Quarterly Report • Aug 24, 2016
Quarterly Report
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URBAN BENCHMARKS.
FINANCIAL REPORT
AS AT 30 JUNE 2016
| $1.1.-30.6.2016$ | 1.1.-30.6.2015 | ||
|---|---|---|---|
| Rental income | €m | 81.3 | 68.8 |
| EBITDA | €m | 61.4 | 50.2 |
| Operating result (EBIT) | €m | 175.6 | 101.3 |
| Net result before taxes (EBT) | €m | 137.4 | 73.1 |
| Consolidated net income | €m | 98.9 | 55.0 |
| Operating cash flow | €m | 49.3 | 54.4 |
| Capital expenditure | €m | 54.6 | 50.9 |
| FFO I (excl. Trading and pre taxes) | €m | 43.8 | 37.7 |
| FFO II (incl. Trading and after taxes) | f m | 35.9 |
| 30.6.2016 | 31.12.2015 | ||
|---|---|---|---|
| Total assets | €m | 4.163.7 | 3,984.0 |
| Shareholders' equity | €m | 2.153.6 | 2,120.5 |
| Long and short term interest-bearing liabilities | $\epsilon$ m | 1.509.3 | 1,404.0 |
| Net debt | €m | 1.238.5 | 1,191.4 |
| Net asset value (EPRA NAV) | €m | 2.449.2 | 2,354.4 |
| Triple Net asset value (EPRA NNNAV) | $\epsilon$ m | 2.251.5 | 2,196.3 |
| Gearing | $\%$ | 57.5 | 56.2 |
| Equity ratio | $\%$ | 51.7 | 53.2 |
| Gross LTV | $\%$ | 45.2 | 43.8 |
| Net LTV | $O_{\ell}$ | 37.1 | 37.2 |
| 30.6.2016 | 31.12.2015 | ||
|---|---|---|---|
| Total usable space (excl. parking, excl. projects) 3) | sam | 1.653.502 | 1,655,187 |
| Gross yield investment properties 4) | 6.4 | ||
| Fair value of properties | f m | 3.712.8 | |
| Occupancy rate 4) | $\%$ | 92.3 |
| 1.1.-30.6.2016 | 1.1.-30.6.2015 | ||
|---|---|---|---|
| Rental income / share | 0.85 | 0.70 | |
| Operating cash flow / share | 0.51 | 0.55 | |
| Earnings per share | 1.03 | 0.56 | |
| FFO 1 / share | 0.46 | 0.38 | |
| 30.6.2016 | 31.12.2015 | ||
| NAV/share | 22.58 | 21.90 | |
| EPRA NAV/share | 25.68 | 24.32 | |
| EPRA NNNAV/share | 23.61 | 22.69 | |
| Dividend | 0.50 | 0.45 | |
| Dividend vield | $\%$ | 3.33 |
| 30.6.2016 | 31.12.2015 | ||
|---|---|---|---|
| Number of shares | DCS. | 98,808,336 | 98,808,336 |
| Treasury shares | pcs. | 3,452,529 | 2,000,000 |
| number of shares outstanding | DCS. | 95,355,807 | 96,808,336 |
| Ø number of shares | DCS. | 98,808,336 | 98,808,336 |
| Ø Treasury shares | DCS. | 2.877.617 | 866,601 |
| Ø number of shares outstanding | DCS. | 95.930.719 | 97, 941, 735 |
| $Ø$ price/share | € | 16.10 | 16.80 |
| Closing price (30.06.) | 15.01 | 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 $^{3)}$ Incl. land leases and rentable open landscapes
4) Excludes the recently completed office projects Kontorhaus (Munich), John F. Kennedy Haus and Monnet 4 (Berlin) which are still in a stabilisation phase
Following a record result last year, CA Immo made a successful start to the new business year 2016 with a strong first half of the year.
In the first six months, rental income for CA Immo increased by a significant 18.3% to $\epsilon$ 81.3 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 $\epsilon$ 72.1 m, up 19.2% on the 2015 figure of € 60.5 m.
The overall result from property sales amounted to € 3.0 m after the first two quarters of 2016 (€ 0.8 m in 2015). However, this result does not contain the highly profitable sales of smaller properties in Austria or a property in Stuttgart (agreed in the first half but not concluded until quarter three).
Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at $\epsilon$ 61.4 m, 22.2% above the previous year's level of $\epsilon$ 50.2 m. In addition to a strong operational result, a significantly positive revaluation
result of € 113.1 m on key date 30 June 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 $\epsilon$ 175.6 m on key date 30 June 2016, up by a significant 73.4% on the 2015 figure of $\epsilon$ 101.3 m.
The Group's financing costs, a key element in long-term earnings, decline despite an expansion of the balance sheet to $\epsilon$ -21.9 m (against $\epsilon$ -31.3 m in 2015). Earnings before taxes (EBT) increased from $\epsilon$ 73.1 m in 2015 to € 137.4 m. The result for the period stood at € 98.9 m or € 1.03 per share (€ 55.0 m or € 0.56 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 $\in$ 43.8 m after the first six months of 2016 ( $\epsilon$ 37.7 m in 2015). FFO I per share amounted to $\epsilon$ 0.46, an increase of more than 20% on the previous half-year value of $\epsilon$ 0.38 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.
CA Immo has upheld a robust balance sheet with an equity ratio of 52% and a conservative loan-to-value ratio (net debt to property assets) of 37%. On the key date, NAV (shareholders' equity) per share was € 22.58 (against € 21.90 per share on 31.12.2015). EPRA NAV stood at 25.68 € per share (against € 24.32 per share on $31.12.2015$ , an increase of 7.6% (adjusted for the dividend payment of $0.50 \in$ per share in May 2016) since the beginning of the business year.
The CA Immo Group has been informed by O1 Group Limited that O1 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 $\epsilon$ 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. We decided to mandate J.P. Morgan and Ithuba Capital as financial advisors and are 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. IMMOFINANZ 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.
As the new core shareholder of CA Immobilien Anlagen AG and holder of the four registered shares IMMOFINANZ AG has partly exercised its delegation rights pursuant to the registered shares (Namensaktien) 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.
The market environment - especially on the core market of Germany – is likely to remain robust in the second half of the year. Given the extremely positive operational development, strong consolidated net income to match that of last year is anticipated. We hereby confirm an annual target for long-term revenue of a 10% increase in FFO I per share compared to the previous year ( $> \epsilon$ 0.90 per share). The current share buyback programme will be continued, with the current target for the number of own shares acquired amounting to five million in the second half of the year.
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).
Vienna, August 2016 The Management Board
Frank Nickel (Chief Executive Officer)
Xlow
Florian Nowotny (Member oft he Management Board)
The share price opened the first quarter at $£16.98$ . In the first six weeks of the year it lost more than 15% of its value to stand at a low for the year of €14.35 on 11 February. By the end of quarter one, the share finally managed to convert these losses into a marginal gain, rising to an annual high of €19.50 by mid-April. The continuation of highly modest economic growth in Europe and mounting political uncertainties (including Brexit) served to suppress rates across Europe in the second quarter; by the end of June, the CA Immo share price had also fallen 10.8% on the figure for the end of 2015. The share closed at a rate of $£15.01$ on 30 June 2016. By contrast, the ATX reported a loss of 12.6% compared to the figure for the end of 2015; reference values for the IATX and EPRA also closed the first half down 3.1% and 7.4% respectively. As at 30 June 2016, market capitalisation for CA Immo stood at $\epsilon$ 1,483.1 m (compared to $\epsilon$ 1,662.9 m on 31.12.2015). Since the end of 2015, the average trading volume has fallen to 391,200 shares (against 431,700 on 31 December 2015). In the first six months, the average liquidity of the share was $\epsilon$ 6,264.8 K ( $\epsilon$ 7,319.1 K on 31.12.2015). CA Immo is currently weighted at approximately 4.0% on the ATX.
With Wood & Company resuming coverage, CA Immo is now assessed by nine investment companies. The recommendation is to hold, with a target rate of $\epsilon$ 17.70. Baader-Helvea upgraded its recommendation from hold to buy, raising its target price from $\epsilon$ 17.00 to $\epsilon$ 18.00. Erste Group and Kepler Cheuvreux confirmed their recommendation to purchase, citing target rates of $\epsilon$ 19.50 and $\in$ 19.00 respectively (previously $\in$ 18.80 and $\in$ 19.50 respectively). Meanwhile analysts at Goldman Sachs reduced their target price from $\epsilon$ 19.40 to $\epsilon$ 16.40 while remaining neutral. Overall, the most recent 12-month target rates were in the range of € 16.40 and € 22.00, with the valuation median at $\epsilon$ 19.00. The closing rate for 30 June implies price potential of 26.6%.
.......................................
Between 13 January and 19 February 2016, CA Immo acquired 1,000,000 bearer shares of the company (ISIN
| CA Immo share | -4.09% |
|---|---|
| ATX | $-13.09\%$ |
| TATX | 6.59% |
| EPRA Developed Europe | $-2.24\%$ |
Source: Bloomberg
AT0000641352) for an approximate purchase price of $\epsilon$ 15.4 m 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. The weighted equivalent value was approximately $\epsilon$ 15.3929 per share. The highest/lowest equivalent value per share in the buyback programme was € 16.38/€ 14.385 respectively. Another buyback programme for up to two million treasury shares (approximately 2% of the capital stock) was launched on 25 March 2016; it will conclude by 7 October 2016 at the latest. The upper limit is $\epsilon$ 17.50 per share. As at the balance sheet date, CA Immobilien Anlagen AG held 3,452.529 treasury shares in total; given the total number of voting shares issued (98,808,336), this is equivalent to around 3.49% of the voting shares. Details of transactions completed, along with any changes to the programme, will be published at http://www.caimmo.com/de/investorrelations/aktienrueckkauf/.
| Baader-Helvea Bank | 6.7.2016 | 18.00 | Buy |
|---|---|---|---|
| Deutsche Bank | 23.3.2016 | 22.00 | Buy |
| Erste Group | 11.7.2016 | 19.50 | Buy |
| Goldman Sachs | 29.6.2016 | 16.40 | Neutral |
| HSBC | 2.2.2016 | 18.60 | Neutral |
| Kepler Cheuvreux | 1.7.2016 | 19.00 | Buy |
| Raiffeisen Centrobank | 21.4.2016 | 19.60 | Buy |
| SRC Research | 25.5.2016 | 21.00 | Buy |
| Wood & Company | 27.6.2016 | 17.70 | Hold |
| Average | 19.09 | ||
| Median | 19.00 |
The company's capital stock amounted to $\epsilon$ 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). O1 Group constituted around 52.3% of the capital represented at the 29th Ordinary General Meeting. The company is not aware of any other shareholders with a stake of more than 4%. The remaining shares of CA Immo (approximately 74% of the capital stock) are in free float with both institutional and private investors.
In mid-April 2016, the core shareholder O1 Group Limited informed CA Immo that it had 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 Group Limited 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 $\epsilon$ 604 m. The transaction closed on 2 August
2016 and also led to the following changes in the Supervisory Board: Dr. Wolfgang Renner and Marina Rudneva (both delegated by registered shares) were replaced by Dr. Oliver Schumy and Stefan Schönauer, CEO and CFO of IMMOFINANZ AG.
Following on 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 $\epsilon$ 140 m 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).
For CA Immo, dialogue with stakeholders, transparency and active communication are the top priorities in information policy. In addition to the legal obligation to inform (through ad hoc reports, quarterly financial reporting and so on), dialogue with analysts, institutional investors and private shareholders takes place through personal meetings at roadshows and conferences and participation in events and trade fairs specifically aimed at private shareholders. Private shareholders regularly engage in dialogue with the Investor Relations team via the Ordinary General Meeting, investor fairs and the shareholders' phone line. Conference calls for analysts also take place at least quarterly. During the first six months of 2016, CA Immo participated in conferences and roadshows and arranged numerous conference calls, investor meetings and property tours at several of its main sites. The target audience was national and international investors. Detailed information on key performance indicators, the CA Immo share, annual and quarterly results, financial news items, presentations, IR events and much more is available on the web site www.caimmo.com. Interested parties can also subscribe to our IR newsletter, which contains full details of recent developments.
.......................................
| 30.6.2016 | 31.12.2015 | ||
|---|---|---|---|
| EPRA NNNAV/share | € | 23.61 | 22.69 |
| NAV/share | € | 22.58 | 21.90 |
| Price (key date)/NAV per share $-1$ 1) | $\%$ | $-33.54$ | $-23.16$ |
| Price (key date)/NNNAV per share $-1$ 1) | $-36.43$ | $-25.82$ | |
| Number of shares | pcs. | 98,808,336 | 98,808,336 |
| Treasury shares | pcs. | 3,452,529 | 2,000,000 |
| number of shares outstanding | pcs. | 95,355,807 | 96,808,336 |
| $Ø$ number of shares | pcs. | 98,808,336 | 98,808,336 |
| $\varnothing$ Treasury shares | pcs. | 2,877,617 | 866,601 |
| $\lhd~$ number of shares outstanding | pcs. | 95,930,719 | 97,941,735 |
| $Ø$ price/share | € | 16.10 | 16.80 |
| Market capitalisation (key date) | $\epsilon$ m | 1,483 | 1,663 |
| Highest price | € | 19.50 | 18.59 |
| Lowest price | € | 14.35 | 14.82 |
| Closing price | € | 15.01 | 16.83 |
| Dividend | € | 0.50 | 0.45 |
| Dividend yield | $\%$ | 3.33 | 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 |
| Stock Exchange symbol / ISIN: | CAI / AT0000641352 |
| Reuters: | CAIV VI |
| Bloomberg: | CAI·AV |
| . | |
| Email: | [email protected] |
| www.caimmo.com |
Christoph Thurnberger Tel.: +43 1 532 59 07-504 Fax: +43 1 532 59 07-550 [email protected] Claudia Höbart Tel.: +43 1 532 59 07-502 Fax: +43 1 532 59 07-550 [email protected]
FINANCIAL CALENDAR 2016
PUBLICATION OF ANNUAL RESULTS FOR 2015
PRESS CONFERENCE ON FINANCIAL STATEMENTS
23 APRIL
VERIFICATION DATE FOR THE 29TH ORDINARY GENERAL MEETING
29TH ORDINARY GENERAL MEETING
EX-DIVIDEND DATE / RECORD DATE (DIVIDEND) / DIVIDEND PAYMENT DAY
25 MAY INTERIM REPORT FOR THE FIRST QUARTER 2016
25 AUGUST SEMI-ANNUAL REPORT 2016
INTERIM REPORT FOR THE THIRD QUARTER 2016
The International Monetary Fund (IMF) recently cut its forecast for global economic growth in 2016 from 3.4% to 3.2%. In Europe, the first half of the year was dominated by the Brexit referendum in the UK: as a result of the associated economic and political uncertainty, which constitutes a significant risk factor for the European economy, the IMF has downgraded its growth forecast for Germany to 1.2% for next year. Meanwhile the economic picture in China remains a defining source of uncertainty for the global economy. In the second quarter the Chinese economy expanded by 6.7%, surpassing expectations.
In the second 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 0.4% on the previous quarter). Expansion in Austria was 1.3% year-on-year, with zero growth on Q1 2016 reported in the second quarter.
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, $\epsilon$ 80 bn (up from the previous level of $\epsilon$ 60 bn) 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 continues to fluctuate at a minimal level; a figure of $0.2\%$ was expected for July 2016, against 0.1% in June 2016.
The unemployment rate in the eurozone was 10.1% in June 2016, compared to 11.0% in June 2015; the rate for the EU28 was 8.6%. The lowest unemployment rates on the core markets of CA Immo (all of which stood well below the European average) are in the Czech Republic $(4.1\%)$ and Germany $(4.5\%)$ , where the rate has also fallen significantly over the last quarter. Unemployment was also relatively low in Hungary (5.2%), followed by Austria and Poland at 6.2% and Romania at 6.4%.
The 3 month Euribor rate remains in negative territory, fluctuating between -0.24% and -0.29% in the period under review. Yields on government bonds from eurozone countries and corporate bonds with good credit ratings also remain at historic lows. The 10-year German federal bond produced a negative vield for the first time in the second quarter of 2016.
The growth trend on CA Immo's core markets in the CEE region was relatively positive in the first half of 2016.
In quarter two, GDP in Poland expanded by 3.0% on the previous year, with 0.9% growth on the previous quarter reported. The zloty, the Polish currency, stood at the EUR/PLN exchange rate of 4.5 for a time; the devaluation was linked to the change of government and resultant uncertainty amongst investors. In January, the rating agency S&P downgraded Poland's rating from A- with a positive outlook to BBB+ with a negative outlook. Despite the deflationary trend (-0.9% in March, -1.1% in April), the Polish national bank upheld the interest rate of 1.5%. However, labour market data indicates a strong trend that is expected to continue over the forthcoming quarters.
Following a sluggish opening to the quarter, Hungary reported GDP growth of 1.1% on the first quarter and 1.7% year-on-year. The Hungarian national bank further reduced its interest level in two stages between February and April 2016 (from $1.35\%$ to $1.05\%$ ). The deposit rate was cut to -0.05% while the inflation rate remained at its historic low level.
Compared to the last three quarters, GDP growth in the Czech Republic slowed to 3.1% in the first quarter of 2016. As expected, the Czech central bank left its interest rate unchanged at 0.05% and affirmed its intention to maintain the EUR/CZK exchange rate at 27 until mid-2017.
The pace of expansion remains strong in Romania: in the first quarter of 2016, real-terms GDP rose by 4.2% respectively by 5.9% versus the previous year.
Transaction activity on the European investment market for commercial real estate started dynamically in 2016 after the 2015 record year. Although the investment volume of some $\epsilon$ 54 bn was down on the previous year's level of about $\epsilon$ 67 bn, the current transaction level in Europe was above the 10-year average. Around 44% of the volume was invested in the office real estate sector. While the market in the UK was faced with greater uncertainty caused by the Brexit issue, the decline seen in Germany was caused primarily by increasing shortage of supply due to the continued very strong demand for core properties. This ongoing trend is reflected in the sustained yield compression in the German market.
The investment volume for commercial real estate in Germany in the first half of 2016 totalled about $\epsilon$ 18 bn, down by around 26% on the reference quarter in the previous year. Some 47% of this is accounted for by the office property asset class, which thus continues to be the segment for which demand is highest. The difference between government bond yields and peak yields remains at an historic high, although the drop in yields has slowed in recent months. The peak yields for Q2 2016 for office property are reported for Frankfurt at 4.20% (Q2 2015: 4.40%). Berlin is currently reporting 3.75% (4.40%), and Munich 3.60% (4.0%).
The transaction volume in Austria in Q2 2016, at about $\epsilon$ 0.8 bn, fell by around 19% in comparison with the previous year. Some 60% of this volume was accounted for by office properties. A record overall investment volume is expected for 2016, as in the previous year. The peak yield in the office sector remains under pressure and is reported at 4.9% for good locations, while the yield for top properties may fall to up to 4.10%.
In the CEE region, transaction activity of about $\epsilon$ 5.0 bn was recorded in the first six months (2015: $\epsilon$ 3.1 bn), illustrating increasing investment momentum. Around 35% of this flowed into the office sector, posting an increase of more than 100% compared to the previous year. Office prime vields are currently reported as follows: Warsaw 5.5%, Prague 5.5%, Budapest 7.0% and Bucharest 7.5%.
The German office leasing market currently demonstrates a very good development. In the core markets of CA Immo, Berlin, Frankfurt and Munich, rising letting performance, dropping vacancy rates and rent growth were recorded in the first half of the year. Specifically Berlin developed into a dynamic core office location. The letting performance in Germany's capital in H1 2016 arrived at a record total of $400,000$ sqm $(+ 17\%$ over last year's level). The vacancy rate has continued to fall and stands at 6.0% (Q1 2015: 7.4%). In Frankfurt, the area leased in the first half was 235,000 sqm $(+24\%$ compared to H1 2015). The vacancy rate, according to CBRE Research, has remained at a stable rate of 11.7%. In Munich, the office leasing market exhibited very good dynamics with the first half showing a takeup volume of 394.000 sqm, up 25% from the previous year and at a 5-year high. The current vacancy rate at the end of the second quarter was 4.5%, the lowest level in 12 vears.
Letting performance in Vienna with a total of 61,000 sqm in the second quarter came in around 36% above the previous year's level. The vacancy rate fell slightly, as in the previous quarters, and stands at 6.0%. Essentially, no new office space came on to the market in Vienna in the first six months of the year.
Office take-up volume in Warsaw remained at a high level, with a total of about 360,000 sqm in the first half. The office market in Poland's capital continues to be marked by extensive construction activity. According to JLL Research, an area of around 350,000 sqm was completed in the first six months of 2016 (26% above the level in 2015). The vacancy rate is showing a rising trend and is currently at 15.4%. In Budapest, as in the previous quarters, a falling vacancy rate can be seen, currently lying at 10.3% and likely to reduce further in the face of shortterm, limited supply of new space. Take-up of space totalled around 214,000 sqm in the first half. In Prague, letting activity of about 113,000 sqm was recorded in the second quarter (an increase of 27% on the previous quarter). The average vacancy rate went down to 12.3%. In Bucharest, the high dynamism seen at the beginning of the year continued throughout the second quarter. Letting activity again totalled just above 100,000 sqm. The vacancy rate has fallen further and currently stands at 11.9%.
$^{1}$ ) CBRE: European Investment Quarterly Q2 2016, Austria Investment Q2 2016, Germany Commercial Investment H1 2016, Germany Office Investment Q2 2016, CEE Property Investment H1 2016, Czech Republic Property Investment Q2 2016
$^{\rm 2)}$ Jones Lang LaSalle: Budapest, Warsaw City Report Q2 2016; CBRE: Vienna, Berlin, Frankfurt, Munich, Prague, Bucharest Office MarketView O2 2016
As at key date 30 June 2016, CA Immo's total property assets stood at € 3.7 bn (31.12.2015: € 3.7 bn). The company's core business is commercial real estate, with a clear focus on office properties in Germany, Austria and Eastern Europe; it deals with both investment properties (83% of the total portfolio) and investment properties under development (12% of the total portfolio). Properties intended for trading (reported under short-term property assets) account for the remaining 5% of property assets.
As at 30 June 2016, the investment property portfolio had an approximate market value of $\epsilon$ 3.1 bn (of which fully consolidated: $\in$ 2.8 bn) and incorporated a total rentable effective area1 of 1.4 m sqm. Around 45% of the portfolio (on the basis of book value) is located in CEE and SEE nations, with 37% of the remaining investment properties in Germany and 18% in Austria.
In the first six months of the year, the Group generated rental income of $\epsilon$ 89.9 m; the portfolio produced a yield of 6.4%2). The occupancy rate was 92.3%2) as at 30 June 2016 (against 92.7% on 31.12.2015). For details, please see the 'Changes to the Portfolio' section.
1) Including properties used for own purposes and superaedificates
2) Excl. the shortly completed office projects Kontorhaus (Munich), John F. Kennedy Haus and Monnet 4 (Berlin). These project completions includ-
ed, the yield stands at 6.1% and the occupancy rate is 90.6%
PROPERTY ASSETS OF THE CA IMMO GROUP AS AT 30 JUNE 2016
| in $\epsilon$ m | Investment properties Investment properties | Short-term property Property assets Property assets |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| under development | assets | in $%$ | |||||||||||||
| full | at | Σ | full | at | Σ | full | at | Σ | full | at | Σ | full | at | Σ | |
| equity | equity | equity | equity | equity | |||||||||||
| Austria | 570 | $\overline{0}$ | 570 | 4 | $\Omega$ | $\overline{4}$ | 23 | 30 | 597 | 7 | 604 | 18 | $\overline{2}$ | 16 | |
| Germany | 934 | 187 | 1,121 | 399 | $\Omega$ | 399 | 107 | 57 | 164 | 1,440 | 244 | 1,684 | 43 | 66 | 45 |
| Czech Republic | 233 | 30 | 263 | 13 | $\Omega$ | 13 | 0 | $\Omega$ | 0 | 246 | 30 | 276 | 7 | 8 | |
| Hungary | 278 | 35 | 313 | 1 | $\Omega$ | $\mathbf{1}$ | $\Omega$ | 0 | 279 | 35 | 314 | 8 | 9 | 8 | |
| Poland | 291 | 14 | 305 | 0 | $\Omega$ | $\Omega$ | $\Omega$ | 0 | 291 | 14 | 305 | 9 | $\overline{4}$ | 8 | |
| Romania | 261 | $\Omega$ | 261 | 19 | 7 | 25 | 0 | $\Omega$ | 0 | 279 | 7 | 286 | 8 | $\overline{2}$ | 8 |
| Others | 200 | 36 | 236 | 8 | $\Omega$ | 8 | $\Omega$ | $\Omega$ | 208 | 36 | 244 | 6 | 10 | ||
| Total | 2,767 | 302 | 3.069 | 444 | 7 | 451 | 130 | 64 | 194 | 3,341 | 372 | 3.713 | 100 | 100 | 100 |
| Share of total | |||||||||||||||
| portfolio | 83% | 12% | $5\%$ | 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
1) Includes properties used for own purposes; incl. the shortly completed office projects Kontorhaus (Munich), John F. Kennedy Haus and Monnet 4 (Berlin) 2)Short-term property assets including properties intended for trading or sale
Of investment properties under development with a total market value of around $\epsilon$ 450.5 m, development projects and land reserves in Germany account for 89%, while the Eastern Europe segment represents 10% and Austria 1%. Investment properties under development in Germany with a total market value of $\epsilon$ 399.1 m include projects under construction with a value of $\epsilon$ 89.2 m and land reserves with a book value of $\epsilon$ 309.9 m.
Poland
Other
DISTRIBUTION OF BOOK VALUE INVESTMENT PROPERTIES BY COUNTRY (Basis: $\epsilon$ 3.1 bn)
DISTRIBUTION OF BOOK VALUE TOTAL PROPERTIES BY COUNTRY (Basis: € 3.7 bn)
In Germany, CA Immo held investment properties with an approximate value of $\epsilon$ 1,118.3 m1) on 30 June 2016 (thereof $\epsilon$ 931.1 m 100% owned by CA Immo). The occupancy rate for the german investment property assets on the key date was 95.1%2) (against 93.8% on 31.12.2015). 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 $\epsilon$ 27.3 m was generated in the first six months.
Approximately 11,700 sqm of office, logistics and retail space was newly let or extended in Germany between January and the end of Juni. The biggest single rental was the conclusion of a lease agreement for some 2,100 sqm in the LaVista office and commercial building in Düsseldorf's BelsenPark quarter. The tenant is a company in the
personnel services industry. Taking this lease agreement into account, the building is now fully leased.
As at key date 30 June, CA Immo had invested $\epsilon$ 48.2 m in development projects in Germany for 2016. On the basis of total investment costs, the volume of investment properties under construction in Germany (excluding land reserves) is approximately $\epsilon$ 435.7 m. In total, CA Immo holds investment properties under development (including land reserves) with a book value of € 399.1 m.
In January, CA Immo decided to develop an office building spanning some 9,500 sqm of gross office space in Europacity, Berlin. A leasing contract with ABDA -Bundesvereinigung Deutscher Apothekerverbände (Federal Union of German Associations of Pharmacists) concerning some 70% of the office space is already concluded. CA Immo's investment volume for this property will be around $\epsilon$ 35 m; the construction of the building is scheduled to be completed at the beginning of 2019. The contract with ABDA provides that the association will initially occupy the part of the building developed specially for its requirements for two years under a lease and will then become the owner of the property. The remaining areas of the building will remain part of CA Immo's standing portfolio.
| Fair value property assets | Rentable area | Occupancy rate | Annualised rental | Yield | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| income | |||||||||||||||
| in $\epsilon$ m | in sqm | in $\%$ | in $\epsilon$ m | in $%$ | |||||||||||
| full | at | Σ | full | at equity | Σ | full | at | Σ | full | at | Σ | full ! | at | Σ | |
| equity | equity | equity | equity | ||||||||||||
| Austria | 566.1 | 0.0 | 566.1 | 385,709 | $\overline{0}$ | 385,709 | 94.2 | 0.0 | 94.2 | 31.5 | 0.0 | 31.5 | 5.6 | 0.0 | 5.6 |
| Germany | 670.1 | 187.2 | 857.3 | 240,150 | 34,132 | 274,283 | 97.0 | 89.1 | 95.1 | 35.0 | 10.0 | 45.0 | 5.2 | 5.3 | 5.2 |
| Czech Republic | 233.3 | 29.8 | 263.1 | 111,795 | 10,873 | 122,668 | 94.0 | 96.9 | 94.3 | 17.5 | 1.9 | 19.5 | 7.5 | 6.5 | 7.4 |
| Hungary | 278.0 | 34.7 | 312.7 | 162,627 | 39.912 | 202,540 | 88.8 | 85.3 | 88.3 | 21.1 | 3.0 | 24.1 | 7.6 | 8.6 | 7.7 |
| Poland | 291.2 | 13.7 | 304.9 | 93.554 | 5,820 | 99,374 | 89.3 | 100.0 | 89.7 | 19.5 | 0.9 | 20.4 | 6.7 | 6.9 | 6.7 |
| Romania | 260.9 | 0.0 | 260.9 | 106,379 | $\vert 0 \vert$ | 106,379 | 93.7 | 0.0 | 93.7 | 20.9 | 0.0 | 20.9 | 8.0 | 0.0 | 8.0 |
| Others | 199.8 | 36.1 | 236.0 | 114,634 | 23,591 | 138,225 | 86.9 | 90.0 | 87.4 | 14.6 | 3.0 | 17.6 | 7.3 | 8.3 | 7.5 |
| Total | 2,499.4 | 301.6 | 2,801.0 | 1,214,849 | 114,328 | 1,329,177 | 92.6 | 89.8 | 92.3 | 160.1 | 18.9 | 178.9 | 6.4 | 6.3 | 6.4 |
Full: Includes all fully consolidated real estate, i.e. all properties wholly owned by CA Immo
At equity: Includes all real estate (pro-rata-share) partially owned by CA Immo accounted for using the equity method (appears under 'Income from joint ventures' in the income statement)
1) Excludes properties used for own purposes; excludes the recently completed office projects Kontorhaus (Munich), John F. Kennedy Haus and Monnet 4
(Berlin) which are still in a stabilisation phase. These project completions included, the occupancy rate is 90.6% and the yield stands at 6.1%.
2) incl. land leases in Austria (approximately 157,000 sqm)
<sup>1) Includes fully consolidated real estate (wholly owned by CA Immo) and real estate in which CA Immo holds a proportionate share (at equity); excl. properties used for own purposes; incl. the recently completed office projects Kontorhaus (Munich), John F. Kennedy Haus and Monnet 4 (Ber $lin)$
$^{\rm 2)}$ Excludes the recently completed office projects Kontorhaus (Munich), John F. Kennedy Haus and Monnet 4 (Berlin) which are still in a stabilisation phase. These project completions included, the occupancy rate in Germany is 88.5%.
Development of the Baumkirchen Mitte quarter in Munich is proceeding rapidly. Around 525 apartments and a building earmarked for hotel and office use are being constructed on a site spanning some 131,000 sqm in the city's Berg am Laim district. The concept for the new quarter also envisages 2,000 sqm of floor space for social purposes (e.g. daycare centres), 2,400 sqm of retail space for convenience retail outlets and a sports facility. The 425 apartments established in the first three building phases have already been sold; the first phase has been completed and the second and third sections are under construction. The third building section will create 50 additional rented social housing units. The sale of the 50 owner-occupied apartments created in building phase four will start in the autumn of 2016. In addition to these apartments, this phase envisages the approximately 60metre high NEO office and hotel building, which will have gross floor space of roughly 8,500 sqm; implementtation is scheduled to begin before the end of this year.
Visualisisation of the Baumkirchen Mitte city quarter
During the first six months, trading income from German real estate totalled $\epsilon$ 11.6 m. Sales included the 13,400 sqm site of the Alte Bahndirektion building adjacent to Stuttgart station. An agreement was made not to disclose the purchase price, which is well above the current book value.
With this transaction, CA Immo is pushing ahead with the steady liquidation of its German property reserves as it concentrates on the core regions of Berlin, Frankfurt and Munich.
As at 30 June 2016, CA Immo held investment properties in Austria with a value of $\epsilon$ 566.1 m and an occupancy rate of 94.2% (96.5% on 31.12.2015). The company's asset portfolio generated rental income of $\epsilon$ 16.3 m in the first six months. Between January and the end of June, some 14,700 sqm of usable space was newly let in Austria (approximately 13,900 sqm of this was used for offices); contract extensions have been agreed for around 2,500 sqm of office space.
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 and the ViE office building will be built on the site by 2018.
Construction work began on the Wohnbau Süd residential complex, which comprises 220 privately financed rental apartments and roughly 140 parking spaces, at the start of May; CA Immo will complete the project for a local investor by early 2018 under the terms of a forward sale.
Also in the Lände 3 city district, CA Immo and JP Immobilien develop, under a joint venture, around 250 apartments and 170 parking spaces. The investment required for the new project comprising both rental apartments and condominiums totals around $\epsilon$ 60 m. Construction is scheduled to start in fall 2016; completion is expected by the beginning of 2018.
In the same district CA Immo is preparing to realise the ViE office building, which spans approximately 13,800 sqm. The overall investment amounts to approx. $\epsilon$ 38 m. Construction is scheduled to start in the fall of 2016 and should be completed in 2018.
Trading income for Austria amounted to $\epsilon$ 26.4 m in the first six months.
Lobby visualisation of the new office building ViE at Erdberger Lände, Vienna
The value of the CA Immo investment properties is $$1,377.7$ m as at 30 June 2016 (thereof fully consolidated: $\epsilon$ 1,263.2 m). In the first six months, property assets let with a total effective area of around 670,000 sqm generated rental income of 46.3 m. The occupancy rate on the key date was 90.6% (31 December 2015: 91.1%).
New lease agreements relating to around 41,000 sqm rentable area (thereof some 36,000 sqm office space) were concluded in the first six months, as well as contract extensions for some 33,000 sqm rentable area (thereof some 28,300 sqm office space). Biggest single rental was the contract with the software company Misys for 8,000 sqm of office space in the Orhideea Towers office project in Bucharest. The project – developed by CA Immo and comprising 37,000 sqm of gross rentable floor space – will be completed by the end of 2017. With conclusion of this leasing contract, the pre-leasing rate stands at 22%. The total investment volume is $\epsilon$ 75 m.
In mid-September, CA Immo sold its 50%-share in Poleczki Business Park located at Warsaw airport to its long-term joint venture partner UBM Development AG. The purchase contract was signed; the closing of the transaction is subject to diverse closing conditions. The transaction volume of the sale is more than $\epsilon$ 80 m. With this transaction, CA Immo further reduces the share of minority interests in the portfolio.
The following activities after key date 30 June 2016 are reported:
In July 2016, CA Immobilien Anlagen AG issued a corporate bond with a volume of $\epsilon$ 140 m and a term of five years. The coupon for the fixed-rate bond was 1.875%.
After the Management Board of CA Immobilien Anlagen AG approved the transfer of four registered shares to IMMOFINANZ AG, Immofinanz announced on 2 August 2016 that it had completed the acquisition of 25,690,163 bearer shares in CA Immobilien Anlagen AG (equivalent to a holding of approximately 26% in CA Immo) from Termin Limited (Cyprus) along with four registered shares from O1 Group Limited (Cyprus). As of this key date, IMMOFINANZ AG had made partial use of the
rights of appointment associated with the registered shares to remove Dr. Wolfgang Renner and Marina Rudneva as members of the Supervisory Board. Dr. Oliver Schumy and Stefan Schönauer were appointed to the two vacant Supervisory Board mandates with immediate effect until further notice.
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.
Rental agreements on 2,100 sqm of 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 30 June 2016, CA Immo had a total of 360 employees1, compared to 357 on 31 December 2015.2 21% of the overall workforce was based in Austria, with 51% in Germany and 28% in Eastern Europe. Of the 360 staff members, 56% are female.
| Headcounts | Headcounts | Change to | |
|---|---|---|---|
| as at | as at | 31.12.2015 | |
| 30.6.2016 | 31.12.2015 | ||
| Austria | 74 | 75 | $-1\%$ |
| Germany/Switzer | $1\%$ | ||
| $land$ 4) | 185 | 184 | |
| Eastern Europe | 101 | 98 | 3% |
| Total | 360 | 357 | $1\%$ |
3) Includes staff on unpaid leave
4) Includes employees of CA Immo Deutschland GmbH, the wholly owned subsdiary omniCon, the 49%-owned subsidiary DRG, the 50%-owned subsidiary Mainzer Zollhafen GmbH & Co.KG as well as 15 staff members at the omniCon branch in Basel
---------------------------------------Around 15% were part-time employees; includes staff on unpaid leave
$^{\rm 2}$ Around 9% were part-time employees; includes staff on unpaid leave
In the first six months of 2016, rental income for CA Immo rose by a significant 18.3% to $\epsilon$ 81,342 K. 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 $\epsilon$ -9,222 K ( $\epsilon$ -8,290 in 2015). The net result from renting stood at $\epsilon$ 72,120 K after the first six months ( $\epsilon$ 60,489 K in 2015). The efficiency of letting activity, measured as the operating margin in rental business (net rental income in relation to rental income), was 88.7%, just above the previous year's value of 87.9%.
Other expenditure directly attributable to project development stood at $\epsilon$ – 1.462 K after the first two quarters, against $\epsilon$ – 713 K in 2015. Gross revenue from services stood at $\epsilon$ 6,149 K, below the previous year's level of $\epsilon$ 8.872 K. Alongside development revenue for third parties via the subsidiary omniCon, this item contains revenue from asset management and other services to joint venture partners.
After the first two quarters, the sales result from property assets held as current assets was $\epsilon$ 557 K ( $\epsilon$ -46 K in 2015). The result from the sale of investment properties stood at $\in$ 2,396 K on 30 June 2016 ( $\in$ 854 K in 2015).
After the first six months, indirect expenses stood at $\epsilon$ – 18,803 K, slightly below the 2015 level of $\epsilon$ -20,532 K. This item also contains expenditure counterbalancing the aforementioned gross revenue from services. Other operating income stood at $\mathfrak{\epsilon}$ 425 K compared to the 2015 value of $\epsilon$ 1.070 K.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) substantially rose by 22.2% to € 61,383 K (compared to € 50,247 K in 2015). This figure, which exceeds that of the previous year, is essentially based on the higher rental income of the Group.
After the first six months, the total revaluation gain of $\epsilon$ 124,606 K was counterbalanced by a revaluation loss of $\epsilon$ – 11,556 K. The cumulative revaluation result of € 113,050 K as at key date 30 June 2016 was much more positive than last year's reference value of $\epsilon$ 46,412 K. This result 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 the first half of 2016 - in combination with strong fundamental data of the letting markets - which is also reflected in the valuation result of CA Immo. Apart from a property in Stuttgart held for sale, the biggest contribution to the revaluation gain was delivered by an undeveloped property in Frankfurt and by the existing properties of Skygarden and Kontorhaus in Munich.
Current results of joint ventures consolidated at equity are reported under 'Earnings of joint ventures' in the consolidated income statement. The declining result of € 2,746 K (down on the 2015 value of $€$ 5,955 K) 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 73.4% to €175,551 K (2015: €101,263 K).
The financial result stood at $\epsilon$ – 38,153 K after the first six months ( $\epsilon$ – 28,156 K in 2015). The Group's financing costs, a key element in long-term revenue, fell sharply $(-30.0\%$ down on the 2015 value to € - 21,928 K). The result from interest rate derivative transactions improved from the previous year to $\epsilon$ – 1,940 K (2015: $\epsilon$ -7,612 K).
The result from financial investments stood at $\epsilon$ 1,883 K, significantly lower than the figure for the reference period of 2015 ( $\epsilon$ 9,715 K). The value for last year primarily includes accrued interest on loans to joint venture companies repurchased below par by the financing bank.
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 €-16,168 K (€ 1,054 K in 2015). The
result from other financial assets includes depreciation linked to the subsequent valuation of securities available for sale of $\epsilon$ – 14,946 K.
Earnings before taxes (EBT) stood at $\epsilon$ 137,398 K, up 87.9% on the previous year's value of $\epsilon$ 73,107 K. After the first six months, taxes on earnings stood at $\epsilon$ – 38,535 K (€ -18,111 K in 2015).
The result for the period was 79.8% up on last year's value, amounting to $\epsilon$ 98,864 K. Earnings per share amounted to $\epsilon$ 1.03 on the balance sheet date ( $\epsilon$ 0.56 per share in 2015).
An FFO I of $\epsilon$ 43,798 K was generated in the first six months of 2016, 16.2% above the previous year's value of $\epsilon$ 37,706 K. FFO I, a key indicator of the Group's longterm 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 $\epsilon$ 0.46 ( $\epsilon$ 0.38 per share in 2015). FFO II, which includes the sales result and applicable taxes, was $\epsilon$ 41,036 K on the key date, up 14.2% from the figure for 2015 amounting to $\epsilon$ 35,939 K. FFO II per share was $\epsilon$ 0.43 per share ( $\epsilon$ 0.37 per share in $2015$ ).
| €m | 1st half | 1st half |
|---|---|---|
| 2016 | 2015 | |
| Net rental income (NRI) | 72.1 | 60.5 |
| Result from hotel operations | $0.0^-$ | 0.3 |
| Income from services rendered | 6.1 | 8.9 |
| Other expenses directly related to | ||
| properties under development | $-1.5$ | $-0.7$ |
| Other operating income | 0.4 | 1.1 |
| Other operating income/expenses | 5.1 | 9.5 |
| Indirect expenses | $-18.8$ | $-20.5$ |
| Result from investments in joint | ||
| ventures 1) | 4.6 | 8.9 |
| Finance costs | $-21.9$ | $-31.3$ |
| Result from financial investments | 1.9 | 9.7 |
| Other adjustment 2) | 0.8 | 1.0 |
| FFO I (excl. trading and pre-taxes) | 43.8 | 37.7 |
| Trading result | 0.6 | 0.0 |
| Result from the sale of investment | ||
| properties | 2.4 | 0.9 |
| Result from sale of joint ventures | 0.9 | 0.7 |
| At-equity result from property | ||
| sales | $-0.6$ | $-0.4$ |
| Result from property sales | 3.2 | 1.1 |
| Other financial results | 0.0 | 0.0 |
| Current income tax | $-3.8$ | $-1.6$ |
| Current income tax of joint ventures | $-0.9$ | $-0.3$ |
| Other adjustments | $-1.3$ | $-1.0$ |
| Other adjustments FFO II | 0.0 | 0.0 |
| FFO II | 41.0 | 35.9 |
1) Adjustment for real estate sales and non-sustainable results
2) Adjustment for other non-sustainable results
As at the balance sheet date, long-term assets amounted to $\epsilon$ 3.483.150 K (84% of total assets). Investment property assets on balance sheet amounted to $\epsilon$ 2,760,360 K on the key date (31.12.2015: € 2,714,305 K).
The balance sheet item 'Property assets under development' was $\epsilon$ 443,699 K on 30 June 2016 (31.12.2015: $\epsilon$ 408,979 K). Total property assets (investment properties, hotels and other properties used for own purposes, property assets under development and property assets held as current assets) amounted to $\epsilon$ 3,340,724 K on the key date.
Assets and debts of joint ventures are no longer reported individually in the consolidated balance sheet; instead, the net assets of these companies are shown in the balance sheet item 'Investments in joint ventures', which stood at $\epsilon$ 159,660 K on the key date (31.12.15: € 172,286 K).
Cash and cash equivalents stood at $\epsilon$ 265,863 K on the balance sheet date, up on the level for 31 December 2015 $(\text{\textsterling} 207, 112 \text{ K}).$
As at the key date, shareholders' equity on the Group balance sheet stood at $\epsilon$ 2,153,575 K ( $\epsilon$ 2,120,450 K on 31.12.2015). The equity ratio of 51.7% 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 $\epsilon$ 1,509,270 K on the key date against $\epsilon$ 1,403,989 K on 31.12.2015). Net debt (interest-bearing liabilities less cash and cash equivalents) increased by 3.9% on the value for the start of the year (€ 1,191,446 K), amounting to € 1,238,496 K at end of June 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 $\epsilon$ 150 m, a term of seven years and an interest rate of 2.75%. In July 2016, another corporate bond with a volume of $\epsilon$ 140 m, 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 will mainly serve to refinance the bond 2006-2016 due in September 2016 ( $\epsilon$ 186 m) 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 June 2016 was 37.1% (net, taking account of Group cash and cash equivalents) compared to 37.2% at the start of the year. Gearing was 57.5% on the key date (56.2% on 31.12.2015).
NAV (shareholders' equity) was $\epsilon$ 2,153,536 K on 30 June 2016 ( $\epsilon$ 22.58 per share), compared to the figure for the end of 2015 (€ 2,120,410 K, € 21.90 per share), representing an increase per share of 3.1%. 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 $\epsilon$ 47,904 K, growth of the NAV per share for the first half of 2016 arrived at 7.6%.
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 € 25.68 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 € 23.61 per share as at 30 June 2016 (€ 22.69 per share on 31.12.2015). The share buyback programme initiated in the first quarter of 2016 has further reduced the number of shares outstanding to 95,355,807 on the key date (96,808,336 on 31.12.2015).
| $\epsilon$ m | 30.6.2016 | 31.12.2015 |
|---|---|---|
| Equity (NAV) | 2,153.5 | 2,120.5 |
| Exercise of options | 0.0 | 0.0 |
| NAV after exercise of options | 2,153.5 | 2,120.5 |
| NAV/share in $\epsilon$ | 22.58 | 21.90 |
| Value adjustment for 1) | ||
| - own use properties | 5.7 | 5.1 |
| - short-term property assets | 51.3 | 24.3 |
| - Financial instruments | 4.2 | 5.1 |
| Deferred taxes | 234.5 | 199.4 |
| EPRA NAV after adjustments | 2,449.2 | 2,354.4 |
| EPRA NAV per share in $\epsilon$ | 25.68 | 24.32 |
| Value adj. for financial instruments | $-4.2$ | $-5.1$ |
| Value adjustment for liabilities | $-22.1$ | $-8.9$ |
| Deferred taxes | $-171.4$ | $-144.1$ |
| EPRA NNNAV | 2,251.5 | 2,196.3 |
| EPRA NNNAV per share in $\epsilon$ | 23.61 | 22.69 |
| Change of NNNAV against previous year | 4.1% | |
| Price $(30.06.)/NNNAV$ per share $-1$ | $-36.4$ | $-25.8$ |
| Number of shares excl. treasury shares | 95,355,807 | 96,808,336 |
$1)$ 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.
CA Immo evaluates the current opportunity/threat situation through quarterly reporting. Risk is assessed in relation to specific properties and projects as well as (sub)portfolios. The company incorporates early warning
indicators such as rent forecasts, vacancy analyses, continual monitoring of lease agreement periods and the possibility of terminations; construction costs are also tracked during project implementation. Scenarios are envisaged regarding the value trend for the real estate portfolio, exit strategies and liquidity planning; these supplement risk reporting and promote reliable planning. CA Immo observes the precautionary principle by applying the full investment horizon to long-term planning and investment decisions. The company also evaluates specific risks at regular intervals (most recently in 2015), focusing on content, effect and likelihood of occurrence.
Despite the vote for Brexit, numerous forecasts envisage the continuation of positive economic development in Europe for 2016 and 2017. We expect the general conditions on CA Immo's core markets will remain conducive to business. With the environment in Germany remaining fundamentally strong, core markets in Eastern Europe are also reporting clear growth trends. The financing and interest environment will continue to define the real estate sector.
| € 1,000 | Half-year 2016 | Half-year 2015 | 2 nd Quarter 2016 | $2^{\rm nd}$ Quarter 2015 |
|---|---|---|---|---|
| Rental income | 81,342 | 68,779 | 41,149 | 34,054 |
| Operating costs charged to tenants | 24,941 | 19,077 | 11,120 | 9,972 |
| Operating expenses | $-29,641$ | $-22,910$ | $-13,144$ | $-11,974$ |
| Other expenses directly related to properties rented | $-4,522$ | $-4,457$ | $-2,257$ | $-2,741$ |
| Net rental income | 72,120 | 60,489 | 36,868 | 29,310 |
| Revenues hotel operations | $\Omega$ | 1,681 | $\overline{0}$ | 646 |
| Expenses related to hotel operations | $\overline{0}$ | $-1,429$ | $\overline{0}$ | $-388$ |
| Result from hotel operations | $\bf{0}$ | 252 | $\bf{0}$ | 258 |
| Other expenses directly related to properties under development | $-1,462$ | $-713$ | $-502$ | $-368$ |
| Income from the sale of properties and construction works | 6,310 | 1,099 | 6,142 | 282 |
| Book value of sold properties incl. ancillary and construction | ||||
| costs | $-5,753$ | $-1,145$ | $-5,001$ | $-372$ |
| Result from trading and construction works | 557 | - 46 | 1,141 | $-90$ |
| Result from the sale of investment properties | 2,396 | 854 | 1,194 | - 247 |
| Income from services rendered | 6,149 | 8,872 | 3,072 | 4,342 |
| Indirect expenses | $-18,803$ | $-20,532$ | $-9,329$ | $-11,375$ |
| Other operating income | 425 | 1,070 | 140 | 585 |
| EBITDA | 61,383 | 50,247 | 32,584 | 22,415 |
| Depreciation and impairment of long-term assets | $-1,657$ | $-1,351$ | $-834$ | $-710$ |
| Changes in value of properties held for trading | 29 | $\overline{0}$ | $\overline{0}$ | $\Omega$ |
| Depreciation and impairment/reversal | $-1,628$ | $-1,351$ | $-834$ | $-710$ |
| Revaluation gain | 124,606 | 66,744 | 104,113 | 64,438 |
| Revaluation loss | $-11,556$ | $-20,332$ | $-7,805$ | $-13,057$ |
| Result from revaluation | 113,050 | 46,412 | 96,308 | 51,381 |
| Result from joint ventures | 2,746 | 5,955 | 950 | 2,940 |
| Result of operations (EBIT) | 175,551 | 101,263 | 129,007 | 76,025 |
| Finance costs | $-21,928$ | $-31,312$ | $-10,746$ | $-16,462$ |
| Foreign currency gains/losses | $-35$ | 618 | 109 | $-87$ |
| Result from interest rate derivative transactions | $-1,940$ | $-7,612$ | $-384$ | $-9,317$ |
| Result from financial investments | 1,883 | 9,715 | 1,025 | 3,543 |
| Result from other financial assets | $-14,946$ | $\overline{0}$ | $\overline{0}$ | 12 |
| Result from associated companies | $-1,187$ | 436 | $-752$ | 1,110 |
| Financial result | $-38,153$ | 28,156 | $-10,748$ | 21,201 |
| Net result before taxes (EBT) | 137,398 | 73,107 | 118,259 | 54,824 |
| Current income tax | $-3,802$ | $-1,643$ | $-16$ | 1,533 |
| Deferred taxes | $-34,734$ | $-16,468$ | $-32,593$ | $-20,696$ |
| Income tax expense | $-38,535$ | $-18,111$ | $-32,609$ | $-19,163$ |
| Consolidated net income | 98,863 | 54,996 | 85,650 | 35,661 |
| thereof attributable to non-controlling interests | $-1$ | $\boldsymbol{0}$ | $\overline{4}$ | $\overline{0}$ |
| thereof attributable to the owners of the parent | 98,864 | 54,996 | 85,647 | 35.661 |
| Earnings per share in $\epsilon$ (basic) | € 1.03 | $\epsilon$ 0.56 | $\epsilon$ 0.89 | $\epsilon$ 0.36 |
| Earnings per share in $\epsilon$ (diluted) | €1.03 | $\epsilon$ 0.56 | € 0.89 | $\in 0.36$ |
.......................................
| € 1,000 | Half-year 2016 | Half-year 2015 | $2nd$ Quarter 2016 | $2nd$ Quarter 2015 |
|---|---|---|---|---|
| Consolidated net income | 98,863 | 54,996 | 85,650 | 35.661 |
| Other comprehensive income | ||||
| Cash flow hedges - changes in fair value | 1,074 | 306 | 656 | $-1.467$ |
| Reclassification cash flow hedges | 177 | 18,980 | $\Omega$ | 18,980 |
| Foreign currency gains/losses | 165 | $-3,658$ | $-406$ | $-816$ |
| Assets available for sale - changes in fair value | 4,187 | $-8,136$ | 3,616 | $-27,084$ |
| Income tax related to other comprehensive income | $-660$ | $-4,119$ | $-374$ | 827 |
| Other comprehensive income for the period (realised through | ||||
| profit or loss) | 4.943 | 3,373 | 3,491 | $-9,561$ |
| Revaluation IAS 19 | $-312$ | 21 | $-312$ | 21 |
| Income tax related to other comprehensive income | 100 | $-7$ | 100 | |
| Other comprehensive income for the period (not realised through | ||||
| profit or loss) | $-213$ | 14 | $-213$ | 14 |
| Other comprehensive income for the period | 4,731 | 3,387 | 3,279 | $-9,546$ |
| Comprehensive income for the period | 103,593 | 58,384 | 88,929 | 26,115 |
| thereof attributable to non-controlling interests | $-1$ | $\Omega$ | ||
| thereof attributable to the owners of the parent | 103,594 | 58,384 | 88,925 | 26,115 |
| € 1,000 | 30.6.2016 | 31.12.2015 | |
|---|---|---|---|
| ASSETS | |||
| Investment properties | 2,760,360 | 2,714,305 | |
| Investment properties under development | 443,699 | 408,979 | |
| Own used properties | 6,820 | 7,016 | |
| Office furniture and other equipment | 5,755 | 5,710 | |
| Intangible assets | 10,297 | 11,567 | |
| Investments in joint ventures | 159,660 | 172,286 | |
| Financial assets | 94,835 | 134,824 | |
| Deferred tax assets | 1,723 | 2,376 | |
| Long-term assets | 3,483,150 | 3,457,063 | |
| Long-term assets as a % of total assets | 83.7% | 86.8% | |
| Assets held for sale | 103,507 | 54,048 | |
| Properties held for trading | 26,338 | 22,069 | |
| Receivables and other assets | 284,858 | 243,691 | |
| Cash and cash equivalents | 265,863 | 207,112 | |
| Short-term assets | 680,565 | 526,920 | |
| Total assets | 4,163,715 | 3,983,983 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Share capital | 718,337 | 718,337 | |
| Capital reserves | 851,277 | 921,746 | |
| Other reserves | 984 | $-3,746$ | |
| Retained earnings | 582,938 | 484,074 | |
| Attributable to the owners of the parent | 2,153,536 | 2,120,410 | |
| Non-controlling interests | 39 | 40 | |
| Shareholders' equity | 2,153,575 | 2,120,450 | |
| Shareholders' equity as a % of total assets | 51.7% | 53.2% | |
| Provisions | 15,831 | 15,980 | |
| Interest-bearing liabilities | 1,064,210 | 858,776 | |
| Other liabilities | 90,007 | 84,911 | |
| Deferred tax liabilities | 232,008 | 197,365 | |
| Long-term liabilities | 1,402,057 | 1,157,032 | |
| Current income tax liabilities | 15,071 | 16,382 | |
| Provisions | 69,725 | 69,177 | |
| Interest-bearing liabilities | 445,060 | 545,214 | |
| Other liabilities | 78,227 | 75,728 | |
| Short-term liabilities | 608,083 | 706.501 | |
| Total liabilities and shareholders' equity | 4,163,715 | 3.983,983 |
. .....................................
......................................
| € 1,000 | Half-year 2016 | Half-year 2015 |
|---|---|---|
| Operating activities | ||
| Net result before taxes | 137,398 | 73,107 |
| Revaluation result incl. change in accrual and deferral of rental income | $-113,198$ | $-48,297$ |
| Depreciation and impairment/reversal | 1,628 | 1,351 |
| Result from the sale of long-term properties and office furniture and other equipment | $-2,400$ | $-856$ |
| Taxes paid/refunded excl. taxes for the sale of long-term properties | $-455$ | $-210$ |
| Finance costs, result from financial investments and other financial result | 20,044 | 21,598 |
| Foreign currency gains/losses | 35 | $-618$ |
| Result from interest rate derivative transactions | 1,940 | 7,612 |
| Result from other financial assets and non-cash income from investments in at equity | ||
| consolidated entities | 13,388 | $-6,391$ |
| Cash flow from operations | 58,381 | 47,296 |
| Properties held for trading | $-4,240$ | $-1.415$ |
| Receivables and other assets | $-2,152$ | 11,202 |
| Provisions | 458 | $-527$ |
| Other liabilities | $-1,060$ | $-2,174$ |
| Cash flow from change in net current assets | $-6,994$ | 7.086 |
| Cash flow from operating activities | 51,387 | 54,382 |
| Investing activities | ||
| Acquisition of and investment in properties incl. prepayments | $-45,240$ | $-41,778$ |
| Acquisition of office equipment and intangible assets | $-493$ | $-496$ |
| Acquisition of financial assets | $\overline{0}$ | $-36,300$ |
| Acquisition of assets available for sale | $-12,073$ | $-91,254$ |
| Investments in joint ventures | $-1,250$ | $-3,048$ |
| Disposal of investment properties and other assets | 17,383 | 98,177 |
| Disposal of investment property companies, less cash and cash equivalents of $\epsilon$ 31 K (2015: | ||
| $\epsilon$ 799 K) | 3,692 | 11,312 |
| Disposal of joint ventures and associated companies | 3,868 | 24,089 |
| Loans made to joint ventures | $-574$ | $-2,551$ |
| Loan repayments made by joint ventures | 5,073 | 118,733 |
| Taxes paid/refunded relating to the sale of long-term properties and loans granted | 3,741 | 5,053 |
| Dividend distribution/capital repayment from at equity consolidated entities and assets | ||
| available for sale | 20,664 | 365 |
| Interest paid for capital expenditure in investment properties | $-1,847$ | 0 |
| Interest received from financial investments | 1,101 | 13,178 |
| Cash flow from investing activities | $-5,954$ | 95,480 |
| Financing activities | ||
| Cash inflow from loans received | 45,225 | 29,062 |
| Cash inflow from the issuance of bonds | 149,318 | 174,387 |
| Acquisition of treasury shares | $-22,565$ | $-13,762$ |
| Dividend payments to shareholders | $-47,904$ | $-44,464$ |
| Payment related to the acquisition of shares from non-controlling interests | $-1,394$ | 0 |
| Repayment of loans incl. interest rate derivatives | $-92,648$ | $-191,358$ |
| Other interest paid | $-16,054$ | $-22,952$ |
| Cash flow from financing activities | 13,978 | $-69,087$ |
| Net change in cash and cash equivalents | 59,410 | 80,775 |
| Cash and cash equivalents as at 1.1. | 207,112 | 163,638 |
| Changes in the value of foreign currency | $-659$ | 188 |
| Cash and cash equivalents as at 30.6. | 265,863 | 244,601 |
| € 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 | 0 | 0 | $\overline{0}$ | |
| Foreign currency gains/losses | 0 | 0 | 0 | |
| Revaluation of assets available for sale | 0 | 0 | $\Omega$ | |
| Revaluation IAS 19 | 0 | $\Omega$ | 0 | |
| Consolidated net income | O | O | 0 | |
| Comprehensive income for 2015 | $\bf{0}$ | $\bf{0}$ | $\bf{0}$ | |
| Dividend payments to shareholders | 0 | $-44,464$ | $\Omega$ | |
| Acquisition of treasury shares | 0 | 0 | $-13,762$ | |
| As at 30.6.2015 | 718,337 | 954,375 | $-13,762$ | |
| As at 1.1.2016 | 718,337 | 954,052 | $-32,306$ | |
| Valuation / reclassification cash flow hedges | 0 | 0 | $\bf{0}$ | |
| Foreign currency gains/losses | 0 | 0 | $\mathbf 0$ | |
| Revaluation of assets available for sale | 0 | 0 | $\overline{0}$ | |
| Revaluation IAS 19 | 0 | $\overline{0}$ | $\overline{0}$ | |
| Consolidated net income | 0 | 0 | $\overline{0}$ | |
| Comprehensive income for 2016 | $\bf{0}$ | $\bf{0}$ | $\bf{0}$ | |
| Dividend payments to shareholders | 0 | $-47,904$ | $\overline{0}$ | |
| Acquisition of treasury shares | 0 | 0 | $-22,565$ | |
| As at 30.6.2016 | 718,337 | 906,148 | $-54,871$ |
| Retained earnings |
Valuation result (hedging- reserve) |
Other reserves | shareholders of the parent company |
Attributable to Non-controlling interests |
Shareholders' equity (total) |
|---|---|---|---|---|---|
| 263,235 | $-27,503$ | $-1,201$ | 1,951,708 | $\bf{0}$ | 1,951,708 |
| $\mathbf{0}$ | 16,518 | $\mathbf{0}$ | 16,518 | 0 | 16,518 |
| $\mathbf 0$ | $\mathbf 0$ | $-3,658$ | $-3,658$ | 0 | $-3,658$ |
| $\overline{0}$ | $\Omega$ | $-9,488$ | $-9,488$ | 0 | $-9,488$ |
| $\Omega$ | $\Omega$ | 14 | 14 | $\boldsymbol{0}$ | 14 |
| 54,996 | $\overline{0}$ | $\overline{0}$ | 54,996 | $\boldsymbol{0}$ | 54,996 |
| 54,996 | 16,518 | $-13,131$ | 58,384 | $\bf{0}$ | 58,384 |
| $\mathbf 0$ | $\mathbf 0$ | $\mathbf 0$ | $-44,464$ | $\boldsymbol{0}$ | $-44,464$ |
| $\overline{0}$ | 0 | $\mathbf{0}$ | $-13,762$ | 0 | $-13,762$ |
| 318,231 | $-10,984$ | $-14,332$ | 1,951,865 | $\bf{0}$ | 1,951,865 |
| 484,074 | $-5,131$ | 1,385 | 2,120,410 | 40 | 2,120,450 |
| $\overline{0}$ | 938 | $\overline{0}$ | 938 | $\bf{0}$ | 938 |
| $\overline{0}$ | $\mathbf{0}$ | 165 | 165 | $\bf{0}$ | 165 |
| $\overline{0}$ | $\mathbf{0}$ | 3,841 | 3,841 | $\boldsymbol{0}$ | 3,841 |
| $\mathbf 0$ | 0 | $-213$ | $-213$ | $\mathbf 0$ | $-213$ |
| 98,864 | $\overline{0}$ | $\overline{0}$ | 98,864 | $-1$ | 98,863 |
| 98,864 | 938 | 3,793 | 103,594 | $-1$ | 103,593 |
| $\overline{0}$ | $\overline{0}$ | $\bf{0}$ | $-47,904$ | 0 | $-47,904$ |
| $\overline{0}$ | $\Omega$ | $\mathbf{0}$ | $-22,565$ | $\bf{0}$ | $-22,565$ |
| 582,938 | $-4,193$ | 5,178 | 2,153,536 | 39 | 2,153,575 |
. .. .. .. . . . . . . . . . . . . . . .
| € 1,000 | Austria | Germany | ||||||
|---|---|---|---|---|---|---|---|---|
| Half-year 2016 | Income | Development | Total | Income Development | Total | Income | ||
| producing | producing | producing | ||||||
| Rental income | 16,341 | $\overline{0}$ | 16,341 | 29,209 | 7,287 | 36,496 | 41,057 | |
| Rental income with other operating | ||||||||
| segments | 260 | $\overline{0}$ | 260 | 365 | $\overline{0}$ | 365 | $\overline{0}$ | |
| Operating costs charged to tenants | 4,550 | $\overline{0}$ | 4,550 | 7,610 | 1,500 | 9,110 | 14,807 | |
| Operating expenses | $-5,148$ | $\mathbf{0}$ | $-5,148$ | $-8,882$ | $-2,268$ | $-11,150$ | $-16,519$ | |
| Other expenses directly related to | ||||||||
| properties rented | $-1,275$ | $\overline{0}$ | $-1,275$ | $-2,053$ | 167 | $-1,886$ | $-2,686$ | |
| Net rental income | 14,728 | 0 1 | 14,728 | 26,248 | 6,687 | 32,935 | 36,661 | |
| Result from hotel operations | 0 | $\overline{0}$ | $\Omega$ | $\mathbf 0$ | 0 | $\Omega$ | $\mathbf 0$ | |
| Other expenses directly related to | ||||||||
| properties under development | $\Omega$ | $-206$ | $-206$ | 0 | $-1,592$ | $-1,592$ | $\mathbf 0$ | |
| Result from trading and construction | ||||||||
| works | $\mathbf{0}$ | 1,173 | 1,173 | $\overline{0}$ | 2,087 | 2,087 | $\overline{0}$ | |
| Result from the sale of investment | ||||||||
| properties | $-24$ | $-167$ | $-190$ | 1,957 | $-3,112$ | $-1,155$ | 715 | |
| Income from services rendered | 34 | $\Omega$ | 34 | 132 | 5,339 | 5,470 | 686 | |
| Indirect expenses | $-751$ | $-27$ | $-778$ | $-2,639$ | $-6,826$ | $-9,465$ | $-5,276$ | |
| Other operating income | $\overline{7}$ | $\overline{0}$ | $\overline{7}$ | 157 | 213 | 370 | 91 | |
| EBITDA | 13,994 | 774 | 14,768 | 25,854 | 2,795 | 28,650 | 32,877 | |
| Depreciation and impairment/reversal | $-839$ | $\overline{0}$ | $-839$ | $-62$ | $-252$ | $-315$ | $-118$ | |
| Result from revaluation | 7,400 | 42 | 7,443 | 53,409 | 61,087 | 114,497 | $-954$ | |
| Result from joint ventures | $\overline{0}$ | $\overline{0}$ | $\overline{0}$ | 0 | $\overline{0}$ | $\Omega$ | $\overline{0}$ | |
| Result of operations (EBIT) | 20,556 | 817 | 21,372 | 79,201 | 63,630 | 142,832 | 31,804 |
| Property assets 1) | 593.086 | 18.351 | 611.437 | 1,216,762 | 897.950 2.114.713 | 1,230,810 | ||
|---|---|---|---|---|---|---|---|---|
| Other assets | 17.715 | 29,333 | 47.049 | 180.190 | 387.133 | 567,323 | 230,134 | |
| Deferred tax assets | 0 | $\Omega$ | $\Omega$ | 981 | 358 | 1,339 | 643 | |
| Segment assets | 610,801 | 47,684 658,485 | 1,397,933 | 1,285,442 2,683,374 | 1,461,587 | |||
| Interest-bearing liabilities | 253.249 | 20.518 273.767 | 730.601 | 261.363 | 991.964 | 799.567 | ||
| Other liabilities | 18.777 | 10.163 | 28,940 | 28.934 | 261.695 | 290.628 | 36,577 | |
| Deferred tax liabilities incl. current | ||||||||
| income tax liabilities | 51,140 | 1.094 | 52,235 | 126.390 | 87.469 | 213.859 | 48.398 | |
| Liabilities | 323,166 | 31,775 | 354,942 | 885,925 | 610,526 1,496,451 | 884,542 | ||
| Shareholders' equity | 287,635 | 15,909 303,544 | 512.008 | 674,915 1.186,923 | 577,045 | |||
| Capital expenditures 2) | 800 | 1.408 | 2,208 | 6,369 | 55.858 | 62,227 | 7,856 | |
1) Property assets include rental investment properties, investment properties under development, own used properties, properties held for trading and properties available for sale.
2) Capital expenditures include all
| Eastern Europe core regions |
Eastern Europe other regions |
Total segments |
Transition | Total | ||||
|---|---|---|---|---|---|---|---|---|
| Development | Total | Income | Development | Total | Holding | Consolidation | ||
| producing | ||||||||
| 846 | 41,903 | 8,367 | $\overline{0}$ | 8,367 | 103,107 | $\overline{0}$ | $-21,765$ | 81,342 |
| $\mathbf{0}$ | $\overline{0}$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\mathbf{0}$ | 625 | $\overline{0}$ | $-625$ | $\mathbf{0}$ |
| 366 | 15,174 | 3,168 | $\mathbf{0}$ | 3,168 | 32,002 | $\overline{0}$ | $-7,061$ | 24,941 |
| $-340$ | $-16,859$ | $-3,626$ | 0 | $-3,626$ | $-36,783$ | 0 | 7,142 | $-29,641$ |
| $-36$ | $-2,721$ | $-217$ | 0 | $-217$ | $-6,100$ | 0 | 1,577 | $-4,522$ |
| 836 | 37,497 | 7,692 | $\bf{0}$ | 7,692 | 92,852 | $\bf{0}$ | $-20,731$ | 72,120 |
| $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\mathbf{0}$ | $\boldsymbol{0}$ |
| $-74$ | $-74$ | $\vert 0 \vert$ | $-25$ | $-25$ | $-1,897$ | $\overline{0}$ | 435 | $-1,462$ |
| $\mathbf 0$ | $\mathbf{0}$ | $\overline{0}$ | $\boldsymbol{0}$ | $\mathbf{0}$ | 3,261 | $\overline{0}$ | $-2,704$ | 557 |
| 426 | 1,140 | 0 | $\mathbf{0}$ | $\mathbf{0}$ | $-205$ | $\overline{0}$ : | 2,601 | 2,396 |
| $\overline{0}$ | 686 | $\overline{0}$ | 0 | $\overline{0}$ | 6,190 | 3,662 | $-3,703$ | 6,149 |
| $-373$ | $-5,649$ | $-637$ | $-44$ | $-681$ | $-16,573$ | $-7,973$ | 5,743 | $-18,803$ |
| $\overline{4}$ | 95 | 5 | $\mathbf{0}$ | 5 | 476 | 121 | $-172$ | 425 |
| 818 | 33,695 | 7,059 | $-69$ | 6,991 | 84,103 | $-4,189$ | $-18,531$ | 61,383 |
| $-5$ | $-123$ | $-1$ | $\boldsymbol{0}$ | $-1$ | $-1,277$ | $-263$ | $-88$ | $-1,628$ |
| $-1,605$ | $-2,559$ | 2,296 | $-100$ | 2,196 | 121,576 | 0 | $-8,526$ | 113,050 |
| $\mathbf{0}$ | $\boldsymbol{0}$ | $\overline{0}$ | $\overline{0}$ | $\mathbf{0}$ | $\mathbf 0$ | 0 | 2,745 | 2,746 |
| $-792$ | 31,012 | 9,355 | $-169$ | 9,186 | 204,402 | $-4,452$ | $-24,399$ | 175,551 |
......................................
÷.
| $-924.154$ | 0 | 4.264.878 | 235.710 | 3.300 | 232,410 | 1.303.019 | 72.209 |
|---|---|---|---|---|---|---|---|
| $-815.979$ | 766.387 | 870.860 | 16.282 | 8.058 | 8.224 | 240.207 | 10.073 |
| $-42.435$ | 42.103 | 2,055 | $\mathbf{0}$ | 0 | $\overline{0}$ | 717 | 74 |
| $-1.782.569$ | 808.490 | 5,137,794 | 251.992 | 11.358 | 240.634 | 1.543.943 | 82.356 |
| $-1,329,323$ | 533,191 | 2,305,402 | 157,538 | 13,146 | 144,392 | 882,133 | 82,566 |
| $-121.479$ | 6.935 | 368,335 | 8.562 | 5 | 8,557 | 40.204 | 3.627 |
| $-81.964$ | 3.961 | 325,082 | 8.184 | 8,184 | 50.804 | 2.406 | |
| $-1,532,766$ | 544.087 | 2.998.819 | 174.284 | 13.151 | 161,133 | 973,142 | 88,599 |
| $-249.803$ | 264.403 | 2.138.975 | 77,708 | $-1.793$ | 79,501 | 570.801 | $-6.244$ |
| $-29.106$ | 212 | 83,453 | 4.839 | 4,839 | 14,179 | 6,322 | |
| Austria | Germany | |||||
|---|---|---|---|---|---|---|
| Total | Income | Development | Total | Income | ||
| producing | producing | |||||
| 18,346 | 28,298 | 7,581 | 35,878 | 48,268 | ||
| 261 | 257 | $\mathbf{0}$ | 257 | $\overline{0}$ | ||
| 5,215 | 6,979 | 1,116 | 8,095 | 17,727 | ||
| $-5,601$ | $-8,309$ | $-1,775$ | $-10,084$ | $-20,044$ | ||
| $-1,223$ | $-1,665$ | $-782$ | $-2,448$ | $-3,482$ | ||
| 16,997 | 25,560 | 6.139 | 31,698 | 42,469 | ||
| $\mathbf 0$ | $\overline{0}$ | $\Omega$ | $\mathbf{0}$ | $\Omega$ | 252 | |
| $\overline{0}$ $-2$ |
$-2$ | 0 | $-836$ | $-836$ | $\overline{0}$ | |
| $\mathbf{0}$ $\mathbf{0}$ |
$\overline{0}$ | $\boldsymbol{0}$ | $-3,464$ | $-3,464$ | $\overline{0}$ | |
| $-726$ | 2,606 | $-535$ | 2,072 | 939 | ||
| 42 | 297 | 5,992 | 6,289 | 317 | ||
| $-233$ | $-740$ | $-2,242$ | $-7,566$ | $-9,808$ | $-5,272$ | |
| $\Omega$ | 13 | 395 | 338 | 734 | 416 | |
| $-236$ | 15,585 | 26,616 | 69 | 26,685 | 39,122 | |
| $\overline{0}$ | $-607$ | $-68$ | $-258$ | $-327$ | $-58$ | |
| 4,219 | 5,611 | 40,780 | 16,251 | 57,031 | $-14,179$ | |
| $\overline{0}$ | $\overline{0}$ | $\overline{0}$ | $\overline{0}$ | $\Omega$ | ||
| 3,983 | 20,590 | 67,327 | 16,062 | 83,389 | 24,885 | |
| Income producing 18,346 261 5,215 $-5,601$ $-1,223$ 16,997 $-726$ 42 $-506$ 13 15,821 $-607$ 1,393 16,607 |
Development $\mathbf{0}$ $\mathbf{0}$ $\mathbf 0$ $\mathbf{0}$ 0 1 $\bf{0}$ $\Omega$ $\mathbf{0}$ $\overline{0}$ $\mathbf{0}$ |
$\overline{0}$ |
. . . . . . . . . . . . . . . . . . . .
| 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 | $\Omega$ | $\theta$ | $\Omega$ | 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 | ||||||||
| 765 | 49,033 | 8,624 | $\boldsymbol{0}$ | 8,624 | 111,881 | $\boldsymbol{0}$ | $-43,102$ | 68,779 |
| $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\mathbf 0$ | $\boldsymbol{0}$ | 518 | $\boldsymbol{0}$ | $-518$ | $\mathbf{0}$ |
| 682 | 18,409 | 3,067 | $\overline{0}$ | 3,067 | 34,785 | $\boldsymbol{0}$ | $-15,708$ | 19,077 |
| $-676$ | $-20,720$ | $-3,311$ | $\mathbf{0}$ | $-3,311$ | $-39,716$ | $\boldsymbol{0}$ | 16,806 | $-22,910$ |
| $-411$ | $-3,893$ | $-403$ | $\boldsymbol{0}$ | $-403$ | $-7,966$ | $\boldsymbol{0}$ | 3,509 | $-4,457$ |
| 360 | 42,830 | 7,977 | $\bf{0}$ | 7,977 | 99,503 | $\pmb{0}$ | $-39,013$ | 60,489 |
| $\boldsymbol{0}$ | 252 | $\boldsymbol{0}$ | $\mathbf{0}$ | $\boldsymbol{0}$ | 252 | 0 | $\mathbf 0$ | 252 |
| $-69$ | $-69$ | $\boldsymbol{0}$ | $-15$ | $-15$ | $-922$ | $\boldsymbol{0}$ | 209 | $-713$ |
| $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | $-3,464$ | $\boldsymbol{0}$ | 3,419 | $-46$ |
| 993 | 1,933 | $\boldsymbol{0}$ | 148 | 148 | 3,426 | 0 | $-2,573$ | 854 |
| $\boldsymbol{0}$ | 317 | $\overline{0}$ | $\boldsymbol{0}$ | $\boldsymbol{0}$ | 6,649 | 1,690 | 533 | 8,872 |
| $-682$ | $-5,953$ | $-687$ | $-42$ | $-728$ | $-17,229$ | $-6,299$ | 2,996 | $-20,532$ |
| 59 | 475 | 19 | 3 | 22 | 1,244 | 278 | $-452$ | 1,070 |
| 662 | 39,785 | 7,310 | 94 | 7,404 | 89,459 | $-4,331$ | $-34,881$ | 50,247 |
| $\boldsymbol{0}$ | $-58$ | $-1$ | $\mathbf{0}$ | $-1$ | $-992$ | $-344$ | $-15$ | $-1,351$ |
| $-1,361$ | $-15,540$ | $-1,459$ | $\overline{0}$ | $-1,459$ | 45,643 | 0 | 769 | 46,412 |
| $\boldsymbol{0}$ | $\boldsymbol{0}$ | $\mathbf{0}$ | $\bf{0}$ | $\boldsymbol{0}$ | $\overline{0}$ | $\boldsymbol{0}$ | 5,955 | 5,955 |
| $-699$ | 24,187 | 5,850 | 94 | 5,944 | 134,109 | $-4,674$ | $-28,172$ | 101,263 |
| 106,967 | 1,468,675 | 225,340 | 3,400 | 228,740 | 4,289,605 | $\mathbf 0$ | $-1,086,172$ | 3,203,434 |
| 12,841 | 227,876 | 10,000 | 9,055 | 19,054 | 885,773 | 689,650 | $-797,249$ | 778,173 |
| 128 | 1,351 | $\overline{0}$ | 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 | $\mathbf{1}$ | 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 |
$3,441$
19,224
572,799
35,600
$40,550$
2,825
$-657$
$\overline{0}$
39,893
2,825
2,096,243
229,790
269,033
590
$\boxed{2,120,450}$
92,508
$-244,826$
$-137,871$
The condensed consolidated interim financial statements of CA Immobilien Anlagen Aktiengesellschaft ("CA Immo AG"), Vienna as at 30.6.2016 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 30.6.2016 (except for the quarterly information disclosed in the consolidated income statement and the consolidated statement of comprehensive income) have been reviewed by KPMG Austria GmbH Wirtschaftsprüfungs und Steuerberatungsgesellschaft, Vienna.The use of automatic data processing equipment may lead to rounding differences in the addition of rounded amounts and percentage rates.
The condensed consolidated interim financial statements by 30.6.2016 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 |
| matrix the contract that the contract of a contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the con |
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 half of 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.
The financial assets (long term assets) consist of the following items:
| 30.6.2016 | 31.12.2015 | |
|---|---|---|
| Loans to joint ventures | 4.182 | |
| Loans to associated companies | 11.640 | |
| Other investments . |
59.890 | 58.660 |
| Other financial assets | 19.122 | 57.174 |
| Financial assets |
94.835 | . |
As at 30.6.2016, three properties in Austria and two in Germany, in the amount of € 103,507 K are presented as held for sale. A sale within one year from the date of reclassification is regarded as highly probable.
As at 30.6.2016, CA Immo Group held cash and cash equivalents amounting to € 265,863 K, cash and cash equivalents contain bank balances of $\epsilon$ 0 K (31.12.2015: $\epsilon$ 8,178 K) to which CA Immo Group only has restricted access for a period of at most three months and act as collateral for ongoing loan repayments.
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'. Restriced cash with a longer lock-up period (over 12 months) is presented under 'financial assets'.
| € 1,000 | 30.6.2016 | 31,12,2015 |
|---|---|---|
| Maturity $> 1$ year | 7 820 | |
| Maturity from 3 to 12 months | 11.196 | |
| Cash at banks with drawing restrictions |
19.016 |
The result from revaluation in the first half of 2016 results from revaluation gain of $\epsilon$ 124,606 K (mainly from segment Germany) and revaluation $\text{loss of} \ \text{\ensuremath{\mathfrak{E}}}$ 11,556 K, which mainly results from segments Eastern Europe core regions and Eastern Europe other regions.
CA Immo Group presented in the result from other financial assets in the first half year 2016 the impairment of available for sale securities amounting to $\epsilon$ -14,946 K. The increase in value of available for sale securities, amounting to $\epsilon$ 2,960 K was presented in other comprehensive income.
The result from derivative interest rate transactions comprises the following:
| € 1.000 | Half-year 2016 | Half-year 2015 |
|---|---|---|
| Valuation interest rate derivative transactions | $-1.771$ | 11.363 |
| Ineffectiveness of interest rate swaps | ||
| Reclassification of valuation results recognised in equity | $-177$ | $-18.980$ |
| Result from interest rate derivative transactions | $-1.940$ | $-7,612$ |
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 | Half-year 2016 | Half-year 2015 |
|---|---|---|
| Current income tax (current year) | $-4.243$ | $-2.004$ |
| Current income tax (previous years) | 442 | 362 |
| Current income tax | $-3.802$ | $-1.643$ |
| Change in deferred taxes | $-34.796$ | $-16.601$ |
| Tax benefit on valuation of assets available for sale in equity | 62 | 133 |
| Income tax expense | $-38.535$ | $-18.111$ |
| Effective tax rate (total) | 28.0% | 24.8% |
Current income tax (current year) arises in the segment Germany ( $\epsilon$ 2,513 K).
| Half-year 2016 | Half-year 2015 | ||
|---|---|---|---|
| Weighted average number of shares outstanding | DCS. | 95,930,719 | 98.676.274 |
| Consolidated net income | € 1.000 | 98.864 | 54.996 |
| basic earnings per share | $1.03\,$ | 0.56 |
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 $\epsilon$ 15,392,916.72. The weighted average price per share was $\epsilon$ 15.3929. The highest consideration per share paid within the framework of the buyback programme was $\epsilon$ 16.38 and the lowest was $\epsilon$ 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. In the second quarter of 2016, a total of 452,529 shares (ISIN AT0000641352) had been acquired for a total purchase price of approximately $\epsilon$ 7,172,214.23. The weighted average price per share was € 15.7774. The highest consideration per share paid within the framework of the buyback programme was € 16.57 and the lowest was € 14.87.
As at 30.6.2016 the company held a total of 3,452,529 treasury shares (approximately 3.4942% of voting shares).
| FINANCIAL INSTRUMENTS | |
|---|---|
| Category | Book value | Fair value | Book value | Fair value |
|---|---|---|---|---|
| € 1,000 | 30.6.2016 | 30.6.2016 | 31.12.2015 | 31.12.2015 |
| Cash at banks with drawing | ||||
| restrictions | 7,820 | 7,820 | 9,026 | 9,026 |
| Derivative financial instruments | 26 | 26 | 238 | 238 |
| Primary financial instruments | 86,989 | 125,560 | ||
| Financial assets | 94,835 | 134,824 | ||
| Cash at banks with drawing | ||||
| restrictions | 11,196 | 11,196 | 9,322 | 9,322 |
| Other receivables and other financial | ||||
| assets | 117,389 | 79,097 | ||
| Non financial assets | 50,936 | 50,022 | ||
| Securities | 105,336 | 105,336 | 105,250 | 105,250 |
| Receivables and other assets | 284,858 | 243,691 | ||
| Cash and cash equivalents | 265,863 | 207,112 | ||
| 645,555 | 585,627 |
The fair value of the other receivables and financial assets as well as of the primary financial instruments essentially equals the book value due to short-term maturities. Financial assets are partially mortgaged as security for financial liabilities.
| Category | Book value | Fair value | Book value | Fair value |
|---|---|---|---|---|
| € 1.000 | 30.6.2016 | 30.6.2016 | 31.12.2015 | 31.12.2015 |
| Bonds | 520.209 | 543,754 | 366,506 | 369.876 |
| Other interest-bearing liabilities | 989.061 | 991,950 | 1.037.483 | 1,037,658 |
| Interest-bearing liabilities | 1,509,270 | 1,403,989 | ||
| Derivative financial instruments | 13.217 | 13,217 | 12.743 | 12,743 |
| Other financial liabilities | 51.948 | 51,341 | ||
| Other non financial liabilities | 103.070 | 96.555 | ||
| Total other liabilities | 168,234 | 160,639 | ||
| 1,677,504 | 1,564,628 |
The fair value of other primary liabilities essentially equals the book value due to daily and/or short-term maturities.
30.6.2016 $\mathbf{I}$
$31.12.2015$
| € 1.000 | Nominal | Fair value | Book value | Nominal | Fair value | Book value |
|---|---|---|---|---|---|---|
| value | value | |||||
| Interest rate swaps | 217.272 | $-13.217$ | $-13.217$ | 243.227 | $-12.743$ | $-12,743$ |
| Swaption | 39,600 | 16 | 16 | 139.600 | 189 | 189 |
| Interest rate caps | 44,738 | 10 | 10 | 45.277 | 48 | 48 |
| Total | 301.610 | $-13.191$ | $-13.190$ | 428.104 | $-12.506$ | $-12,506$ |
| - thereof hedging (cash flow hedges) | 93.958 | $-5.861$ | $-5.861$ | 95.555 | $-6.942$ | $-6,942$ |
| - thereof stand alone (fair value derivatives) | 207,652 | $-7,329$ | $-7,329$ | 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 | 30.6.2016 Book value |
Nominal value |
Fair value | 31.12.2015 Book value |
|---|---|---|---|---|---|---|
| - Cash flow hedges (effective) | 92.708 | $-5.773$ | $-5.773$ | 94.484 | $-6.846$ | $-6.846$ |
| - Cash flow hedges (ineffective) | 1.249 | -89 | $-89$ | 1.071 | $-96$ | $-96$ |
| - Fair value derivatives (HFT) | 123.314 | $-7.355$ | $-7.355$ | 147.672 | $-5.801$ | $-5.801$ |
| Interest rate swaps | 217.272 | $-13.217$ | $-13,217$ | 243.227 | $-12,743$ | $-12.743$ |
| Currency | Nominal value in $\epsilon$ 1,000 | Start | End | Fixed | Reference | Fair value |
|---|---|---|---|---|---|---|
| interest rate as at | interest rate | |||||
| 30.6.2016 | 30.6.2016 | |||||
| in $\epsilon$ 1,000 | ||||||
| EUR (nominal value each | ||||||
| below 100 m EUR) - CFH | 93.958 | 11/2007 | 9/2018 | $2.253\% - 4.495\%$ | 3M-Euribor | $-5,861$ |
| EUR (nominal value each | ||||||
| below 100 m EUR) - stand | ||||||
| alone | 123.314 | 9/2013 | 12/2023 | $0.460\% - 2.279\%$ | 3M-Euribor | $-7,355$ |
| Total = variable in fixed | 217.272 | $-13,217$ |
| 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 $\epsilon$ 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 100 m EUR) - stand | ||||||
| alone | 147,672 | 9/2013 | 12/2023 | $0.460\% - 2.279\%$ | 3M-Euribor | $-5,801$ |
| $Total = variable in fixed$ | 243,227 | $-12.743$ |
| Swaption | ||||||
|---|---|---|---|---|---|---|
| Currency | Nominal value in $\epsilon$ 1,000 | Start | End | Fixed | Reference | Fair value |
| interest rate as at | interest rate | |||||
| 30.6.2016 | 30.6.2016 | |||||
| in $\epsilon$ 1,000 | ||||||
| 3M-Euribor / | ||||||
| Swaption | 39,600 | 11/2015 | 11/2017 | $1.250\% - 1.750\%$ | 6M-Euribor | 16 |
| Total | 39,600 | 16 |
| 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 $\epsilon$ 1,000 | ||||||
| 3M-Euribor / | ||||||
| Swaption | $139,600 \cdot 6/2013 - 11/2015 \cdot 6/2016 - 11/2017$ | $1.250\% - 2.500\%$ | 6M-Euribor | 189 | ||
| Total | 139,600 | 189 |
| Currency | Nominal value in $\epsilon$ 1,000 | Start | End | Fixed | Reference | Fair value |
|---|---|---|---|---|---|---|
| interest rate as at | interest rate | |||||
| 30.6.2016 | 30.6.2016 | |||||
| in $\epsilon$ 1,000 | ||||||
| Interest rate caps | 44.738 | 3/2014 | 9/2019 | 1.500%-2.000% | 3M-Euribor | 10 |
| Total | 44.738 | 10 |
| 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 $\epsilon$ 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 | 2015 |
|---|---|---|
| As at 1.1. | $-5.131$ | $-27.503$ |
| Change in valuation of cash flow hedges | 1.082 | 31' |
| Change of ineffectiveness cash flow hedges | $-7$ | |
| Reclassification cash flow hedges | 177 | 18.980 |
| Income tax cash flow hedges | $-314$ | $-2.768$ |
| As at 30.6. | $-4.193$ | $-10,984$ |
| thereof: attributable to the owners of the parent | $-4.193$ | $-10.984$ |
Financial instruments measured at fair value relate to derivative financial instruments as well as available for sale securities and other investments (AFS). As in prior year, the valuation of derivative financial instruments is based on inputs which can be observed either directly or indirectly (e.g. interest rate curves or foreign exchange forward rates). This represents level 2 of the fair value hierarchy in accordance with IFRS 13.81. The valuation of available for sale securities is based on stock market prices and therefore represents level 1 of the fair value hierarchy. The fair value of other not listed investments is internally assessed and so represents level 3 of the fair value hierarchy. There were no reclassifications between the levels.
Net debt and gearing ratio:
| € 1.000 | 30.6.2016 | 31.12.2015 |
|---|---|---|
| Interest-bearing liabilities | ||
| Long-term interest-bearing liabilities | 1.064.210 | 858.776 |
| Short-term interest-bearing liabilities | 445.060 | 545.214 |
| Interest-bearing assets | ||
| Cash and cash equivalents | $-265.863$ | $-207.112$ |
| Cash at banks with drawing restrictions | $-4.911$ | $-5,432$ |
| Net debt | 1,238,496 | |
| Shareholders' equity | 2,153,575 | |
| Gearing ratio (Net debt/equity) | $57.5\%$ |
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 | 30.6.2016 | 31.12.2015 |
|---|---|---|
| Investments in joint ventures | 159,660 | 172,286 |
| Investments in joint ventures held for sale | $\theta$ | 2,982 |
| Loans | 4,182 | 6,162 |
| Receivables | 7,178 | 39,779 |
| Liabilities | 35,459 | 37,637 |
| Provisions | 16,694 | 19,528 |
| Half-year 2016 | Half-year 2015 | |
| Joint ventures result | 1,861 | 5,207 |
| Result from sale of joint ventures | 885 | 748 |
| Result from joint ventures | 2,746 | 5,955 |
| Other income | 1,283 | 3,325 |
| Other expenses | $-550$ | $-672$ |
| Interest income | 228 | 4,293 |
| Interest expense | $\overline{0}$ | $-358$ |
| Interest income present value financial investments | $\mathbf{0}$ | 2,789 |
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 | 30.6.2016 | 31.12.2015 |
|---|---|---|
| Loans | 11.640 | 12.827 |
| Half-year 2016 | Half-year 2015 | |
| Expenses due to associated companies | $-1.187$ | 436 |
| Result from associated companies | $-1.187$ | 436 |
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 $\epsilon$ 10,762 K (31.12.2015: $\epsilon$ 9,575 K) is included.
Starting 20.2.2015, O1 Group, following the conclusion of a voluntary public take-over offer, is the largest single shareholder of CA Immobilien Anlagen AG. O1 Group holds 25,690,163 bearer shares (indirectly via Terim Limited) and four registered shares (O1 Group Limited). This corresponds to about 26.99% of the voting rights, as at 30.6.2016.
As the result of a competitive process, a purchase agreement for a site earmarked for residential construction in Berlin (Kunstkubus, Europacity) was concluded in Q2 2015 with Vesper Real Estate (Cyprus) Limited, a company indirectly controlled by Boris Mints (beneficial owner of O1). The agreed purchase price of $\epsilon$ 7,000 K was paid in the first quarter of 2016 and the customary arm's length nature of the transaction was confirmed by an external fairness opinion.
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 Limited 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.
As at 30.6.2016, contingent liabilities of CA Immo Germany Group resulting from urban development contracts amounted to € 120 K (31.12.2015: € 120 K) 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 venture). 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 $\epsilon$ 13,650 K (31.12.2015: $\epsilon$ 12,150 K). Furthermore as security for warranty risks of a german joint venture a guarantee was issued in an amount of $\in 6{,}066$ K (31.12.2015: $\in 6{,}066$ 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 € 13,483 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 $\epsilon$ 20,692 K (31.12.2015: $\epsilon$ 2,103 K), in Germany amounting to $\epsilon$ 47,999 K (31.12.2015: $\epsilon$ 32,922 K) and in Eastern Europe amounting to € 35,634 K (31.12.2015: € 10,381 K). Moreover as at 30.6.2016, 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 €50,337 K (31.12.2015: €52,943 K).
As at 30.6.2016, the total obligation of CA Immo Group to contribute equity to joint ventures was $\epsilon$ 6,421 K (31.12.2015: $\epsilon$ 5,021 K). The contingent liability as at 30.6.2016 in connection with the equity contribution in case of one joint venture in Bulgaria, for which no provision has been recogniesed in the balance sheert, amounts to $\epsilon$ 0 K (31.12.2015: $\epsilon$ 450 K).
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 30.6.2016, 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 30.6.2016, this applied to no loan (31.12.2015: no loan).
In July 2016, CA Immobilien Anlagen AG issued a corporate bond with a volume of $\epsilon$ 140 m and a term of five years. The coupon rate of the fixed interest bond is 1.875%.
Following CA Immobilien Anlagen AG 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 26% of the whole share capital) in CA Immobilien Anlagen 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.
Vienna, 22.8.2016
The Management Board
Frank Nickel (Chief Executive Officer)
Florian Nowotny (Member of the Management Board)
The managing board confirms to the best of their knowledge that the condensed consolidated interim financial statements of CA Immobilien Anlagen Aktiengesellschaft, which were prepared in accordance with International Financial Reporting Standards (IFRS) for interim financial reporting (IAS 34) as adopted by the EU, give a true and fair view of the assets, liabilities, financial position and profit or loss of the group as required by the applicable accounting standards and that the group management report gives a true and fair view of important events that have occurred during the first six months of the financial year and their impact on the condensed consolidated interim financial statements of the principal risks and uncertainties for the remaining six months of the financial year and of the major related party transactions to be disclosed.
Vienna, 22.8.2016
Frank Nickel (Chief Executive Officer)
The Managing Board
Florian Nowotny (Member of the Management Board)
We have reviewed the accompanying condensed consolidated interim financial statements of CA Immobilien Anlagen AG for the period from 1 January 2016 to 30 June 2016. These condensed consolidated interim financial statements comprise the consolidated statement of financial position as of 30 June 2015 and the consolidated income statement and consolidated statement of comprehensive income, the consolidated statement of cash flow and the consolidated statement of changes in equity for the period from 1 January 2016 to 30 June 2016 and the condensed notes, summarizing the significant accounting policies and other explanatory notes.
Management is responsible for the preparation of the condensed consolidated interim financial statements. Management is also responsible for the fair presentation of the condensed consolidated interim financial statements in accordance with International Financial Reporting Standards (IFRS's) as adopted by the EU.
Our responsibility is to express a conclusion on these condensed consolidated interim financial statements. Our liability towards the Company and towards third parties is limited in accordance with § 275 par. 2 of the Austrian Commercial Code (UGB).
We conducted our review in accordance with Austrian Standards for Chartered Accountants, in particular in compliance with KFS/PG 11 "Principles of Engagements to Review Financial Statements", and with the International Standard on Review Engagements (ISRE 2410) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements is limited primarily to making inquiries, primarily of Company personnel, responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Austrian Standards on Auditing or International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing came to our attention that causes us to believe that the accompanying condensed interim consolidated financial statements are not prepared, in all material respects, in accordance with International Financial Reporting Standards (IFRS's) for Interim Reporting as adopted by the EU.
We have read the consolidated interim management report and evaluated whether it does not contain any apparent inconsistencies with the condensed interim consolidated financial statements. Based on our evaluation, the consolidated interim management report does not contain any apparent inconsistencies with the condensed interim consolidated financial statements.
The interim financial information contains the statement by management in accordance with § 87 par. 1 subpar. 3 Austrian Stock Exchange Act.
Vienna, 22. August 2016
KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Mag. Walter Reiffenstuhl
Wirtschaftsprüfer
(Austian Chartered Accountant)
This report is a translation oft he original report in german, which is solely valid.
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]
Published by: CA Immobilien Anlagen AG, 1030 Vienna, Mechelgasse 1 Text: Susanne Steinböck, Christoph Thurnberger, Claudia Höbart
Text: Susanne Steinböck, Christoph Thurnberger, Claudia Höbart
Graphic design: Marion Naderer, Photographs: CA Immo, Production: 08/16; this report is set inho
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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