470$ | 4,268 |
| Cash flow from operating activities | 82,415 | 78,142 |
| Investing activities | ||
| Acquisition of and investment in properties incl. prepayments | $-72,687$ | $-68,270$ |
| Acquisition of property companies, less cash and cash equivalents of $\epsilon$ 1,602 K (2015: $\epsilon$ 26,080 K) | $-159,849$ | 18,549 |
| Acquisition of office equipment and intangible assets | $-980$ | $-1,118$ |
| Acquisition of financial assets | $\mathbf{0}$ | $-36,798$ |
| Acquisition of assets available for sale | $-12,073$ | $-94,093$ |
| Investments in joint ventures | $-2,425$ | $-3,023$ |
| Disposal of investment properties and other assets | 154,993 | 132,205 |
| Disposal of investment property companies, less cash and cash equivalents of $\epsilon$ 31K (2015: $\epsilon$ 799K) | 5,656 | 11,312 |
| Disposal of joint ventures and associated companies | 34,615 | 24,092 |
| Loans made to joint ventures | $-587$ | $-2,790$ |
| Loan repayments made by joint ventures | 1,176 | 119,564 |
| Taxes paid/refunded relating to the sale of long-term properties and loans granted | 8,511 | 5,053 |
| Dividend distribution/capital repayment from at equity consolidated entities and assets available for | ||
| sale | 25,358 | 2,701 |
| Interest paid for capital expenditure in investment properties | $-2,657$ | $\overline{0}$ |
| Interest received from financial investments | 6,093 | 13,486 |
| Cash flow from investing activities | $-14,854$ | 120,870 |
| Financing activities | ||
| Cash inflow from loans received | 138,881 | 42,398 |
| Cash inflow from the issuance of bonds | 288,149 | 174,387 |
| Acquisition of treasury shares | $-45,643$ | $-26,899$ |
| Dividend payments to shareholders | $-47,904$ | $-44,464$ |
| Payment related to the acquisition of shares from non-controlling interests and dividends to minority | ||
| interests | $-1,675$ | 0 |
| Repayment of loans incl. interest rate derivatives | $-97,918$ | $-299,719$ |
| Repayment of bonds | $-185,992$ | 0 |
| Other interest paid | $-31,692$ | $-40,250$ |
| Cash flow from financing activities | 16,207 | $-194,547$ |
| Net change in cash and cash equivalents | 83,768 | 4,465 |
| Cash and cash equivalents as at 1.1. | 207,112 | 163,638 |
| Changes in the value of foreign currency | $-171$ | 265 |
| Changes due to classification of disposal group | $-1,568$ | $-4,877$ |
| Cash and cash equivalents as at 30.9. | 289,141 | 163,491 |
| €1,000 | Share capital | Capital reserves - Others | Capital reserves - Treasury share reserve |
|
|---|---|---|---|---|
| As at 1.1.2015 | 718,337 | 998,839 | $\bf{0}$ | |
| Valuation / reclassification cash flow hedges | $\overline{0}$ | 0 | 0 | |
| Foreign currency gains/losses | $\overline{0}$ | $\mathbf{0}$ | 0 | |
| Revaluation of assets available for sale | 0 | $\bf{0}$ | 0 | |
| Revaluation IAS 19 | 0 | 0 | 0 | |
| Consolidated net income | 0 | 0 | C | |
| Comprehensive income for 2015 | $\bf{0}$ | $\bf{0}$ | $\bf{0}$ | |
| Dividend payments to shareholders | $\Omega$ | $-44,464$ | C | |
| Acquisition of treasury shares | $\Omega$ | $\overline{0}$ | $-26,899$ | |
| As at 30.9.2015 | 718,337 | 954,376 | $-26,899$ | |
| As at 1.1.2016 | 718,337 | 954,052 | $-32,306$ | |
| Valuation / reclassification cash flow hedges | 0 | 0 | $\bf{0}$ | |
| Foreign currency gains/losses | $\overline{0}$ | $\mathbf{0}$ | $\overline{0}$ | |
| Revaluation of assets available for sale | 0 | 0 | 0 | |
| Revaluation IAS 19 | 0 | 0 | $\mathbf{0}$ | |
| Consolidated net income | $\overline{0}$ | 0 | 0 | |
| Comprehensive income for 2016 | $\bf{0}$ | $\bf{0}$ | $\bf{0}$ | |
| Dividend payments to shareholders | $\Omega$ | $-47,904$ | $\Omega$ | |
| Acquisition of treasury shares | 0 | 0 | $-47,804$ | |
| As at 30.9.2016 | 718,337 | 906,148 | $-80,110$ |
.......................................
| Retained earnings |
Valuation result (hedging- reserve) |
Other reserves | Attributable to shareholders of the parent company |
Non-controlling interests |
Shareholders' equity (total) |
|---|---|---|---|---|---|
| 263,235 | $-27,503$ | $-1,202$ | 1,951,707 | $\bf{0}$ | 1,951,707 |
| $\mathbf 0$ | 21,728 | $\mathbf 0$ | 21,728 | 0 | 21,728 |
| $\boldsymbol{0}$ | $\mathbf{0}$ | $-1,493$ | $-1,493$ | 0 | $-1,493$ |
| $\mathbf 0$ | $\mathbf 0$ | $-11,701$ | $-11,701$ | 0 | $-11,701$ |
| $\overline{0}$ | $\mathbf{0}$ | 14 | 14 | $\mathbf 0$ | 14 |
| 88,694 | $\mathbf{0}$ | $\overline{0}$ | 88,694 | 0 | 88,694 |
| 88,694 | 21,728 | $-13,179$ | 97,243 | $\bf{0}$ | 97,243 |
| $\mathbf 0$ | $\mathbf{0}$ | $\bf{0}$ | $-44,464$ | 0 | $-44,464$ |
| $\bf{0}$ | $\Omega$ | $\overline{0}$ | $-26,899$ | 0 | $-26,899$ |
| 351,928 | $-5,774$ | $-14,382$ | 1,977,586 | $\bf{0}$ | 1,977,586 |
| 484,074 | $-5,131$ | 1,385 | 2,120,410 | 40 | 2,120,450 |
| 0 | 1,530 | $\overline{0}$ | 1,530 | $\mathbf 0$ | 1,530 |
| $\bf{0}$ | $\mathbf 0$ | 503 | 503 | 0 | 503 |
| $\mathbf{0}$ | $\mathbf{0}$ | 13,455 | 13,455 | $\mathbf 0$ | 13,455 |
| $\mathbf 0$ | $\mathbf{0}$ | $-213$ | $-213$ | 0 | $-213$ |
| 126,420 | $\mathbf{0}$ | $\mathbf{0}$ | 126,420 | $\mathbf 0$ | 126,420 |
| 126,420 | 1,530 | 13,745 | 141,695 | $\bf{0}$ | 141,695 |
| $\mathbf 0$ | $\mathbf{0}$ | $\overline{0}$ | $-47,905$ | 0 | $-47,905$ |
| $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf 0$ | $-47,804$ | $\mathbf{0}$ | $-47,804$ |
| 610,493 | $-3,601$ | 15,130 | 2,166,397 | 40 | 2,166,437 |
. . . . . . . . . . . . . . . . . . . .
| €1,000 | Austria | Germany | ||||||
|---|---|---|---|---|---|---|---|---|
| 1st - 3rd Quarter 2016 | Income Development | Total | Income Development | Total | Income | |||
| producing | producing | producing | ||||||
| Rental income | 24,356 | $\bf{0}$ | 24,356 | 44,207 | 12,016 | 56,223 | 60,858 | |
| Rental income with other operating | ||||||||
| segments | 390 | $\bf{0}$ | 390 | 548 | $\mathbf 0$ | 548 | $\boldsymbol{0}$ | |
| Operating costs charged to tenants | 5,896 | $\overline{0}$ | 5,896 | 11,041 | 2,145 | 13,186 | 21,058 | |
| Operating expenses | $-6,728$ | $\mathbf 0$ | $-6,728$ | $-12,275$ | $-2,979$ | $-15,254$ | $-23,217$ | |
| Other expenses directly related to | ||||||||
| properties rented | $-2,349$ | $\mathbf 0$ | $-2,349$ | $-2,700$ | $-731$ | $-3,431$ | $-4,441$ | |
| Net rental income | 21,565 | $\bf{0}$ | 21,565 | 40,821 | 10,451 | 51,273 | 54,258 | |
| Result from hotel operations | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf{0}$ | $\overline{0}$ | $\Omega$ | $\overline{0}$ | $\overline{0}$ | |
| Other expenses directly related to | ||||||||
| properties under development | $\boldsymbol{0}$ | $-566$ | $-566$ | $\mathbf{0}$ | $-2,226$ | $-2,226$ | $\mathbf 0$ | |
| Result from trading and construction | ||||||||
| works | $\overline{0}$ | 1,936 | 1,936 | $\overline{0}$ | 11,641 | 11,641 | $\overline{0}$ | |
| Result from the sale of investment | ||||||||
| properties | 2,487 | $-167$ | 2,321 | 15,266 | $-1,957$ | 13,309 | 715 | |
| Income from services rendered | 49 | $\boldsymbol{0}$ | 49 | 205 | 7,796 | 8,002 | 704 | |
| Indirect expenses | $-1,272$ | $-44$ | $-1,316$ | $-4,900$ | $-9,361$ | $-14,262$ | $-7,388$ | |
| Other operating income | 25 | $\mathbf 0$ | 25 | 303 | 421 | 725 | 118 | |
| EBITDA | 22,854 | 1,160 | 24,013 | 51,695 | 16,766 | 68,462 | 48,408 | |
| Depreciation and impairment/reversal | $-392$ | $\overline{0}$ | $-392$ | $-94$ | $-432$ | $-526$ | $-203$ | |
| Result from revaluation | 2,109 | 21 | 2,130 | 42,827 | 62,635 | 105,462 | 2,639 | |
| Result from joint ventures | $\boldsymbol{0}$ | $\overline{0}$ | $\mathbf{0}$ | $\overline{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\overline{0}$ | |
| Result of operations (EBIT) | 24,571 | 1,180 | 25,752 | 94,429 | 78,969 | 173,398 | 50,844 | |
| 30.9.2016 | ||||||||
| Property assets 1) | 566,161 | 20,039 | 586,200 | 1,164,069 | 877,629 | 2,041,698 | 1,403,294 | |
| Other assets | 23,191 | 9,841 | 33,031 | 247,781 | 457,291 | 705,072 | 197,821 | |
| Deferred tax assets | $\mathbf 0$ | $\overline{0}$ | $\overline{0}$ | 771 | 108 | 879 | 1,094 | |
| Segment assets | 589,352 | 29,880 | 619,232 | 1,412,621 | 1,335,028 | 2,747,649 | 1,602,209 | |
| Interest-bearing liabilities | 252,409 | 20,618 | 273,027 | 685,016 | 348,215 | 1,033,231 | 809,310 | |
| Other liabilities | 15,730 | 3,872 | 19,602 | 24,732 | 266,419 | 291,150 | 37,752 | |
| Deferred tax liabilities incl. current | ||||||||
| income tax liabilities | 47,579 | 1,299 | 48,877 | 120,423 | 98,623 | 219,047 | 48,477 | |
| Liabilities | 315,717 | 25,788 | 341,506 | 830,171 | 713,257 | 1,543,428 | 895,539 | |
| Shareholders' equity | 273,635 | 4,091 | 277,726 | 582,450 | 621,771 | 1,204,221 | 706,670 | |
| Capital expenditures 2) | 2,802 | 3,118 | 5,920 | 6,994 | 100,096 | 107,091 | 177,781 |
$\begin{array}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c$ 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 $\epsilon$ 9,161K (3
| Eastern | Eastern | Total | Transition | Total | ||||
|---|---|---|---|---|---|---|---|---|
| Europe core | Europe other | segments | ||||||
| regions | regions | |||||||
| Development | Total | Income | Development | Total | Holding | Consolidation | ||
| producing | ||||||||
| 1,266 | 62,124 | 12,529 | $\mathbf 0$ | 12,529 | 155,232 | 0 | $-32,585$ | 122,647 |
| $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\boldsymbol{0}$ | 938 | 0 | $-938$ | $\mathbf{0}$ |
| 522 | 21,581 | 4,346 | $\boldsymbol{0}$ | 4,346 | 45,009 | $\boldsymbol{0}$ | $-10,213$ | 34,795 |
| $-482$ | $-23,699$ | $-4,933$ | $\mathbf{0}$ | $-4,933$ | $-50,615$ | $\boldsymbol{0}$ | 10,390 | $-40,225$ |
| $-69$ | $-4,510$ | $-345$ | $\boldsymbol{0}$ | $-345$ | $-10,635$ | $\boldsymbol{0}$ | 2,257 | $-8,377$ |
| 1,238 | 55,496 | 11,597 | $\pmb{0}$ | 11,597 | 139,930 | $\bf{0}$ | $-31,089$ | 108,841 |
| $\boldsymbol{0}$ | $\overline{0}$ | $\boldsymbol{0}$ | $\overline{0}$ | $\boldsymbol{0}$ | $\mathbf{0}$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\overline{0}$ |
| $-99$ | $-99$ | $\mathbf{0}$ | $-36$ | $-36$ | $-2,927$ | $\boldsymbol{0}$ | 916 | $-2,011$ |
| $\boldsymbol{0}$ | $\mathbf 0$ | $\bf{0}$ | $\mathbf{0}$ | $\boldsymbol{0}$ | 13,577 | $\boldsymbol{0}$ | $-8,737$ | 4,840 |
| 425 | 1,140 | $\mathbf 0$ | $\mathbf{0}$ | $\boldsymbol{0}$ | 16,770 | $\boldsymbol{0}$ | 2,648 | 19,418 |
| $\overline{0}$ | 704 | $\mathbf{0}$ | $\mathbf{0}$ | $\boldsymbol{0}$ | 8,755 | 6,949 | $-5,848$ | 9,857 |
| $-570$ | $-7,957$ | $-1,008$ | $-67$ | $-1,075$ | $-24,610$ | $-14,121$ | 8,794 | $-29,937$ |
| $\bf{4}$ | 123 | $\,3$ | $\overline{0}$ | $\sqrt{3}$ | 875 | 216 | $-266$ | 825 |
| 999 | 49,407 | 10,592 | $-103$ | 10,489 | 152,371 | $-6,956$ | $-33,581$ | 111,833 |
| $-4$ | $-207$ | $-1$ | $\mathbf{0}$ | $-1$ | $-1,125$ | $-\,396$ | $-59$ | $-1,580$ |
| $-1,037$ | 1,601 | 1,170 | $-100$ | 1,070 | 110,263 | $\boldsymbol{0}$ | $-9,955$ | 100,308 |
| $\boldsymbol{0}$ | $\mathbf 0$ | $\overline{0}$ | $\mathbf{0}$ | $\mathbf 0$ | $\mathbf{0}$ | $\boldsymbol{0}$ | 7,258 | 7,259 |
| $-42$ | 50,802 | 11,761 | $-203$ | 11,558 | 261,509 | $-7,352$ | $-36,337$ | 217,821 |
| 76,079 | 1,479,373 | 233,030 | 3,300 | 236,330 | 4,343,601 | $\boldsymbol{0}$ | $-910,089$ | 3,433,512 |
| 10,495 | 208,317 | 7,830 | 7,875 | 15,705 | 962,125 | 725,198 | $-888,174$ | 799,150 |
| 72 | 1,166 | $\mathbf 0$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | 2,045 | 40,122 | $-40,291$ | 1,877 |
| 86,647 | 1,688,856 | 240,860 | 11,175 | 252,035 | 5,307,772 | 765,321 | $-1,838,554$ | 4,234,539 |
| 81,476 | 890,786 | 145,701 | 13,341 | 159,042 | 2,356,085 | 594,763 | $-1,407,548$ | 1,543,299 |
$6,387$
8,378
173,807
78,228
$6,558$
$\overline{5}$
$\boldsymbol{0}$
$\boldsymbol{0}$
$\bf 13,!346$
$-2,170$
$359,638$
327,225
$3,042,948$
2,264,825
307,041
$14,241$
2,556
$386\,$
611,560
153,761
$-98,297$
$-80,560$
$-1,586,405$
$-252,149$
$-51,805$
275,582
249,221 2,068,102
2,166,437
255,622
42,499
50,922
984,207
704,649
187,473
4,747
2,445
88,668
$-2,021$
9,691
$6,382$
8,378
160,461
80,399
6,558
| €1,000 1st - 3rd Quarter 2015 |
Income producing |
Development | Austria Total |
producing | Income Development | Germany Total |
Income producing |
|
|---|---|---|---|---|---|---|---|---|
| Rental income | 27,030 | $\Omega$ | 27,030 | 42.579 | 12,462 | 55,041 | 71,242 | |
| Rental income with other operating | ||||||||
| segments | 392 | $\mathbf{0}$ | 392 | 462 | $\Omega$ | 462 | $\mathbf{0}$ | |
| Operating costs charged to tenants | 7,311 | $\Omega$ | 7,311 | 9,619 | 1,632 | 11,252 | 24,306 | |
| Operating expenses | $-7,990$ | $\overline{0}$ | $-7,990$ | $-11,345$ | $-2,192$ | $-13,537$ | $-27,427$ | |
| Other expenses directly related to | ||||||||
| properties rented | $-2,185$ | $\mathbf{0}$ | $-2,185$ | $-2,603$ | $-2,406$ | $-5,009$ | $-4,905$ | |
| Net rental income | 24,557 | $\bf{0}$ | 24,557 | 38,713 | 9,496 | 48,209 | 63,216 | |
| Result from hotel operations | $\Omega$ | $\Omega$ | $\overline{0}$ | $\Omega$ | $\Omega$ | $\mathbf{0}$ | 252 | |
| Other expenses directly related to | ||||||||
| properties under development | $\Omega$ | $-10$ | $-10$ | $\mathbf{0}$ | $-1,658$ | $-1,658$ | $\mathbf{0}$ | |
| Result from trading and construction | ||||||||
| works | $\Omega$ | $\Omega$ | $\Omega$ | $\Omega$ | $-4,216$ | $-4,216$ | $\mathbf{0}$ | |
| Result from the sale of investment | ||||||||
| properties | 2,007 | $\mathbf{0}$ | 2,007 | 2,641 | $-3,292$ | $-652$ | 941 | |
| Income from services rendered | 63 | $\Omega$ | 63 | 449 | 9,821 | 10.271 | 411 | |
| Indirect expenses | $-681$ | $-419$ | $-1,100$ | $-4,519$ | $-12,002$ | $-16,521$ | $-7,562$ | |
| Other operating income | 8 | $\Omega$ | 8 | 417 | 157 | 573 | 392 | |
| EBITDA | 25,954 | $-429$ | 25,524 | 37,701 | $-1,694$ | 36,007 | 57,650 | |
| Depreciation and impairment/reversal | $-835$ | $\mathbf{0}$ | $-835$ | $-102$ | $-399$ | $-501$ | $-295$ | |
| Result from revaluation | $-3,934$ | 4,263 | 330 | 47,270 | 35,794 | 83,064 | $-11,038$ | |
| Result from joint ventures | $\Omega$ | $\Omega$ | $\overline{0}$ | $\Omega$ | $\Omega$ | $\Omega$ | 0 | |
| Result of operations (EBIT) | 21,185 | 3,834 | 25,019 | 84,869 | 33,702 | 118,571 | 46,317 |
......................................
| Property assets 1) | 593.142 | 16,958 | 610,100 | 1,090,654 | 891,437 | 1,982,090 | 1,361,708 | |
|---|---|---|---|---|---|---|---|---|
| Other assets | 50.266 | 2.528 | 52,795 | 185.431 | 400.617 | 586,048 | 215,034 | |
| Deferred tax assets | 0 | $\overline{0}$ | $\overline{0}$ | 1.165 | 433 | 1,598 | 1.223 | |
| Segment assets | 643,408 | 19,486 | 662,894 | 1,277,250 | 1,292,487 | 2,569,736 | 1,577,966 | |
| Interest-bearing liabilities | 264.694 | 1.214 | 265,908 | 623.127 | 336,002 | 959.129 | 925.850 | |
| Other liabilities | 14.520 | 2.548 | 17,068 | 26.374 | 245.628 | 272,001 | 35.797 | |
| Deferred tax liabilities incl. current | ||||||||
| income tax liabilities | 50.030 | 3.724 | 53,754 | 102.089 | 79,128 | 181,218 | 46.961 | |
| Liabilities | 329.244 | 7,486 | 336,731 | 751,590 | 660.759 | 1,412,348 | 1,008,608 | |
| Shareholders' equity | 314.164 | 12.000 | 326,164 | 525.660 | 631,728 | 1,157,388 | 569,357 | |
| Capital expenditures 2) | 3.181 | 2.489 | 5,670 | 72,237 | 113.458 | 185.695 | 16,376 | |
| Eastern Europe | Eastern Europe | Total | Transition | Total | ||||
|---|---|---|---|---|---|---|---|---|
| Development | core regions Total |
Income | Development | other regions Total |
segments | Holding | Consolidation | |
| producing | ||||||||
| 1,192 | 72,434 | 12,775 | $\mathbf{0}$ | 12,775 | 167,281 | $\overline{0}$ | $-55,594$ | 111,687 |
| $\mathbf{0}$ | $\boldsymbol{0}$ | $\mathbf{0}$ | 0 | $\boldsymbol{0}$ | 854 | $\boldsymbol{0}$ | $-854$ | $\mathbf{0}$ |
| 1,119 | 25,425 | 4,290 | $\mathbf{0}$ | 4,290 | 48,277 | $\mathbf 0$ | $-19,604$ | 28,674 |
| $-1,099$ | $-28,526$ | $-4,617$ | $\overline{0}$ | $-4,617$ | $-54,671$ | $\mathbf{0}$ | 20,747 | $-33,924$ |
| $-390$ | $-5,295$ | $-522$ | $\mathbf{0}$ | $-522$ | $-13,011$ | $\bf{0}$ | 4,693 | $-8,317$ |
| 822 | 64,038 | 11,926 | $\bf{0}$ | 11,926 | 148,730 | $\bf{0}$ | $-50,611$ | 98,120 |
| $\mathbf{0}$ | 252 | $\mathbf 0$ | $\mathbf{0}$ | $\overline{0}$ | 252 | $\overline{0}$ | $\mathbf{O}$ | 252 |
| $-90$ | $-91$ | $\mathbf 0$ | $-22$ | $-22$ | $-1,781$ | $\mathbf 0$ | 280 | $-1,501$ |
| $\mathbf{0}$ | $\boldsymbol{0}$ | $\mathbf 0$ | $\mathbf{0}$ | $\mathbf{0}$ | $-4,216$ | $\mathbf{0}$ | 4,174 | $-41$ |
| 959 | 1,900 | $-9$ | 148 | 139 | 3,394 | $\mathbf 0$ | $-2,667$ | 727 |
| $\overline{0}$ | 411 | $\mathbf{0}$ | $\mathbf{0}$ | $\boldsymbol{0}$ | 10,745 | 2,810 | $-671$ | 12,884 |
| $-676$ | $-8,238$ | $-1,024$ | $-70$ | $-1,094$ | $-26,953$ | $-9,182$ | 5,372 | $-30,763$ |
| 95 | 486 | 251 | 3 | 254 | 1,321 | 220 | $-746$ | 795 |
| 1,109 | 58,759 | 11,145 | 58 | 11,203 | 131,494 | $-6,152$ | $-44,869$ | 80,473 |
| 97 | $-198$ | $-1$ | $\mathbf{0}$ | $-1$ | $-1,535$ | $-485$ | $-53$ | $-2,072$ |
| $-2,739$ | $-13,777$ | $-1,854$ | $\mathbf{0}$ | $-1,854$ | 67,763 | $\mathbf{0}$ | 10,702 | 78,464 |
| $\mathbf 0$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | 0 | $\overline{0}$ | 30,659 | 30,659 |
| $-1,533$ | 44,784 | 9,290 | 58 | 9,348 | 197,722 | $-6,637$ | $-3,562$ | 187,524 |
| 106,967 | 1,468,675 | 225,340 | 3,400 | 228,740 | 4,289,605 | 0 1 | $-1,086,172$ | 3,203,434 |
| 10.041 | 227.070 | 10.000 | 0.055 | 40.054 | 005.772 | 000000 | 707.940 | 770.170 |
.......................................
| 106,967 | 1,468,675 | 225,340 | 3,400 ! | 228,740 | 4,289,605 | 0. | $-1,086,172$ | 3,203,434 |
|---|---|---|---|---|---|---|---|---|
| 12.841 | 227,876 | 10.000 | 9.055 | 19.054 | 885,773 | 689,650 | $-797.249$ | 778,173 |
| 128 | 1,351 | 31 | 31 | 2,980 | 50,900 | $-51.504$ | 2,376 | |
| 119.937 | 1,697,903 | 235,340 | 12,485 | 247.825 | 5,178,358 | 740,550 | $-1,934,925$ | 3.983.983 |
| 107.774 | 1,033,623 | 180.880 | 13,136 | 194,015 | 2,452,676 | 449,022 | $-1,497,708$ | 1,403,989 |
| 5,428 | 41,225 | 6,561 | 6 | 6,567 | 336,862 | 9,847 | $-100.912$ | 245,796 |
| 3.294 | 50.256 | 7,348 | 7.349 | 292,577 | 12,648 | $-91.478$ | 213,747 | |
| 116,496 | 1,125,104 | 194,789 | 13,142 | 207.932 | 3,082,115 | 471,517 | $-1,690,099$ | 1,863,533 |
| 3,441 | 572,799 | 40,550 | $-657$ | 39,893 | 2,096,243 | 269,033 | $-244,826$ | 2,120,450 |
| 19,224 | 35,600 | 2,825 | 2,825 | 229,790 | 590 | $-137,871$ | 92,508 | |
ī
The condensed consolidated interim financial statements of CA Immobilien Anlagen Aktiengesellschaft ("CA Immo AG"), Vienna as at 30.9.2016 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 2015, except of new or amended standards.
The condensed consolidated interim financial statements, for the reporting period from 1.1. to 30.9.2016 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 30.9.2016 were prepared in accordance with all IASs, IFRSs and IFRIC and SIC interpretations (existing standards as amended and new standards) as adopted by the EU and applicable for the financial year beginning 1.1.2016. The following amended and new standards are applicable for the first time in the business year 2016:
| Standard / Interpretation | Content | entry into force 1) |
|---|---|---|
| Changes in IAS 19 | Defined benefit plans: employees contributions | 1.2.2015 |
| Annual improvement (cycle 2010–2012) | Miscellaneous | 1.2.2015 |
| Changes to IFRS 11 | Accounting for acquisitions of interests in joint operations | 1.1.2016 |
| Changes to IAS 16 and IAS 38 | Clarification of acceptable methods of depreciation and amortisation | 1.1.2016 |
| Changes to IAS 27 | Equity method in separate financial statements | 1.1.2016 |
| IAS 1 | Disclosure initiative | 1.1.2016 |
| Annual improvement (cycle 2012–2014) | Miscellaneous | 1.1.2016 |
| Changes to IAS 16 and IAS 41 | Agriculture: bearer plants | 1.1.2016 |
| IFRS 10, 12 and IAS 28 | Investment entities: applying the consolidation exception | 1.1.2016 |
1) The standards and interpretations are to be applied to business years commencing on or after the effective date.
The first time application of these new or amended standards and interpretations have no essential impact on the consolidated financial statement.
In the first three quarters 2016, the shares in the following joint ventures: PBP IT-Services Sp.z.o.o., Poleczki Amsterdam Office Sp.z.o.o., Poleczki Berlin Office Sp.z.o.o., Poleczki Development Sp.z.o.o., Poleczki Lisbon Office Sp.z.o.o., Poleczki Warsaw Office Sp.z.o.o. and Poleczki Vienna Office Sp.z.o.o., as well as shares in a fully consolidated entity (development project) in Slovakia were sold.
In September 2016 CA Immo Group acquired the Millennium Towers office complex Budapest. The purchase price for the fully rented properties amounts to $\epsilon$ 172,350K. The acquisition is not qualified as a business combination according to IFRS 3. The revaluation of the office complex in profit or loss statement amounts to $\epsilon$ 7,233K which results mainly from the non-recognition of deferred taxes according to IAS 12. The closing of the transaction took place on 30.9.2016.
The financial assets (long term assets) consist of the following items:
| 30.9.2016 | 31.12.2015 | |
|---|---|---|
| Loans to joint ventures | 4 በበ2 | |
| Loans to associated companies . |
11.453 | |
| Other investments . |
59.966 | 58.666 |
| Other financial assets | 18.697 | 57.174 |
| Financial assets |
As at 30.9.2016, one property in Eastern Europe (core region)/Czechia and other assets amounting to €28,578K were reclassified to assets held for sale and relating to disposal groups. Liabilities relating to disposal groups comprise $655K$ provisions and $6418K$ other liabilties. A sale within one year from the date of reclassification was regarded as highly probable.
As at 30.9.2016, CA Immo Group held cash and cash equivalents amounting to €289,141K, cash and cash equivalents contain bank balances of € 19,315 K (31.12.2015: € 8,178K) to which CA Immo Group only has restricted access for a period of at most three months and act as collateral for ongoing loan repayments and investments in ongoing development projects.
These balances serve the purpose of securing current loan repayments (principal and interest), current investments in projects under development and cash deposits as guarantees. In addition, cash and cash equivalents subject to drawing restrictions from 3 up to 12 months are presented in caption 'receivables and other assets'. Restricted cash with a longer lock-up period (over 12 months) is presented under 'financial assets'.
| €1,000 | 30.9.2016 | 31,12,2015 |
|---|---|---|
| Maturity > 1 year |
7.405 | |
| Maturity from 3 to 12 months ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, |
10.493 | |
| Cash at banks with drawing restrictions | 17.898 |
The result from revaluation in the fist three quarters of 2016 results from revaluation gain of €118,086K (mainly from segment Germany) and revaluation loss of $\epsilon$ -17,778K, which mainly results from segments Eastern Europe core regions and Eastern Europe other regions.
Starting in the first quarter 2016 CA Immo Group presented in the result from other financial assets an impairment of available for sale securities amounting to $\epsilon$ - 14,946K. The increase in value of available for sale securities in the second respectively third quarter 2016 amounted to $\epsilon$ 12,167K and is presented in other comprehensive income.
The result from derivative interest rate transactions comprises the following:
| €1,000 | $1st - 3rd$ Quarter 2016 $\vert$ 1st – 3rd Quarter 2015 | |
|---|---|---|
| Valuation interest rate derivative transactions | $-1.915$ | |
| Ineffectiveness of interest rate swaps | ||
| Reclassification of valuation results recognised in equity | $-177$ | $-25.725$ |
| Result from interest rate derivative transactions | $-2.081$ | $-15.288$ |
.......................................
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 arise 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 – 3rd Quarter 2016 | 1st – 3rd Quarter 2015 |
|---|---|---|
| Current income tax (current year) | $-7.824$ | $-4,989$ |
| Current income tax (previous years) | 595 | $-33,268$ |
| Current income tax | $-7.229$ | $-38,257$ |
| Change in deferred taxes | $-39.067$ | $-7.735$ |
| Tax benefit on valuation of assets available for sale in equity | 93 | 155 |
| Income tax expense | $-46.203$ | $-45,837$ |
| Effective tax rate (total) | $26.8\%$ | 34.1% |
Current income tax (current year) arises in the segment Germany ( $\epsilon$ 4,549K).
| 1st – 3rd Quarter 2016 | 1st – 3rd Quarter 2015 | ||
|---|---|---|---|
| Weighted average number of shares outstanding | pcs. | 95,422,964 | 98,293,400 |
| Consolidated net income | € 1.000 | 126,420 | 88.694 |
| basic earnings per share | 1.32 | 0.90 |
.......................................
At the beginning of 2016, a share buyback programme for up to one million shares (approximately 1% of the current capital stock) has been implemented by the company. In the course of this programme, a total of 1,000,000 shares (ISIN AT0000641352) had been acquired for a total purchase price of approximately €15,392,916.72. The weighted average price per share was €15.3929. The highest consideration per share paid within the framework of the buyback programme was $\mathop{\varepsilon}\nolimits$ 16.38 and the lowest was $\mathop{\varepsilon}\nolimits$ 14.385.
Moreover, another share buyback programme with a volume of up to two million shares (approximately 2% of the current capital stock) and a maximum limit of €17.50 per share has been resolved in March, 2016. A total of 2,000,000 bearer shares (ISIN AT0000641352) in the company was acquired in the period between 25.3.2016 and 30.9.2016 at a total purchase price of €32,347,069.75. The weighted average price per share is thus $\epsilon$ 16.1735. The highest consideration per share paid within the framework of the buyback program was $\epsilon$ 17.50 and the lowest was $\epsilon$ 14.655.
As at 30.9.2016, CA Immo Group holds a total of 5,000,000 own shares. This corresponds to 5.0603% of the total number of 98,808,336 voting shares issued.
| Category | Book value | Fair value | Book value | Fair value |
|---|---|---|---|---|
| €1,000 | 30.9.2016 | 30.9.2016 | 31.12.2015 | 31.12.2015 |
| Cash at banks with drawing | ||||
| restrictions | 7,405 | 7,405 | 9,026 | 9,026 |
| Derivative financial instruments | 15 | 15 | 238 | 238 |
| Primary financial instruments | 86,698 | 125,560 | ||
| Financial assets | 94,118 | 134,824 | ||
| Cash at banks with drawing | ||||
| restrictions | 10,493 | 10,493 | 9,322 | 9,322 |
| Other receivables and other financial | ||||
| assets | 77,859 | 79,097 | ||
| Non financial assets | 34,600 | 50,022 | ||
| Securities | 114,544 | 114,544 | 105,250 | 105,250 |
| Receivables and other assets | 237,495 | 243,691 | ||
| Cash and cash equivalents | 289,141 | 207,112 | ||
| 620,754 | 585,627 |
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.
The non financial assets contain receivables from income taxes from tax authorities amounting to $\epsilon$ 16,337K (31.12.2015: $\epsilon$ 37,882K).
| Category | Book value | Fair value | Book value | Fair value |
|---|---|---|---|---|
| €1,000 | 30.9.2016 | 30.9.2016 | 31.12.2015 | 31.12.2015 |
| Bonds | 468,682 | 499,869 | 366,506 | 369,876 |
| Other interest-bearing liabilities | 1,074,618 | 1,075,466 | 1,037,483 | 1,037,658 |
| Interest-bearing liabilities | 1,543,299 | 1,403,989 | ||
| Derivative financial instruments | 12,538 | 12,538 | 12,743 | 12,743 |
| Other financial liabilities | 54,706 | 51,341 | ||
| Other non financial liabilities | 117,537 | 96,555 | ||
| Total other liabilities | 184,781 | 160,639 | ||
| 1,728,080 | 1,564,628 |
. . . . . . . . . . . . . . . . . . . .
The fair value of other primary liabilities essentially equals the book value due to daily and/or short-term maturities.
| 30.9.2016 | ||||||
|---|---|---|---|---|---|---|
| €1,000 | Nominal | Fair value | Book value | Nominal | Fair value | Book value |
| value | value | |||||
| Interest rate swaps | 275.790 | $-12.538$ | $-12.538$ | 243.227 | $-12.743$ | $-12.743$ |
| Swaption | 39.600 | 8 | 139.600 | 189 | 189 | |
| Interest rate caps | 44.468 | 6. | 45.277 | 48 | 48 | |
| Total | 359.857 | $-12.523$ | $-12.523$ | 428,104 | $-12.506$ | $-12.506$ |
| - thereof hedging (cash flow hedges) | 93.159 | $-5.032$ | $-5.032$ | 95.555 | $-6.942$ | $-6.942$ |
| - thereof stand alone (fair value derivatives) | 266.699 | $-7,491$ | $-7,491$ | 332.549 | $-5,563$ | $-5,563$ |
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 | 30.9.2016 Book value |
Nominal value |
Fair value | 31.12.2015 Book value |
|---|---|---|---|---|---|---|
| - Cash flow hedges (effective) | 91.725 | $-4.948$ | $-4.948$ | 94.484 | $-6.846$ | $-6.846$ |
| - Cash flow hedges (ineffective) | 1.434 | $-85$ | $-85$ | 1.071 | $-96$ | $-96$ |
| - Fair value derivatives (HFT) | 182.631 | $-7.505$ | $-7.505$ | 147.672 | $-5.801$ | $-5.801$ |
| Interest rate swaps | 275.790 | $-12,538$ | $-12.538$ | 243.227 | $-12.743$ | $-12.743$ |
| Currency | Nominal value in $£1,000$ | Start | End | Fixed | Reference | Fair value |
|---|---|---|---|---|---|---|
| interest rate as at | interest rate | |||||
| 30.9.2016 | 30.9.2016 | |||||
| in $£1,000$ | ||||||
| EUR (nominal value each | ||||||
| below 100m EUR) - CFH | 93.159 | 11/2007 | 9/2018 | $2.253\% - 4.495\%$ | 3M-Euribor | $-5,032$ |
| EUR (nominal value each | ||||||
| below 100m EUR) - stand | ||||||
| alone | 182,631 | 9/2013 | 12/2023 | $-0.175\% - 2.279\%$ | 3M-Euribor | $-7,505$ |
| $Total = variable in fixed$ | 275,790 | $-12,538$ |
.......................................
| Currency | Nominal value in $£1,000$ | Start | End | Fixed | Reference | Fair value |
|---|---|---|---|---|---|---|
| interest rate as at | interest rate | |||||
| 31.12.2015 | 31,12,2015 | |||||
| in $£1,000$ | ||||||
| EUR (nominal value each | ||||||
| below 100 m EUR) - CFH | 95.555 | 11/2007 | 9/2018 | $2.253\% - 4.789\%$ | 3M-Euribor | $-6.942$ |
| EUR (nominal value each | ||||||
| below 100m EUR) - stand | ||||||
| alone | 147.672 | 9/2013 | 12/2023 | $0.460\% - 2.279\%$ | 3M-Euribor | $-5,801$ |
| Total = variable in fixed | 243,227 | $-12,743$ |
| Currency | Nominal value in $\epsilon$ 1,000 | Start | End | Fixed | Reference | Fair value |
|---|---|---|---|---|---|---|
| interest rate as at | interest rate | |||||
| 30.9.2016 | 30.9.2016 | |||||
| in $£1,000$ | ||||||
| 3M-Euribor / | ||||||
| Swaption | 39,600 | 11/2015 | 11/2017 | $1.250\% - 1.750\%$ | 6M-Euribor | 8 |
| Total | 39,600 | 8 |
| Currency | Nominal value in $\epsilon$ 1,000 | Start | End | Fixed | Reference | Fair value |
|---|---|---|---|---|---|---|
| interest rate as at | interest rate | |||||
| 31.12.2015 | 31.12.2015 | |||||
| in $£1,000$ | ||||||
| $6/2013 -$ | $6/2016 -$ | 3M-Euribor / | ||||
| Swaption | 139,600 | 11/2015 | 11/2017 | $1.250\% - 2.500\%$ | 6M-Euribor | 189 |
| Total | 139,600 | 189 |
| Interest rate caps | ||||||
|---|---|---|---|---|---|---|
| Currency | Nominal value in $\epsilon$ 1,000 | Start | End | Fixed | Reference | Fair value |
| interest rate as at | interest rate | |||||
| 30.9.2016 | 30.9.2016 | |||||
| in $€1,000$ | ||||||
| Interest rate caps | 44.468 | 3/2014 | 9/2019 | $1.500\% - 2.000\%$ | 3M-Euribor | 6 |
| Total | 44.468 | 6 |
. . . . . . . . . . . . . . . . . . . .
| Currency | Nominal value in $£1,000$ | Start | End | Fixed | Reference ! | Fair value |
|---|---|---|---|---|---|---|
| interest rate as at | interest rate | |||||
| 31, 12, 2015 | 31.12.2015 | |||||
| in $\epsilon$ 1,000 | ||||||
| Interest rate caps | 45.277 | 3/2014 | 9/2019 | $1.500\% - 2.000\%$ | 3M-Euribor | 48 |
| Total | 45,277 | 48 |
| €1,000 | 2016 | |
|---|---|---|
| As at 1.1. | $-5.131$ | $-27.503$ |
| Change in valuation of cash flow hedges | 1.909 | |
| Change of ineffectiveness cash flow hedges | $-11$ | |
| Reclassification cash flow hedges | 177 | 25.725 |
| Income tax cash flow hedges | $-545$ | $-5.126$ |
| As at 30.9. | $-3.601$ | $-5.774$ |
| thereof: attributable to the owners of the parent | $-3.601$ |
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 $\rm{reclassification}$ between the levels.
Net debt and gearing ratio:
| €1,000 | 30.9.2016 | 31.12.2015 |
|---|---|---|
| Interest-bearing liabilities | ||
| Long-term interest-bearing liabilities | 1,287,308 | 858.776 |
| Short-term interest-bearing liabilities | 255.991 | 545.214 |
| Interest-bearing assets | ||
| Cash and cash equivalents | $-289.141$ | $-207.112$ |
| Cash at banks with drawing restrictions | $-4.319$ | $-5.432$ |
| Net debt | 1.249.839 | 1,191,446 |
| Shareholders' equity | 2.166.437 | 2.120.450 |
| Gearing ratio (Net debt/equity) | 57.7% |
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 | 30.9.2016 | 31.12.2015 |
|---|---|---|
| Investments in joint ventures | 160,711 | 172,286 |
| Investments in joint ventures held for sale | 0 | 2,982 |
| Loans | 4,002 | 6,162 |
| Receivables | 6,462 | 39,779 |
| Liabilities | 32,856 | 37,637 |
| Provisions | 15,966 | 19,528 |
| 1st - 3rd Quarter | 1st - 3rd Quarter | |
| 2016 | 2015 | |
| Joint ventures result | 6,372 | 29,908 |
| Result from sale of joint ventures | 886 | 751 |
| Result from joint ventures | 7,259 | 30,659 |
| Other income | 2,415 | 4,386 |
| Other expenses | $-1,217$ | $-963$ |
| Interest income | 291 | 4,962 |
| Interest expense | $\overline{0}$ | $-539$ |
| Interest income present value financial investments | 0 | 2,772 |
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 | 30.9.2016 | 31.12.2015 |
|---|---|---|
| Loans | 11.453 | 12.827 |
| 1st – 3rd Quarter | 1st – 3rd Quarter | |
| 2016 | 2015 | |
| Expenses due to associated companies | $-1.375$ | |
| Result from associated companies | $-1.375$ |
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 $\epsilon$ 10,949K (31.12.2015: $\epsilon$ 9,575K) is included.
Following CA Immo Group Board approval for the transfer of the four registered shares to IMMOFINANZ AG, on 2.8.2016, the notification that IMMOFINANZ acquisition of 25,690,163 bearer shares (approximately 27% of the whole share capital) in CA Immo AG from Terim Limited (Cyprus) as well as the four registered shares from O1 Group Limited (Cyprus) was finalized. As of today, IMMOFINANZ AG has partly exercised its delegation rights pursuant to the registered shares and recalled Dr. Wolfgang Renner and Marina Rudneva as members of the Supervisory Board. For the two vacant Supervisory Board posts, IMMOFINANZ AG has delegated Dr. Oliver Schumy and Mag. Stefan Schönauer with immediate effect and until revocation.
Starting 20.2.2015, O1 Group was the largest single shareholder of CA Immo AG holding about 27% of the voting rights until 2.8.2016.
CA Immo Group was informed by O1 Group Limited ("O1") that following the shares purchase agreement dated 17.4.2016, IMMOFINANZ AG acquired 25,690,163 bearer shares from Terim Ltd and the four registered shares from O1 Group Limited. According to the notice, the purchase price amounts to $\epsilon$ 23.50 per share and total value of the transaction is approximately $\epsilon$ 604 million. Closing of the transaction took place on 2.8.2016.
During the second quarter of 2015, following a competitive process, a sales contract regarding a plot in Berlin suitable for residential construction was signed with a company under the indirect influence of Mr. Boris Mints (owner and chairman of O1 Group). The agreed purchase price was $\epsilon$ 7,000K, the sale is subject to customary closing conditions. The transaction, which will result in a significantly positive profit contribution for CA Immo, was done at arms' length which was also confirmed by an external fairness opinion.
As at 30.9.2016, contingent liabilities of CA Immo Germany Group resulting from urban development contracts amounted to $\epsilon$ 0K (31.12.2015: €120K) and from concluded purchase agreements for cost assumptions in connection with contaminated sites or war damage to €566 K (31.12.2015: €491 K). In addition, letters of support exist for a joint venture in Germany, amounting to €2,000 K (31.12.2015: €2,000 K for a joint ventures). As security for liabilities from loans guarantees, letters of comfort and declarations for joint liabilities were issued for three joint ventures in an extent of €13,650K (31.12.2015: €12,150K). Furthermore as security for warranty risks of a german joint venture a guarantee was issued in an amount of €6,066 K (31.12.2015: €6,066 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 € 11,299 K (31.12.2015: € 13,483 K).
Related to the sales, 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 of two joint ventures.
Purchase commitments related to construction activities arising from service commitments in connection with the development of properties also exist for properties in Austria amounting to $\epsilon$ 17,196K (31.12.2015: $\epsilon$ 2,103K), in Germany amounting to $\epsilon$ 47,092K (31.12.2015: $\epsilon$ 32,922K) and in Eastern Europe amounting to €33,564K (31.12.2015: €10,381K). Moreover as at 30.9.2016, CA Immo Group is subject to other financial obligations resulting from construction costs from urban development contracts in Germany, which can be capitalised in the future with an amount of €44,611K (31.12.2015: €52,943K).
As at 30.9.2016, the total obligation of CA Immo Group to contribute equity to joint ventures was $\epsilon$ 6,421K (31.12.2015: $\epsilon$ 5,021K). The contingent liability as at 30.9.2016 in connection with the equity contribution in case of one joint venture in Bulgaria, for which no provision has been recognised in the balance sheet, amounts to $\epsilon$ 718K (31.12.2015: $\epsilon$ 450K).
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.
Borrowings, for which the financial covenants have not been met as at 30.9.2016, thus enabling the lender in principle to prematurely terminate the loan agreement, have to be recognised in short-term financial liabilities irrespective of the remaining term under the contract. This classification applies notwithstanding the status of negotiations with the banks concerning the continuation or amendment of the loan agreements. As at 30.9.2016, this applied to no loan (31.12.2015: no loan).
The supervisory boad members Dr. Wolfgang Ruttenstorfer, Ms. Barbara Knoflach and Dr. Maria Doralt informed CA Immo AG on 12.10.2016 that they will resign from the company's supervisory board effective 10.11.2016 in line with the applicable period set-forth in the company's articles $% \left\langle \cdot ,\cdot \right\rangle _{0}$ of association.
The closing of the sale of the Prague shopping center Sestka with a lettable area of appr. 27,300 sqm took place on 20.10.2016.
Vienna, 18.11.2016
The Management Board
Frank Nickel (Chief Executive Officer)
Dr. Hans Volkert Volckens (Member of the Management Board)
CA Immobilien Anlagen AG Mechelgasse 1, 1030 Vienna Phone +43 1 532 59 07-0 Fax +43 1 532 59 07-510 [email protected] www.caimmo.com
Investor Relations Free info hotline in Austria: 0800 01 01 50 Christoph Thunberger Claudia Höbart Phone +43 1 532 59 07-0 Fax +43 1 532 59 07-595 [email protected]
Corporate Communications Susanne Steinböck Marion Naderer Phone +43 1 532 59 07-0 Fax +43 1 532 59 07-595 [email protected]
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.
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.
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