Quarterly Report • Aug 20, 2012
Quarterly Report
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FINANCIAL REPORT AS AT 30 JUNE 2012
| 1.1.-30.6.2012 | 1.1.-30.6.2011 | ||
|---|---|---|---|
| Rental income | € m | 140.7 | 128.3 |
| EBITDA | € m | 112.7 | 88.1 |
| Operating result (EBIT) | € m | 115.1 | 109.8 |
| Net result before taxes (EBT) | € m | 43.3 | 35.0 |
| Consolidated net income | € m | 22.0 | 21.1 |
| attributable to the owners of the parent | € m | 26.4 | 14.4 |
| Operating cash flow | € m | 106.1 | 83.3 |
| Capital expenditure | € m | 123.1 | 1,634.7 |
| 30.6.2012 | 31.12.2011 | ||
|---|---|---|---|
| Total assets | € m | 5,892.0 | 5,916.6 |
| Stated value (equity) (incl. minority interests) | € m | 1,787.7 | 1,809.5 |
| Long and short term interest-bearing liabilities | € m | 3,408.4 | 3,400.9 |
| Net debt | € m | 3,146.2 | 3,047.1 |
| Gearing | % | 176 | 168 |
| Equity ratio | % | 30.3 | 30.6 |
| Equity-to-fixed-assets ratio | % | 34.5 | 34.7 |
| Net asset value | € m | 1,665.9 | 1,684.6 |
| Net asset value (NNNAV) | € m | 1,725.7 | 1,742.3 |
| 30.6.2012 | 31.12.2011 | ||
|---|---|---|---|
| Total usable space (excl. parking, excl. projects) | sqm | 2,628,351 | 2,531,068 |
| Gross yield investment properties | % | 6.4 | 6.3 |
| Book value of properties | € m | 5,311.9 | 5,222.2 |
| 1.1.-30.6.2012 | 1.1.-30.6.2011 | ||
|---|---|---|---|
| Rental income / share | € | 1.60 | 1.46 |
| Operating cash flow / share | € | 1.21 | 0.95 |
| Basic earnings per share | € | 0.30 | 0.16 |
| Diluted earnings per share | € | 0.30 | 0.16 |
| 30.6.2012 | 31.12.2011 | ||
| NNNAV/share | |||
| € | 19.64 | 19.83 | |
| NAV/share | € | 18.96 | 19.17 |
| Price (key date)/NNNAV per share – 11) | % | – 60 | – 58 |
| Dividend distribution | € | 0.38 | - |
| 30.6.2012 | 31.12.2011 | ||
|---|---|---|---|
| number of shares (30.06.) | pcs. | 87,856,060 | 87,856,060 |
| Ø Number of shares | pcs. | 87,856,060 | 87,856,060 |
| Ø price/share | € | 8.0 | 11.0 |
| Closing price (30.06.) | € | 7.88 | 8.29 |
| Highest price | € | 8.87 | 13.45 |
| Lowest price | € | 7.06 | 7.02 |
1) before deffered taxes
The Management Board (left to right): Dr. Bruno Ettenauer, Wolfhard Fromwald, Bernhard H. Hansen
Despite an economic climate of continuing uncertainty, 2012 has brought tangibly positive developments for CA Immo. The long-term result has risen sharply, mainly as a consequence of additional rental revenue from in-house developments recently completed. A series of successful sales were subsequently announced, including a package of undeveloped real estate with a volume of approximately € 50 m in Berlin and, most significantly, the sale of the Warsaw Financial Center (agreed in August 2012). With a volume of around € 210 m (of which CA Immo was liable for a 50 % share), the latter transaction was this year's largest for the office area in Central and Eastern Europe. The transactions are expected to be closed in the final quarter of 2012, with the agreed sale prices well above the earlier book values. Funds released by the sales will mainly be used to pay off financial liabilities and thereby lower the company's risk profile.
The result from renting was up +16.2 % on the same period last year to € 123.7 m thanks to higher rental income and lower direct property charges. The rise was
essentially attributable to the contribution from completed development projects; the full incorporation of Tower 185 in the asset portfolio at the beginning of the year had a particular impact.
The operating result (EBITDA) increased by 27.9 % on the comparable figure for last year to € 112.7 m. Higher rental income, a modest upturn in sales profits and lower indirect expenditure all contributed to the rise. In regional terms, the Eastern Europe segment accounted for roughly half of the result.
The valuation result stood at € 5.4 m, the result of upward valuations in Germany which more than compensated for impairment in Eastern Europe. However, the devaluations in Eastern Europe must also be regarded in the light of a positive one-off effect of € 21.0 m from the restructuring of project financing which is contained in the financial result.
As a result of this effect, the financial result stood at € -71.8 m (compared to € -74.8 m in 2010). Financing costs, the main item in the financial result, rose by
around 8.1 % to € -86.5 m owing to additional interest on completed development projects.
Overall, consolidated net income after minorities, which is critical to the shareholders, rose from € 14.4 m to € 26.4 m during the first half of 2012.
Florian Nowotny will assume the role of Chief Financial Officer from 1 October 2012. In this he will succeed Wolfhard Fromwald, who will leave the company when his present term of office ends after [23] years as a member of the CA Immo Management Board. Within the CA Immo Group Florian Nowotny, who has extensive experience as an investment banker, served as the head of capital market financing and sat on the Management Boards
of the subsidiary Europolis as well as the CA Immo New Europe property fund.
Strong uncertainty concerning the future development of the wider economy will continue to inform events in the second half of the year. To an increasing degree, tenants and lending banks will take longer to reach decisions. Regardless of the challenging circumstances, however, we expect operational business in the second half of 2012 to be much the same as that in the first six months. As regards sales activity, we anticipate more sales being finalised in the third and fourth quarters.
The Management Board
Bruno Ettenauer (Chief Executive Officer)
Wolfhard Fromwald (Member of the Management Board)
Vienna, August 2012
Bernhard H. Hansen (Member of the Management Board)
In spite of debt crises and economic uncertainties around the world, many share markets have performed unexpectedly strong, especially in the first quarter of the year. Europe's interest rate policy stimulated an upturn based on 'cheap money', but the positive trend only had a marginal impact on the real estate sector. Although Austrian property securities in particular performed relatively poor in the first half of 2012, first quarter losses of 25 % on average were eventually pegged back to around 5 %; at present, the securities are trading with discounts to NAV of up to 60 %. Investors continue to display a restrained interest in Eastern European real estate, factoring in correspondingly high 'regional discounts'. The future performance of the real estate sector depends above all on the development of the property markets themselves as well as the willingness of banks to provide finance. According to statements by analysts, the financial markets will continue to be affected by insecurity and the market environment will remain subdued.
The CA Immo share price started the current business year at € 8.29 and fluctuated considerably throughout the first six months. During the first half of 2012, the lowest price was € 7.06 and the highest rate was € 8.87. The closing rate as at 30 June 2012 was € 7.88, equivalent to a fall of 5.78 % on the opening price. Thus, the discount to NAV on key date 30 June 2012 was – 58.36 %. The 12 month rate forecasts published by analysts in April and May 2012 envisage fluctuations in the range of € 7.30 (Rabobank) to € 12.50 (SRC Research). The average daily trading volume was 243,300 shares per day (doublecounting), down on the figure for the same period of the previous year (283,500 shares). Market capitalisation was € 692.04 m on the key date.
For the first time in the history of the company, this year's Ordinary General Meeting announced the payment of a dividend of 38 cents per share, equivalent to the stated target figure with 2.0 % of NAV as at 31 December 2011. The dividend was paid on 14 May 2012 and the exdividend date was 10 May 2012. The agenda also covered approval of the actions of Management and Supervisory Board members, the definition of Supervisory Board remuneration, confirmation of KPMG Wirtschaftsprüfungs- und Steuerberatungs AG of Vienna as the (Group) auditor for business year 2012, the re-election of Reinhard Madlencnik to the Supervisory Board, authorisation of the Management Board to increase the capital stock (authorised capital according to article 169 of the Austrian Stock Corporation Act), the acquisition of own shares and amendments to the articles of association. All items on the agenda were passed with clear majorities as proposed by the Management Board.
The capital stock of CA Immo amounted to € 638,713,556.20 on the balance sheet date, divided into four registered shares and 87,856,056 bearer shares traded on the prime market segment of the Vienna Stock Exchange. Around 18 % of the capital stock and the registered shares are held by UniCredit Bank Austria AG, the company's largest shareholder. The company is not aware of any other shareholders with a stake of more than 5 %. The remaining shares of CA Immo (approximately 82 % of the capital stock) are in free float with both institutional and private investors (roughly 32 % and 50% respectively). As at key date 30 June 2012, the company did not hold any own shares.
SHAREHOLDER STRUCTURE
6-MONTH PERFORMANCE FIGURES (1.1.2012–30.6.2012)
| CA Immo-Share | - 5.78 % |
|---|---|
| IATX | 0.01% |
| EPRA | 8.41% |
| ATX | 1.77 % |
For CA Immo, investor relations means maintaining regular contact with investors and operating a transparent information policy. During the first half of the year, CA Immo participated in nine conferences in Vienna, Frankfurt, Zürs, Amsterdam and Prague as well as four roadshows in Amsterdam, London, Milan and Paris.
Conference calls were also arranged to publicise financial results. 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.
| 30.06.2012 | 31.12.2011 | ||
|---|---|---|---|
| NNNAV/share | € | 19.64 | 19.83 |
| NAV/share | € | 18.96 | 19.17 |
| Price (key date)/NAV per share – 11) | % | – 58.46 | – 56.78 |
| Number of shares (key date) | pcs. | 87,856,060 | 87,856,060 |
| Ø number of shares (key date) | pcs. | 87,856,060 | 87,856,060 |
| Ø price/share | € | 7.98 | 10.96 |
| Market capitalisation (key date) | € m | 692.04 | 728.06 |
| Highest price | € | 8.87 | 13.45 |
| Lowest price | € | 7.06 | 7.02 |
| Closing price | € | 7.88 | 8.29 |
| Dividend distribution | € | 0.38 | - |
| Dividend yield | % | 4.8 | - |
1) before deffered tax
| Type of shares: | No-par value shares |
|---|---|
| Listing: | Vienna Stock Exchange, Prime Market |
| Indices: | ATX, ATX-Prime, IATX, FTSE EPRA/NAREIT Europe, GRP 250, WBI |
| Specialist: | Raiffeisen Centrobank AG |
| Market maker: | Crédit Agricole Cheuvreux S.A., Erste Group Bank AG |
| Stock exchange symbol / ISIN: | CAI / AT0000641352 |
| Reuters: | CAIV.VI |
| Bloomberg: | CAI:AV |
| Shareholders' phone line (in Austria): | 0800 01 01 50 |
| Email: | [email protected] |
| Web site: | www.caimmo.com |
Claudia Hainz T: +43 1532 590 7502 F: +43 1532 590 7595 [email protected] Florian Nowotny T: +43 1532 590 7518 F: +43 1532 590 7595 [email protected]
Susanne Steinböck T: +43 1532 590 7533 F: +43 1532 590 7595 [email protected]
PUBLICATION OF ANNUAL RESULTS FOR 2011
8 MAY ORDINARY GENERAL MEETING
INTERIM REPORT FOR THE FIRST QUARTER 2012
21 AUGUST
INTERIM REPORT FOR THE FIRST HALF 2012
21 NOVEMBER INTERIM REPORT FOR THE THIRD QUARTER 2012
Growth in the world economy continues to be highly irregular. After accelerating somewhat during the first three months of 2012, economic growth in Europe slowed significantly in the second quarter as the turmoil in deeply indebted euro countries impacted the general situation across the continent to an increasing degree. Although emerging and developing nations continue to act as the drivers of global expansion, something of a slowdown is taking place even here; nonetheless, these economies are still outpacing Europe.
According to the latest Eurostat calculations, the eurozone economy is set to contract by 0.3% this year, with moderate growth of 1.0% returning in 2013. Unemployment climbed to 11.1% in May 2012, compared to 10.0% in May 2011. Eurozone inflation (averaged over 12 months) stood at 2.4% in June, stable for the second month in a row.
The ECB base rate was unchanged at 1.0% as at 30 June 2012. In a bid to improve refinancing conditions for crisis-hit European banks, the ECB cut its base rate to the historic low of 0.75% in July. The downward trend for interest rates continued throughout the year under review on the unsecured money market. The average monthly interest rate for unsecured three month lending (Euribor) recently stood at 0.65%. In the area of credit financing, rising liquidity premiums imposed by banks and thus higher interest margins will continue to counteract this trend. On the CA Immo markets of Hungary, Romania and Serbia in particular, the prospects for project financing are still restricted.
The total transaction volume on the European investment markets has levelled off at around € 25-27 bn per quarter. During the second quarter of 2012, € 24.6 bn was invested in real estate across Europe, representing a fall in turnover of 7% compared to last year's value. Investors continue to favour core office properties with good letting levels, although supply is still dwindling in this category. The investment volume in Germany declined by 23% owing to an insufficient stock of core assets. Turnover also decreased by 26% in Austria, which claims a 1.0% share of the total investment volume. The CEE nations
also sustained a major drop in turnover (-54% compared to the previous year).
Compared to the first quarter of 2012, peak yields in the 15 main Western and Eastern European markets rose by an average of six base points to 5.57%; peak yields rose by 12 base points on last year's value. Following on from solid lettings performance throughout 2011, the office rental markets have been somewhat muted in the first half of 2012. As a result, there has been no significant rise in rental rates on CA Immo's markets.
For more information on the real estate markets in Austria, Germany and Eastern Europe and their effects on the operational business of CA Immo, please refer to the 'Changes to the portfolio' section.
A widespread economic recovery continues to be hampered by structural obstacles, and in particular the difficult situation in the heavily indebted eurozone countries. Long-term stabilisation will only be possible if the planned reforms in the indebted nations actually make a difference and there is no further loss of confidence in the financial markets. The European economy is expected to undergo additional contraction before the end of this year; as a result, the real estate sector is also likely to remain a tough environment in which to operate. This could have a particularly serious effect on the commercial real estate market in the shape of tenant insolvencies, reduced demand for office space and the danger of rising vacancy rates. The climate for real estate transactions is also expected to deteriorate in the face of tighter lending conditions imposed by banks. Only core properties let for the long term are likely to benefit from the increasing reluctance of investors to take risks.
1 ECB Monthly Bulletin July 2012, Eurostat 2012
2 CBRE, Market View, European Investment Quarterly, Q2 2012, CBRE, EMEA Rents and Yields 2012
The CA Immo Group invests in Austria, Germany and Eastern Europe. The Group's core business is commercial real estate, with a clear focus on office properties; it deals with both investment properties (82% of the total portfolio) and investment properties under development (14% of the total portfolio). Properties intended for trading (reported under current assets) account for the remaining 4% or so of property assets. As at key date 30 June 2012, the CA Immo Group's property assets totalled € 5.3 bn (€ 5.2 bn on 31 December 2011).
As at 30 June 2012, the Group's investment properties had an approximate market value of € 4.3 bn (€ 4.2 bn on 31 December 2011) and a total rentable effective area of 2.5 mn sqm. Around 56% of the investment property portfolio is located in CEE and SEE nations, with 30% of the remaining investment properties in Germany and 14% in Austria. In the first six months of the year, the Group generated rental income of € 140.7 m, compared to € 128.3 m in the same period of 2011. As at 30 June 2012, the like-for-like occupancy rate was nearly unchanged at 88%; including the Tower 185, which was transferred in the asset portfolio as at 31 March 2012, the occupancy rate stood at 86%; the portfolio produced a yield of 6.4%.
Of the investment properties under development with a total value of around € 747.6 m (€ 934.4 m on 31.12.2011), developments and land reserves in Austria accounted for approximately 6%, Germany accounted for 76% and projects in the CEE, SEE and CIS countries made up the
remaining 18%. The sharp decline in the balance sheet item 'Investment properties under development' compared to 31 December 2011 was due to the inclusion in the asset portfolio of Tower 185 in Frankfurt, which was completed at the turn of the year. Of the development projects in Germany with a total market value of € 566.9 m, projects under construction account for roughly € 172.0 m and land reserves make up € 394.9 m.
| in € m | Investment properties 1 | Investment properties under development |
Properties held as current assets |
Total property assets |
Share on total portfolio |
|---|---|---|---|---|---|
| Austria | 686 | 46 | 0 | 732 | 14% |
| Germany | 1,762 | 567 | 114 | 2,443 | 46% |
| Czech Republic | 336 | 8 | 0 | 344 | 6% |
| Hungary | 410 | 12 | 0 | 422 | 8% |
| Poland | 551 | 35 | 104 | 690 | 13% |
| Romania | 370 | 37 | 0 | 407 | 8% |
| Others | 232 | 42 | 0 | 274 | 5% |
| CA IMMO | 4,346 | 748 | 219 | 5,312 | 100.0% |
| Share on total | |||||
| portfolio | 82% | 14% | 4% | 100% |
1 including self use properties
BNP Paribas Real Estate, press release on investment market in first half of 2012 dated 5 July 2012; press release on office market trends in first half of 2012 dated 3 July 2012 Following healthy turnover levels early in the year, the transaction volume for commercial real estate on the German investment market fell sharply in the second quarter. A total of € 4.4 bn was invested in commercial real estate across the country, with office properties remaining the most sought-after asset class with a proportion of 40%. Given the dwindling supply of tradeable core properties in particular, sales declined in all locations (with the exception of Munich). The modest volume of transactions served to keep peak yields at a steady level between 4.95% (Berlin) and 4.75% (Munich).
The situation on the office rental market in Germany was similar, with many tenants eschewing large lease agreements in view of the euro crisis. Small-scale lettings thus dominated turnover, with floor space trading well below prior year values in all CA Immo locations (Munich -16.5%, Frankfurt -12.0%, Berlin -9.0%). Despite restrained sales of floor space, vacancy levels declined steadily as the number of building projects being completed fell. Peak rents in the top segment were unchanged on the first quarter of 2012 at € 22/sqm in Berlin, € 25/sqm in Düsseldorf, € 36/sqm in Frankfurt and € 33/sqm in Munich.
In Germany, CA Immo held investment properties and properties intended for trading with an approximate value of € 1.8 bn as at 30 June 2012 (€ 1.8 bn on 31.03.2012). The high-rise Tower 185 was completed at the turn of the year and incorporated into the asset portfolio on 31 March 2012. As a result, the occupancy rate for investment property assets fell from 92 % as at 31 December 2011 to 86% on 30 June 2012; rental income for the first six months of the year stood at € 45.6 m. Where the rent contributions of properties intended for trading and temporarily let property reserves in the development segment are taken into account, rental income amounted to € 49.0 m (compared to € 39.7 m in the first half of 2011). An approximate total of 28,320 sqm of floor space was newly let in Germany in the first half.
In April, CA Immo concluded a lease agreement for around 1,450 sqm of floor space in the SKYGARDEN office building in Munich's Arnulfpark. The IT consulting company Platinion GmbH plans to transfer its Munich headquarters to the green building in autumn 2012.
During the second quarter of 2012, CA Immo concluded a lease contract for 1,350 sqm of office space in Tower 185. The tenant is the international law firm Dechert LLP, which will transfer its Frankfurt office (which only opened in 2012) to the new high-rise. The lease agreement raises the occupancy rate of the recently completed tower to approximately 81%.
In May, a lease contract was concluded in relation to the Motzener Strasse 36-38 building in the Marienfelde district of Berlin. The agreement, which has a term of three years and a total volume of around € 1.7 m, provides for 13,202 sqm of storage space and 526 sqm of office space; the tenant will be a logistics firm, bringing the letting level to 91%.
As at key date 30 June, CA Immo had invested € 80.0 m in development projects in Germany for 2012. On the basis of total investment costs, the volume of investment properties under development for the Group in Germany (including land reserves) is approximately € 394.4 m, with the market value at € 566.9 m.
In April, CA Immo and PATRIZIA Immobilien AG formed a joint venture to realise the Baumkirchen Mitte urban district development project in Munich. Implementation will start as soon as the land use planning procedure (currently the subject of negotiations between CA Immo and the city of Munich) has been completed. Apartments and high-quality offices will be built on a site spanning around 29,000 sqm; at present, some 45,500 sqm of floor space is earmarked for apartments and roughly 18,500 sqm is allocated as office space.
In June, an urban planning competition started the ball rolling for a mixed residential district in the Europacity district of Berlin. CA Immo and Hamburg Team, a company specialising in residential construction, established a joint venture in 2011 with a view to developing the site of roughly 32,000 sqm between Heidestrasse and the Berlin-Spandau Ship Canal. A jury singled out four proposals for the urban structure to be created around the Berlin's new city harbour, ranking them in terms of quality. Around 500 apartments will be built on the site.
1 BNP Paribas Real Estate, press release on investment market in first half of 2012 dated 5 July 2012; press release on office market trends in first half of 2012 dated 3 July 2012
Trading income from German real estate contributed a total of € 37.4 m to the result over the first half of the year.
Activity on the Austrian investment market was muted early in 2012; the transaction volume of approximately € 550 m for the first six months (of which € 250 m was generated in the second quarter) was around 18% lower than the figure for the same period last year. Sales of office properties contributed 38% of total turnover; retail properties generated 32% and hotel and residential properties provided 16% and 12% respectively. The peak yield was stable at 5.20%.
With total lettings performance of 145,000 sqm (of which the second quarter accounted for roughly 80,000 sqm), first half turnover on the office rental market in Vienna increased by around 32% on the comparable prior year value. Activity was dominated by smallscale lettings of less than 1,000 sqm as well as relocations and transfers from inefficient properties no longer fit for the market to higher quality properties in better locations. Although the vacancy rate has been stable, it is likely to rise by the end of the year given a completion volume of approximately 256,000 sqm. The peak rent level has risen marginally compared to the first quarter of 2012. Average rents were between € 8.75/sqm and roughly € 20/sqm, depending on submarkets.
As at 30 June 2012, CA Immo held investment properties in Austria with an approximate value of € 685.7 m and an occupancy rate of 91% (91% on 31.03.2012). The company's investment property assets generated rental income of € 19.7 m in the first six months. Over the same period, approximately 12.584 sqm of floor space was newly let.
A lease contract for 5,400 sqm of office space in the Linke Wienzeile 234 office building at Storchengasse 1 was concluded in May. As from August 2012, around 270 employees of the Austrian broadcaster ORF will begin occupying two levels of the building, which is located next to the Längenfeldgasse underground station (serving
the U4 and U6 lines). In the same building, 520 sqm of usable space has been let to the Storchengasse police station for a term of 25 years.
Completion of the structural shell for the Silbermöwe office property at the Lände 3 site was marked with a topping out ceremony in May. By the autumn of 2012, modern and sustainable office space with rentable effective area of around 17,500 sqm will be created within the ten-storey building, which is just under 40 metres high. The total investment volume is approximately € 30 m.
The sale of an office and residential building on Markgraf Rüdiger Strasse in Vienna's 15th municipal district contributed trading income of € 8.2 m to the result in the first half of 2012.
Investment activity in Central and Eastern Europe was very restrained during the first half of 2012. Transactions fell by 20% compared to the first half of 2011, from € 2.6 bn to an approximate volume of € 2.1 bn; 83% of this figure was generated in Poland and Russia. As the supply of core properties in CEE/SEE nations dwindles and economic and political uncertainty intensifies, more and more investors are withdrawing from the region.
Floor space turnover declined on the office rental markets of the CEE/SEE in response to poor economic development; the lettings volume in the first six months fell most markedly in Warsaw, Bucharest and Prague. The vacancy rate increased on virtually all markets of Central and Eastern Europe; the rate was well over 10% on most Eastern European markets, with peak rents unchanged from the level of the previous quarter.
CA Immo held investment properties with an approximate value of € 1,898.4 m in Eastern Europe as at 30 June 2012. In the first six months, property assets let with a total effective area of around 1,335,269 sqm generated rental income of € 68.6 m (compared to € 69.7 m in the first half of 2011); the occupancy rate was unchanged on the previous quarter at 84%. In the first half of 2012,
2 CBRE, Vienna Office MarketView, first half ; EMEA Rents and Yields Q2 2012
3 CBRE, EMEA Rents and Yields Q2 2012
lease contracts with a total volume of some 113,335 sqm were concluded; logistical premises accounted for 57,900 sqm of this figure while new lettings represented approximately 32,450 sqm.
The two buildings making up construction phase two of the Poleczki Business Park project in Poland (close to Warsaw Airport) were completed in quarter two and usage permission was granted on 8 May 2012. The second construction phase comprised a pair of four-storey structures with a rentable effective area of 21,000 sqm, of which 53% has been let to date.
Construction work on the Bratislava Business Center (BBC 1 Plus) office complex is proceeding rapidly, with completion scheduled for the end of August. With the first tenants taking up residence in the building on 1 November, 25% of the total office space (14,600 sqm) has now been pre-let. Negotiations with other tenants are currently taking place, with significant new agreements expected to be concluded by early September.
CA Immo has finalised sales of land spanning more than one million sqm in Berlin; development sites with strong potential for residential construction made up the greater part of the real estate sold, with the trading income totalling approximately € 50 m. The sales included two plots in Europacity (the expansive site in the Lichterfelde Süd district of Berlin), the Flottwell Living project at the new Gleisdreieck park and the development zone on Lehrter Strasse, north of Berlin's main station.
In Munich, new lease contracts relating to the SKY-GARDEN office building in Arnulfpark and the AM-BIGON office and commercial building in the Schlossviertel Nymphenburg district were signed in July; around 2,300 sqm of floor space has been let as a result. These agreements have raised the occupancy rate of the recently completed SKYGARDEN building to approximately 82% and the AMBIGON occupancy rate to 55%.
A lease contract for nearly 1,000 sqm of the BBC 1 Plus office building in Bratislava was signed with Nestlé in July.
In Bucharest, a lease agreement with VIVEO ROMANIA S.R.L. concerning the River Place office building has been extended by five years. The amount of floor space will also be expanded by 1,420 sqm as at 1 January 2013, bringing the total let by VIVEO to around 2,200 sqm.
Early in August, CA Immo and Pramerica Real Estate Investors signed an agreement on the sale of the Warsaw Financial Center (WFC), in which each company held a 50% stake. The sale price for the whole stake is approximately € 210 m. A consortium comprising Allianz (87.5%) and Curzon Capital Partners III, a fund managed by Tristan Capital Partners (12.5%), will assume ownership of the modern office high-rise in Warsaw's central business district, which offers rentable effective area of around 50,000 sqm. The purchase agreement is still subject to the fulfilment of closing conditions that apply to real estate transactions of this kind in Poland.
Sold: The Warsaw Financial Centre
As at 30 June 2012, the CA Immo Group had a total of 386 employees, comprising 368 white-collar staff and 18 blue-collar staff; where part-time employees are included, the total staffing level as at 31 December 2011 was 390. Of the white-collar staff members in Vienna, 64 are employed by CA Immobilien Anlagen AG (62 on 31.12.2011) and 17 work for Europolis (19 on 31.12.2011). The 109 white-collar employees and 15 blue-collar staff working for subsidiaries in the CEE, SEE and CIS states (113 and 40 respectively on 31.12.2011) are responsible for local asset management and accounting as well as the areas of property management and facility management. On the key date, CA Immo Deutschland GmbH (including the OmniCon Group) had 178 white-collar employees (175 on 31.12.2011).
| White-collar | Blue-collar | Total | |
|---|---|---|---|
| Austria | 81 | 3 | 84 |
| Germany | 178 | 0 | 178 |
| Eastern | |||
| Europe | 109 | 15 | 124 |
| Total | 368 | 18 | 386 |
The Skygarden office building in Munich's Arnulfpark – now 82 % let.
In comparison with the first half of 2011, rental income increased by 9.7% to stand at € 140,737K. The increase in rent was mainly the result of development projects completed in Germany.
Direct management costs for property assets let fell by – 10.9% from – € 21,364K to – € 19,038TK, mainly as a result of lower maintenance charges and the one-time effect of bad debt provision in the first half of 2011.
The result from renting attributable to letting activities after the deduction of direct management costs rose from € 106,936K to € 121,699K. In addition to the absolute increase, the margin (result from renting in relation to rental income) also rose significantly, from 83.3% to 86.5%.
In connection with the scheduled sale of properties held in current assets in the Germany segment, trading income of € 5,868K was generated in the first half of 2012 (€ 7,464K in 2011). The trading portfolio thus contributed around 3,463 T€ to the result, compared to € 1,555 K in 2011.
Gross revenue from development services for third parties (rendered by the subsidiary OmniCon) totalled € 1,759K, compared to € 1,146K in the previous year. The result from development services for third parties was € 568.0K (€ 363 K in 2011).
Direct property expenses for real estate that are attributable to property assets under development decreased from – € 2,375K to – € 2,020K on account of completions.
These developments led to a 16.2% year-on-year increase in net operating income (NOI) to € 123,710K in the first half of 2012.
During the first half of 2012, the sale of real estate held as fixed assets generated revenue of € 39,954 K, with undeveloped sites in Germany making up the majority of this. The contribution to earnings was € 3,437K (– € 1,737K in 2011).
The sharp decline in indirect expenditures (by – 16.0%, from – € 23,163K to – € 19,459K) was mainly the result of lower personnel spending as well as lower legal and consultancy costs.
Higher rental income also brought about a sharp rise in earnings before interest, taxes, depreciation and amortisation (EBITDA), which was up by 27.9% from € 88,128K last year to € 112,738K.
The Eastern Europe segment has the largest share of Group EBITDA (approximately 50%) with an EBITDA of € 56,560K (€ 51,361K in 2011).
The revaluation result was € 5,395K in 2012 (€ 26,375K in 2011). From a regional viewpoint, the revaluation result comprises appreciations of € 28,576K in Germany as well as devaluations in the Eastern Europe segment (– € 22,843K) and Austria (– € 338K).
Positive effects in Germany primarily stemmed from the reclassification of Tower185 from 'Property assets under development' to 'Investment properties'. The negative result in Eastern Europe was largely the result of devaluations on logistical sites in Poland and the Ukraine which are linked to the restructuring of project financing as described in the financial result.
Earnings before interest and taxes (EBIT) stood at € 115,074 K, virtually unchanged from the previous year's level (€ 109,811K). In regional terms, however, the valuation-related decrease in EBIT in the Eastern Europe segment (from €55,396K to € 32,746K) was counteracted by steep rises in Germany (from € 46,278K in 2011 to € 70,137 K) and Austria (from € 12,652K in 2011 to € 16,902K).
The financial result for 2012 was – € 71,818K, compared to – € 74,791K in 2011. In detail, the elements of the financial result developed as follows:
Taking account of interest on recently completed properties (Tower185, Skygarden and Ambigon), financing costs increased by 8.1% to – € 86,496K.
Financing for two logistical sites in Poland and the Ukraine was restructured in the first quarter of 2012, as a result of which CA Immobilien Anlagen AG acquired the outstanding loans of the relevant project development companies from the financing bank below the nominal
value. This impacted the balance sheet in the amount of € 20,764 K, although this must be regarded in the light of the negative valuation result for the properties in question as outlined above.
Moreover, comparing the first half of 2012 with the same period last year shows that the financial result for the first half of 2011 contained a clearly positive result from the valuation of interest-rate hedges in the amount of € 3,604K while the contribution to earnings in 2012 was negative at – € 6,036K. Overall, the income from these derivative transactions is largely a non-cash valuation result.
The result from financial investments (€ 4,415 K) was slightly lower than last year's figure (€ 5,578 K). The result from other financial assets of –€ 5,735 K was mainly attributable to value adjustments for loans to joint venture companies.
The result from associated companies (€ 1,652K in 2012 against – € 1,945K in 2011) contains the proportionate result from the investment in UBM.
Overall, the developments described above gave rise to earnings before taxes (EBT) for the first half of 2012 in the amount of € 43,256K, compared to € 35,020K for 2011.
Taxes on income of – € 21,290K (– € 13,957K in 2011) are the balance of € 3,816K of revenue from current taxes (which are mainly linked to the transfer of taxation on uncovered hidden reserves from sales to future periods in Germany) and expenditure from the change in deferred taxes.
The result for the period of € 21,966K was marginally above the 2011 figure of € 21,063K. The share attributable to non-controlling interests stood at – € 4,394K compared to € 6,645K in 2011; this derived largely from the earnings of joint venture partners in the sub-portfolios of Europolis, which were negative owing to devaluations. The share attributable to parent company shareholders in the first half of 2012 was € 26,360K, significantly higher than the figure for 2011 (€ 14,418K).
Funds from operations after taxes (FFO) stood at € 56,062.0 K in the first half of 2012 compared to € 10,222.1 K in the same period last year. The increase on 2011 was due in particular to the higher EBITDA noted above as well as the positive contribution from current taxes in the first six months of 2012.
| € m | Half-year 2012 |
Half-year 2011 |
|---|---|---|
| Net income before taxes before | ||
| minorities | 43.3 | 35.0 |
| Depreciation and impairment | 3.1 | 4.7 |
| Revaluation results | – 5.4 | – 26.4 |
| Foreign currency gain/loss | 0.4 | 1.8 |
| Corr. At-Equity result | – 0.8 | 2.8 |
| Valuation of financial instruments | 11.8 | – 5.1 |
| Funds from Operations before taxes | 52.2 | 12.8 |
| Current income tax | 3.8 | – 2.6 |
| Funds from Operations | 56.1 | 10.2 |
The situation on the assets side as at 31 December 2011 changed little during 2012. The biggest effect came from the reclassification of Tower 185 from 'Property assets under development' to the balance sheet item 'Investment properties', which consequently rose from € 4,183,202K to € 4,333,417K.
At the end of the period, total property assets (i.e. investment properties, properties under development and properties held as current assets) stood at € 5,311,863 K, a rise of around 1.7%.
As at 30 June 2012, cash and cash equivalents stood at € 262,185K; the decrease on the figure at the start of the year (€ 353,778 K) was largely due to current investments in development projects and the payment of a dividend in the second quarter.
During the first half of 2012, shareholders' equity (including non-controlling interests) fell by – 1.2%, from € 1,809,455K to € 1,787,654K. The result for the period described above, payment of a dividend of € 33,385 K and a negative effect from the valuation of interest-rate hedges entered in the balance sheet as cash flow hedges all contributed to this development. As at 30 June 2012, the negative valuation result of these cash flow hedges
recognised in equity stood at – € 104,247 K, a decrease of –€ 11,225K on 31 December 2011.
Financial liabilities rose by 0.2% to € 3,408,424K. Net debt (financial liabilities less cash and cash equivalents) rose from € 3,047,120K at the start of the year to € 3,146,239K.
As at 30 June 2012, net asset value (shareholders' equity excluding minority interests) stood at € 1,665.9 m (€ 18.96 per share), equivalent to a decrease of - 1.1% on the value at the start of the year. Aside from the result for the period, the change reflects the other changes to equity outlined above, and in particular the dividend payment. 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).
Given that the rate of the CA Immo share was below the conversion price of the convertible bond on the balance sheet date, no dilution effect from a hypothetical exertion of the conversion option was taken into consideration in the calculation of the EPRA NAV. As at 30 June 2012, the (diluted and basic) NNNAV per share stood at € 19.64 per share, -1.1% above the value at the end of last year. The number of shares outstanding was unchanged at 87,856,060.
| € m | 30.6.2012 | 31.12.2011 |
|---|---|---|
| undiluted | undiluted | |
| Equity (NAV) | 1,665.9 | 1,684.6 |
| NAV/share in € | 18.96 | 19.17 |
| Computation of NNNAV | ||
| Exercise of options | 0.0 | 0.0 |
| NAV after exercise of options | 1,665.9 | 1,684.6 |
| Value adjustment for | ||
| - own use properties | 3.8 | 3.5 |
| - properties held as current assets | 6.8 | 7.6 |
| - Financial instruments | 104.2 | 93.0 |
| Deferred taxes | 164.8 | 141.0 |
| EPRA NAV after adjustments | 1,945.5 | 1,929.7 |
| Value adj. for financial instruments | – 104.2 | – 93.0 |
| Value adjustment for liabilities | – 10.1 | – 2.9 |
| Deferred taxes | – 105.5 | – 91.4 |
| EPRA NNNAV | 1,725.7 | 1,742.3 |
| EPRA NNNAV per share in € | 19.6 | 19.8 |
| Change of NNNAV against previous year | – 1.0% | 4.6% |
| Price/ NNNAV per share – 1 | – 59.9 | – 58.2 |
| Number of shares | 87,856,060 | 87,856,060 |
The most significant risk to CA Immo and its business activities is posed by the persistently tough economic climate. With most indicators already pointing to a slowdown in growth rates across the continent, there is every possibility that the European economy will contract further by the end of 2012. This would impact negatively on the commercial property market in particular in the shape of tenant insolvencies, reduced demand for office space and the risk of rising vacancy rates. The climate for real estate transactions could also deteriorate in the face of tighter lending conditions imposed by banks, which will result in rising yields and falling property values. Only core properties let for the long term are likely to benefit from the increasing reluctance of investors to take risks.
The risk groups summarised below are largely unchanged from those defined last year; the statements in the risk management report forming part of the Annual Report for 2011 continue to apply.
As the (re)financing situation remains generally restrictive, it is likely that credit will be even harder to come by, especially in Eastern Europe. In Hungary and Romania above all, the difficulty in securing refinancing could necessitate an influx of capital resources over the next few months; availability of financing appears more stable in Poland and the Czech Republic. By contrast, liquidity on the German market will remain sufficient over the years ahead.
Given that the risk of (re)financing may remain a latent factor, detailed liquidity planning has been drawn up for the years ahead. This planning takes account of the financial consequences of strategic targets (such as the steady depletion of the project pipeline and real estate sales). As an alternative and supplement to established means of (equity) capital procurement, the company enters into equity partnerships (joint ventures) at project level. The expiry profile of financial liabilities for the CA Immo Group is stable until business year 2014; loans maturing by that date are linked solely to financing at property or project level. The refinancing of the 6.125% CA Immo bond 09-14 (ISIN: AT0000A0EXE6) and the convertible bond are scheduled for 2014, provided conversion rights are not exerted.
Risk potential increases where investments lead to overrepresentation of a particular region, usage type or tenant structure in the overall portfolio. If we define the limit value for concentration/cluster risk at 5% of the total portfolio, only one investment (Tower 185) falls into this category. Given the current equity commitment of € 190 m on this project, a (partial) exit is envisaged. Construction financing runs until the end of 2012, with negotiations over an extension already taking place.
Although the package of investment properties acquired from the state of Hesse in 2006 makes up some 15 % of the overall portfolio, it comprises a total of 36 properties that the company could sell individually. In view of the long-term nature of existing lease contracts and the satisfactory financial standing of the tenant (the state of Hesse), this portfolio represents a calculated risk.
Alongside Tower 185 and the Hesse portfolio, five more individual properties have an IFRS market value of over € 100 m. In terms of location, Prague (River City) and the logistics park in Bucharest have created concentration risk within the portfolio.
As regards land reserves and land development projects, risk arises from the high capital commitment. With the prevailing market climate hampering development projects, further property sales are in the pipeline for 2012. Measures have been put in place to accelerate land development projects where possible and joint venture partners are being involved at an early stage (especially in the residential construction segment) with a view to cutting the capital commitment.
In view of its fraught political and economic situation, Hungary has the highest potential for risk of this kind within the CA Immo asset portfolio. Most seriously, an absence of trust in Hungarian politics and the country's economic power allied with the reluctance of banks to finance investment in real estate brought the investment market to a virtual standstill some time ago. Despite this, those who are most familiar with the market remain assured of its attractiveness: real estate is very competitively valued at present, while the absence of a development pipeline has the potential to reduce vacancy and force rental rates steadily upward. The outlook is highly uncertain from the current standpoint, however. CA Immo's asset portfolio in Hungary mainly comprises office properties; the vacancy level in the office area is in the typical .
range for the country. Nearly all rental agreements are made out in euros. Given that the majority of tenants are international companies, the sharp devaluation of the HUF over recent months is unlikely to impair the creditworthiness of tenants in the long term. Nonetheless, poor economic performance is putting considerable pressure on tenants, and ultimately on landlords.
The continuing reluctance of banks to provide real estate finance is slowing the transaction rate perceptibly on some markets, a development that could have an adverse effect on CA Immo's sales targets for 2012. At present, the portfolio optimisation planned for 2012 may not be economically viable, particularly in some parts of Eastern Europe; this is because demand revolves almost exclusively around core properties (especially in Warsaw), meaning that other properties can only be traded at high discounts. For this reason, indicators such as the quality of locations and properties, changes in the market and emerging trends are continually evaluated to determine ideal resale times. Market risk is thereby identified at an early stage, applied to evaluations of investment and project plans and thus to medium-term liquidity and corporate planning. Properties with heightened risk potential are managed by a specially formed restructuring unit with a view to securing their sale at the earliest opportunity after restructuring.
The opportunities and risks posed by trends on the rental markets are closely linked to economic development, one of the factors that drives demand for commercial real estate. Looking at mid-term economic development in the eurozone and the CEE/SEE markets, great uncertainty surrounds the second half of 2012 as well. Rental markets are also at risk of deterioration despite minimal levels of building activity. Rental rates will rise only marginally in the next few months; rents could fall on submarkets where potential tenants are disinclined to invest or decide on a location. For this reason, vacancy rates are unlikely to drop significantly in 2012, especially in Eastern Europe. Although vacancy decreased slightly in the office area during the first six months, letting activities in Hungary and the logistics segment remain problematic. Vacancy rose in Germany during the first half of 2012 owing to the reclassification of the Tower185, Ambigon and Skygarden development projects, which were completed late in 2011; these projects are now in a
stabilisation phase having been incorporated into the portfolio. Given the economic circumstances, it is also possible that existing tenants will be unable to meet their rent payments (loss of rent risk); this risk is generally countered by demanding securities (bank guarantees). To keep vacancy and rent losses to an absolute minimum, CA Immo screens the creditworthiness and reputation of potential tenants. The budgeted and actual revenues generated by all properties are continually monitored, and structured quality checks are carried out. At present, most outstanding rental payments are found in the Eastern Europe segment; these relate in particular to hotels, three logistics parks and a shopping centre. All outstanding receivables have been evaluated according to the associated level of risk. The risk of lost rent was taken into account to a sufficient degree in the estimation of property values. Reduced income following contract extensions also remains a risk where rent levels have to be reduced or greater incentives are offered. Overall, however, the aforementioned problematic cases do not constitute a major threat.
The main risks associated with development projects include delays in the property use approval or planning permission processes, cost/deadline overruns, construction defects, lack of demand for rental space and so on. Given the high value that can be created through development projects, however, there is also a chance of generating additional revenue.
For projects to be realised, it is essential that equity or additional loan capital (project financing) is available. After all, delays in approving credit can lead to postponements in project implementation as well as the imposition of contractual penalties in the case of pre-letting; loss of rental revenue can have serious implications for the company's cash flow. Increases in construction costs can in turn bring about stricter financing conditions. The start-up losses that typically arise in connection with project development also have a detrimental effect on earnings. Price trends in the raw materials sector (steel, aluminium, copper, etc.) are linked to a risk of significant cost variation. With this in mind, cost pools are formed for large-scale projects, with the risk of rising commodity prices and production costs passed on to contractors.
All current projects are being implemented within their approved budgetary frameworks. Extensions of the stabilisation phase (initial letting) in response to market conditions and the risk of rising yields caused by restrictive
lending place particular pressure on development outcomes. With all of this in mind, CA Immo takes various steps to control the risks associated with project development (cost monitoring, variance analyses, long-term liquidity planning, observance of minimum pre-letting quotas, and so on). Projects are only launched following detailed, long-term liquidity planning and an appropriate level of pre-letting (50–60% on average in Germany, for example). In general terms, we select partners and service providers with care and uphold strict internal and external controlling, including regular cost monitoring and variance analyses.
Owing to changing economic conditions, real estate prices are subject to considerable fluctuation. For this reason, CA Immo properties are externally valued once a year; value changes during the year are identified by internal specialists and adjusted accordingly. In particular, this shows how the rise in yields over recent years continues to be reflected in valuation reports owing to the discount and capitalisation rates assessed. This influences consolidated net income through the changes in market value that must be recognised under IAS 40; shareholders' equity is also reduced.
Developments over the past year have shown that Eastern Europe has been unable to evade the turbulences given the region's close economic ties with Western Europe (especially in the banking sector). Within our portfolio, this is mainly evident in devaluations in the logistics segment and our property reserves in Eastern Europe; elsewhere (including Hungary) property prices are relatively constant. On core markets such as Poland and the Czech Republic, yields have remained stable into this business year, and have actually fallen in some cases. This is explained by the fact that demand for core properties has been consistently high in Poland; retail properties are more in demand in the Czech Republic. By contrast, the investment markets in Hungary and Romania have almost ground to a halt. Given that banks are significantly curtailing their exposure to the markets of Eastern Europe, the situation is unlikely to improve before the end of 2013.
The diminishing prospect of rental growth also poses the danger that starting yields for commercial real estate will be adjusted upwards. Changes in value will continue to represent a significant risk in 2012 in view of the market trend. If yields fall by an average of 25 base points in the short term and rent levels remain the same, losses in
the Eastern Europe portfolio could potentially amount to € 50-70 m in the worst case scenario.
Risks linked to liquidity, credit, interest rates and currencies make up the main financial risks.
Liquidity risks cannot be ruled out in the short term given the reluctance of banks to take risks and provide financing. Liquidity risk can also result where planned sales are either prevented, delayed or transacted at lower than expected prices.
Other risks arise from unforeseen additional funding obligations in relation to project financing and breaches of covenant in the property financing area. Continual monitoring of covenant agreements and effective planning and securing of liquidity are thus essential; this also ensures the Group can meet unexpected cash flow requirements. Even with meticulous planning, however, liquidity risk cannot be eliminated, particularly where capital requests linked to joint venture partners and fund partners are not viable or sales cannot be realised.
Capital commitments are typical in the case of development projects. The Group company CA Immo Deutschland has a particularly high commitment in the case of the Tower 185 project. Financing has been secured for all projects under construction; additional financing is required for new project launches, however. Given the refinancing scheduled for 2012/13, partner risks pose a particular threat; project-related and country-specific risks will also persist, especially with regard to further developments in Hungary. Additional reserves are needed to cover any breaches of covenant. The risks of refinancing and breaching contract clauses are constantly monitored, with current liquidity planning taking account of the threat in the worst case scenario.
Interest rate risk stems from market-related fluctuations in the interest rate. This risk affects both the level of financing costs and the fair value of interest hedging transactions concluded, which influences the company's earnings and equity. Moreover, where new loans are agreed or loans are extended in particular, there is a danger that credit margins will rise substantially.
CA Immo generally opts for a mix of long-term fixedrate and floating-rate loans; in some cases, the latter are secured by means of derivative financial instruments (interest rate caps/swaps), which without exception are used to hedge against the risk of interest rate changes arising from underlying transactions. With the incorporation of Europolis, the risk of rate changes is 65 % hedged on all variable-rate loans of the CA Immo Group. The interest rate risk is continually monitored.
In the summer of 2012, the European Central Bank lowered its base rate from 1.0 % to an historic low of 0.75 % in response to the euro crisis. According to the latest interest rate forecasts, the base rate is likely to remain at this low level until the end of 2013. Swap rates are also unlikely to rise significantly. Swap rates remain highly volatile as the situation remains critical. No risks constituting a serious and permanent threat to the company exist at the present time. Sufficient provisions have been formed for all risks identified.
Since CA Immo invests in various currency areas, the company is exposed to certain currency risks. Currency risk generally arises in connection with the inflow of rental income and rents receivable in BGN, CZK, HUF, PLN, RON and RSD. These foreign currency inflows are secured by pegging rents to a hard currency (EUR or USD); no significant currency risk exists at present. Since incoming payments are mainly received in local currency, however, free liquidity is converted into euros upon receipt.
The pegging of rents to the EUR/USD affects the creditworthiness of tenants and thus produces an indirect currency risk that can result in payment bottlenecks and loss of rent (especially in Hungary). Financing in CZK and USD poses a risk on the liabilities side. To hedge against this, these loans are counterbalanced by rental income in the same currency. Currency risk linked to construction projects is covered wherever possible.
In development: City quarter Europacity in Berlin
Topping out ceremony in May: Office building Silbermöwe in Vienna
| € 1,000 | Half-year | Half-year | 2nd Quarter | 2nd Quarter |
|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | |
| Rental income | 140,737 | 128,300 | 68,320 | 64,090 |
| Operating costs passed on to tenants | 34,683 | 32,132 | 16,279 | 15,307 |
| Operating expenses | – 40,269 | – 37,573 | – 19,191 | – 17,995 |
| Other expenses directly related to properties rented | – 13,452 | – 15,923 | – 6,832 | – 7,525 |
| Net rental income | 121,699 | 106,936 | 58,576 | 53,877 |
| Income from the sale of properties held for trading | 5,868 | 7,464 | 1,136 | 882 |
| Book value of sold properties held for trading | – 2,405 | – 5,909 | – 927 | – 1,143 |
| Trading result | 3,463 | 1,555 | 209 | – 261 |
| Revenues from development services | 1,759 | 1,146 | 890 | 577 |
| Expenses related to development services | – 1,191 | – 783 | – 676 | – 580 |
| Result from development services | 568 | 363 | 214 | – 3 |
| Other expenses directly related to investment properties under | ||||
| development | – 2,020 | – 2,375 | – 867 | – 399 |
| Net operating income | 123,710 | 106,479 | 58,132 | 53,214 |
| Result from the sale of investment properties | 3,437 | – 1,737 | 1,523 | – 3,077 |
| Indirect expenditures | – 19,459 | – 23,163 | – 10,225 | – 11,536 |
| Other operating income | 5,050 | 6,549 | 2,971 | 3,237 |
| EBITDA | 112,738 | 88,128 | 52,401 | 41,838 |
| Depreciation and impairment of long-term assets | – 3,046 | – 3,560 | – 2,291 | – 2,729 |
| Change in value of properties held for trading | – 13 | – 1,132 | 47 | – 132 |
| Depreciation and impairment/reversal | – 3,059 | – 4,692 | – 2,244 | – 2,861 |
| Revaluation gain | 37,588 | 35,797 | 27,380 | 28,403 |
| Revaluation loss | – 32,193 | – 9,422 | – 2,364 | – 5,517 |
| Result from revaluation | 5,395 | 26,375 | 25,016 | 22,886 |
| Operating result (EBIT) | 115,074 | 109,811 | 75,173 | 61,863 |
| Finance costs | – 86,496 | – 80,040 | – 42,061 | – 40,052 |
| Other financial result | 20,764 | 0 | – 218 | 0 |
| Foreign currency gain/loss | – 382 | – 1,825 | – 2,205 | – 392 |
| Result from interest rate derivative transactions | – 6,036 | 3,604 | – 4,455 | – 5,919 |
| Result from financial investments | 4,415 | 5,578 | 1,912 | 2,840 |
| Result from other financial assets | – 5,735 | – 163 | – 3,173 | – 84 |
| Result from associated companies | 1,652 | – 1,945 | – 18 | – 1,910 |
| Financial result | – 71,818 | – 74,791 | – 50,218 | – 45,517 |
| Net result before taxes (EBT) | 43,256 | 35,020 | 24,955 | 16,346 |
| Income tax | – 21,290 | – 13,957 | – 16,690 | – 8,253 |
| Consolidated net income | 21,966 | 21,063 | 8,265 | 8,093 |
| thereof attributable to non-controlling interests | – 4,394 | 6,645 | – 787 | 3,815 |
| thereof attributable to the owners of the parent | 26,360 | 14,418 | 9,052 | 4,278 |
| Earnings per share in € (basic equals diluted) | € 0.30 | € 0.16 | ||
| € 1,000 | Half-year | Half-year | 2nd Quarter | 2nd Quarter |
|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | |
| Consolidated net income | 21,966 | 21,063 | 8,265 | 8,093 |
| Other comprehensive income | ||||
| Valuation cash flow hedges | – 13,997 | 21,028 | – 8,096 | – 12,881 |
| Raclassification cash flow hedges | 7 | 3,123 | 0 | 2,746 |
| Other comprehensive income/loss from associated companies | – 313 | 111 | 0 | 0 |
| Exchange rate differences | – 405 | 1,142 | – 820 | – 14 |
| Income tax related to other comprehensive income | 2,678 | – 3,776 | 1,560 | 1,971 |
| Other comprehensive income for the period | – 12,030 | 21,628 | – 7,356 | – 8,178 |
| Comprehensive income for the period | 9,936 | 42,691 | 909 | – 85 |
| thereof attributable to non-controlling interests | – 4,669 | 6,906 | – 1,143 | 3,733 |
| thereof attributable to the owners of the parent | 14,605 | 35,785 | 2,052 | – 3,818 |
| € 1,000 | 30.6.2012 | 31.12.2011 | 1.1.2011 |
|---|---|---|---|
| ASSETS | |||
| Rental investment properties | 4,333,417 | 4,183,202 | 2,716,211 |
| Investment properties under development | 747,563 | 934,482 | 790,582 |
| Own used properties | 12,377 | 12,760 | 13,575 |
| Office furniture and other equipment | 10,015 | 10,470 | 1,638 |
| Intangible assets | 37,777 | 39,103 | 31,468 |
| Prepayments made on investments in properties | 0 | 2,217 | 136,200 |
| Investments in associated companies | 35,307 | 34,719 | 37,096 |
| Financial assets | 75,863 | 74,308 | 41,075 |
| Deferred tax assets | 9,903 | 11,739 | 14,133 |
| Long-term assets | 5,262,222 | 5,303,000 | 3,781,978 |
| Long-term assets as a % of total assets | 89.3% | 89.6% | 86.4% |
| Assets held for sale | 182,805 | 57,835 | 46,509 |
| Properties held for trading | 35,701 | 33,904 | 45,339 |
| Receivables and other assets | 149,049 | 168,059 | 147,019 |
| Securities | 0 | 0 | 3,854 |
| Cash and cash equivalents | 262,185 | 353,778 | 354,764 |
| Short-term assets | 629,740 | 613,576 | 597,485 |
| Total assets | 5,891,962 | 5,916,576 | 4,379,463 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Share capital | 638,714 | 638,714 | 638,714 |
| Capital reserves | 1,028,930 | 1,062,184 | 1,061,464 |
| Other reserves | – 105,044 | – 93,288 | – 72,735 |
| Retained earnings | 103,314 | 76,954 | 14,325 |
| Attributable to the owners of the parent | 1,665,914 | 1,684,564 | 1,641,768 |
| Non-controlling interests | 121,740 | 124,891 | 18,171 |
| Shareholders' equity | 1,787,654 | 1,809,455 | 1,659,939 |
| Shareholders' equity as a % of total assets | 30.3% | 30.6% | 37.9% |
| Provisions | 3,996 | 9,182 | 6,239 |
| Interest-bearing liabilities | 2,567,872 | 2,622,925 | 1,888,306 |
| Other liabilities | 259,976 | 237,489 | 230,402 |
| Deferred tax liabilities | 212,496 | 191,813 | 116,157 |
| Long-term liabilities | 3,044,340 | 3,061,409 | 2,241,104 |
| Current income tax liabilities | 25,417 | 36,839 | 59,894 |
| Provisions | 76,150 | 79,292 | 58,809 |
| Interest-bearing liabilities | 840,552 | 777,973 | 238,049 |
| Other liabilities | 117,849 | 151,608 | 115,814 |
| Liabilities relating to disposal groups | 0 | 0 | 5,854 |
| Short-term liabilities | 1,059,968 | 1,045,712 | 478,420 |
| Total liabilities and shareholders' equity | 5,891,962 | 5,916,576 | 4,379,463 |
| € 1,000 | Half-year 2012 | Half-year 2011 |
|---|---|---|
| Cash flow from operations | 106,129 | 83,272 |
| Cash flow from changes in net working capital | – 7,426 | 1,732 |
| Cash flow from operating activities | 98,703 | 85,004 |
| Cash flow from investment activities | – 92,877 | – 8,029 |
| Cash flow from financing activities | – 98,728 | – 38,656 |
| Net change in cash and cash equivalents | – 92,902 | 38,319 |
| Cash and cash equivalents as at 1.1. | 353,778 | 354,764 |
| Exchange rate differences | 1,309 | 1,496 |
| Net change in cash and cash equivalents | – 92,902 | 38,319 |
| Cash and cash equivalents as at 30.6. | 262,185 | 394,579 |
1) Incl. one property in Switzerland.
2) Excl. business segment Holding.
| € 1,000 | Share capital | Capital reserves | Retained earnings | |
|---|---|---|---|---|
| As at 1.1.2011 | 638,714 | 1,061,464 | 14,325 | |
| Valuation cash flow hedge | 0 | 0 | 0 | |
| Income recognised directly in the associates' equity | 0 | 0 | 0 | |
| Currency translation reserve | 0 | 0 | 0 | |
| Consolidated net income | 0 | 0 | 14,418 | |
| Total comprehensive income Half-year 2011 | 0 | 0 | 14,418 | |
| Acquisition of Europolis AG | 0 | 0 | 0 | |
| Reclassification due to sale of companies | 0 | 0 | – 9 | |
| Dividend payments from subsidiaries | 0 | 0 | 0 | |
| Payments to non-controlling interests | 0 | 0 | 0 | |
| Payments from non-controlling interests | 0 | 0 | 0 | |
| As at 30.6.2011 | 638,714 | 1,061,464 | 28,734 | |
| As at 1.1.2012 | 638,714 | 1,062,184 | 76,954 | |
| Valuation cash flow hedge | 0 | 0 | 0 | |
| Income recognised directly in the associates' equity | 0 | 0 | 0 | |
| Currency translation reserve | 0 | 0 | 0 | |
| Consolidated net income | 0 | 0 | 26,360 | |
| Total comprehensive income Half-year 2012 | 0 | 0 | 26,360 | |
| Dividend payments to shareholders | 0 | – 33,385 | 0 | |
| Payments to non-controlling interests | 0 | 0 | 0 | |
| Payments from non-controlling interests | 0 | 0 | 0 | |
| Acquisition of non-controlling interests | 0 | 131 | 0 | |
| As at 30.6.2012 | 638,714 | 1,028,930 | 103,314 |
| Other reserves | Attributable to shareholders |
Non-controlling interests |
Shareholders' equity (total) |
||
|---|---|---|---|---|---|
| of the | |||||
| parent company | |||||
| Valuation result | Reserves from | Currency | |||
| (hedging) | associates | translation | |||
| reserve | |||||
| – 72,716 | 15 | – 34 | 1,641,768 | 18,171 | 1,659,939 |
| 20,164 | 0 | 0 | 20,164 | 261 | 20,425 |
| 0 | 61 | 0 | 61 | 0 | 61 |
| 0 | 0 | 1,142 | 1,142 | 0 | 1,142 |
| 0 | 0 | 0 | 14,418 | 6,645 | 21,063 |
| 20,164 | 61 | 1,142 | 35,785 | 6,906 | 42,691 |
| 0 | 0 | 0 | 0 | 139,505 | 139,505 |
| 0 | 0 | 9 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | – 1,225 | – 1,225 |
| 0 | 0 | 0 | 0 | – 2,556 | – 2,556 |
| 0 | 0 | 0 | 0 | 697 | 697 |
| – 52,552 | 76 | 1,117 | 1,677,553 | 161,498 | 1,839,051 |
| – 93,022 | 158 | – 425 | 1,684,563 | 124,892 | 1,809,455 |
| – 11,225 | 0 | 0 | – 11,225 | – 145 | – 11,370 |
| 0 | – 255 | 0 | – 255 | 0 | – 255 |
| 0 | 0 | – 275 | – 275 | – 130 | – 405 |
| 0 | 0 | 0 | 26,360 | – 4,394 | 21,966 |
| – 11,225 | – 255 | – 275 | 14,605 | – 4,669 | 9,936 |
| 0 | 0 | 0 | – 33,385 | 0 | – 33,385 |
| 0 | 0 | 0 | 0 | – 238 | – 238 |
| 0 | 0 | 0 | 0 | 1,715 | 1,715 |
| 0 | 0 | 0 | 131 | 40 | 171 |
| – 104,247 | – 97 | – 700 | 1,665,914 | 121,740 | 1,787,654 |
| € 1,000 | Austria | ||||
|---|---|---|---|---|---|
| Half-year 2012 | Income | Development | Total | Income | |
| producing | producing | ||||
| Rental income | 19,870 | 18 | 19,888 | 33,560 | |
| Revenues with other operating segments | 365 | 0 | 365 | 142 | |
| Operating costs passed on to tenants | 4,741 | 18 | 4,759 | 4,280 | |
| Operating expenses | – 5,329 | – 18 | – 5,347 | – 4,656 | |
| Other expenses directly related to properties rented | – 2,046 | 0 | – 2,046 | – 1,765 | |
| Net rental income | 17,601 | 18 | 17,619 | 31,561 | |
| Trading result | 0 | 0 | 0 | 0 | |
| Result from development services | 0 | 0 | 0 | 0 | |
| Other expenses directly related to investment | |||||
| properties under development | 0 | – 271 | – 271 | 0 | |
| Net operating income | 17,601 | – 253 | 17,348 | 31,561 | |
| Result from the sale of investment properties | 795 | 0 | 795 | – 3 | |
| Indirect expenditures | – 420 | – 105 | – 525 | – 2,215 | |
| Other operating income | 240 | 5 | 245 | 766 | |
| EBITDA | 18,216 | – 353 | 17,863 | 30,109 | |
| Depreciation and impairment/reversal | – 623 | 0 | – 623 | – 280 | |
| Result from revaluation | – 351 | 13 | – 338 | – 110 | |
| Operating result (EBIT) | 17,242 | – 340 | 16,902 | 29,719 | |
| Finance costs | – 9,174 | – 600 | – 9,774 | – 17,418 | |
| Other financial result | 0 | 0 | 0 | 0 | |
| Foreign currency gain/loss | 0 | 0 | 0 | 0 | |
| Result from interest rate derivative transactions | – 543 | 0 | – 543 | – 771 | |
| Result from financial investments | 459 | 3 | 462 | 692 | |
| Result from other financial assets | 0 | 0 | 0 | 0 | |
| Result from associated companies | 0 | 0 | 0 | 0 | |
| Net result before taxes (EBT) | 7,984 | – 937 | 7,047 | 12,222 |
| Property assets2) | 685,721 | 46,150 | 731,871 | 1,151,252 | |
|---|---|---|---|---|---|
| Other assets | 57,037 | 231 | 57,268 | 88,632 | |
| Deferred tax assets | 0 | 0 | 0 | 2,337 | |
| Total assets | 742,758 | 46,381 | 789,139 | 1,242,221 | |
| Interest-bearing liabilities | 349,746 | 23,081 | 372,827 | 702,732 | |
| Other liabilities | 45,576 | 63 | 45,639 | 111,418 | |
| Deferred tax liabilities incl. current income tax | |||||
| liabilities | 53,100 | 123 | 53,223 | 6,830 | |
| Liabilities | 448,422 | 23,267 | 471,689 | 820,980 | |
| Shareholders' equity | 294,336 | 23,114 | 317,450 | 421,241 | |
| Capital expenditures3) | 1,406 | 13,337 | 14,743 | 197 |
1) Incl. one property in Switzerland
2) Property assets include rental investment properties, investment properties under development, own used properties, properties held for trading and
prepayments made on property acquisitions. 3) Capital expenditures include all acquisitions of properties (long-term and short-term) including additions from initial consolidation, office furniture and other equipment and intangible assets; thereof € 3,467K (31.12.2011: € 7,514K) in properties held for trading.
| Germany1) | Eastern Europe | Holding | Total | Consolidation | Total | |||
|---|---|---|---|---|---|---|---|---|
| segments | ||||||||
| Development1) | Total | Income | Development | Total | ||||
| producing | ||||||||
| 15,468 | 49,028 | 71,430 | 391 | 71,821 | 0 | 140,737 | 0 | 140,737 |
| 0 | 142 | 0 | 0 | 0 | 0 | 507 | – 507 | 0 |
| 3,038 | 7,318 | 22,347 | 259 | 22,606 | 0 | 34,683 | 0 | 34,683 |
| – 4,001 | – 8,657 | – 25,236 | – 1,029 | – 26,265 | 0 | – 40,269 | 0 | – 40,269 |
| – 3,201 | – 4,966 | – 6,344 | – 96 | – 6,440 | 0 | – 13,452 | 0 | – 13,452 |
| 11,304 | 42,865 | 62,197 | – 475 | 61,722 | 0 | 122,206 | – 507 | 121,699 |
| 3,463 | 3,463 | 0 | 0 | 0 | 0 | 3,463 | 0 | 3,463 |
| 568 | 568 | 0 | 0 | 0 | 0 | 568 | 0 | 568 |
| – 1,447 | – 1,447 | 0 | – 302 | – 302 | 0 | – 2,020 | 0 | – 2,020 |
| 13,888 | 45,449 | 62,197 | – 777 | 61,420 | 0 | 124,217 | – 507 | 123,710 |
| 2,430 | 2,427 | 215 | 0 | 215 | 0 | 3,437 | 0 | 3,437 |
| – 4,470 | – 6,685 | – 7,053 | – 1,548 | – 8,601 | – 6,740 | – 22,551 | 3,092 | – 19,459 |
| 937 | 1,703 | 3,273 | 253 | 3,526 | 2,161 | 7,635 | – 2,585 | 5,050 |
| 12,785 | 42,894 | 58,632 | – 2,072 | 56,560 | – 4,579 | 112,738 | 0 | 112,738 |
| – 1,053 | – 1,333 | – 827 | – 144 | – 971 | – 132 | – 3,059 | 0 | – 3,059 |
| 28,686 | 28,576 | – 13,891 | – 8,952 | – 22,843 | 0 | 5,395 | 0 | 5,395 |
| 40,418 | 70,137 | 43,914 | – 11,168 | 32,746 | – 4,711 | 115,074 | 0 | 115,074 |
| – 24,247 | – 41,665 | – 35,102 | – 2,739 | – 37,841 | – 7,537 | – 96,817 | 10,321 | – 86,496 |
| 0 | 0 | 8,136 | 12,628 | 20,764 | 0 | 20,764 | 0 | 20,764 |
| – 340 | – 340 | – 811 | – 3 | – 814 | 772 | – 382 | 0 | – 382 |
| – 3,787 | – 4,558 | 40 | 0 | 40 | – 975 | – 6,036 | 0 | – 6,036 |
| 1,811 | 2,503 | 1,372 | 1,295 | 2,667 | 9,104 | 14,736 | – 10,321 | 4,415 |
| 0 | 0 | 0 | – 5,735 | – 5,735 | 0 | – 5,735 | 0 | – 5,735 |
| 0 | 0 | 0 | 1,652 | 1,652 | 0 | 1,652 | 0 | 1,652 |
| 13,855 | 26,077 | 17,549 | – 4,070 | 13,479 | – 3,347 | 43,256 | 0 | 43,256 |
| 5,311,863 | 0 | 5,311,863 | 0 | 2,137,118 | 130,910 | 2,006,208 | 2,442,874 | 1,291,622 |
|---|---|---|---|---|---|---|---|---|
| 570,196 | – 406,968 | 977,164 | 334,270 | 246,374 | 91,589 | 154,785 | 339,252 | 250,620 |
| 9,903 | – 39,610 | 49,513 | 39,610 | 2,074 | 419 | 1,655 | 7,829 | 5,492 |
| 5,891,962 | – 446,578 | 6,338,540 | 373,880 | 2,385,566 | 222,918 | 2,162,648 | 2,789,955 | 1,547,734 |
| 3,408,424 | – 405,907 | 3,814,331 | 56,062 | 1,901,734 | 162,935 | 1,738,799 | 1,483,708 | 780,976 |
| 457,971 | – 1,061 | 459,032 | 35,191 | 62,756 | 3,361 | 59,395 | 315,446 | 204,028 |
| 237,913 | – 39,610 | 277,523 | 0 | 123,109 | 2,913 | 120,196 | 101,191 | 94,361 |
| 4,104,308 | – 446,578 | 4,550,886 | 91,253 | 2,087,599 | 169,209 | 1,918,390 | 1,900,345 | 1,079,365 |
| 1,787,654 | 0 | 1,787,654 | 282,627 | 297,967 | 53,709 | 244,258 | 889,610 | 468,369 |
| 123,057 | 0 | 123,057 | 43 | 28,102 | 14,756 | 13,346 | 80,169 | 79,972 |
| € 1,000 | Austria | ||||
|---|---|---|---|---|---|
| Half-year 2011 | Income | Development | Total | Income | |
| producing | producing | ||||
| Rental income | 18,036 | 18 | 18,054 | 32,595 | |
| Revenues with other operating segments | 311 | 0 | 311 | 135 | |
| Operating costs passed on to tenants | 3,968 | 2 | 3,970 | 2,681 | |
| Operating expenses | – 5,152 | – 4 | – 5,156 | – 3,117 | |
| Other expenses directly related to properties rented | – 1,693 | – 1 | – 1,694 | – 2,440 | |
| Net rental income | 15,470 | 15 | 15,485 | 29,854 | |
| Trading result | 0 | 0 | 0 | 0 | |
| Result from development services | 0 | 0 | 0 | 0 | |
| Other expenses directly related to investment properties | |||||
| under development | 0 | – 268 | – 268 | 0 | |
| Net operating income | 15,470 | – 253 | 15,217 | 29,854 | |
| Result from the sale of investment properties | – 106 | 0 | – 106 | 175 | |
| Indirect expenditures | – 409 | – 357 | – 766 | – 1,686 | |
| Other operating income | 255 | 0 | 255 | 630 | |
| EBITDA | 15,210 | – 610 | 14,600 | 28,973 | |
| Depreciation and impairment/reversal | – 710 | – 60 | – 770 | – 83 | |
| Result from revaluation | 735 | – 1,913 | – 1,178 | – 492 | |
| Operating result (EBIT) | 15,235 | – 2,583 | 12,652 | 28,398 | |
| Finance costs | – 9,147 | – 527 | – 9,674 | – 18,327 | |
| Foreign currency gain/loss | 0 | 0 | 0 | 0 | |
| Result from interest rate derivative transactions | – 454 | 0 | – 454 | 1,549 | |
| Result from financial investments | 1,712 | 1 | 1,713 | 877 | |
| Result from other financial assets | 0 | 0 | 0 | 0 | |
| Result from associated companies | 0 | 0 | 0 | 0 | |
| Net result before taxes (EBT) | 7,346 | – 3,109 | 4,237 | 12,497 |
31.12.2011
| Property assets2) | 680,938 | 43,900 | 724,838 | 1,152,014 | |
|---|---|---|---|---|---|
| Other assets | 23,644 | 5,569 | 29,213 | 152,778 | |
| Deferred tax assets | 0 | 0 | 0 | 2,444 | |
| Total assets | 704,582 | 49,469 | 754,051 | 1,307,236 | |
| Interest-bearing liabilities | 383,135 | 33,934 | 417,069 | 709,253 | |
| Other liabilities | 8,483 | 1,024 | 9,507 | 102,632 | |
| Deferred tax liabilities incl. current income tax liabilities | 52,008 | 523 | 52,531 | 9,941 | |
| Liabilities | 443,626 | 35,481 | 479,107 | 821,826 | |
| Shareholders' equity | 260,956 | 13,988 | 274,944 | 485,410 | |
| Capital expenditures3) | 18,157 | 9,617 | 27,774 | 1,373 |
| Germany1) | Eastern Europe | Holding | Total | Consolidation | Total | |||
|---|---|---|---|---|---|---|---|---|
| segments | ||||||||
| Development1) | Total | Income | Development | Total | ||||
| producing | ||||||||
| 7,099 | 39,694 | 69,458 | 1,094 | 70,552 | 0 | 128,300 | 0 | 128,300 |
| 0 | 135 | 0 | 0 | 0 | 0 | 446 | – 446 | 0 |
| 1,404 | 4,085 | 22,784 | 1,293 | 24,077 | 0 | 32,132 | 0 | 32,132 |
| – 1,189 | – 4,306 | – 25,971 | – 2,140 | – 28,111 | 0 | – 37,573 | 0 | – 37,573 |
| – 3,097 | – 5,537 | – 8,085 | – 607 | – 8,692 | 0 | – 15,923 | 0 | – 15,923 |
| 4,217 | 34,071 | 58,186 | – 360 | 57,826 | 0 | 107,382 | – 446 | 106,936 |
| 1,555 | 1,555 | 0 | 0 | 0 | 0 | 1,555 | 0 | 1,555 |
| 363 | 363 | 0 | 0 | 0 | 0 | 363 | 0 | 363 |
| – 2,009 | – 2,009 | 0 | – 98 | – 98 | 0 | – 2,375 | 0 | – 2,375 |
| 4,126 | 33,980 | 58,186 | – 458 | 57,728 | 0 | 106,925 | – 446 | 106,479 |
| – 2,647 | – 2,472 | – 2 | 843 | 841 | 0 | – 1,737 | 0 | – 1,737 |
| – 4,974 | – 6,660 | – 10,106 | – 1,973 | – 12,079 | – 6,906 | – 26,411 | 3,248 | – 23,163 |
| 1,052 | 1,682 | 3,221 | 1,650 | 4,871 | 2,543 | 9,351 | – 2,802 | 6,549 |
| – 2,443 | 26,530 | 51,299 | 62 | 51,361 | – 4,363 | 88,128 | 0 | 88,128 |
| – 3,130 | – 3,213 | – 379 | – 178 | – 557 | – 152 | – 4,692 | 0 | – 4,692 |
| 23,453 | 22,961 | 3,927 | 665 | 4,592 | 0 | 26,375 | 0 | 26,375 |
| 17,880 | 46,278 | 54,847 | 549 | 55,396 | – 4,515 | 109,811 | 0 | 109,811 |
| – 14,277 | – 32,604 | – 36,500 | – 4,053 | – 40,553 | – 8,865 | – 91,696 | 11,656 | – 80,040 |
| – 411 | – 411 | – 890 | – 524 | – 1,414 | 0 | – 1,825 | 0 | – 1,825 |
| – 209 | 1,340 | – 181 | 21 | – 160 | 2,878 | 3,604 | 0 | 3,604 |
| 1,786 | 2,663 | 1,289 | 1,265 | 2,554 | 10,304 | 17,234 | – 11,656 | 5,578 |
| 0 | 0 | 0 | – 163 | – 163 | 0 | – 163 | 0 | – 163 |
| – 2 | – 2 | 0 | – 1,943 | – 1,943 | 0 | – 1,945 | 0 | – 1,945 |
| 4,767 | 17,264 | 18,565 | – 4,848 | 13,717 | – 198 | 35,020 | 0 | 35,020 |
| 5,222,183 | 0 | 5,222,183 | 0 | 2,132,447 | 232,218 | 1,900,229 | 2,364,898 | 1,212,884 |
|---|---|---|---|---|---|---|---|---|
| 682,654 | – 424,543 | 1,107,197 | 303,445 | 335,010 | 103,838 | 231,172 | 439,529 | 286,751 |
| 11,739 | – 39,083 | 50,822 | 39,083 | 2,777 | 461 | 2,316 | 8,962 | 6,518 |
| 5,916,576 | – 463,626 | 6,380,202 | 342,528 | 2,470,234 | 336,517 | 2,133,717 | 2,813,389 | 1,506,153 |
| 3,400,898 | – 423,590 | 3,824,488 | 67,933 | 1,890,671 | 232,756 | 1,657,915 | 1,448,815 | 739,562 |
| 477,571 | – 953 | 478,524 | 64,944 | 72,868 | 10,324 | 62,544 | 331,205 | 228,573 |
| 228,652 | – 39,083 | 267,735 | 0 | 114,869 | 2,881 | 111,988 | 100,335 | 90,394 |
| 4,107,121 | – 463,626 | 4,570,747 | 132,877 | 2,078,408 | 245,961 | 1,832,447 | 1,880,355 | 1,058,529 |
| 1,809,455 | 0 | 1,809,455 | 209,651 | 391,826 | 90,556 | 301,270 | 933,034 | 447,624 |
| 1,828,740 | 0 | 1,828,740 | 157 | 1,555,879 | 176,626 | 1,379,253 | 244,930 | 243,557 |
The condensed consolidated interim financial statements as at 30.6.2012 were prepared in accordance with IAS 34 ("Interim Financial Reporting") and are based on the accounting policies and measurement basis described in the annual consolidated financial statements of CA Immobilien Anlagen Aktiengesellschaft for the year 2011.
The condensed consolidated interim financial statements of CA Immobilien Anlagen Aktiengesellschaft ("CA Immo AG"), Vienna, for the period from 1.1. to 30.6.2012 (except for the quarterly information disclosed in the consolidated income statement and the consolidated statement of comprehensive income) have been reviewed by KPMG Wirtschaftsprüfungs und Steuerberatungs AG, Vienna.
The use of automatic data processing equipment may lead to rounding differences when adding rounded amounts and percentages.
The condensed consolidated interim financial statements 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 January 2012. The following revised standard is applicable for the first time for the financial year 2012: IFRS 7 (amendment to IFRS 7: Disclosures – Transfers of Financial Assets). This amendment has no effect on the condensed consolidated interim financial statements of CA Immo Group.
In order further to improve the clarity of the consolidated financial statements, the presentation of items in the consolidated financial statements as at 31.12.2011 was thoroughly revised. The format of the annual consolidated financial statements and the presentation of certain items were adjusted. To improve comparability, comparative figures for the first half year 2011 were also adjusted..
On 1.1.2012, CA Immo Group (CA Immobilien Anlagen Aktiengesellschaft and its subsidiaries) acquired 50% of Camari Investments Sp.z o.o. (holding company), Warsaw, and a further 8.5 % interest in Megapark o.o.d. (property company), Sofia, and additionally on 1.4.2012, 100% of Avielen Beteiligungs GmbH, Vienna (including 10% interest of ZAO "Avielen A.G.", St. Petersburg), for an aggregate purchase price of € 20 K. These purchase prices were paid in full. The acquired entites do not qualify as business combinations in accordance with IFRS 3.
The fabove described acquisitions (measured at the time of initial consolidation) affected the consolidated financial statements as follows:
| € 1,000 | Acquisitions at market values |
|---|---|
| Properties | 6,281 |
| Cash and cash equivalents | 599 |
| Other assets | 1,671 |
| Financial liabilities | – 7,398 |
| Provisions | – 6 |
| Other liabilities | – 696 |
| Receivables/payables of affiliated companies | – 1,736 |
| Net assets | – 1,285 |
The share in revenues of the acquired companies totalled € 108 K from the time of acquisition (from 1.1.2012: € 108 K), and share in net income amounted to € – 290 K (from 1.1.2012: € – 1,068 K). As at 30.6.2012, the acquired companies are included in the consolidated statement of financial position with proportional assets of € 8,180 K and liabilities of € 7,159 K.
In addition, 8 companies in Germany were established for the purpose of pursuing property developments and have been consolidated for the first time. Capital contributions made amount to € 50 K.
Furthermore, the holding companies EUROPOLIS 6 Holding s.r.o., Prague, RCP Epsilon s.r.o., Prague, and Mocasanra Holdings Limited, Limassol, have been liquidated.
As at 30.6.2012, ten investment properties under development in Germany and one investment property in Poland with a total market value of € 182,805 K, were classified as held for sale. As at 30.6.2012, a sale within one year from the date of reclassification was regarded as highly probable.
As at 30.6.2012, CA Immo Group held cash and cash equivalents amounting to € 262,185 K. Cash and cash equivalents contain bank balances of € 13,813 K (31.12.2011: € 16,261 K) to which the CA Immo Group only has restricted access. These balances serve the purpose of securing current loan repayments (repayment and interest). They cannot be used otherwise without the consent of the lender. In addition, cash and cash equivalents with restriced disposition is shown under long-term financial assets and short-term receivables and other assets:
| € 1,000 | 30.6.2012 | 31.12.2011 |
|---|---|---|
| Maturity > 1 year | 35,630 | 32,171 |
| Maturity from 3 to 12 months | 24,972 | 23,894 |
| Cash and cash equivalents with drawing restrictions | 60,602 | 56,065 |
Subordinated liabilities relate to liabilities of Europolis Group owed to Österreichische Volksbanken-Aktiengesellschaft and the European Bank for Reconstruction and Development (EBRD). Interest-bearing liabilities as at 30.6.2012 comprise 99.7% EUR loans and bonds, 0.1% USD loans and 0.2% CZK loans. Thereof, 17.4% were fixed-interest, 38.8% were fixed-interest by way of swaps, 5.9% were hedged by caps and 37.9% (with a principal of € 1,289,568 K) were subject to floating interest rates. The floating interest rate liabilities are matched by swaps with a nominal amount of € 458,656 K, for which no cash-flow hedge relationship exists.
In the first half of 2012, CA Immo Group repurchased two loans for two investment properties in Eastern Europe from the financing bank. The difference between the purchase price and the outstanding loan of € 20,764 K is presented as a separate line item in the consolidated income statement.
The result from derivative interest rate transactions comprises the following:
| € 1,000 | Half-year 2012 | Half-year 2011 |
|---|---|---|
| Valuation interest rate derivative transactions (unrealised) | – 5,817 | 8,515 |
| Reclassification of valuation results recognised in equity in prior years | – 7 | – 3,123 |
| Ineffectiveness of interest rate swaps | – 212 | – 100 |
| Realised results from interest rate derivative transactions | 0 | – 1,688 |
| – 6,036 | 3,604 |
The negative result from the measurement of interest rate derivatives is attributable to the change in fair values of the interest rate swaps for which no cash flow hedge relationship exists or, in the case of "reclassification", no longer exists. The item "ineffectiveness of interest rate swaps" contains the differences established by the effectiveness tests in which the effectiveness of the relevant cash flow hedge materially exceeded 100%. In the first half of 2012, there were no changes between the individual fair-value hierarchy levels.
Tax expenses comprise the following:
| € 1,000 | Half-year 2012 | Half-year 2011 |
|---|---|---|
| Current income tax (current year) | – 7,875 | – 3,189 |
| Current income tax (previous years) | 11,691 | 592 |
| Current income tax | 3,816 | – 2,597 |
| Effective tax rate (current income tax) | - | 7.4% |
| Change in deferred taxes | – 25,106 | – 16,837 |
| Tax benefit on valuation of derivative transactions | 0 | 5,477 |
| Tax expense | – 21,290 | – 13,957 |
| Effective tax rate (total) | 49.2% | 39.9% |
Current income tax expense/benefit arises mainly in the segment Germany. The change in current income tax (previous years) is mainly due to a tax benefit claimed in the first half of 2012, which in turn resulted in an increase in deferred tax liabilities in the same amount. The effective tax rate of CA Immo Group increased by 9% as compared to the first half of 2011, which is mainly due to unrecognised tax benefits from tax loss carry-forwards in Eastern Europe and significant taxable income in Germany
A convertible bond was issued in November 2009. Generally, this bond has an effect on earnings per share. Given that the CA Immo share price at the reporting date was below the conversion price of the convertible bond, diluted earnings per share equal basic earnings per share.
| Half-year 2012 | Half-year 2011 | ||
|---|---|---|---|
| Weighted average number of shares outstanding | pcs. | 87,856,060 | 87,856,060 |
| Consolidated net income | € 1,000 | 26,360 | 14,418 |
| Earnings per share (basic equals diluted) | € | 0.30 | 0.16 |
In 2012, a dividend of € 0.38 per eligible share, hence in total € 33,385 K (2011: € 0 K), has been distributed to the shareholders.
| Joint ventures | ||
|---|---|---|
| € 1,000 | 30.6.2012 | 31.12.2011 |
| Loans | 10,272 | 9,758 |
| Receivables | 6,323 | 5,110 |
| Payables | 3,106 | 2,279 |
| € 1,000 | Half-year 2012 | Half-year 2011 |
| Other income | 710 | 651 |
| Other expenses | – 304 | – 47 |
| Interest income | 311 | 586 |
The loans to and a large portion of the receivables from joint ventures existing at the reporting date serve to finance property and project development companies. The interest rates are at arm's length. No guarantees or other forms of security exist in connection with these loans.
| Associated companies | ||
|---|---|---|
| € 1,000 | 30.6.2012 | 31.12.2011 |
| Loans | 16,629 | 20,480 |
| € 1,000 | Half-year 2012 | Half-year 2011 |
| Income from associated companies | 1,670 | 1,154 |
| Expenses due to associated companies | – 18 | – 3,099 |
| Result from associated companies | 1,652 | – 1,945 |
| Interest income from associated companies | 1,361 | 866 |
| Expenses from other financial assets | – 6,068 | – 1,433 |
The loans to associated companies existing as of the reporting date serve to finance project development companies. All loans have interest rates at arm's length. No guarantees or other forms of security exist in connection with these loans.
Due to the acquisition of Avielen Beteiligungs GmbH, Vienna, the interest of CA Immo Group in ZAO "Avielen A.G.", St. Petersburg, increased from 25% to 35% as of 30.6.2012.
UniCredit Bank Austria AG, Vienna, is the principal bank of the CA Immo Group and the largest individual shareholder of CA Immo AG, with an interest of around 18 % (as at 30.6.2012). CA Immo Group carries out a large portion of its payment transactions and financing transactions with this bank and places a large part of its financial investments with the bank as well, with details given in below schedule:
| Consolidated statement of financial position: | ||
|---|---|---|
| € 1,000 | 30.6.2012 | 31.12.2011 |
| Share of financial liabilities recognised in the consolidated statement of financial position | 17.1% | 17.1% |
| Outstanding receivables | 112,219 | 146,252 |
| Outstanding liabilities | – 582,849 | – 582,867 |
| Fair value of interest rate swaps | – 143,602 | – 128,053 |
| Consolidated income statement: | ||
|---|---|---|
| € 1,000 | Half-year 2012 | Half-year 2011 |
| Finance costs | – 26,053 | – 25,693 |
| Result from derivative interest rate transactions | – 1,980 | 434 |
| Result from financial investments | 460 | 845 |
| Transaction fees | – 179 | – 149 |
Statement of other comprehensive income (equity):
| € 1,000 | Half-year 2012 | Half-year 2011 |
|---|---|---|
| Valuation result (hedging) | – 111,190 | – 59,465 |
Consolidated statement of cash flows: € 1,000 Half-year 2012 Half-year 2011
| Raising of new bank loans | 31,151 | 16,777 |
|---|---|---|
| Repayment of bank loans | – 25,737 | – 27,426 |
The terms and conditions of the business relationship with the UniCredit Group are are at arm's length.
As at 30.6.2012, contingent liabilities of CA Immo Germany Group resulting from urban development contracts amounted to € 2,993 K (31.12.2011: € 23,801 K) and from concluded purchase agreements for cost assumptions in connection with contaminated sites or war damage to € 1,794 K (31.12.2011: €1,485 K). In addition, letters of support exist for two proportionately consolidated companies in Germany, amounting to € 76,589 K (31.12.2011: € 61,749 K). No guarantees were issued (unchanged to 31.12.2011).
In addition, CA Immo Group has issued a guarantee to accept liabilities for the "Airport City Petersburg" amounting to € 4,200 K (31.12.2011: € 4,200 K).
The joint venture partner in the Maslov project initiated an arbitral court action in the amount of € 48,097 K plus interest in 2011. CA Immo Group believes that the action by the claimant is unlikely to be successful. Appropriateprovisions have been made for the expected outflow of funds.
Other financial obligations arising from firm purchase commitments in connection with the development of properties also exist for properties in Austria amounting to € 3,617 K (31.12.2011: € 5,186 K), in Germany amounting to € 86,536 K (31.12.2011: € 78,172 K), and in Eastern Europe amounting to € 11,687 K (31.12.2011: € 16,630 K).
The total obligation of CA Immo Group to contribute equity to proportionately consolidated companies as at 30.6.2012 was € 179 K (31.12.2011: € 179 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. CA Immo Group recognises appropriate provisions for known and probable charges arising from ongoing tax audits.
Borrowings, for which the financial covenants have not been met as at 30.6.2012, thus enabling the lender in principle to prematurely terminate the loan agreement, are 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 30.6.2012, this situation applied to four loans in Eastern Europe in the total amount of € 78,720 K (31.12.2011: four loans in Eastern Europe in the total amount of € 69,965 K). CA Immo Group takes appropriate action (e.g. partial repayment of the loans, increase in equity of the companies concerned) to remedy the breach of the covenants.
Mid of July 2012, CA Immo Group acquired two hotel management companies in Czech Republic. Thus, for two hotels personnel and other services to manage the hotel operations in Czech Republic will be provided in the future.
In July 2012, CA Immo Group executed contacts to sell properties in Berlin. The total fair value of the properties sold amounts to € 20.5 K. Closing is expected to occur within the next year.
In August 2012, an agreement has been signed regarding the sale of the Warsaw Financial Center in Poland, of which CA Immo Group holds a 50% interest, with a proportional selling price of approx. € 105 million. Closing is expected to occur not before the fourth quarter 2012.
Vienna, 17.8.2012
Bruno Ettenauer (Chairman)
The Management Board
Wolfhard Fromwald (Management Board Member)
Bernhard H. Hansen (Management Board Member)
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 and that the group management report gives a true and fair view of the assets, liabilities, financial position and profit or loss of the group in relation to 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, 17.8.2012
The Managing Board
Wolfhard Fromwald (Management Board Member)
Bernhard H. Hansen (Management Board Member)
Bruno Ettenauer (Chairman)
We have reviewed the accompanying condensed interim consolidated financial statements of CA Immobilien Anlagen Aktiengesellschaft, Vienna for the period from 1 January 2012 to 30 June 2012. These condensed interim consolidated financial statements comprise the consolidated statement of financial position as of 30 June 2012, the consolidated income statement and the consolidated statement of comprehensive income, the condensed consolidated statements of cash flows and consolidated statement of changes in equity for the period from 1 January 2012 to 30 June 2012 and the condensed notes, summarizing the significant accounting policies and other explanatory notes.
Management is responsible for the preparation of the condensed interim consolidated financial statements in accordance with International Financial Reporting Standards (IFRS's) for Interim Reporting as adopted by the EU.
Our responsibility is to express a conclusion on these condensed consolidated interim financial statements. Our liability towards the Company and towards third parties is limited 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 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, 17 August 2012
KPMG
Wirtschaftsprüfungs- und Steuerberatungs AG
Mag. Helmut Kerschbaumer Austrian Chartered Accountant ppa Mag. Christoph Erik Balzar Austrian Chartered Accountant
This report is a translation of the original report in German, which is sloley 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 Aktionärstelefon (in Österreich): 0800 01 01 50 (kostenlos) Claudia Hainz, Florian Nowotny 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
Corporate Communications Susanne Steinböck Silke Gregoritsch Julia Müller Phone +43 1 532 59 07-0 Fax +43 1 532 59 07-595 [email protected]
Listed on Vienna Stock Exchange ISIN: AT0000641352 Reuters: CAIV.VI Bloomberg: CAI: AV
Shareholders' equity: 638.713.556,20 € Number of shares: 87.856.060 pcs
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.
Text: Susanne Steinböck, Florian Nowotny, Claudia Hainz, Julia Müller Graphic design: Silke Gregoritsch, WIEN NORD Werbeagentur, Photographs: CA Immo, Production: 08/16; this report is set inhouse with FIRE.sys
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. This Interim Report is printed on environmentally friendly and chlorine-free bleached paper.
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