Quarterly Report • May 21, 2012
Quarterly Report
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FINANCIAL REPORT AS AT 31 MARCH 2012
| 01.01.-31.03.2012 | 01.01.-31.03.2011 | ||
|---|---|---|---|
| Rental income | € m | 72.4 | 64.2 |
| EBITDA | € m | 60.3 | 46.3 |
| Operating result (EBIT) | € m | 39.9 | 47.9 |
| Net result before taxes (EBT) | € m | 18.3 | 18.7 |
| Consolidated net income | € m | 13.7 | 13.0 |
| attributable to the owners of the parent | € m | 17.3 | 10.1 |
| Operating cash flow | € m | 53.1 | 34.3 |
| Capital expenditure | € m | 66.2 | 1,587.1 |
| 31.03.2012 | 31.12.2011 | ||
|---|---|---|---|
| Total assets | € m | 5,903.1 | 5,916.6 |
| Stated value (equity) (incl. minority interests) | € m | 1,820.4 | 1,809.5 |
| Long and short term interest-bearing liabilities | € m | 3,255.6 | 3,264.0 |
| Net debt | € m | 2,862.4 | 2,854.2 |
| Gearing | % | 157 | 158 |
| Equity ratio | % | 30.8 | 30.6 |
| Equity-to-fixed-assets ratio | % | 34.6 | 34.7 |
| Net asset value | € m | 1,697.3 | 1,684.6 |
| Net asset value (NNNAV) | € m | 1,749.7 | 1,742.3 |
| 31.03.2012 | 31.12.2011 | ||
|---|---|---|---|
| Total usable space (excl. parking, excl. projects) | sqm | 2,608,995 | 2,531,068 |
| Gross yield investment properties | % | 6.4 | 6.3 |
| Book value of properties | € m | 5,237.8 | 5,222.2 |
| 01.01.-31.03.2012 | 01.01.-31.03.2011 | ||
|---|---|---|---|
| Rental income / share | € | 0.82 | 0.73 |
| Operating cash flow / share | € | 0.60 | 0.39 |
| Undiluted earnings per share | € | 0.20 | 0.12 |
| Diluted earnings per share | € | 0.20 | 0.12 |
| 31.03.2012 | 31.12.2011 | ||
| NNNAV/share | € | 19.92 | 19.83 |
| NAV/share | € | 19.32 | 19.17 |
| Price (key date)/NNNAV per share – 11) | % | – 57 | – 58 |
| 31.03.2012 | 31.12.2011 | ||
|---|---|---|---|
| Number of shares (31.03.) | pcs. | 87,856,060 | 87,856,060 |
| Ø Number of shares | pcs. | 87,856,060 | 87,856,060 |
| Ø price/share | € | 8.1 | 11.0 |
| Closing price (31.03.) | € | 8.57 | 8.29 |
| Highest price | € | 8.67 | 13.45 |
| Lowest price | € | 7.30 | 7.02 |
| 1) before deffered taxes |
The Management Board (left to right): Dr. Bruno Ettenauer and Wolfhard Fromwald, Bernhard H. Hansen
Looking at the first quarter of 2012, we can see that the tangibly positive operational developments seen at the end of last year have been maintained.
As the latest figures show, the recurring income has improved considerably, largely as a result of additional rental revenue from in-house developments completed in recent months. This underlines the successful implementation of our strategy of boosting earning power by raising the proportion of rent-generating investment properties in the portfolio as a whole.
The net rental income was up 19.0 % on the same period last year to € 63.1 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 standing portfolio at the beginning of the year had a particular impact.
The operating result (EBITDA) increased by 30.3 % on the comparable figure for last year to € 60.3 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 of € -19.6 m was linked to impairments in Eastern Europe that was only partially offset by upward valuations in Germany. 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 included in the financial result.
As a result of this effect, the financial result stood at € -21.6 m (compared to € -29.3 m in 2010). Financing costs, the main item in the financial result, rose by around 11.1 % to € -44.4 m owing to additional interest for completed development projects.
Overall, consolidated net income after minorities, which is the key figure for shareholders, rose from € 10.1 m to € 17.3 m during the first three months of 2012.
4
Despite the greater insecurity currently afflicting the financial markets, we have every confidence of achieving the key objectives we defined at the start of the year – namely, a rise in rental income and sales in the order of
€ 300-350 m. Given the promising negotiations now in progress with many potential high-profile tenants and the prospects of real estate sales, we look forward to positive outcomes in the weeks and months ahead.
The Management Board
Bruno Ettenauer (Chief Executive Officer)
Wolfhard Fromwald Bernhard H. Hansen
Vienna, May 2012
The mood on stock markets around the world was positive throughout the first quarter of 2012; key international indices (including the S&P 500, Nikkei 225 and DAX) even achieved double-digit growth rates. By contrast, the European debt crisis and widespread economic uncertainty has dominated the property sector on the continent. Share prices for real estate companies in Austria, for example, fell by an average of 25 % and are presently trading with discounts to NAV of up to 60 %. Financing is likely to remain an issue in the property business: given the high levels of loan capital in the real estate sector, the restrictive financing policy of banks will impact on the development of property shares. In addition, there is a good deal of scepticism regarding the future economic direction of Europe; Eastern European property securities in particular are trading at significant discounts.
The CA Immo share started this business year at a price of € 8.29. The rate fell sharply in the first weeks of trading, reaching a low point of € 7.30 by the end of January. Over the months that followed, the rate fluctuated in the range of € 7.65 to € 8.65. The highest price during the period under review was € 8.67 and the closing rate on 31 March 2012 was € 8.57 (an increase of 2.56 %). As of key date 31 March 2012, the discount to NAV stood at – 55.62 %. The average daily trading volume was approximately 246,000 shares per day (double-counting), compared to 324,000 in the previous year. Market capitalisation declined from approximately € 1,142.1 m as at 31 March 2011 to € 753.3 m on 31 March 2012. Analysts currently expect the 12-month rate to fluctuate between € 7.50 (Rabobank) and € 13.00 (SRC Research).
| CA Immo share | - 35.19 % |
|---|---|
| IATX | - 23.34 % |
| EPRA | - 8.09 % |
| ATX | - 25.88 % |
This year's 25th Ordinary General Meeting was attended by 263 shareholders and their delegates, representing 25,676,626 shares and votes (29.22 % of the capital stock). All items on the agenda were passed with clear majorities as proposed by the Management Board. Specifically, the agenda covered the utilisation of net retained earnings to pay a dividend of € 0.38 per share, approval of the actions of Management and Supervisory Board members, the definition of Supervisory Board remuneration and confirmation of KPMG Wirtschaftsprüfungs- und Steuerberatungs GmbH of Vienna as the (Group) auditor for business year 2012. Other topics included the reelection of Supervisory Board member Reinhard Madlencnik, 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.
| 31.3.2012 | 31.12.2011 | ||
|---|---|---|---|
| NNNAV/share | € | 19.92 | 19.83 |
| NAV/share | € | 19.32 | 19.17 |
| Price (key date)/NAV per share – 11) | % | – 55.62 | – 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 | € | 8.06 | 10.96 |
| Market capitalisation (key date) | € m | 753.28 | 728.06 |
| Highest price | € | 8.67 | 13.45 |
| Lowest price | € | 7.30 | 7.02 |
| Closing price | € | 8.57 | 8.29 |
SHARE
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| 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 010 150 |
| Email: | [email protected] |
| Web site: | www.caimmo.com |
Claudia Hainz Tel.: +43 1532 590 7502 Fax: +43 1532 590 7595 [email protected] Florian Nowotny Tel.: +43 1532 590 7518 Fax: +43 1532 590 7595 [email protected]
Susanne Steinböck Tel.: +43 1532 590 7533 Fax: +43 1532 590 7595 [email protected]
PUBLICATION OF ANNUAL RESULTS FOR 2011
8 MAY ORDINARY GENERAL MEETING
INTERIM REPORT FOR THE FIRST QUARTER 2012
INTERIM REPORT FOR THE FIRST HALF 2012
21 NOVEMBER INTERIM REPORT FOR THE THIRD QUARTER 2012
The stabilisation of the global economy continued in the first quarter of 2012. The inflationary trend slowed somewhat between January and April as the situation on financial markets eased and the global economy staged a gradual recovery. Although the debt crisis in Europe continued to impact on economic output around the world, the consequences so far have been moderate.
Average growth forecasts for 2012 were revised downwards in the countries of the eurozone; according to the most recent figures from Eurostat, negative growth of -0.3% on average is expected for the current year. Over the first three months, the unemployment rate rose by 11% to just under 11%. Base rates were unchanged at 1.0%. While anticipating a eurozone inflation rate in excess of 2% for the current year, the Governing Council of the ECB is working on the assumption of general price stability. The base rate is therefore unlikely to change in the foreseeable future. Across all maturities, interest rates maintained their upward trend on the unsecured money market. The average monthly interest rate for unsecured three month lending (Euribor) fell by 15 base points to stand recently at 0.77%. In the area of credit financing, however, the trend is being counteracted by rising liquidity premiums imposed by banks and thus higher interest margins. On the CA Immo markets of Hungary, Romania and Serbia in particular, the prospects for project financing continue to be restricted.
Across Europe, € 23.8 bn was invested in real estate in the first three months of 2012, a fall of 18% compared to quarter one of the previous year. Investors continued to favour core properties with good letting levels; accordingly, the focus was on stable, low-risk regions with healthy national finances (such as Scandinavia). By contrast, Germany, France and especially the United Kingdom – normally safe havens for value and turnover on the European investment market – saw sales drop by between -9% and -27% on last year during the first quarter. Sales also fell sharply on prior year values in the SEE and CEE states (-65% in both areas); this was due to the low availability of sought-after core properties across the region as well as the tough economic and budgetary conditions on certain markets.
In the first three months of 2012, peak yields rose by an average of seven base points to 5.5% on the 15 main markets of Western and Eastern Europe compared to the previous quarter. Following on from solid lettings performance over 2011 as a whole, the office rental markets were somewhat muted in the opening quarter of 2012; rental rates did not rise on most markets as a result.
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.
Although experts are predicting that economic developments in the eurozone and the CEE/SEE markets should continue to move in the right direction, structural obstacles – such as the difficult situation in the heavily indebted eurozone countries – are still blocking economic recovery. 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. In the wake of the crisis in Greece, the general economic picture has darkened considerably. As a result, the real estate sector will also be a tough environment in which to operate; prospects for financing will deteriorate further as the slow-growing real economy suppresses demand for real estate.
1 ECB Monthly Bulletin April 2012, Eurostat
2 CBRE, MarketView, European Investment Quarterly, Q1 2012, CBRE, EMEA Rents and Yields Q1 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 (84% 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 2% or so of property assets. Unchanged to 31 December 2011, the CA Immo Group's property assets totalled € 5.2 bn as at key date 31 March 2012.
As at 31 March 2012, the Group's investment properties had an approximate market value of € 4.4 bn (€ 4.2 bn on 31 December 2011) and a total rentable effective area of 2.5 mn sqm. Around 54% of the investment property portfolio is located in CEE and SEE nations, with 33% of the remaining investment properties in Germany and 13% in Austria. In the first three months of the year, the Group generated rental income of € 72.4 m, compared to € 63.7 m in the same period of 2011. As at 31 March 2012, the like-for-like occupancy rate was nearly unchanged at 88% (87% on 31.12.2011). Including the Tower 185, which was transferred in the asset portfolio as at 31 March 2012, the occupancy rate stood at 87%; the portfolio produced a yield of 6.4%.
Of the investment properties under development with a total value of around € 742.6 m (€ 934.4 m on 31.12.2011), developments and land reserves in Austria accounted for approximately 5%, Germany accounted for 78% and
projects in the CEE, SEE and CIS countries made up the remaining 17%. 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 € 578 m, projects under construction account for roughly € 150 m and land reserves make up € 428 m.
DISTRIBUTION OF BOOK VALUE INVESTMENT PROPERTIES
BY MAIN USAGE (Basis: € 4.4 bn)
| in € m | Investment properties |
Investment properties under development |
Properties held as current assets |
Property assets Property assets in % | |
|---|---|---|---|---|---|
| Austria | 686 | 38 | 0 | 724 | 14% |
| Germany | 1,745 | 578 | 68 | 2,392 | 46% |
| Czech Republic | 335 | 8 | 0 | 344 | 7% |
| Hungary | 409 | 12 | 0 | 422 | 8% |
| Poland | 650 | 33 | 0 | 683 | 13% |
| Romania | 369 | 37 | 0 | 407 | 8% |
| Others | 232 | 36 | 0 | 267 | 5% |
| CA IMMO | 4,427 | 743 | 68 | 5,238 | 100% |
| Share in portfolio | 85% | 14% | 1% | 100% |
Reaching an investment volume of € 2.2 bn (42% proportion in the total investment volume), offices staged a comeback on the German investment market1 in the first quarter of 2012 (+179% on the first quarter of last year). Retail properties, which had dominated investment turnover in recent years (46% proportion in the total investment volume in 2011), generated a share of 29%. Frankfurt led the market in terms of sales with € 575.9 m. Peak yields remained stable, ranging between 4.75% (Munich) and 5.00% (Düsseldorf).
The office rental market in Germany2 benefited from the economic recovery, stabilising demand for office space. Against this background, lettings performance varied considerably across CA Immo's five office locations: Berlin was down by 20% on the first quarter of 2011, Düsseldorf declined by 17%, Frankfurt was up 43% and Munich was 19% lower. With major contracts under preparation and the labour market looking positive, everything points to turnover for office space staying strong as the year progresses. The vacancy rate levelled off in the first three months of 2012 as the number of buildings being completed fell and the absorption of new premises reached a high level. Rents on prime and newly built premises increased in Frankfurt (€ 36/sqm after € 32/sqm at the end of 2011), Munich showed falling peak rents (€ 33/sqm after € 35/sqm), while Berlin remained stable at € 22/sqm.
As at 31 March 2012, CA Immo's investment properties and properties intended for trading in Germany had an approximate value of € 1.8 bn (31 December 2011: € 1.5 bn). The Tower 185 highrise was completed at the turn of the year and incorporated into the investment property portfolio on 31 March 2012. As a result, the occupancy rate for property assets let stood at 87% on the key date (31 December 2011: 92%); these assets generated rental income of € 23 m in the first three months. Where the rent contributions of properties intended for trading and temporarily let property reserves in the development segment are taken into account, rental income totals € 24.8 m. In total, some 9,330 sqm of floor space was newly let in Germany in the first three months.
1 BNP Paribas Real Estate, office investment market Germany Q1 2012.
In the first quarter of 2012, CA Immo successfully let additional 4,250 sqm office space in the Frankfurt Tower 185, amongst others, anchor tenant PwC AG (PricewaterhouseCoopers) has rented two more office levels with total floor space of 2,800 sqm, raising the company's total rented space to 71,000 sqm. The occupancy rate for the building, which was completed at the turn of the year 2011/2012, has thereby risen to around 76%.
As at key date 31 March, CA Immo had invested € 42.8 m in development projects in Germany for 2012. On the basis of total investment costs, the volume of project developments under construction for the Group in Germany is approximately € 396 m; the book value of investment properties under development (including land bank) accounts for € 578 m.
In March 2011, CA Immo was awarded the contract to develop the district Marina Quartier In Regensburg, spanning a site of approximately 60,000 sqm, by the City of Regensburg. While the zoning procedure is currently running, Immobilien Zentrum has now been confirmed as the first investor for six construction sites of the district, mainly earmarked for residential development. The Marina Quartier concept envisages the development of a mixed use residential quarter with around 400 residential units, offices, cultural and social facilities as well as convenience retail outlets.
Trading income from German real estate contributed a total of € 34.3 m to the result over the first quarter.
2 BNP Paribas Real Estate, press release 04.04.2012.
Activity on the Austrian investment market3 was muted early in 2012; the transaction volume of 300,000 sqm compared to the previous year was down by a marginal 9%. Most trading (51%) involved retail properties, with offices and hotels each accounting for 22%. Nearly all investment related to core properties, showing that investors are still reluctant to take risks. The peak yield was stable at 5.20%.
With 65,000 sqm of office space let on the office rental market in Vienna4 , turnover was up by roughly 30% on quarter one of 2011. Activity was dominated by smallscale lettings of less than 1,000 sqm; few international organisations moved into new premises. Companies relocated to new, space-efficient buildings, typically reducing the floor space they occupy by 10-15% without cutting back on staff. Despite this trend, the vacancy rate (currently standing at just over 6%) has stayed stable; it is predicted to rise slightly by the end of the year, low construction levels (forecast: 170,000 sqm) notwithstanding. Compared to the final quarter of 2011, the peak rent level has risen marginally to just over € 24/sqm, with average rents largely unchanged in the range of € 8.8/sqm and € 20/sqm.
As at 31 March 2012, CA Immo held investment properties in Austria with an approximate value of € 686 m and an occupancy rate of 91% (91% on 31.12.2011). Property assets let generated rental income of € 9.9 m in the first three months. Over the same period, around 3,450 sqm of floor space was newly let.
Trading income from Austrian real estate contributed a total of € 8.2 m to the result over the first quarter. Amongst other things, the sale of an office and residential building on Markgraf Rüdiger Strasse in Vienna's 15th municipal district was agreed in March. Sales revenue of € 8.1 m from this transaction was well above the book value.
In the first quarter of 2012, investment activity on markets in Central and South Eastern Europe was roughly 65% lower than the figure for last year's quarter with a volume of € 901 m. As the access to financing continued to be restricted, more and more investors are withdrawing from the region. Peak yields remained stable in Budapest (7.25%), Prague (6.50%), Bratislava (7.25%) and Warsaw (6.25%); while changing up 25 to 35 base points in Bukarest and Sofia, increasing the pressure on real estate prices in these markets.
Towards the end of the quarter, leased office space declined on the office rental markets of the CEE/SEE in response to the poor state of the economy; the lettings volume fell most markedly in Warsaw, Bucharest and Prague. The vacancy rate across the region increased to well over 10% on most Eastern European markets. Peak office rents remained stable at the level of the previous quarter.
CA Immo held investment properties with an approximate value of € 1,996 m in Eastern Europe as at 31 March 2012. In the first quarter, property assets let with a total effective area of around 1.4 m sqm generated rental income of € 37.5 m; the occupancy rate was - unchanged to 31 December 2011 - 85%. During quarter one of 2012, rental agreements were concluded on approximately 37,900 sqm of floor space; of this total, logistical premises accounted for 16,600 sqm and new lettings amounted to some 9,000 sqm.
Occupancy permits for the two buildings making up construction phase two of the Poleczki Business Park project close to Warsaw Airport were obtained in the first quarter of 2012. The second construction phase, currently in progress, comprises a pair of four-storey structures with a rentable effective area of 21,000 sqm. Completion is scheduled for the second quarter of 2012.
3 CB Richard Ellis, Vienna Office MarketView, Q1 2012
4 EHL, Office Market Report Vienna, Spring 2012; CB Richard Ellis, Vienna Office MarketView, Q1 2012
5 CB Richard Ellis, EMEA Rents and Yields Q1 2012
CA Immo and PATRIZIA Immobilien AG have 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 April, another lease contract was concluded for 1,450 sqm of floor space at the SKYGARDEN office building in Munich's Arnulfpark. The IT consulting company
Patinion GmbH will transfer its Munich headquarters to the green building in autumn 2012, thereby raising the occupancy rate of the SKYGARDEN to 76%.
The completion of structural shell on 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.
In may, CA Immo celebrated the topping out ceremony for the office building "Silbermöwe" at the Vienna Lände 3 site
Measured against the first quarter of 2011, rental income increased by 12.8% to € 72,417 K.
The growth in rents is chiefly attributable to the completion of development projects in Germany.
The direct costs for the rented properties decreased by – 16.7%, from € – 11,151K to € – 9,294K, primarily because of a decline in maintenance expenses and a nonrecurring write off of receivables in the first quarter of 2011.
Net operating income attributable to letting activities after the deduction of direct costs increased from € 53,059 K to € 63,123 K. Alongside the absolute rise, the margin (net operating income to rental income) also advanced substantially, from 82.6% to 87.2% .
In connection with the sale of properties forming part of current assets (almost exclusively in the Germany segment), trading volume in the first quarter of 2012 came to € 4,732K (2011: € 6,582K). The earnings contribution of the trading portfolio totalled € 3,254 K (2011: € 1,816 K).
Gross revenue from development services for third parties (performed by the Group subsidiary omniCon) closed the period at € 869 K. The prior-year figure was € 569 K. Income from development services for third parties totalled € 354.0K (2011: € 366 K).
Direct property expenses attributable to investment properties under development decreased because of completions, from € – 1,976 K to € – 1,153 K.
These developments triggered a year-on-year increase in net operating income of 23.1%. The figure for Q1 2012 was € 65,578K.
In the first three months of 2012, proceeds from the sale of properties classified as fixed assets totalled € 37,995 K; the largest portion was attributable to undeveloped properties in Germany. The associated earnings contribution was € 1,914K (2011: € 1,340K).
The substantial decline of – 20.6% in indirect expenditures, from € – 11,627K to € – 9,234K, arose chiefly from a cut in staff expenses and lower solicitors' and other consultants' fees.
The rise in rental income also prompted a significant increase of 30.3% in the earnings before interest, tax, depreciation and amortisation (EBITDA). The figure totalled € 60,337 K (€ 46,290 K in the previous year).
At € 30,175K (2011: € 26,533K) the Eastern Europe segment made the largest contribution (approx. 50%) to consolidated EBITDA.
The revaluation result for 2012 was € – 19,621K (2011: € 3,489K). From a regional perspective, the revaluation result arises from appreciation of € 8,039K in Germany, and depreciation in the Eastern Europe segment (€– 27,504 K) and Austria (€ – 156K).
The positive impact made by Germany arose principally from the reclassification of the Tower185 building from property assets under development to investment properties. The negative result posted in Eastern Europe largely stemmed from logistics property devaluations in Poland and Ukraine in connection with the project finance restructuring described below in the financial result.
In combination, the forenamed factors pushed down EBIT from € 47,948 K in 2011 to € 39,901 K in 2012. From a regional perspective, however, the valuationrelated decrease in EBIT in the Eastern Europe segment, from € 28,499K to € 2,471K, stood alongside substantial increases in Germany, to € 30,565 K (compared with € 17,452K in 2011), and Austria, where EBIT rose to € 8,964K from € 4,050K in 2011).
The financial result for Q1 2012 totalled € – 21,600K (2011: € – 29,274K). The changes in the constituents of the financial result are described in detail below.
Following the recognition of interest for completed properties (Tower185, Skygarden and Ambigon), financing costs increased by 11.1% to € – 44,435K.
In the first quarter of 2012, the financing for two logistics properties in Poland and Ukraine was restructured. As a consequence, CA Immobilien Anlagen AG acquired the project companies' outstanding loans from the lending bank for less than the nominal amount. The associated accounting effect of € 20,982 K must be seen in the context of the forenamed valuation loss on the properties concerned.
When comparing the first quarter of 2012 with the corresponding prior-year period, it is further to be noted that the financial result for Q1 2011 contained a significant valuation gain from interest-rate hedges, in the amount of € 9,523K.Q1 2012, in contrast, closed with a negative earnings contribution in the amount of € – 1,581K. A large portion of this loss is a non-cash valuation result.
The result from financial investments, of € 2,738K, was more or less the same as in the previous year (€ 2,503 K).
Income from associated companies (2012: € 1,670K, 2011: € – 35K) contains the pro rata result from the investment in UBM.
The developments described above lead to earnings before taxes (EBT) for the first quarter of 2012 in the amount of € 18,301 K (2011: € 18,674K). The taxes on income and earnings in the amount of € – 4,600K (2011: € – 5,704K) represents the balance of a current tax expense of € – 8,803K (arising to a significant part in connection with the sale of properties in Germany) and income from the change in deferred taxes.
At € 13,701K, the result for the period increased year on year (2011: € 12,970K). The non-controlling interests stood at € – 3,607K, compared with € 2,830K in 2011, and largely consisted of the result attributable to the joint venture partners in the sub-portfolios of Europolis, which was negative as a consequence of the devaluations. The share of the result attributable to owners of the parent closed the first quarter of 2012 at € 17,308K, which was significantly higher than the figure for Q1 2011 (€ 10,140K).
Funds from operations before taxes (FFO) came to € 36,846 K in the first three months of 2012, compared to € 8,978 K . The year-on-year increase primarily stems from the forenamed rise in EBITDA.
| € m | Q1 2012 | Q1 2011 |
|---|---|---|
| Net income before taxes before minorities |
18,301 | 18,674 |
| Depreciation and amortisation | 815 | 1,831 |
| Revaluation results | 19,621 | -3,489 |
| Foreign currency gain/loss | -1,823 | 1,433 |
| Corr. At-Equity result | -1,670 | 52 |
| Valuation of financial instruments | 1,581 | -9,523 |
| Funds from Operations before taxes | 36,825 | 8,978 |
| Corporate income tax (actual tax) | -8,803 | -1,546 |
| Funds from Operations | 28,022 | 7,432 |
Measured against 31.12.2011, total assets changed only marginally in the first quarter of 2012. The most appreciable effects arose from the reclassification of the Tower185 building from properties under development to the "investment properties" item, which consequently rose from € 4,183,202K to € 4,414,437K.
Total property assets – consisting of investment properties, properties under development, and properties forming part of current assets – closed the period at € 5,237,772 K, which reflects an increase of around 0.5%
Cash and cash equivalents as of 31 March 2012 stood at € 338,774 K, which was only slightly lower than the figure posted at the start of the year.
March 2012, the negative valuation result of these cash
flow hedges recognised in equity stood at € – 97,807 K, which represents a deterioration of € – 4,785K compared with the position as of 31 December 2011.
Financial liabilities rose by – 0.3% to € 3,255,610K. Net debt (financial liabilities less cash and cash equivalents) increased slightly in the period since the start of the year, from € 2,854,171K to € 2,862,389K.
NAV (shareholders' equity excluding non-controlling interests according to IFRS) closed 31 March 2012 at € 1,697.3 m (€ 19.32 per share), representing a rise of 0.8%compared to the beginning of the year. This change reflects both the annual result and the forenamed other
changes in shareholders' equity. The table below shows how the NNNAV is calculated from the NAV in compliance with the best practice policy recommendations of the European Public Real Estate Association (EPRA).
Given that the CA Immo share price on the reporting date was lower than the conversion price of the convertible bond, the EPRA NAV was calculated without giving consideration to a dilutive effect arising from a hypothetical exercise of the conversion option. As of 31 March 2012, the (diluted = undiluted) NNNAV per share stood at € 19.92 per share, representing an increase of 0.4%. The number of shares outstanding as of 31 March 2012 remained unchanged at 87,856,060.
| € m | 31.3.2012 | 31.12.2011 |
|---|---|---|
| undiluted | undiluted | |
| Equity (NAV) | 1,697.3 | 1,684.6 |
| NAV/share in € | 19.32 | 19.17 |
| Computation of NNNAV | ||
| Exercise of options | 0.0 | 0.0 |
| NAV after exercise of options | 1,697.3 | 1,684.6 |
| Value adjustment for | ||
| - own use properties | 3.7 | 3.5 |
| - properties held as current assets | 6.8 | 7.6 |
| - Financial instruments | 97.8 | 93.0 |
| Deferred taxes | 135.9 | 141.0 |
| EPRA NAV after adjustments | 1,941.5 | 1,929.7 |
| Value adj. for financial instruments | -97.8 | – 93.0 |
| Value adjustment for liabilities | -6.5 | – 2.9 |
| Deferred taxes | -87.4 | – 91.4 |
| EPRA NNNAV | 1,749.7 | 1,742.3 |
| EPRA NNNAV per share in € | 19.92 | 19.83 |
| Change of NNNAV against previous year | 0.4% | 4.6% |
| Price (31.12.) / NNNAV per share – 1 | -56.9 | – 58.2 |
| Number of shares | 87,856,060 | 87,856,060 |
| € 1,000 | 1st Quarter 2012 | 1st Quarter 2011 |
|---|---|---|
| Rental income | 72,417 | 64,210 |
| Operating costs passed on to tenants | 18,404 | 16,825 |
| Operating expenses | – 21,078 | – 19,578 |
| Other expenses directly related to property rented | – 6,620 | – 8,398 |
| Net rental income | 63,123 | 53,059 |
| Income from the sale of properties intended for trading | 4,732 | 6,582 |
| Book value of properties intended for trading | – 1,478 | – 4,766 |
| Trading result | 3,254 | 1,816 |
| Gross revenues from development services | 869 | 569 |
| Expenditures on development services | – 515 | – 203 |
| Result from development services | 354 | 366 |
| Other expenses directly related to investment properties under development | – 1,153 | – 1,976 |
| Net operating income | 65,578 | 53,265 |
| Result from the sale of long-term properties | 1,914 | 1,340 |
| Indirect expenditures | – 9,234 | – 11,627 |
| Other operating income | 2,079 | 3,312 |
| EBITDA | 60,337 | 46,290 |
| Depreciation and amortisation of long-term properties | – 755 | – 831 |
| Change in value of properties intended for trading | – 60 | – 1,000 |
| Depreciation and impairment/reversal | – 815 | – 1,831 |
| Revaluation gain | 10,208 | 7,394 |
| Revaluation loss | – 29,829 | – 3,905 |
| Result from revaluation | – 19,621 | 3,489 |
| Operating result (EBIT) | 39,901 | 47,948 |
| Financing costs | – 44,435 | – 39,988 |
| Other financial result | 20,982 | 0 |
| Foreign currency gain/loss | 1,823 | – 1,433 |
| Result from interest derivative transactions | – 1,581 | 9,523 |
| Result from financial investments | 2,503 | 2,738 |
| Result from other financial assets | – 2,562 | – 79 |
| Result from associated companies | 1,670 | – 35 |
| Financial result | – 21,600 | – 29,274 |
| Net result before taxes (EBT) | 18,301 | 18,674 |
| Income tax | – 4,600 | – 5,704 |
| Consolidated net income | 13,701 | 12,970 |
| thereof attributable to non-controlling interests | – 3,607 | 2,830 |
| thereof attributable to the owners of the parent | 17,308 | 10,140 |
| Earnings per share in € (undiluted equals diluted) | € 0.20 | € 0.12 |
| € 1,000 | 1st Quarter 2012 | 1st Quarter 2011 |
|---|---|---|
| Consolidated net income | 13,701 | 12,970 |
| Other comprehensive income | ||
| Valuation cash flow hedges | – 5,901 | 33,909 |
| Raclassification cash flow hedges | 7 | 377 |
| Other comprehensive result of associated companies | – 313 | 111 |
| Exchange rate differences | 415 | 1,156 |
| Income tax related to other comprehensive income | 1,118 | – 5,747 |
| Other comprehensive income for the year | – 4,674 | 29,806 |
| Comprehensive income for the year | 9,027 | 42,776 |
| thereof attributable to non-controlling interests | – 3,526 | 3,173 |
| thereof attributable to the owners of the parent | 12,553 | 39,603 |
| € 1,000 | 31.3.2012 | 31.12.2011 | 1.1.2011 |
|---|---|---|---|
| ASSETS | |||
| Investment properties | 4,414,437 | 4,183,202 | 2,716,211 |
| Investment properties under development | 742,575 | 934,482 | 790,582 |
| Own used properties | 12,566 | 12,760 | 13,575 |
| Office furniture, equipment and other assets | 10,183 | 10,470 | 1,638 |
| Intangible assets | 38,866 | 39,103 | 31,468 |
| Prepayments made on investments in properties | 0 | 2,217 | 136,200 |
| Investments in associated companies | 36,132 | 34,719 | 37,096 |
| Financial assets | 76,489 | 74,308 | 41,075 |
| Deferred tax assets | 10,418 | 11,739 | 14,133 |
| Long-term assets | 5,341,666 | 5,303,000 | 3,781,978 |
| Long-term assets as a % of statement of financial position total | 90.5% | 89.6% | 86.4% |
| Assets held for sale | 32,915 | 57,835 | 46,509 |
| Property intended for trading | 35,279 | 33,904 | 45,339 |
| Receivables and other assets | 154,512 | 168,059 | 147,019 |
| Securities | 0 | 0 | 3,854 |
| Cash and cash equivalents | 338,774 | 353,778 | 354,764 |
| Short-term assets | 561,480 | 613,576 | 597,485 |
| Total assets | 5,903,146 | 5,916,576 | 4,379,463 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Share capital | 638,714 | 638,714 | 638,714 |
| Capital reserves | 1,062,354 | 1,062,184 | 1,061,464 |
| Other reserves | – 98,044 | – 93,288 | – 72,735 |
| Retained earnings | 94,262 | 76,954 | 14,325 |
| Attributable to the owners of the parent | 1,697,286 | 1,684,564 | 1,641,768 |
| Non-controlling interests | 123,082 | 124,891 | 18,171 |
| Shareholders' equity | 1,820,368 | 1,809,455 | 1,659,939 |
| Shareholders' equity as a % of statement of financial position total | 30.8% | 30.6% | 37.9% |
| Provisions | 9,037 | 9,182 | 6,239 |
| Interest-bearing liabilities | 2,538,345 | 2,486,925 | 1,888,306 |
| Other liabilities | 380,778 | 373,489 | 230,402 |
| Deferred tax liabilities | 185,139 | 191,813 | 116,157 |
| Long-term liabilities | 3,113,299 | 3,061,409 | 2,241,104 |
| Income tax liabilities | 28,414 | 36,839 | 59,894 |
| Provisions | 72,950 | 79,292 | 58,809 |
| Interest-bearing liabilities | 717,265 | 777,089 | 238,049 |
| Other liabilities | 150,850 | 152,492 | 115,814 |
| Liabilities relating to disposal groups | 0 | 0 | 5,854 |
| Short-term liabilities | 969,479 | 1,045,712 | 478,420 |
| Total liabilities and shareholders' equity | 5,903,146 | 5,916,576 | 4,379,463 |
| € 1,000 | 1st Quarter 2012 | 1st Quarter 2011 |
|---|---|---|
| Operating cash flow | 53,141 | 34,270 |
| Cash flow from changes in net current assets | – 428 | 18,275 |
| Cash flow from operating activities | 52,713 | 52,545 |
| Cash flow from investment activities | – 34,382 | 50,740 |
| Cash flow from financing activities | – 35,705 | – 30,180 |
| Net change in cash and cash equivalents | – 17,374 | 73,105 |
| Cash and cash equivalents as at 1.1. | 353,778 | 354,764 |
| Exchange rate differences | 2,370 | 1,983 |
| Net change in cash and cash equivalents | – 17,374 | 73,105 |
| Cash and cash equivalents as at 31.3. | 338,774 | 429,852 |
PROPERTY ASSETS
NET OPERATING INCOME
1) Incl. a property in Switzerland.
| € 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 | |
| Reserves from foreign currency translation | 0 | 0 | 0 | |
| Consolidated net income | 0 | 0 | 10,140 | |
| Comprehensive income for 1st Quarter 2011 | 0 | 0 | 10,140 | |
| Dividend payments | 0 | 0 | 0 | |
| Acquisition of Europolis AG | 0 | 0 | 0 | |
| As at 31.3.2011 | 638,714 | 1,061,464 | 24,465 | |
| 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 | |
| Reserves from foreign currency translation | 0 | 0 | 0 | |
| Consolidated net income | 0 | 0 | 17,308 | |
| Comprehensive income for 1st Quarter 2012 | 0 | 0 | 17,308 | |
| Payments from non-controlling companies | 0 | 0 | 0 | |
| Purchase of non-controlling interest | 0 | 170 | 0 | |
| As at 31.3.2012 | 638,714 | 1,062,354 | 94,262 |
| Other reserves | Shares held by the shareholders of the parent company |
Non-controlling interests |
Shareholders' equity (total) |
||
|---|---|---|---|---|---|
| Valuation result | Reserves from | Reserves from | |||
| (hedging) | associates | foreign currency |
|||
| translation | |||||
| – 72,716 | 15 | – 34 | 1,641,768 | 18,171 | 1,659,939 |
| 28,246 | 0 | 0 | 28,246 | 343 | 28,589 |
| 0 | 61 | 0 | 61 | 0 | 61 |
| 0 | 0 | 1,156 | 1,156 | 0 | 1,156 |
| 0 | 0 | 0 | 10,140 | 2,830 | 12,970 |
| 28,246 | 61 | 1,156 | 39,603 | 3,173 | 42,776 |
| 0 | 0 | 0 | 0 | – 1,217 | – 1,217 |
| 0 | 0 | 0 | 0 | 136,030 | 136,030 |
| – 44,470 | 76 | 1,122 | 1,681,371 | 156,157 | 1,837,528 |
| – 93,022 | 158 | – 425 | 1,684,563 | 124,892 | 1,809,455 |
| – 4,785 | 0 | 0 | – 4,785 | – 49 | – 4,834 |
| 0 | – 255 | 0 | – 255 | 0 | – 255 |
| 0 | 0 | 285 | 285 | 130 | 415 |
| 0 | 0 | 0 | 17,308 | – 3,607 | 13,701 |
| – 4,785 | – 255 | 285 | 12,553 | – 3,526 | 9,027 |
| 0 | 0 | 0 | 0 | 1,715 | 1,715 |
| 0 | 0 | 0 | 170 | 1 | 171 |
| – 97,807 | – 97 | – 140 | 1,697,286 | 123,082 | 1,820,368 |
| € 1,000 | Austria | ||||
|---|---|---|---|---|---|
| 1st Quarter 2012 | Income | Development | Total | Income | |
| producing | producing | ||||
| Rental income | 10,041 | 9 | 10,050 | 16,722 | |
| Revenues with other operating segments | 185 | 0 | 185 | 72 | |
| Operating costs passed on to tenants | 2,466 | 9 | 2,475 | 2,482 | |
| Operating expenses | – 2,785 | – 9 | – 2,794 | – 2,716 | |
| Other expenses directly related to property rented | – 1,190 | 0 | – 1,190 | – 1,185 | |
| Net rental income | 8,717 | 9 | 8,726 | 15,375 | |
| Trading result | 0 | 0 | 0 | 0 | |
| Result from development services | 0 | 0 | 0 | 0 | |
| Other expenses directly related to investment | |||||
| properties under development | 0 | – 91 | – 91 | 0 | |
| Net operating income | 8,717 | – 82 | 8,635 | 15,375 | |
| Result from the sale of long-term properties | 900 | 0 | 900 | – 5 | |
| Indirect expenditures | – 177 | – 91 | – 268 | – 997 | |
| Other operating income | 168 | 4 | 172 | 328 | |
| EBITDA | 9,608 | – 169 | 9,439 | 14,701 | |
| Depreciation and impairment/reversal | – 319 | 0 | – 319 | – 32 | |
| Result from revaluation | – 165 | 9 | – 156 | 536 | |
| Operating result (EBIT) | 9,124 | – 160 | 8,964 | 15,205 | |
| Financing costs | – 4,642 | – 293 | – 4,935 | – 8,531 | |
| Other financial result | 0 | 0 | 0 | 0 | |
| Foreign currency gain/loss | 0 | 0 | 0 | 0 | |
| Result from interest derivative transactions | – 227 | 0 | – 227 | 114 | |
| Result from financial investments | 209 | 3 | 212 | 456 | |
| Result from other financial assets | 0 | 0 | 0 | 0 | |
| Result from associated companies | 0 | 0 | 0 | 0 | |
| Net result before taxes (EBT) | 4,464 | – 450 | 4,014 | 7,244 |
| Properties2) | 685,953 | 37,895 | 723,848 | 1,152,383 | |
|---|---|---|---|---|---|
| Other assets | 30,643 | 509 | 31,152 | 158,859 | |
| Deferred tax assets | 0 | 0 | 0 | 2,314 | |
| Total assets | 716,596 | 38,404 | 755,000 | 1,313,556 | |
| Interest-bearing liabilities | 379,811 | 22,898 | 402,709 | 705,572 | |
| Other liabilities | 7,916 | 202 | 8,118 | 106,522 | |
| Deferred tax liabilities incl. income tax liabilities | 52,779 | 102 | 52,881 | 6,563 | |
| Liabilities | 440,506 | 23,202 | 463,708 | 818,657 | |
| Shareholders' equity | 276,090 | 15,202 | 291,292 | 494,899 | |
| Capital expenditures3) | 1,287 | 5,086 | 6,373 | 214 |
1) Incl. a property in Switzerland
2) Properties include investment properties, investment properties under development, own used properties, properties intended for trading and prepay-
ments made on properties. 3) Capital expenditures include all acquisitions of properties (long-term and short-term) including from first-time consolidation, office furniture, equipment, other assets and intangible assets; thereof € 2,562K (31.12.2011: € 7,514K) in properties intended for trading.
| Germany1) | Eastern | Holding | Total | Consolidation | Total | |||
|---|---|---|---|---|---|---|---|---|
| Europe | segments | |||||||
| Development1) | Total | Income | Development | Total | ||||
| producing | ||||||||
| 8,107 | 24,829 | 35,922 | 1,616 | 37,538 | 0 | 72,417 | 0 | 72,417 |
| 0 | 72 | 0 | 0 | 0 | 0 | 257 | – 257 | 0 |
| 1,107 | 3,589 | 11,677 | 663 | 12,340 | 0 | 18,404 | 0 | 18,404 |
| – 1,525 | – 4,241 | – 12,915 | – 1,128 | – 14,043 | 0 | – 21,078 | 0 | – 21,078 |
| – 1,365 | – 2,550 | – 2,766 | – 114 | – 2,880 | 0 | – 6,620 | 0 | – 6,620 |
| 6,324 | 21,699 | 31,918 | 1,037 | 32,955 | 0 | 63,380 | – 257 | 63,123 |
| 3,254 | 3,254 | 0 | 0 | 0 | 0 | 3,254 | 0 | 3,254 |
| 354 | 354 | 0 | 0 | 0 | 0 | 354 | 0 | 354 |
| – 729 | – 729 | 0 | – 333 | – 333 | 0 | – 1,153 | 0 | – 1,153 |
| 9,203 | 24,578 | 31,918 | 704 | 32,622 | 0 | 65,835 | – 257 | 65,578 |
| 804 | 799 | 215 | 0 | 215 | 0 | 1,914 | 0 | 1,914 |
| – 2,535 | – 3,532 | – 3,061 | – 694 | – 3,755 | – 2,903 | – 10,458 | 1,224 | – 9,234 |
| 585 | 913 | 760 | 333 | 1,093 | 868 | 3,046 | – 967 | 2,079 |
| 8,057 | 22,758 | 29,832 | 343 | 30,175 | – 2,035 | 60,337 | 0 | 60,337 |
| – 200 | – 232 | – 118 | – 82 | – 200 | – 64 | – 815 | 0 | – 815 |
| 7,503 | 8,039 | – 10,780 | – 16,724 | – 27,504 | 0 | – 19,621 | 0 | – 19,621 |
| 15,360 | 30,565 | 18,934 | – 16,463 | 2,471 | – 2,099 | 39,901 | 0 | 39,901 |
| – 12,002 | – 20,533 | – 18,477 | – 2,360 | – 20,837 | – 3,177 | – 49,482 | 5,047 | – 44,435 |
| 0 | 0 | 0 | 20,982 | 20,982 | 0 | 20,982 | 0 | 20,982 |
| – 333 | – 333 | 2,336 | 19 | 2,355 | – 199 | 1,823 | 0 | 1,823 |
| – 1,155 | – 1,041 | 33 | 0 | 33 | – 346 | – 1,581 | 0 | – 1,581 |
| 650 | 1,106 | 1,035 | 621 | 1,656 | 4,576 | 7,550 | – 5,047 | 2,503 |
| 0 | 0 | 0 | – 2,562 | – 2,562 | 0 | – 2,562 | 0 | – 2,562 |
| 0 | 0 | 0 | 1,670 | 1,670 | 0 | 1,670 | 0 | 1,670 |
| 2,520 | 9,764 | 3,861 | 1,907 | 5,768 | – 1,245 | 18,301 | 0 | 18,301 |
| 1,239,593 | 2,391,976 | 1,892,327 | 229,621 | 2,121,948 | 0 | 5,237,772 | 0 | 5,237,772 |
|---|---|---|---|---|---|---|---|---|
| 274,500 | 433,359 | 236,745 | 98,621 | 335,366 | 330,007 | 1,129,884 | – 474,928 | 654,956 |
| 5,493 | 7,807 | 2,171 | 440 | 2,611 | 39,499 | 49,917 | – 39,499 | 10,418 |
| 1,519,586 | 2,833,142 | 2,131,243 | 328,682 | 2,459,925 | 369,506 | 6,417,573 | – 514,427 | 5,903,146 |
| 773,316 | 1,478,888 | 1,525,030 | 238,766 | 1,763,796 | 83,924 | 3,729,317 | – 473,707 | 3,255,610 |
| 224,505 | 331,027 | 195,649 | 11,030 | 206,679 | 69,012 | 614,836 | – 1,221 | 613,615 |
| 81,252 | 87,815 | 107,283 | 5,073 | 112,356 | 0 | 253,052 | – 39,499 | 213,553 |
| 1,079,073 | 1,897,730 | 1,827,962 | 254,869 | 2,082,831 | 152,936 | 4,597,205 | – 514,427 | 4,082,778 |
| 440,513 | 935,412 | 303,281 | 73,813 | 377,094 | 216,570 | 1,820,368 | 0 | 1,820,368 |
| 42,810 | 43,024 | 9,463 | 7,349 | 16,812 | 12 | 66,221 | 0 | 66,221 |
| € 1,000 | Austria | ||||
|---|---|---|---|---|---|
| 1st Quarter 2011 | Income | Development | Total | Income | |
| producing | producing | ||||
| Rental income | 9,104 | 10 | 9,114 | 16,313 | |
| Revenues with other operating segments | 156 | 0 | 156 | 70 | |
| Operating costs passed on to tenants | 2,320 | 1 | 2,321 | 1,280 | |
| Operating expenses | – 2,922 | – 11 | – 2,933 | – 1,407 | |
| Other expenses directly related to property rented | – 1,160 | – 10 | – 1,170 | – 1,734 | |
| Net rental income | 7,498 | – 10 | 7,488 | 14,522 | |
| Trading result | 0 | 0 | 0 | 0 | |
| Result from development services | 0 | 0 | 0 | 0 | |
| Other expenses directly related to investment | |||||
| properties under development | 0 | – 90 | – 90 | 0 | |
| Net operating income | 7,498 | – 100 | 7,398 | 14,522 | |
| Result from the sale of long-term properties | 321 | 0 | 321 | 177 | |
| Indirect expenditures | – 271 | – 188 | – 459 | – 1,464 | |
| Other operating income | 307 | 0 | 307 | 341 | |
| EBITDA | 7,855 | – 288 | 7,567 | 13,576 | |
| Depreciation and impairment/reversal | – 469 | – 42 | – 511 | – 29 | |
| Result from revaluation | – 2,039 | – 967 | – 3,006 | – 590 | |
| Operating result (EBIT) | 5,347 | – 1,297 | 4,050 | 12,957 | |
| Financing costs | – 4,539 | – 256 | – 4,795 | – 9,124 | |
| Foreign currency gain/loss | 0 | 0 | 0 | 0 | |
| Result from interest derivative transactions | 243 | 0 | 243 | 2,392 | |
| Result from financial investments | 4,337 | 1 | 4,338 | 526 | |
| Result from other financial assets | 0 | 0 | 0 | 0 | |
| Result from associated companies | 0 | 0 | 0 | 0 | |
| Net result before taxes (EBT) | 5,388 | – 1,552 | 3,836 | 6,751 |
| Properties2) | 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. 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 | Holding | Total | Consolidation | Total | |||
|---|---|---|---|---|---|---|---|---|
| Europe | segments | |||||||
| Development1) | Total | Income | Development | Total | ||||
| producing | ||||||||
| 3,106 | 19,419 | 35,174 | 503 | 35,677 | 0 | 64,210 | 0 | 64,210 |
| 0 | 70 | 0 | 0 | 0 | 0 | 226 | – 226 | 0 |
| 756 | 2,036 | 11,789 | 679 | 12,468 | 0 | 16,825 | 0 | 16,825 |
| – 688 | – 2,095 | – 13,425 | – 1,125 | – 14,550 | 0 | – 19,578 | 0 | – 19,578 |
| – 1,171 | – 2,905 | – 4,153 | – 170 | – 4,323 | 0 | – 8,398 | 0 | – 8,398 |
| 2,003 | 16,525 | 29,385 | – 113 | 29,272 | 0 | 53,285 | – 226 | 53,059 |
| 1,816 | 1,816 | 0 | 0 | 0 | 0 | 1,816 | 0 | 1,816 |
| 366 | 366 | 0 | 0 | 0 | 0 | 366 | 0 | 366 |
| – 1,839 | – 1,839 | 0 | – 47 | – 47 | 0 | – 1,976 | 0 | – 1,976 |
| 2,346 | 16,868 | 29,385 | – 160 | 29,225 | 0 | 53,491 | – 226 | 53,265 |
| 0 | 177 | – 2 | 844 | 842 | 0 | 1,340 | 0 | 1,340 |
| – 2,613 | – 4,077 | – 4,707 | – 942 | – 5,649 | – 3,089 | – 13,274 | 1,647 | – 11,627 |
| 853 | 1,194 | 1,900 | 215 | 2,115 | 1,117 | 4,733 | – 1,421 | 3,312 |
| 586 | 14,162 | 26,576 | – 43 | 26,533 | – 1,972 | 46,290 | 0 | 46,290 |
| – 1,118 | – 1,147 | – 88 | – 4 | – 92 | – 81 | – 1,831 | 0 | – 1,831 |
| 5,027 | 4,437 | 2,987 | – 929 | 2,058 | 0 | 3,489 | 0 | 3,489 |
| 4,495 | 17,452 | 29,475 | – 976 | 28,499 | – 2,053 | 47,948 | 0 | 47,948 |
| – 6,729 | – 15,853 | – 18,054 | – 2,200 | – 20,254 | – 7,713 | – 48,615 | 8,627 | – 39,988 |
| – 595 | – 595 | – 498 | – 340 | – 838 | 0 | – 1,433 | 0 | – 1,433 |
| 3,210 | 5,602 | 539 | 28 | 567 | 3,111 | 9,523 | 0 | 9,523 |
| 834 | 1,360 | 548 | 627 | 1,175 | 4,492 | 11,365 | – 8,627 | 2,738 |
| 0 | 0 | 0 | – 79 | – 79 | 0 | – 79 | 0 | – 79 |
| – 2 | – 2 | 0 | – 33 | – 33 | 0 | – 35 | 0 | – 35 |
| 1,213 | 7,964 | 12,010 | – 2,973 | 9,037 | – 2,163 | 18,674 | 0 | 18,674 |
| 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 |
| 3,264,014 | – 423,590 | 3,687,604 | 67,933 | 1,753,787 | 232,756 | 1,521,031 | 1,448,815 | 739,562 |
| 614,455 | – 953 | 615,408 | 64,944 | 209,752 | 10,324 | 199,428 | 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 31.3.2012 were prepared in compliance with IAS 34 (Interim Financial Reporting) and are based on the accounting and measurement methods described in the consolidated financial statements of CA Immobilien Anlagen Aktiengesellschaft for 2011.
The condensed consolidated interim financial statements of CA Immobilien Anlagen Aktiengesellschaft ("CA Immo AG"), Vienna, for the reporting period from 1.1. to 31.3.2012 have been neither fully audited nor examined by an auditor.
The use of automatic data processing equipment may lead to rounding errors in the addition of rounded amounts and percentages.
All compulsory IASs, IFRSs and IFRIC and SIC interpretations (existing standards, amendments of same and new standards) to be applied in the European Union as at 31.3.2012 for business years commencing from 1.1.2012 were taken into account in the preparation of the consolidated interim financial statements. The following revised standard is to be applied from business year 2012: IFRS 7 (amendment to IFRS 7: disclosures about transfers of financial assets). This amendment has no effect on the condensed consolidated interim financial statements of the CA Immo Group.
In order further to improve the clarity of the consolidated financial statements, the presentation was thoroughly revised in the statements as at 31.12.2011. The format of the annual financial statements and the recognition of individual items were also adjusted. To enhance comparability, the prior-year figures contained in the consolidated income statement for the frist quarter 2011 were reclassified as well for the items affected by changes.
The CA Immo Group generates gross revenues from renting, trading and development services. Since various direct expenses arise in connection with the income streams, the net operating income from the relevant revenue category is now recognised directly in the consolidated income statement.
Tenants who dissolve their leases before a contractually agreed termination date are required to pay settlements. Since these amounts represent anticipated rental income, they are now recognised under the item rental income. For the reference period, namely the frist quarter 2011 an amount of € 554 K was reclassified from other operating income to rental income.
In view of their direct apportionability, the staff expenses for development services are disclosed as expenditures on development services. The amount for the reference period, the first quarter 2011 in the amount of € 128 K, was reclassified from the indirect expenses to the result from development services.
The CA Immo Group has amended the disclosure of capitalised services in the consolidated financial statements as at 31.12.2011. Since this item refers exclusively to indirect expenditures that are capitalised as construction costs of properties, it is no longer recognised separately. For the reference period, the first quarter 2011, the amount of € 2,897 K was therefore netted against the indirect expenditures item.
Goodwill impairments relating to the reporting period are now recognised in the income statement under depreciation and impairment/reversal. When a property is sold, the associated goodwill is likewise recognised as a disposal in the result from sale of properties. The income taxes for the reference period, the first quarter 2011, in the amount of € 491 K, were reclassified to depreciation and impairment/reversal in the amount of € 377 K and to the result from the sale of long-term properties in the amount of € 114 K.
The change in deferred taxes arising from exchange rate differences is no longer recognised under the foreign currency gain/loss item, but in the income tax expense. For the reference period, the first quarter 2011, an amount of € 981 K was accordingly reclassified from income tax to foreign currency gain/loss.
The item non-controlling interest held by limited partners is now recognised under the financing costs. The prior-year item in the amount of € 11 K was reclassified to financing costs.
On 1.1.2012, the 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, for an aggregate purchase price of € 2 K. These purchase prices were paid in full.
The forenamed acquisitions (measured at the time of initial consolidation) affected the composition of the consolidated financial statements as follows:
| € 1,000 | Acquisitions at market values |
|---|---|
| Properties | 6,281 |
| Cash and cash equivalents | 517 |
| Other assets | 15 |
| Financial liabilities | – 7,398 |
| Provisions | – 6 |
| Other liabilities | – 695 |
| Net assets | – 1,286 |
Proportional gross revenues of the acquired companies totalled € 53 K from the time of acquisition (from 1.1.2012: € 53 K), and the proportional consolidated net income came to € – 98 K (from 1.1.2012: € – 98 K). As at 31.3.2012, the acquired companies are included in the consolidated statement of financial position with proportional assets of € 6,309 K and liabilities of € 7,026 K.
In addition, 8 companies in Germany were established and consolidated for the first time for the purpose of pursuing property developments. Up to now, CA Immo Group has not paid any capital contributions.
Furthermore, the holding company EUROPOLIS 6 Holding s.r.o., Prague, was wound up.
As at the reporting date, 31.3.2012, the total assets of the CA Immo Group amounted to € 5,903,146 K (31.12.2011: € 5,916,576 K). Measured against 31.12.2011, long-term assets climbed 0.7% to € 5,341,666 K.
As at 31.3.2012, three investment properties under development in Germany, with a total market value of € 32,915 K, were recognised as held for sale. As at 31.3.2012, sales within one year of the reclassification were regarded as very probable.
As at 31.3.2012, the CA Immo Group disposed of cash and cash equivalents in the amount of € 338,774 K. The cash and cash equivalents contain € 12,932 K (31.12.2011: € 16,261 K) of bank balances to which the CA Immo Group has only restricted access. These balances serve the purpose of securing current loan repayments (amortisation and interest). They cannot be used otherwise without the consent of the lender. In addition, bank balances subject to drawing restrictions are recognised under long-term financial assets and short-term receivables and other assets:
| € 1,000 | 31.3.2012 | 31.12.2011 |
|---|---|---|
| Maturity > 1 year | 33,374 | 32,171 |
| Maturity from 3 to 12 months | 21,073 | 23,894 |
| Cash and cash equivalents with drawing restrictions | 54,447 | 56,065 |
The subordinated liabilities refer to liabilities of the Europolis Group to Österreichische Volksbanken-Aktiengesellschaft and the European Bank for Reconstruction and Development (EBRD). Total interest-bearing liabilities declined from € 3,264,014 K as at 31.12.2011 to € 3,255,610 K as at 31.3.2012. The borrowings of the CA Immo Group now comprise 99.7% EUR loans and bonds, 0.1% USD loans and 0.2% CZK loans. Of the interest-bearing liabilities existing as at 31.3.2012, 18.1% were fixed-interest, 42.2% were fixed-interest by way of swaps, 6.5% were hedged by caps, and 33.2% (with a principal of € 1,080,673 K) were at floating rates. The floating-rate liabilities are matched by swaps with a nominal amount of € 460,115 K, for which a cash-flow hedge relationship does not exist.
In the first quarter of 2012, measured against the corresponding period of 2011, rental income increased by € 8,207 K or 12.8% to € 72,417 K. Year on year, EBITDA in the first quarter of 2012 rose by 30.3% to € 60,337 K. Consolidated net income climbed from € 12,970 K to € 13,701 K.
In the first quarter of 2012, the CA Immo Group repurchased two loans for two projects in Eastern Europe from the financing bank. The difference between the purchase price and the outstanding loan, in the amount of € 20,982 K, was recognised in the consolidated income statement as separate item.
The result from interest derivative transactions consists of the following:
| € 1,000 | 1st Quarter 2012 | 1st Quarter 2011 |
|---|---|---|
| Valuation interest rate derivative transactions (not realised) | – 1,534 | 9,957 |
| Reclassification from prior years valuations recorded in equity | – 7 | – 377 |
| Ineffectiveness of interest rate swaps | – 40 | – 57 |
| – 1,581 | 9,523 |
The negative result from the measurement of interest rate derivatives is attributable to the change in market values of the interest rate swaps for which a cash flow hedge relationship does not exist or, in the case of "reclassification", no longer exists. The item "ineffectiveness of interest rate swaps" contains the differences established by the performed effectiveness tests in which the effectiveness of the relevant cash flow hedge materially exceeded 100%. In the first quarter of 2012, no movements took place between the individual fair-value hierarchy levels.
Foreign currency gains/losses, in the amount of € 1,823 K, result mainly from the balance of realised and unrealised (non-cash) gains and losses from the end-of-period valuation of foreign currency loans taken out in US dollars and Czech korunas, and approximately one-half of such gains/losses arise from changes in the value of forward exchange transactions in Poland.
Tax expenses consist of the following:
| € 1,000 | 1st Quarter 2012 | 1st Quarter 2011 |
|---|---|---|
| Income tax (current year) | – 8,104 | – 2,150 |
| Income tax (previous years) | – 699 | 604 |
| Corporate income tax (actual tax) | – 8,803 | – 1,546 |
| Tax quota (actual tax) | 48.1% | 8.3% |
| Change in deferred tax liabilities (deferred tax) | 4,203 | – 9,635 |
| Tax income on valuation of derivative transactions | 0 | 5,477 |
| tax expenses | – 4,600 | – 5,704 |
| Tax quota (total) | 25.1% | 30.5% |
The current (actual) income tax expense/income arises chiefly in the Germany segment.
A convertible bond was issued in November 2009. As a general rule, this affects earnings per share. Given that the CA Immo share price on the reporting date was lower than the conversion price of the convertible bond, the diluted earnings equals to the undiluted earnings.
| 1st Quarter 2012 | 1st Quarter 2011 | ||
|---|---|---|---|
| Weighted number of shares in circulation | pcs. | 87,856,060 | 87,856,060 |
| Consolidated net income | € 1,000 | 17,308 | 10,140 |
| Earnings per share (undiluted equals diluted) | € | 0.20 | 0.12 |
| Joint ventures | ||
|---|---|---|
| € 1,000 | 31.3.2012 | 31.12.2011 |
| Loans | 9,880 | 9,758 |
| Receivables | 7,286 | 5,110 |
| Trade creditors | 2,535 | 2,279 |
| € 1,000 | 1st Quarter 2012 | 1st Quarter 2011 |
| Other income | 280 | 243 |
| Other expenses | – 87 | – 6 |
| Interest income | 454 | 592 |
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 market rates. No guarantees or other forms of security exist in connection with these loans.
| 31.3.2012 | 31.12.2011 |
|---|---|
| 19,452 | 20,480 |
| 1st Quarter 2012 | 1st Quarter 2011 |
| 1,670 | 1,154 |
| 0 | – 1,189 |
| 1,670 | – 35 |
| 705 | 26 |
| – 2,562 | – 79 |
The loans to associated companies existing as of the reporting date serve to finance property companies. All the loans have interest rates in line with those prevailing in the market. No guarantees or other forms of security exist in connection with these loans.
UniCredit Bank Austria AG, Vienna, is the principal bank of the CA Immo Group and the largest shareholder in CA Immo AG, with an interest of around 18 % as at 31.3.2012. The CA Immo Group carries out a large portion of its payment transactions through this bank, holds a lot of its loans with same, and places a large part of its financial investments with the bank as well. The relevant portions are indicated below:
| € 1,000 | 31.3.2012 | 31.12.2011 |
|---|---|---|
| Share of financial liabilities recognised in consolidated | ||
| statement of financial position | 17.9% | 17.9% |
| Outstanding receivables | 139,358 | 146,252 |
| Outstanding liabilities | – 582,492 | – 582,867 |
| Market value of interest rate swaps | – 134,085 | – 128,053 |
| € 1,000 | 1st Quarter 2012 | 1st Quarter 2011 |
|---|---|---|
| Financing costs | – 12,258 | – 12,844 |
| Result from interest derivative transactions | – 764 | 3,432 |
| Result from financial investments | 236 | 352 |
| Expenses of monetary transactions | – 74 | – 51 |
| Raising of new bank loans | 21,920 | 1,263 |
|---|---|---|
| Repayment of bank loans | – 10,480 | – 2,464 |
The terms and conditions of the business relationship with the UniCredit Group are in line with those prevailing in the market.
As at 31.3.2012, contingent liabilities existed in the CA Immo Germany Group in the amount of € 23,972 K (31.12.2011: € 23,801 K) from urban development contracts, and in the amount of € 2,024 K (31.12.2011: € 1,485 K) under concluded purchase agreements for costs assumed in connection with contaminated sites or war damage. In addition, letters of support exist for two pro rata consolidated companies in Germany, in the amount of € 75,160 K (31.12.2011: € 61,749 K). No guarantees were issued (compared with 31.12.2011, no change).
The joint venture partner in the Maslov project initiated an arbitral court action in the amount of € 48,097 K plus interest in 2011. The CA Immo Group believes that the action is unlikely to succeed. Sufficient financial provisions have been made for the expected outflow of funds.
In addition, the CA Immo Group has issued a guarantee to accept liabilities for the Airport City Petersburg in the amount of € 4,200 K (31.12.2011: € 4,200 K). As at 31.3.2012, no contingent liabilities to financing banks exist for Eastern Europe (compared with 31.12.2011, no change).
Other financial liabilities arising from commitments for services in connection with the development of properties also exist for properties in Austria, in the amount of € 19,514 K (31.12.2011: € 5,186 K), in Germany, in the amount of € 79,768 K (31.12.2011: € 78,172 K), and in Eastern Europe, in the amount of € 13,357 K (31.12.2011: € 16,630 K).
The total obligation of the CA Immo Group to contribute equity to proportionately consolidated companies as at 31.3.2012 was € 179 K (31.12.2011: € 179 K).
For the purpose of forming tax provisions, estimates have to be made. Uncertainties exist concerning the interpretation of complex tax regulations and as regards the amount and effective date of taxable income. The CA Immo Group forms appropriate provisions for known and probable charges arising from current tax audits by the relevant national revenue authorities.
Financial liabilities with unfulfilled financial covenants as at 31.3.2012, which in view of the infringement enable the lender in principle to call in the liabilities prematurely, are recognised under the short-term financial liabilities irrespective of the remaining term envisaged by the contract. This classification applies notwithstanding the status of negotiations with the banks concerning the continuation or amendment of the loan agreements. As at 31.3.2012, this situation applied to three loans in Eastern Europe in the total amount of € 31,400 K (31.12.2011: four loans in Eastern Europe in the total amount of € 69,965 K). The CA Immo Group takes appropriate action (e.g. partial repayment of the loans, increase in the equity of the companies concerned) to remedy the infringement of the covenants.
At the end of April 2012, joint venture agreements were signed in Germany with a view to implementing a development project. The approval of the German Cartel Office is expected in the third quarter of 2012.
In addition, an agreement was concluded to dispose of properties in Germany for a purchase price of around € 15 million. The closing date for the transaction is expected to be in the fourth quarter of 2012.
The 25th ordinary shareholders' meeting of CA Immobilien Anlagen Aktiengesellschaft on 8.5.2012 adopted a resolution to pay a dividend of € 0.38 per entitled share.
Vienna, 14.5.2012
The Management Board
Bruno Ettenauer (Chief Executive Officer)
Wolfhard Fromwald (Management Board Member)
Bernhard H. Hansen (Management Board Member)
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]
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.
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.
Published by: CA Immobilien Anlagen AG, 1030 Vienna, Mechelgasse 1 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
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