Quarterly Report • May 24, 2018
Quarterly Report
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URBAN BENCHMARKS.
FINANCIAL REPORT AS AT 31 MARCH 2018
| 1.1.-31.3.2018 | 1.1.-31.3.2017 restated | ||
|---|---|---|---|
| Rental income | € m | 46.2 | 43.8 |
| EBITDA | € m | 40.8 | 29.0 |
| Operating result (EBIT) | € m | 56.6 | 42.8 |
| Net result before taxes (EBT) | € m | 38.6 | 30.5 |
| Consolidated net income | € m | 28.8 | 23.2 |
| Operating cash flow | € m | 36.9 | 24.5 |
| Capital expenditure | € m | 55.0 | 31.7 |
| FFO I (excl. Trading and pre taxes) | € m | 27.7 | 23.5 |
| FFO II (incl. Trading and after taxes) | € m | 26.0 | 19.8 |
| 31.3.2018 | 31.12.2017 restated | ||
|---|---|---|---|
| Total assets | € m | 4,919.8 | 4,743.4 |
| Shareholders' equity | €m | 2,442.0 | 2,419.3 |
| Long and short term interest-bearing liabilities | € m | 1,755.7 | 1,749.3 |
| Net debt | € m | 1,181.6 | 1,365.1 |
| Net asset value (EPRA NAV) | € m | 2,793.9 | 2,798.7 |
| Triple Net asset value (EPRA NNNAV) | € m | 2,551.6 | 2,538.6 |
| Gearing | % | 48.4 | 56.4 |
| Equity ratio | % | 49.6 | 51.0 |
| Gross LTV | % | 46.0 | 45.9 |
| Net LTV | % | 31.0 | 35.8 |
| 31.3.2018 | 31.12.2017 restated | ||
|---|---|---|---|
| Total usable space (excl. parking, excl. projects) 2) | sqm | 1,468,651 | 1,466,057 |
| Gross yield investment properties | % | 6.1 | 6.1 |
| Fair value of properties | € m | 3,813.7 | 3,813.8 |
| Occupancy rate | % | 94.4 | 95.2 |
| 1.1.-31.3.2018 | 1.1.-31.3.2017 restated | ||
|---|---|---|---|
| Rental income / share | € | 0.50 | 0.47 |
| Operating cash flow / share | € | 0.40 | 0.26 |
| Earnings per share | € | 0.31 | 0.25 |
| FFO I / share | € | 0.30 | 0.25 |
| FFO II / share | € | 0.28 | 0.21 |
| 31.3.2018 | 31.12.2017 restated | ||
| NAV/share | € | 26.25 | 25.95 |
| EPRA NAV/share | € | 30.03 | 30.02 |
| EPRA NNNAV/share | € | 27.43 | 27.23 |
| Dividend paid in the business year/per share | € | 0.80 | 0.65 |
| Dividend yield | % | 2.95 | 2.52 |
| 31.3.2018 | 31.12.2017 | ||
|---|---|---|---|
| Number of shares | pcs. | 98,808,336 | 98,808,336 |
| Treasury shares | pcs. | 5,780,037 | 5,582,054 |
| number of shares outstanding | pcs. | 93,028,299 | 93,226,282 |
| Ø number of shares | pcs. | 98,808,336 | 98,808,336 |
| Ø Treasury shares | pcs. | 5,680,216 | 5,479,394 |
| Ø number of shares outstanding | pcs. | 93,128,120 | 93,328,942 |
| Ø price/share | € | 25.15 | 21.80 |
| Closing price | € | 27.14 | 25.81 |
| Highest price | € | 27.56 | 26.00 |
| Lowest price | € | 21.40 | 17.30 |
1) Key figures include all fully consolidated properties, i.e. all properties wholly owned by CA Immo
3) incl. land leases and rentable open landscapes
From left: Andreas Quint (CEO), Dr. Hans Volkert Volckens (CFO)
CA Immo remains on course for profitable growth thanks to an operationally strong first quarter. The property development pipeline is proceeding according to plan and the KPMG building in Berlin has become the first of three projects to be successfully incorporated into the investment portfolio in 2018, while a key strategic objective of 2017 has been met ahead of time with the acquisition of an office building in Bucharest that is currently under construction.
In the first three months of 2018, rental income for CA Immo rose by a solid 5.5% to € 46.2 m. The result from renting after the first quarter was € 42.7 m, up 11.7% on the 2017 value of € 38.2 m. The sales result (including the result from property trading and construction services) also increased significantly to € 8.1 m (2017: € –0.8 m). As a result of these positive operational developments, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by a significant 40.6% to € 40.8 m (€ 29.0 m in 2017).
The revaluation result as at the key date amounted to € –0.6 m (2017: € 9.4 m). The result from joint ventures of € 17.0 m (€ 5.2 m in 2017) reflects a positive effect on earnings linked to the sale of Tower 185 in Frankfurt, closing for which was confirmed in quarter one of 2018. Earnings before interest and taxes (EBIT) were € 56.6 m, 32.3% above the 2017 result of € 42.8 m.
The financial result for the first three months was € –18.0 m in total, below last year's value of € –12.2 m owing to a non-cash valuation effect linked to the convertible bond. Thanks to continual optimisation of the financing structure, the Group's financing costs fell by –7.1% compared to 2017 to stand at € –9.6 m. Earnings before taxes (EBT) stood at € 38.6 m on the key date, 26.5% above the previous year's value of € 30.5 m. The result for the period was € 28.8 m, 24.5% above the 2017 value of € 23.2 m. Earnings per share amounted to € 0.31 on the balance sheet date (€ 0.25 per share in 2017).
FFO I totalled € 27.7 m after three months, up a considerable 17.8% on the 2017 figure of € 23.5 m. FFO I per share was € 0.30 on the key date, 18.1% up on the 2017 figure of € 0.25 per share. As in preceding quarters, this underlines operational development that was both robust and independent of the valuation result and which forms the basis for the long-term dividend policy of CA Immo. FFO II, which includes the sales result and applicable taxes, stood at € 26.0 m on the key date (€ 19.8 m in 2017). FFO II per share stood at € 0.28 (2017: €0.21 per share), an increase of 31.9% year-on-year.
CA Immo has upheld a robust balance sheet with an equity ratio of 49.6% and a conservative loan-to-value ratio (net debt to property assets) of 31.0%. On the key date, NAV (shareholders' equity) per share was € 26.25 (against € 25.95 per share on 31.12.2017). The EPRA NAV per share stood at € 30.03 (€ 30.02 per share on 31.12.2017).
At the 31st Ordinary General Meeting, shareholders approved the proposal of the Management Board to raise the dividend for the fifth time in succession on the basis of the strong operational result and pay 80 cents per share for business year 2017. The dividend therefore rose by 23% in yearly comparison (2017: 65 cents per share). This corresponds to the company's long-term objective of paying out approximately 70% of recurring earnings (FFO I).
CA Immo has acquired the Campus 6.1 office building from Skanska in Bucharest. The investment volume was approximately € 53 m. The core office structure with gross floor space of roughly 22,000 sqm is currently under construction; completion is scheduled for the third quarter of 2018 and closing is expected by the end of the year. Full occupancy was anticipated at the time of the acquisition; in future, this will contribute annual rental income of over € 4 m to the Group's long-term earnings. Following on from the acquisition of Millennium Towers in Budapest in 2016 and the Spire Building B in Warsaw in 2017, this deal will spur the dynamic development of the Romanian economy while upholding the expansion strategy of CA Immo on its core markets of Eastern Europe.
The building constructed for KPMG in Berlin's Europacity district, which has an approximate project volume of € 57 m, was successfully handed over to the tenant in March 2018. The topping out ceremony for the cube office building (approximate project volume of € 100 m) was held to mark completion of the structural shell at the same site in May. In the second half of the year, the ViE project in Vienna and the Orhideea Towers project in Bucharest will also be completed and along with the KPMG building in Berlin transferred to the company's portfolio. In Prague, CA Immo is planning to construct an office building (approximate project volume of € 54 m) comprising two separate structures at River City, a development in which the company already has three prime, fully occupied office buildings. Construction of the 20,000-square-metre property is expected to start before the end of 2018.
Following announcement in February 2018 of its intention to further postpone talks on a potential merger with CA Immo pending investigation of other strategic options (including the sale of its 26% share) IMMOFINANZ launched a structured bidding process for a block sale of its holding in CA Immo in April.
The annual target for long-term revenue – an increase in FFO I to over € 115 m in business year 2018 and over € 125 m in business year 2019 – is hereby confirmed.
Vienna, May 2018 The Management Board
Andreas Quint (Chairman)
Dr. Hans Volkert Volckens (Member of the Management Board)
The CA Immo share opened the new business year at a rate of € 25.88 and developed positively during the first quarter. On key date 31 March 2018, the rate closed at € 27.14 (up 5%). By comparison EPRA (excluding the UK), the European index for real estate, reported growth of just below 4%. The high for the first quarter was € 27.56 and the lowest price was € 21.40. The CA Immo share is currently trading with a premium to NAV of 3% (intrinsic value).
As at 31 March 2018, market capitalisation for CA Immo was approximately € 2.7 bn (€ 2.5 bn on 31.12.2017). Since the end of 2017, the average trading volume has fallen slightly by 2% to stand at 266,600 shares (against 272,600 on 31.12.2017). Since the end of 2017, the average liquidity of the share has risen 15% to stand at € 6,698.7 K (€ 5,823.1 K on 31.12.2017).
The share buyback programme initiated in November 2016 for up to 1,000,000 shares (approximately 1% of the company's capital stock) with an upper limit of € 24.20 per share continued in the first quarter of 2018. The repurchase is aimed at supporting purposes permitted by resolution of the Ordinary General Meeting and will end on 2 November 2018 at the latest. In the first three months of the current business year, 197,983 shares were acquired through the programme at a weighted equivalent value per share of approximately € 23.55 per share. As at the balance sheet date, therefore, CA Immobilien Anlagen AG held 5,780,037 trasury shares in total; given the total number of voting shares issued (98,808,336), this is equivalent to around 6% of the voting shares. Details of transactions completed, along with any changes to the programme, will be published at
http://www.caimmo.com/en/investor-relations/sharebuy-back-ca-immo/.
| CA Immo share | 31.78% |
|---|---|
| ATX | 21.20% |
| IATX | 27.08% |
| EPRA Developed Europe | 6.95% |
Source: Bloomberg
CA Immo is assessed by eight investment companies. In the first quarter, Kepler Cheuvreux confirmed its recommendation to purchase and the target price of € 28.00, which it raised in the first quarter. Currently, the most recent 12-month target rates were in the range of € 23.50 to € 30.00, with the valuation median at € 28.00. The closing rate for 31 March 2018 implies price potential of approximately 3%.
| Baader-Helvea Bank | 23.11.2017 | 28.00 € | Buy |
|---|---|---|---|
| Erste Group | 29.11.2017 | 30.00 € | Buy |
| Goldman Sachs | 1.2.2018 | 23.50 € | Neutral |
| HSBC | 18.6.2017 | 30.00 € | Buy |
| Kepler Cheuvreux | 3.4.2018 | 28.00 € | Buy |
| Raiffeisen Centrobank | 8.1.2018 | 27.40 € | Hold |
| SRC Research | 2.3.2018 | 27.50 € | Accumulate |
| Wood & Company | 11.1.2018 | 29.00 € | Hold |
| Average | 27.93 € | ||
| Median | 28.00 € |
As at the balance sheet date, four CA Immo corporate bonds were trading on the unlisted securities market of the Vienna Stock Exchange and the regulated market of the Luxembourg Stock Exchange (Bourse de Luxembourg). The convertible bonds were registered for trading in the unregulated Third Market (multilateral trade system) of the Vienna Stock Exchange.
The company's capital stock amounted to € 718,336,602.72 on the balance sheet date. This was divided into four registered shares and 98,808,332 bearer shares each with a proportionate amount of the capital stock of € 7.27. The bearer shares trade on the prime market segment of the Vienna Stock Exchange (ISIN: AT0000641352).
With a holding of 26% and four registered shares, the IMMOFINANZ Group is currently the largest shareholder in CA Immo. There is a reciprocal shareholding between the IMMOFINANZ Group and the CA Immo Group. The CA Immo Group holds 54,805,566 bearer shares (approximately 5%) in IMMOFINANZ AG.
The remaining shares of CA Immo are in free float with both institutional and private investors. The other main shareholders are AXA S.A., BlackRock Inc. and the
S IMMO Group, each with an approximate holding subject to disclosure of 4%. The company also held 5,780,037 treasury shares as at the balance sheet date.
In business year 2016, CA Immo and IMMOFINANZ agreed to enter into constructive dialogue concerning a potential amalgamation of the two companies. On 28 February 2018, IMMOFINANZ announced the continued suspension of detailed talks on a possible amalgamation of the two companies pending investigation of other strategic options, including the sale of their holding in CA Immo. A corresponding bidding process for a block sale of their 26% stake in CA Immo was launched on 19 April 2018.
On 18 April 2018, SOF-11 Starlight 10 EUR S.à.r.l. of Luxembourg (the 'bidder'), an indirect, wholly owned subsidiary of SOF-11 International, SCSp, part of the
group of companies known as Starwood Global Opportunity Fund XI and a member of the Starwood Capital Group ('Starwood'), presented a voluntary public takeover bid in accordance with article 4ff of the Austrian Takeover Act to the shareholders of CA Immo.
The takeover bid envisaged the acquisition of up to 25,690,167 bearer shares of CA Immo (ISIN AT0000641352), equivalent to as much as 26% of company shares issued to the bearer. The offer price of € 27.50 per share was linked to the dividend for business year 2017, i.e. the offer price will be reduced by the amount of any dividend declared between the announcement of the takeover bid and the processing thereof. Completion of the takeover bid is subject to approval by the antitrust authorities and the condition that CA Immo shall incur no other significant adverse consequences (e.g. merger, demerger or spin-off); moreover, approval by the Management Board of CA Immo is not required for transfer of the four registered shares subject to transfer restrictions. The offer may be accepted from 18 April 2018 until 5:00pm (Vienna local time) on 30 May 2018. For full details of the takeover bid, including statements by the Management Board and Supervisory Board of CA Immo, please visit http://www.caimmo.com/en/investor-relations/takeover-offers/.
The 31st Ordinary General Meeting of CA Immo was held on 9 May 2018. Taking account of treasury shares held by the company, which do not confer voting rights, attendance was 489 shareholders and their delegates (representing approximately 55% of the capital stock).
Alongside the usual agenda items (distribution of profit, approval of the actions of Management and Supervisory Board members, the definition of Supervisory Board remuneration and confirmation of Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H. as the (Group) auditor for business year 2018), the agenda included authorisations to undertake capital increases, issue convertible bonds and acquire and sell treasury shares. With the exception of the enabling resolution for the acquisition and sale of treasury shares, all resolutions proposed by the company had the legally required majority.
| 31.3.2018 31.12.2017 restated | |||
|---|---|---|---|
| EPRA NNNAV/share | € | 27.43 | 27.23 |
| NAV/share | € | 26.25 | 25.95 |
| Price (key date)/NAV per share –11) | % | 3.39 | –0.56 |
| Price (key date)/NNNAV per share –11) | % | –1.05 | –5.23 |
| Number of shares | pcs. | 98,808,336 | 98,808,336 |
| Treasury shares | pcs. | 5,780,037 | 5,582,054 |
| number of shares outstanding | pcs. | 93,028,299 | 93,226,282 |
| Ø number of shares | pcs. | 98,808,336 | 98,808,336 |
| Ø Treasury shares | pcs. | 5,680,216 | 5,479,394 |
| Ø number of shares outstanding | pcs. | 93,128,120 | 93,328,942 |
| Ø price/share | € | 25.15 | 21.80 |
| Market capitalisation (key date) | € m | 2,681.65 | 2,549.75 |
| Highest price | € | 27.56 | 26.00 |
| Lowest price | € | 21.40 | 17.30 |
| Closing price | € | 27.14 | 25.81 |
| Dividend paid in the business year/per share | € | 0.80 | 0.65 |
| Dividend yield | % | 2.95 | 2.52 |
1) before deferred taxes
| Type of shares: | No-par value shares |
|---|---|
| Stock market listing: | Vienna Stock Exchange, prime market |
| Indices: | ATX, ATX-Prime, IATX, FTSE EPRA/NAREIT Europe, WBI |
| Specialist: | Raiffeisen Centrobank AG |
| Market Maker: | Baader Bank AG, Erste Group Bank AG, Hudson River Trading Europe Ltd., Société Générale |
| S.A., Tower Research Capital Europe Limited | |
| Stock exchange symbol / ISIN: | CAI / AT0000641352 |
| Reuters: | CAIV.VI |
| Bloomberg: | CAI:AV |
| Email: | [email protected] |
| Web site: | www.caimmo.com |
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Investor Relations contacts: Christoph Thurnberger Tel. +43 1 532 59 07-504 Fax: +43 1 532 59 07-550 [email protected]
Claudia Höbart Tel. +43 1 532 59 07-502 Fax: +43 1 532 59 07-550 [email protected]
PUBLICATION OF ANNUAL RESULTS FOR 2017 / PRESS CONFERENCE ON FINANCIAL STATEMENTS
VERIFICATION DATE FOR THE 31ST ORDINARY GENERAL MEETING
9 MAY
31ST ORDINARY GENERAL MEETING
EX-DIVIDEND DATE / RECORD DATE (DIVIDEND) / DIV-IDEND PAYMENT DAY
23 MAY
INTERIM REPORT FOR THE FIRST QUARTER 2018
22 AUGUST / 23 AUGUST SEMI-ANNUAL REPORT 2018 / PRESS CONFERENCE ON SEMI-ANNUAL RESULT
21 NOVEMBER INTERIM REPORT FOR THE THIRD QUARTER 2018
27 MARCH 2019 / 28 MARCH PUBLICATION OF ANNUAL RESULTS FOR 2018 / PRESS CONFERENCE ON FINANCIAL STATEMENTS
The sale of the one-third share held by CA Immo in Tower 185, the Frankfurt office high-rise, has significantly reduced the proportion of minority holdings in the portfolio (the transaction was closed in the 1st quarter of 2018). Property investments held in joint ventures (i.e. proportionately owned by CA Immo), consolidated at equity and shown proportionally in the income statement under 'Result from joint ventures', are no longer represented separately in the tables of the 'Property assets' and 'Portfolio development' sections alongside fully consolidated (wholly owned by CA Immo) properties; instead, they are added as footnotes where necessary. Unless otherwise stated, therefore, all indicators in this report refer exclusively to fully consolidated properties wholly owned by CA Immo; the comparative values for 31 December 2017 have been adjusted accordingly. As at 31 March 2018, the portfolio value of partially owned real estate amounted to € 132.5 m (€ 390.4 m on 31 December 2017); the buildings are 94.6% let and show a yield of 8.0%1).
As at key date 31 March 2018, CA Immo's total property assets stood at € 3.8 bn (31.12.2017: € 3.8 bn). The company's core business is commercial real estate, with a clear focus on office properties in Germany, Austria and Eastern Europe; it deals with both investment properties
(85% of the total portfolio) and investment properties under development (14% of the total portfolio). Properties intended for trading (reported under short-term property assets) account for the remaining 1% of property assets.
As at 31 March 2018, the investment property portfolio had an approximate market value of € 3.2 bn (31 December 2017: € 3.2 bn) and incorporated a total rentable effective area2) of 1.3 m sqm. Around 49% of the portfolio (based on book value) is located in CEE and SEE nations, with 36% of the remaining investment properties in Germany and 15% in Austria.
In the first three months of the year, the Group generated rental income of € 46.2 m; the portfolio produced a yield of 6.1%. The occupancy rate was 94.4% as at 31 March 2018 (against 95.2% on 31 December 2017). For details, please see the 'Changes to the Portfolio' section.
Of investment properties under development with a total book value of around € 539.7 m, development projects and land reserves in Germany account for 84%, while the Eastern Europe segment represents 11% and Austria 5%. Investment properties under development in Germany with a total market value of € 452.9 m include projects under construction with a value of € 264.2 m and land reserves with a book value of € 188.7 m.
| in € m | Investment properties 1) |
Investment properties under development |
Short-term property assets 2) |
Total property assets |
Total property assets in % |
|---|---|---|---|---|---|
| Austria | 498 | 26 | 0 | 524 | 14 |
| Germany | 1,170 | 453 | 43 | 1,666 | 44 |
| Czechia | 267 | 11 | 0 | 277 | 7 |
| Hungary | 471 | 2 | 0 | 472 | 12 |
| Poland | 371 | 0 | 0 | 371 | 10 |
| Romania | 260 | 44 | 0 | 304 | 8 |
| Serbia | 96 | 0 | 0 | 96 | 2 |
| Others | 98 | 5 | 0 | 103 | 3 |
| Total | 3,231 | 540 | 43 | 3,814 | 100 |
| Share of total portfolio | 85% | 14% | 1% |
1) Includes properties used for own purposes
2) Short-term property assets including properties intended for trading or sale
1) Key figures include investment properties intended for trading or sale (IFRS 5)
DISTRIBUTION OF BOOK VALUE TOTAL PROPERTY ASSETS BY COUNTRY (Basis: € 3.8 bn)
DISTRIBUTION OF BOOK VALUE INVESTMENT PROPERTIES BY MAIN USAGE (Basis: € 3.2 bn)
DISTRIBUTION OF BOOK VALUE INVESTMENT PROPERTIES BY SEGMENT (Basis: € 3.2 bn)
DISTRIBUTION OF BOOK VALUE TOTAL PROPERTY ASSETS BY SEGMENT (Basis: € 3.8 bn)
In Germany, CA Immo held investment properties with an approximate value of € 1,168.9 m1) on 31 March 2018 (31 December 2017: € 1,099.7 m). The occupancy rate for the german investment property assets on the key date was 97.8% (against 98.2% on 31.12.2017). Where the rent contributions of properties intended for trading and temporarily let property reserves in the development segment are taken into account, rental income of € 13.6 m was generated in the first three months.
Approximately 4,300 sqm of usable area were newly let in Germany between January and the end of March. Thereof, around 2,800 sqm accounted for prelettings of development projects.
Based on total investment costs, the volume of investment properties under development in Germany (excluding land reserves) is approximately € 922.5 m as at key date 31 March 2018. In total, CA Immo holds investment properties under development2) (including land reserves) with a book value of € 452.9 m; therof, land reserves account for € 188.7 m and projects under construction account for € 264.2 m (please see table on the next page for details).
CA Immo completed the office building for the tenant KPMG in Berlin's Europacity district in March; the nearly fully let structure, which spans some 12,800 sqm, represented a total investment of approximately € 57 m and is now part of the CA Immo investment portfolio.
During the first three months, trading income from German properties totalled € 25.6 m.
As at 31 March 2018, CA Immo held investment properties in Austria with a value of € 494.2 m1) and an occupancy rate of 92.7% (96.2% on 31.12.2017). The company's asset portfolio generated rental income of € 6.9 m in the first three months. Between January and the end of March, some 4,300 sqm of usable space was newly let or extended in Austria.
OVERVIEW INVESTMENT PROPERTIES KEY DATA AS AT 31 MARCH 2018 3)
| Fair value property assets |
Rentable area 4) | Occupancy rate | Annualised rental income |
Yield | |
|---|---|---|---|---|---|
| in € m | in sqm | in % | in € m | in % | |
| Austria | 494.2 | 318,235 | 92.7 | 28.1 | 5.7 |
| Germany | 1,168.9 | 306,839 | 97.8 | 54.1 | 4.6 |
| Czechia | 266.7 | 106,099 | 98.0 | 18.3 | 6.8 |
| Hungary | 470.9 | 234,616 | 89.6 | 33.2 | 7.0 |
| Poland | 370.9 | 115,299 | 96.1 | 26.3 | 7.1 |
| Romania | 259.9 | 106,044 | 94.5 | 20.2 | 7.8 |
| Serbia | 96.4 | 46,129 | 90.5 | 7.5 | 7.8 |
| Others | 97.8 | 69,305 | 90.2 | 7.5 | 7.7 |
| Total | 3,225.6 | 1,302,566 | 94.4 | 195.3 | 6.1 |
3) Excludes properties used for own purposes
4) incl. land leases in Austria (around 106,000 sqm)
1) Excl. properties used for own purposes and properties intended for trading or sale
2) Excl. projects and land reserves intended for trading or sale
In January, CA Immo handed over 220 rental apartments to the investor ESTRELLA Immobilien Invest AG as part of the Laendyard residential project on Vienna's Donaukanal. Development of the remaining 270 owner-occupied and investment apartments being built on an adjacent plot in a joint venture between CA Immo and JP Immobilien is also proceeding according to plan, with completion scheduled for the summer of 2018. The final
building block in the project, situated close to the Lände and Wiener Prater recreation areas, is the ViE office building, which is due for completion by the autumn of 2018.
Trading income for Austria amounted to € 25.1 m in the first three months.
| in € m | Total investment volume 2) |
Outstanding construction costs |
Planned rentable effective area in sqm |
Gross yield on cost in % |
City | Main usage |
Share in % |
Utili sation in % |
Start of construc tion |
Scheduled completion |
|---|---|---|---|---|---|---|---|---|---|---|
| Projects (own stock) | ||||||||||
| Erdberger Lände, ViE | 37.8 | 16.3 | 14,727 | 6.4 | Vienna | Office | 100 | 23 | Q3 2016 | Q3 2018 |
| MY.O | 96.0 | 69.1 | 26,183 | 6.2 | Munich | Office | 100 | 20 | Q2 2017 | Q4 2019 |
| Europacity, Bürogebäude | ||||||||||
| am Kunstcampus (part 2) | 13.3 | 9.3 | 2,710 | 5.7 | Berlin | Office | 100 | 0 | Q4 2016 | Q2 2019 |
| Europacity, MY.B | 65.1 | 43.9 | 14,533 | 5.7 | Berlin | Office | 100 | 0 | Q3 2017 | Q2 2019 |
| Zollhafen Mainz, ZigZag | 15.9 | 15.8 | 4,000 | 4.2 | Mainz | Office | 100 | 0 | Q2 2019 | Q4 2019 |
| Steigenberger 3) | 58.6 | 21.9 | 17,347 | 6.2 | Frankfurt | Hotel | 100 | 99 | Q3 2016 | Q1 2019 |
| Baumkirchen, NEO | 64.3 | 42.0 | 13,457 | 4.9 | Munich | Office | 100 | 27 | Q1 2017 | Q2 2020 |
| Europaviertel, ONE | 353.6 | 302.7 | 64,598 | 5.3 | Frankfurt | Office | 100 | 27 | Q3 2017 | Q2 2021 |
| Orhideea Towers | 73.2 | 34.1 | 36,918 | 8.4 | Bucharest | Office | 100 | 56 | Q4 2015 | Q3 2018 |
| Subtotal | 777.9 | 555.0 | 194,473 | 5,8 | ||||||
| Projects (for sale) | ||||||||||
| Europacity, cube berlin | 101.0 | 58.6 | 17,179 | n.m. | Berlin | Office | 100 | 100 | Q4 2016 | Q4 2019 |
| Europacity, Bürogebäude | ||||||||||
| am Kunstcampus (part 1) | 32.1 | 21.7 | 5,215 | n.m. | Berlin | Office | 100 | 100 | Q4 2016 | Q2 2019 |
| Rheinallee III | 59.7 | 21.1 | 19,682 | n.m. | Mainz | Residential | 100 | 100 | Q3 2016 | Q4 2018 |
| JV Baumkirchen WA 3 | 35.3 | 12.8 | 6,831 | n.m. | Munich | Residential | 50 | 100 | Q3 2016 | Q2 2019 |
| Baumkirchen Mitte (MK) | 27.6 | 18.0 | 5,767 | n.m. | Munich | Residential | 100 | 0 | Q1 2017 | Q2 2020 |
| Laendyard Living | 30.9 | 6.7 | 9,417 | n.m. | Vienna | Residential | 50 | 100 | Q3 2016 | Q3 2018 |
| Subtotal | 286.6 | 139.0 | 64,091 | |||||||
| Total | 1,064.4 | 694.1 | 258,564 |
1) This table includes projects intended for trading or sale as well as projects held in joint ventures
2) Incl. plot
3) The Mannheimer Strasse bus station next to the hotel (with a value of € 4.5 m) is still assigned to property assets under development as temporary usage and is not included in the table
The value of the CA Immo investment properties1) is € 1,562.5 m as at 31 March 2018 (31 December 2017: € 1,561.8 m). In the first three months, property assets let with a total effective area of 677,493 sqm generated rental income of 25.7 m. The occupancy rate on the key date was 93.3% (31 December 2017: 93.6%).
New lease agreements relating to around 11,000 sqm rentable area were concluded in the first three months, as well as contract extensions for some 15,000 sqm rentable area.
The following activities after key date 31 March 2018 are reported:
On 28 February 2018, IMMOFINANZ, which is currently the largest shareholder in CA Immo with a holding of 26% and four registered shares, announced the continued suspension of detailed talks on a possible amalgamation of the two companies pending investigation of other strategic options, including the sale of their holding in CA Immo. A corresponding bidding process for a block sale of their 26% stake in CA Immo was launched on 19 April 2018.
On 18 April 2018, SOF-11 Starlight 10 EUR S.à.r.l. of Luxembourg ('Starwood') presented a voluntary public takeover bid in accordance with article 4 ff of the Austrian Takeover Act to the shareholders of CA Immo.
The takeover bid envisaged the acquisition of up to 25,690,167 bearer shares of CA Immo (ISIN AT0000641352), equivalent to as much as 26% of company shares issued to the bearer. The offer price of € 27.50 per share was linked to the dividend for business year 2017. The offer may be accepted from 18 April 2018 until 5:00 pm (Vienna local time) on 30 May 2018. For full details of the takeover bid, including statements by the Management Board and Supervisory Board of CA Immo, please visit http://www.caimmo.com/en/investor-relations/takeover-offers/.
Beginning of May, CA Immo has acquired Campus 6.1 office building in Bucharest from Skanska; the transaction volume is approx. € 53 m. The closing of the transaction is subject to the conditions usual for such transactions and is expected end of 2018. Campus 6.1 is an A-class office development, offering 22,000 sqm GLA. The development is located in the Central West area of Bucharest. Completion is scheduled for Q3 2018; full occupancy of the building is expected by the end of the year.
In May, CA Immo signed the purchase agreement for its 49% stake in the Megapark office building in the Bulgarian capital of Sofia. Megapark, which has approximately 48,000 sqm of rentable effective area, is CA Immo's only investment in Bulgaria, thereby confirming the company's exit from the secondary market and a further reduction in minority shareholdings. Closing of the transaction was subject to the usual conditions precedent.
1) Excl. properties used for own purposes and properties intended for trading or sale
In the first three months of 2018, rental income for CA Immo rose by a significant 5.5% to € 46,185 K. The positive trend was essentially sustained through the acquisition of Warsaw Spire Building B in Warsaw which generated an increase in rent.
In year-on-year comparison, property expenses directly attributable to the asset portfolio, including own operating expenses, fell to € –3,473 K (€ –5,531 K in 2017). The net result from renting after the three months was € 42,712 K (€ 38,249 K in 2017), up 11.7% on the previous year. The efficiency of letting activity, measured as the operating margin in rental business (net rental income in relation to rental income), was 92.5%, above the previous year's value of 87.4%.
Other expenditure directly attributable to project development stood at € –1,914 K after three months, against € –982 K in 2017. Gross revenue from services stood at € 3,714 K, above the previous year's level of € 2,715 K. Alongside development revenue for third parties via the subsidiary omniCon, this item contains revenue from asset management and other services to joint venture partners.
After the first three months, the sales result from property assets held as current assets was € 4,514 K (€ 1,295 K in 2017). The result from the sale of investment properties stood at € 3,600 K on 31 March 2018 (€ –2,019 K in 2017). Within this, the biggest contribution to earnings was from the sale of a non-strategic land plot in Munich.
After the first three months, indirect expenditures stood at € –12,112 K, 15.8% above the 2017 level of € –10,460 K. This item also contains expenditure counterbalancing the aforementioned gross revenue from services. Other operating income stood at € 237 K compared to the 2017 value of € 177 K.
As a result of the positive operational development, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 40.6% to € 40,752 K (compared to € 28,976 K in 2017).
After the first three months, the total revaluation gain of € 1,866 K was counterbalanced by a revaluation loss of € –2,459 K. The cumulative revaluation result of € –593 K as at key date 31 March 2018 was below last year's reference value of € 9,373 K.
Current results of joint ventures consolidated at equity are reported under 'Earnings of joint ventures' in the consolidated income statement. Amongst other things, the result of € 16,982 K (€ 5,211 K in 2017) includes the release of deferred taxes amounting to € 8,531 K in connection with the sale of Tower 185 in Frankfurt (closing in the first quarter of 2018).
Earnings before interest and taxes (EBIT) of € 56,575 K were 32.6% above last year's figure (€ 42,761 K in 2017).
The financial result stood at € –17,993 K after the first three months (€ –12,253 K in 2017). Thanks to continual optimisation of the financing structure, the Group's financing costs, a key element of recurring earnings, fell by –7.1% compared to 2017 to stand at € –9,572 K.
The result from interest rate derivative transactions stood at € –9,292 K compared to € 1,007 K last year and included a non-cash valuation effect related to the convertible bond. The convertible bond issued in 2017 consists of a debt component and, due to the repayment option in shares of CA Immo, an embedded derivative subject to separation. The fair value of the separate embedded derivative corresponds at issuance date to the residual amount between the fair value of the convertible bond and the fair value of the debt component.
The result from financial investments of € 1,050 K was above the reference value for the previous period (€ 572 K in 2017). Other items in the financial result (other financial income/expense, result from other financial assets and result from associated companies and exchange rate differences) totalled € 178 K (€ -3,526 K in 2017). The result from other financial assets stood at € 1,050 K (€ 572 K in 2017). The result from other financial assets of the previous year included an impairment loss on the subsequent valuation of available-for-sale securities.
Earnings before taxes (EBT) totalled € 38,582 K, 26.5% above the last year's value of € 30,508 K. After the first three months, taxes on earnings stood at € –9,740 K (€ –7,348 K in 2017).
The result for the period was € 28,841 K, 24.5% above the 2017 value of € 23,160 K. Earnings per share amounted to € 0.31 on the balance sheet date (31 March 2017: € 0.25 per share).
An FFO I of € 27,748 K was generated in the first three months of 2018, 17.8% above the previous year's value of € 23,549 K. FFO I, a key indicator of the Group's longterm earning power, is reported before taxes and adjusted for the sales result and other non-permanent effects. FFO I per share stood at € 0.30 on the key date, an increase of 18.1% on the 2017 value of € 0.25 per share.
FFO II, which includes the sales result and applicable taxes, stood at € 26,032 K on the key date, 31.5% above the 2017 value of € 19,795 K. FFO II per share was € 0.28 per share (€ 0.21 per share in 2017).
| € m | 1st Quarter 2018 |
1st Quarter 2017 |
|---|---|---|
| restated | ||
| Net rental income (NRI) | 42.7 | 38.2 |
| Income from services rendered | 3.7 | 2.7 |
| Other expenses directly related to | ||
| properties under development | –1.9 | –1.0 |
| Other operating income | 0.2 | 0.2 |
| Other operating income/expenses | 2.0 | 1.9 |
| Indirect expenses | –12.1 | –10.5 |
| Result from investments in joint | ||
| ventures 1) | 0.7 | 1.5 |
| Finance costs | –9.6 | –10.3 |
| Result from financial investments | 0.4 | 0.6 |
| Other adjustment 2) | 3.6 | 2.1 |
| FFO I (excl. Trading and pre taxes) | 27.7 | 23.5 |
| Trading result | 4.5 | 1.3 |
| Result from the sale of investment | ||
| properties | 3.6 | –2.0 |
| Result from sale of joint ventures | –0.1 | 0.8 |
| At-Equity result property sales | 3.5 | 1.0 |
| Result from property sales | 11.5 | 1.1 |
| Current income tax | –29.0 | –2.6 |
| current income tax of joint ventures | –0.4 | –0.1 |
| Other adjustments | –3.7 | –2.2 |
| Other adjustments FFO II 3) | 19.8 | 0.0 |
| FFO II | 26.0 | 19.8 |
1) Adjustment for real estate sales and non-sustainable results
2) Adjustment for other non-sustainable results
3) Taxes in the context of the sale of Tower 185
As at the balance sheet date, long-term assets amounted to € 4,061,889 K (82.6% of total assets). Investment property assets on balance sheet amounted to € 3,225,604 K on the key date (€ 3,155,677 K on 31 December 2017).
The balance sheet item 'Property assets under development' was € 539,663 K on 31 March 2018 (€ 579,274 K on 31 December 2017). Total property assets (investment properties, properties used for own purposes, property assets under development and property assets held as current assets) amounted to € 3,813,691 K on the key date (€ 3,813,811 K on 31 December 2017).
The net assets of joint ventures are shown in the balance sheet item 'Investments in joint ventures', which stood at € 194,121 K on the key date (€ 214,950 K on 31 December 2017).
Cash and cash equivalents amounted to € 573,098 K on the balance sheet date (€ 383,288 K on 31 December 2017).
As at the key date, shareholders' equity on the Group balance sheet stood at € 2,442,017 K (€ 2,419,270 K on 31 December 2017). The equity ratio of 49.6% remained stable and within the strategic target range (the comparative value for the end of 2017 was 51.0%).
The Group's financial liabilities stood at € 1,755,689 K on the key date (against € 1,749,330 K on 31 December 2017). Net debt (interest-bearing liabilities less cash and cash equivalents) decreased by 13.4% on the value for the start of the year (€ 1,365,102 K), amounting to € 1,181,644 K at end of March 2017. 100% of interestbearing financial liabilities are in euros.
The loan-to-value ratio based on market values as at 31 March 2018 was 31.0% (net, taking account of Group cash and cash equivalents) compared to 35.8% at the start of the year. On the key date, gearing was 48.4% (56.4% on 31 December 2017).
NAV (shareholders' equity) was € 2,442,017 K on 31 March 2018 (€ 26.25 per share) compared to the value for the end of 2017 of € 2,419,219 K (€ 25.95 per share); this represented an increase per share of 1.2%.
The table below shows the conversion of NAV to NNNAV in compliance with the best practice policy recommendations of the European Public Real Estate Association (EPRA). The EPRA NAV was € 30.03 per share as at the key date (€ 30.02 per share on 31 December 2017). The EPRA NNNAV per share after adjustments for financial instruments, liabilities and deferred taxes, stood at € 27.43 per share as at 31 March 2018 (€ 27.23 per share on 31 December 2017). The number of shares outstanding on the key date was 93,028,299 (93,226,282 on 31 December 2017).
| € m | 31.3.2018 31.12.2017 restated | |
|---|---|---|
| Equity (NAV) | 2,442.0 | 2,419.2 |
| Exercise of options | 0.0 | 0.0 |
| NAV after exercise of options | 2,442.0 | 2,419.2 |
| NAV/share in € | 26.25 | 25.95 |
| Value adjustment for 1) | ||
| - Own used properties | 6.4 | 6.3 |
| - short-term property assets | 73.4 | 73.5 |
| - Financial instruments | 0.6 | 0.8 |
| Deferred taxes | 271.6 | 298.9 |
| EPRA NAV after adjustments | 2,793.9 | 2,798.7 |
| EPRA NAV per share in € | 30.03 | 30.02 |
| Value adj. for financial instruments | –0.6 | –0.8 |
| Value adjustment for liabilities | –44.0 | –41.8 |
| Deferred taxes | –197.8 | –217.5 |
| EPRA NNNAV | 2,551.6 | 2,538.6 |
| EPRA NNNAV per share in € | 27.43 | 27.23 |
| Change of NNNAV against previous year | 0.7% | 10.9% |
| Price (key date)/NNNAV per sahre –1 | –1.1 | –5.2 |
| Number of shares excl. treasury shares | 93,028,299 | 93,226,282 |
1) Includes proportionate values from joint ventures
The Group is subject to all risks typically associated with the acquisition, development, management and sale of real estate. These include risks arising from unexpected changes in the macroeconomic market environment, general market fluctuations linked to the economic cycle, delays and budget overruns in project developments and risks linked to financing and interest rates.
As regards the profile of opportunities and risks, no major changes that could give rise to new opportunities or threats to the CA Immo Group have emerged since the consolidated financial statements for business year 2017 were drawn up; nor has there been any significant change in the company's assessment of the probability of damage occurring and the extent of such potential damage. The position as outlined in the Group management report for 2017 ('Risk report') is therefore unchanged.
| € 1,000 | 1st Quarter 2018 | 1st Quarter 2017 restated |
|---|---|---|
| Rental income | 46,185 | 43,781 |
| Operating costs charged to tenants | 17,038 | 16,227 |
| Operating expenses | –18,565 | –18,258 |
| Other expenses directly related to properties rented | –1,945 | –3,499 |
| Net rental income | 42,712 | 38,249 |
| Other expenses directly related to properties under development | –1,914 | –982 |
| Income from the sale of properties and construction works | 13,953 | 7,400 |
| Book value of properties sold incl. ancillary and construction costs | –9,439 | –6,104 |
| Result from trading and construction works | 4,514 | 1,295 |
| Result from the sale of investment properties | 3,600 | –2,019 |
| Income from services rendered | 3,714 | 2,715 |
| Indirect expenses | –12,112 | –10,460 |
| Other operating income | 237 | 177 |
| EBITDA | 40,752 | 28,976 |
| Depreciation and impairment of long-term assets | –567 | –799 |
| Depreciation and impairment/reversal | –567 | –799 |
| Revaluation gain | 1,866 | 17,105 |
| Revaluation loss | –2,459 | –7,732 |
| Result from revaluation | –593 | 9,373 |
| Result from joint ventures | 16,982 | 5,211 |
| Result of operations (EBIT) | 56,575 | 42,761 |
| Finance costs | –9,572 | –10,305 |
| Foreign currency gains/losses | 28 | –67 |
| Result from derivatives | –9,292 | 1,007 |
| Result from financial investments | 1,050 | 572 |
| Result from other financial assets | 0 | –3,459 |
| Result from associated companies | –207 | 0 |
| Financial result | –17,993 | –12,253 |
| Net result before taxes (EBT) | 38,582 | 30,508 |
| Current income tax | –29,018 | –2,551 |
| Deferred taxes | 19,278 | –4,797 |
| Income tax expense | –9,740 | –7,348 |
| Consolidated net income | 28,842 | 23,160 |
| thereof attributable to non-controlling interests | 1 | 1 |
| thereof attributable to the owners of the parent | 28,841 | 23,159 |
| Earnings per share in € (basic) | €0.31 | €0.25 |
| Earnings per share in € (diluted) | €0.30 | €0.25 |
| € 1,000 | 1st Quarter 2018 | 1st Quarter 2017 restated |
|---|---|---|
| Consolidated net income | 28,842 | 23,160 |
| Other comprehensive income | ||
| Cash flow hedges - changes in fair value | 0 | 936 |
| Reclassification cash flow hedges | 367 | 0 |
| Foreign currency gains/losses | –61 | 130 |
| Revaluation other investments | 0 | 600 |
| Income tax related to other comprehensive income | –88 | –446 |
| Other comprehensive income for the period (realised through profit or loss) | 218 | 1,221 |
| Revaluation securities | –1,809 | 0 |
| Income tax related to other comprehensive income | 157 | 0 |
| Other comprehensive income for the period (not realised through profit or loss) | –1,651 | 0 |
| Other comprehensive income for the period | –1,433 | 1,221 |
| Comprehensive income for the period | 27,409 | 24,380 |
| thereof attributable to non-controlling interests | 1 | 1 |
| thereof attributable to the owners of the parent | 27,408 | 24,380 |
| € 1,000 | 31.3.2018 | 31.12.2017 | 1.1.2017 | |
|---|---|---|---|---|
| restated | restated | |||
| ASSETS | ||||
| Investment properties | 3,225,604 | 3,155,677 | 2,923,676 | |
| Investment properties under development | 539,663 | 579,274 | 433,049 | |
| Own used properties | 5,420 | 5,500 | 6,643 | |
| Office furniture and equipment | 5,375 | 5,462 | 5,599 | |
| Intangible assets | 6,428 | 6,703 | 8,195 | |
| Investments in joint ventures | 194,121 | 214,950 | 194,838 | |
| Financial assets | 83,572 | 86,466 | 90,199 | |
| Deferred tax assets | 1,707 | 1,934 | 1,563 | |
| Long-term assets | 4,061,889 | 4,055,966 | 3,663,761 | |
| Long-term assets as a % of total assets | 82.6% | 85.5% | 85.1% | |
| Assets held for sale and relating to disposal groups | 11,000 | 40,106 | 26,754 | |
| Properties held for trading | 37,904 | 36,459 | 15,549 | |
| Receivables and other assets | 108,712 | 90,583 | 84,934 | |
| Current income tax receivables | 11,355 | 19,343 | 15,552 | |
| Securities | 115,859 | 117,668 | 101,555 | |
| Cash and cash equivalents | 573,098 | 383,288 | 395,088 | |
| Short-term assets | 857,929 | 687,447 | 639,433 | |
| Total assets | 4,919,818 | 4,743,413 | 4,303,194 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| Share capital | 718,337 | 718,337 | 718,337 | |
| Capital reserves | 789,832 | 794,493 | 819,068 | |
| Other reserves | 17,294 | 18,727 | –894 | |
| Retained earnings | 916,503 | 887,662 | 682,525 | |
| Attributable to the owners of the parent | 2,441,965 | 2,419,219 | 2,219,036 | |
| Non-controlling interests | 52 | 51 | 46 | |
| Shareholders' equity | 2,442,017 | 2,419,270 | 2,219,082 | |
| Shareholders' equity as a % of total assets | 49.6% | 51.0% | 51.6% | |
| Provisions | 34,634 | 36,756 | 56,058 | |
| Interest-bearing liabilities | 1,689,574 | 1,680,410 | 1,412,635 | |
| Other liabilities | 60,036 | 50,911 | 36,965 | |
| Deferred tax liabilities | 277,297 | 296,871 | 245,312 | |
| Long-term liabilities | 2,061,541 | 2,064,948 | 1,750,970 | |
| Current income tax liabilities | 42,931 | 17,638 | 16,736 | |
| Provisions | 131,826 | 127,386 | 111,311 | |
| Interest-bearing liabilities | 66,115 | 68,920 | 153,004 | |
| Other liabilities | 175,388 | 45,182 | 52,091 | |
| Liabilities relating to disposal groups | 0 | 71 | 0 | |
| Short-term liabilities | 416,260 | 259,196 | 333,142 | |
| Total liabilities and shareholders' equity | 4,919,818 | 4,743,413 | 4,303,194 |
| € 1,000 | 1st Quarter 2018 | 1st Quarter 2017 restated |
|---|---|---|
| Operating activities | ||
| Net result before taxes | 38,582 | 30,508 |
| Revaluation result incl. change in accrual and deferral of rental income | 803 | –9,405 |
| Depreciation and impairment/reversal | 567 | 799 |
| Result from the sale of long-term properties and office furniture and | ||
| other equipment | –3,600 | 1,992 |
| Taxes refunded/paid excl. taxes for the sale of long-term properties and | ||
| investments | 1,326 | –1,974 |
| Finance costs, result from financial investments and other financial result | 8,523 | 9,733 |
| Foreign currency gains/losses | –28 | 67 |
| Result from derivatives | 9,292 | –1,007 |
| Result from other financial assets and non-cash income from investments in | ||
| at equity consolidated entities | –17,415 | –1,752 |
| Cash flow from operations | 38,049 | 28,962 |
| Properties held for trading | –1,445 | –428 |
| Receivables and other assets | –7,506 | –2,239 |
| Provisions | 4,686 | 295 |
| Other liabilities | 3,118 | –2,091 |
| Cash flow from change in net current assets | –1,146 | –4,463 |
| Cash flow from operating activities | 36,902 | 24,498 |
| Investing activities | ||
| Acquisition of and investment in long-term properties incl. prepayments | –46,533 | –22,749 |
| Acquisition of property companies, less cash and cash equivalents of € 0 K | ||
| (2017: € 2,387 K) | 3,505 | –27,536 |
| Acquisition of office equipment and intangible assets | –129 | –229 |
| Acquisition/repayment of financial assets | 5 | –208 |
| Investments in joint ventures | 0 | –295 |
| Disposal of investment properties and other assets | 11,789 | 9,745 |
| Disposal of investment property companies, less cash and cash equivalents | ||
| of € 938 K (2017: € 0 K) | 37,645 | –1,972 |
| Disposal of joint ventures | 2,147 | 11,983 |
| Loans made to joint ventures | –4,901 | –267 |
| Loan repayments made by joint ventures | 30 | 1,607 |
| Taxes refunded/paid relating to the sale of long-term properties and investments | 2,603 | –1,392 |
| Dividend distribution/capital repayment from at equity consolidated entities and | ||
| other investments | 152,051 | 5,799 |
| Interest paid for capital expenditure in investment properties | –1,585 | –789 |
| Interest received from financial investments | 2,575 | 788 |
| Cash flow from investing activities | 159,202 | –25,516 |
| € 1,000 | 1st Quarter 2018 | 1st Quarter 2017 |
|---|---|---|
| restated | ||
| Financing activities | ||
| Cash inflow from loans received | 17,878 | 2,998 |
| Cash inflow from the issuance of bonds | 0 | 173,447 |
| Repayment/cash inflow of loans received from joint ventures | –600 | 0 |
| Acquisition of treasury shares | –4,662 | –1,496 |
| Repayment of loans incl. interest rate derivatives | –3,759 | –119,411 |
| Other interest paid | –14,889 | –16,215 |
| Cash flow from financing activities | –6,032 | 39,323 |
| Net change in cash and cash equivalents | 190,073 | 38,306 |
| Fund of cash and cash equivalents 1.1. | 383,512 | 395,088 |
| Changes in the value of foreign currency | –294 | 277 |
| Fund of cash and cash equivalents 31.3. | 573,290 | 433,671 |
| Expected credit losses cash and cash equivalents | –192 | 0 |
| Cash and cash equivalents 31.3. (balance sheet) | 573,098 | 433,671 |
The interests paid in the first quarter of 2018 totalled € –16,474 K (first quarter 2017: € –17,004 K). The income taxes refunded or paid in the first quarter of 2018 added up to € 3,929 K (first quarter 2017: € –3,366 K).
| € 1,000 | Share capital | Capital reserves - Others | Capital reserves - Treasury share reserve |
|
|---|---|---|---|---|
| As at 1.1.2017 (as reported) | 718,337 | 906,148 | –87,080 | |
| Change due to IFRS 15 | 0 | 0 | 0 | |
| As at 1.1.2017 (restated) | 718,337 | 906,148 | –87,080 | |
| Valuation / reclassification cash flow hedges | 0 | 0 | 0 | |
| Foreign currency gains/losses | 0 | 0 | 0 | |
| Revaluation securities and other investments | 0 | 0 | 0 | |
| Consolidated net income | 0 | 0 | 0 | |
| Comprehensive income for 2017 restated | 0 | 0 | 0 | |
| Acquisition of treasury shares | 0 | 0 | –608 | |
| As at 31.3.2017 restated | 718,337 | 906,148 | –87,687 | |
| As at 31.12.2017 (as reported) | 718,337 | 885,607 | –91,113 | |
| Change due to IFRS 9/IFRS 15 | 0 | 0 | 0 | |
| As at 1.1.2018 | 718,337 | 885,607 | –91,113 | |
| Valuation / reclassification cash flow hedges | 0 | 0 | 0 | |
| Foreign currency gains/losses | 0 | 0 | 0 | |
| Revaluation securities and other investments | 0 | 0 | 0 | |
| Consolidated net income | 0 | 0 | 0 | |
| Comprehensive income for 2018 | 0 | 0 | 0 | |
| Acquisition of treasury shares | 0 | 0 | –4,662 | |
| As at 31.3.2018 | 718,337 | 885,607 | –95,775 |
| Retained | Valuation | Other reserves | Attributable to | Non-controlling | Shareholders' |
|---|---|---|---|---|---|
| earnings | result | shareholders of the | interests | equity | |
| (hedging - reserve) | parent company | (total) | |||
| 667,984 | –3,201 | 2,307 | 2,204,495 | 46 | 2,204,541 |
| 14,541 | 0 | 0 | 14,541 | 0 | 14,541 |
| 682,525 | –3,201 | 2,307 | 2,219,036 | 46 | 2,219,082 |
| 0 | 667 | 0 | 667 | 0 | 667 |
| 0 | 0 | 130 | 130 | 0 | 130 |
| 0 | 0 | 423 | 423 | 0 | 423 |
| 23,159 | 0 | 0 | 23,159 | 1 | 23,160 |
| 23,159 | 667 | 553 | 24,380 | 1 | 24,380 |
| 0 | 0 | 0 | –608 | 0 | –608 |
| 705,684 | –2,533 | 2,860 | 2,242,808 | 47 | 2,242,855 |
| 862,689 | –842 | 23,782 | 2,398,459 | 51 | 2,398,510 |
| 24,972 | 0 | –4,213 | 20,760 | 0 | 20,760 |
| 887,662 | –842 | 19,569 | 2,419,219 | 51 | 2,419,270 |
| 0 | 279 | 0 | 279 | 0 | 279 |
| 0 | 0 | –61 | –61 | 0 | –61 |
| 0 | 0 | –1,651 | –1,651 | 0 | –1,651 |
| 28,841 | 0 | 0 | 28,841 | 1 | 28,842 |
| 28,841 | 279 | –1,712 | 27,408 | 1 | 27,409 |
| 0 | 0 | 0 | –4,662 | 0 | –4,662 |
| 916,503 | –563 | 17,857 | 2,441,965 | 52 | 2,442,017 |
| € 1,000 | Austria | Germany | ||||||
|---|---|---|---|---|---|---|---|---|
| 1st Quarter 2018 | Income | Development | Total | Income | Development | Total | Income | |
| producing | producing | producing | ||||||
| Rental income | 6,920 | 0 | 6,920 | 13,154 | 1,110 | 14,264 | 24,411 | |
| Rental income with other operating segments | 133 | 0 | 133 | 126 | 2 | 128 | 0 | |
| Operating costs charged to tenants | 2,158 | 0 | 2,158 | 3,578 | 274 | 3,853 | 10,457 | |
| Operating expenses | –2,387 | 0 | –2,387 | –4,095 | –367 | –4,463 | –11,121 | |
| Other expenses directly related to properties rented | –472 | 0 | –472 | –376 | –105 | –481 | –682 | |
| Net rental income | 6,352 | 0 | 6,352 | 12,387 | 914 | 13,301 | 23,064 | |
| Other expenses directly related to properties under | ||||||||
| development | 0 | –13 | –13 | 0 | –2,087 | –2,087 | 0 | |
| Result from trading and construction works | 0 | 4,253 | 4,253 | 0 | 6,473 | 6,473 | 0 | |
| Result from the sale of investment properties | 20 | 0 | 20 | –1,466 | 4,868 | 3,402 | 0 | |
| Income from services rendered | 0 | 0 | 0 | 168 | 2,455 | 2,623 | 169 | |
| Indirect expenses | –309 | –20 | –329 | –1,572 | –3,814 | –5,386 | –3,062 | |
| Other operating income | 10 | 0 | 10 | 106 | 92 | 198 | 34 | |
| EBITDA | 6,073 | 4,221 | 10,294 | 9,624 | 8,901 | 18,525 | 20,206 | |
| Depreciation and impairment/reversal | –172 | 0 | –172 | –25 | 369 | 343 | –110 | |
| Result from revaluation | –271 | –19 | –290 | 188 | 925 | 1,113 | –1,005 | |
| Result from joint ventures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Result of operations (EBIT) | 5,630 | 4,202 | 9,833 | 9,786 | 10,195 | 19,981 | 19,091 | |
| Timing of revenue recognition | ||||||||
| Trading property - transferred at a point in time | 0 | 0 | 0 | 0 | 7,363 | 7,363 | 0 | |
| Sale of investment properties - transferred at a point in | ||||||||
| time | 22,053 | 0 | 22,053 | 760,010 | 14,789 | 774,799 | 0 | |
| Total income IFRS 15 - transferred at a point in time | 22,053 | 0 | 22,053 | 760,010 | 22,152 | 782,162 | 0 | |
| Trading property and contruction work - transferred over | ||||||||
| time | 0 | 9,812 | 9,812 | 0 | 23,602 | 23,602 | 0 | |
| Income from services - transferred over time | 0 | 0 | 0 | 168 | 2,455 | 2,623 | 169 | |
| Total income IFRS 15 - transferred over time | 0 | 9,812 | 9,812 | 168 | 26,058 | 26,226 | 169 | |
| Total income IFRS 15 | 22,053 | 9,812 | 31,865 | 760,178 | 48,209 | 808,388 | 169 | |
| 31.3.2018 | ||||||||
| Property assets1) | 498,129 | 32,170 530,299 | 1,103,757 | 705,126 1,808,883 | 1,496,668 | |||
| Other assets | 39,376 | 55,526 | 94,902 | 526,473 | 547,113 1,073,586 | 133,615 | ||
| Deferred tax assets | 0 | 0 | 0 | 587 | 1,290 | 1,877 | 768 | |
| Segment assets | 537,505 | 87,696 625,201 | 1,630,817 | 1,253,529 2,884,347 | 1,631,052 | |||
| Interest-bearing liabilities | 207,504 | 43,759 251,263 | 604,264 | 173,067 | 777,331 | 671,682 | ||
| Other liabilities | 10,454 | 11,027 | 21,481 | 31,397 | 330,784 | 362,181 | 49,236 | |
| Deferred tax liabilities incl. current income tax liabilities | 39,928 | 3,430 | 43,359 | 207,320 | 59,339 | 266,658 | 37,567 | |
| Liabilities | 257,887 | 58,216 316,103 | 842,980 | 563,190 1,406,171 | 758,485 | |||
| Shareholders' equity | 279,619 | 29,479 309,098 | 787,837 | 690,339 1,478,176 | 872,567 |
Capital expenditures2) 318 4,997 5,316 2,665 46,439 49,104 1,857 1) Property assets include rental investment properties, investment properties under development, own used properties, properties held for trading and
properties available for sale. 2) Capital expenditures include all acquisitions of properties (long-term and short-term) including additions from initial consolidation, office furniture and other equipment and intangible assets; thereof € 11,059 K (31.12.2017 restated: € 29,264 K) in properties held for trading.
| Eastern Europe | Eastern Europe | Total segments | Transition | Total | ||||
|---|---|---|---|---|---|---|---|---|
| core regions | other regions | |||||||
| Development | Total | Income | Development | Total | Holding | Consolidation | ||
| producing | ||||||||
| 0 | 24,411 | 3,353 | 0 | 3,353 | 48,948 | 0 | –2,763 | 46,185 |
| 0 | 0 | 0 | 0 | 0 | 261 | 0 | –261 | 0 |
| 0 | 10,457 | 1,311 | 0 | 1,311 | 17,779 | 0 | –741 | 17,038 |
| 0 | –11,121 | –1,407 | 0 | –1,407 | –19,378 | 0 | 813 | –18,565 |
| 0 | –682 | –138 | 0 | –138 | –1,773 | 0 | –172 | –1,945 |
| 0 | 23,064 | 3,119 | 0 | 3,119 | 45,837 | 0 | –3,125 | 42,712 |
| –41 | –41 | 0 | –8 | –8 | –2,149 | 0 | 235 | –1,914 |
| 0 | 0 | 0 | 0 | 0 | 10,726 | 0 | –6,212 | 4,514 |
| 0 | 0 | 0 | 0 | 0 | 3,423 | 0 | 178 | 3,600 |
| 0 | 169 | 0 | 0 | 0 | 2,793 | 3,484 | –2,562 | 3,714 |
| –116 | –3,178 | –148 | –24 | –172 | –9,065 | –5,733 | 2,685 | –12,112 |
| 0 | 34 | 4 | 0 | 4 | 246 | 38 | –46 | 237 |
| –157 | 20,049 | 2,975 | –32 | 2,943 | 51,811 | –2,211 | –8,847 | 40,752 |
| 0 | –110 | 0 | 0 | 0 | 61 | –110 | –518 | –567 |
| 265 | –740 | 6,791 | 0 | 6,791 | 6,875 | 0 | –7,468 | –593 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 16,982 | 16,982 |
| 108 | 19,199 | 9,766 | –32 | 9,734 | 58,747 | –2,321 | 149 | 56,575 |
| 0 | 0 | 0 | 0 | 0 | 7,363 | 0 | –7,038 | 325 |
| 0 | 0 | 0 | 0 | 0 | 796,852 | 0 | –760,044 | 36,808 |
| 0 | 0 | 0 | 0 | 0 | 804,215 | 0 | –767,082 | 37,133 |
| 0 | 0 | 0 | 0 | 0 | 33,414 | 0 | –19,786 | 13,628 |
| 0 | 169 | 0 | 0 | 0 | 2,793 | 3,484 | –2,562 | 3,714 |
| 0 | 169 | 0 | 0 | 0 | 36,207 | 3,484 | –22,348 | 17,342 |
| 0 | 169 | 0 | 0 | 0 | 840,422 | 3,484 | –789,431 | 54,475 |
| 56,099 | 1,552,767 | 183,204 | 4,860 | 188,064 | 4,080,013 | 0 | –266,322 | 3,813,691 |
| 7,403 | 141,018 | 7,132 | 13,780 | 20,912 | 1,330,418 | 951,718 | –1,177,717 | 1,104,420 |
| 205 | 974 | 110 | 0 | 110 | 2,960 | 30,613 | –31,867 | 1,707 |
| 63,707 | 1,694,759 | 190,446 | 18,640 | 209,085 | 5,413,392 | 982,331 | –1,475,906 | 4,919,818 |
| 39,484 | 711,166 | 121,658 | 12,658 | 134,316 | 1,874,076 | 904,377 | –1,022,764 | 1,755,689 |
| 8,101 | 57,337 | 4,256 | 22 | 4,279 | 445,278 | 46,069 | –89,464 | 401,884 |
120 37,687 3,610 561 4,172 351,875 518 –32,165 320,228 47,705 806,190 129,525 13,241 142,766 2,671,229 950,964 –1,144,393 2,477,801 16,003 888,569 60,921 5,398 66,319 2,742,163 31,367 –331,513 2,442,017
1,055 2,912 565 0 565 57,896 34 –2,881 55,049
| € 1,000 | Austria | Germany | ||||||
|---|---|---|---|---|---|---|---|---|
| 1st Quarter 2017 restated | Income | Development | Total | Income | Development | Total | Income | |
| producing | producing | producing | ||||||
| restated | ||||||||
| Rental income | 7,693 | 0 | 7,693 | 17,636 | 1,362 | 18,998 | 22,211 | |
| Rental income with other operating segments | 131 | 0 | 131 | 214 | 3 | 216 | 0 | |
| Operating costs charged to tenants | 2,216 | 0 | 2,216 | 6,126 | 130 | 6,256 | 9,907 | |
| Operating expenses | –2,451 | 0 | –2,451 | –6,696 | –285 | –6,982 | –11,134 | |
| Other expenses directly related to properties | ||||||||
| rented | –796 | 0 | –796 | –1,509 | –77 | –1,586 | –1,833 | |
| Net rental income | 6,793 | 0 | 6,793 | 15,770 | 1,132 | 16,903 | 19,152 | |
| Other expenses directly related to properties under | ||||||||
| development | 0 | –147 | –147 | 0 | –1,042 | –1,042 | 0 | |
| Result from trading and construction works | 0 | 2,057 | 2,057 | 0 | 1,127 | 1,127 | 0 | |
| Result from the sale of investment properties | 109 | 0 | 109 | –16 | –2,127 | –2,144 | 828 | |
| Income from services rendered | 0 | 0 | 0 | 82 | 2,637 | 2,719 | 177 | |
| Indirect expenses | –325 | –176 | –501 | –1,769 | –4,442 | –6,211 | –2,463 | |
| Other operating income | 8 | 0 | 8 | 67 | 29 | 97 | 56 | |
| EBITDA | 6,584 | 1,734 | 8,318 | 14,134 | –2,686 | 11,448 | 17,751 | |
| Depreciation and impairment/reversal | –379 | 0 | –379 | –31 | –83 | –114 | –108 | |
| Result from revaluation | –1,167 | 1 | –1,166 | 11,809 | 6,699 | 18,508 | –3,954 | |
| Result from joint ventures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Result of operations (EBIT) | 5,038 | 1,735 | 6,773 | 25,912 | 3,930 | 29,842 | 13,689 | |
| Timing of revenue recognition | ||||||||
| Trading property - transferred at a point in time | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Sale of investment properties - transferred at a | ||||||||
| point in time | 15,170 | 0 | 15,170 | 0 | 588 | 588 | 12,748 | |
| Total income IFRS 15 - transferred at a point in | ||||||||
| time | 15,170 | 0 | 15,170 | 0 | 588 | 588 | 12,748 | |
| Trading property and contruction work - | ||||||||
| transferred over time | 0 | 9,661 | 9,661 | 0 | 10,754 | 10,754 | 0 | |
| Income from services - transferred over time | 0 | 0 | 0 | 82 | 2,637 | 2,719 | 177 | |
| Total income IFRS 15 - transferred over time | 0 | 9,661 | 9,661 | 82 | 13,391 | 13,473 | 177 | |
| Total income IFRS 15 | 15,170 | 9,661 | 24,831 | 82 | 13,979 | 14,061 | 12,925 | |
| 31.12.2017 restated | ||||||||
| Property assets1) | 535,088 | 32,588 | 567,677 | 1,872,411 | 681,610 | 2,554,020 | 1,495,908 | |
| Other assets | 47,445 | 55,184 | 102,629 | 164,671 | 385,173 | 549,844 | 136,925 | |
| Deferred tax assets | 0 | 0 | 0 | 587 | 1,354 | 1,941 | 859 | |
| Segment assets | 582,533 | 87,773 | 670,305 | 2,037,670 | 1,068,136 | 3,105,806 | 1,633,692 | |
| Interest-bearing liabilities | 224,551 | 45,450 | 270,001 | 919,303 | 150,852 | 1,070,155 | 691,516 | |
| Other liabilities | 9,616 | 10,474 | 20,090 | 35,122 | 220,090 | 255,212 | 46,832 | |
| Deferred tax liabilities incl. current income tax | ||||||||
| liabilities | 43,068 | 6,417 | 49,486 | 232,671 | 60,658 | 293,328 | 35,696 | |
| Liabilities | 277,236 | 62,341 | 339,577 | 1,187,096 | 431,600 | 1,618,695 | 774,044 | |
| Shareholders' equity | 305,298 | 25,432 | 330,729 | 850,574 | 636,536 | 1,487,110 | 859,647 | |
| Capital expenditures2) | 4,872 | 36,981 | 41,854 | 16,059 | 195,876 | 211,936 | 155,601 |
| Eastern Europe | Eastern Europe | Total segments | Transition | Total | ||||
|---|---|---|---|---|---|---|---|---|
| core regions | other regions | |||||||
| Development | Total | Income | Development | Total | Holding | Consolidation | ||
| producing | ||||||||
| restated | restated | restated | restated | restated | restated | restated | ||
| 538 | 22,750 | 3,280 | 0 | 3,280 | 52,721 | 0 | –8,940 | 43,781 |
| 0 | 0 | 0 | 0 | 0 | 347 | 0 | –347 | 0 |
| 237 | 10,143 | 1,266 | 0 | 1,266 | 19,881 | 0 | –3,655 | 16,227 |
| –210 | –11,343 | –1,357 | 0 | –1,357 | –22,133 | 0 | 3,875 | –18,258 |
| –36 | –1,868 | –165 | 0 | –165 | –4,415 | 0 | 916 | –3,499 |
| 530 | 19,681 | 3,024 | 0 | 3,024 | 46,401 | 0 | –8,152 | 38,249 |
| –47 | –47 | 0 | –14 | –14 | –1,250 | 0 | 268 | –982 |
| 0 | 0 | 0 | 0 | 0 | 3,184 | 0 | –1,889 | 1,295 |
| 0 | 828 | 0 | 0 | 0 | –1,206 | 0 | –813 | –2,019 |
| 0 | 177 | 0 | 0 | 0 | 2,897 | 1,700 | –1,881 | 2,715 |
| –171 | –2,635 | –208 | –33 | –241 | –9,588 | –3,939 | 3,066 | –10,460 |
| 0 | 56 | 0 | 0 | 0 | 161 | 81 | –65 | 177 |
| 311 | 18,062 | 2,816 | –47 | 2,769 | 40,597 | –2,158 | –9,464 | 28,975 |
| –1 | –109 | 0 | 0 | 0 | –602 | –143 | –54 | –799 |
| 146 | –3,808 | –336 | 0 | –336 | 13,198 | 0 | –3,825 | 9,373 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5,211 | 5,212 |
| 456 | 14,145 | 2,480 | –47 | 2,433 | 53,194 | –2,301 | –8,132 | 42,762 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 12,748 | 0 | 0 | 0 | 28,506 | 0 | –12,890 | 15,616 |
| 0 | 12,748 | 0 | 0 | 0 | 28,506 | 0 | –12,890 | 15,616 |
| 0 | 0 | 0 | 0 | 0 | 20,415 | 0 | –13,015 | 7,400 |
| 0 | 177 | 0 | 0 | 0 | 2,897 | 1,700 | –1,881 | 2,715 |
| 54,779 | 1,550,687 | 175,770 | 4,860 | 180,630 | 4,853,014 | 0 | –1,039,203 | 3,813,811 |
|---|---|---|---|---|---|---|---|---|
| 10,628 | 147,554 | 6,768 | 15,859 | 22,627 | 822,653 | 929,744 | –824,729 | 927,669 |
| 205 | 1,064 | 164 | 0 | 164 | 3,168 | 37,113 | –38,347 | 1,934 |
| 65,612 | 1,699,304 | 182,702 | 20,719 | 203,421 | 5,678,836 | 966,856 | –1,902,279 | 4,743,413 |
| 36,299 | 727,815 | 123,363 | 13,228 | 136,591 | 2,204,563 | 911,596 | –1,366,829 | 1,749,330 |
| 13,163 | 59,995 | 3,437 | 45 | 3,482 | 338,780 | 33,564 | –112,037 | 260,306 |
| 118 | 35,815 | 2,781 | 560 | 3,341 | 381,970 | 1,301 | –68,763 | 314,509 |
| 49,580 | 823,624 | 129,581 | 13,833 | 143,415 | 2,925,311 | 946,461 | –1,547,629 | 2,324,144 |
| 16,032 | 875,680 | 53,120 | 6,885 | 60,006 | 2,753,525 | 20,395 | –354,650 | 2,419,269 |
| 19,988 | 175,590 | 2,260 | 0 | 2,260 | 431,639 | 206 | –131,213 | 300,633 |
0 177 0 0 0 23,311 1,700 –14,896 10,115 0 12,925 0 0 0 51,817 1,700 –27,786 25,731
The condensed consolidated interim financial statements of CA Immobilien Anlagen Aktiengesellschaft ("CA Immo AG"), Vienna as at 31.3.2018 were prepared in accordance with the rules of IAS 34 (Interim Financial Reporting) and are based on the accounting policies and measurement basis described in the annual consolidated financial statements of CA Immobilien Anlagen Aktiengesellschaft for the year 2017, except of new or amended standards.
The condensed consolidated interim financial statements, for the reporting period from 1.1. to 31.3.2018 have been neither fully audited nor reviewed by an auditor.
The use of automatic data processing equipment may lead to rounding differences in the addition of rounded amounts and percentage rates.
The condensed consolidated interim financial statements by 31.3.2018 were prepared in accordance with all IASs, IFRSs and IFRIC and SIC interpretations (existing standards as amended and new standards) as adopted by the EU and applicable for the financial year beginning 1.1.2018. The following amended standards are applicable for the first time in the business year 2018:
| Standard / Interpretation | Content | entry into force1) |
|---|---|---|
| IFRS 15 | Revenue from Contracts with Customers | 1.1.2018 |
| Amendments to IFRS 15 | Clarifications to IFRS 15 Revenue from Contracts with Customers | 1.1.2018 |
| IFRS 9 | Financial instruments | 1.1.2018 |
| Amendments to IFRS 4 | Applying IFRS 9 with IFRS 4 Insurance Contracts | 1.1.2018 |
| Annual Improvements to IFRS | ||
| Standards 2014-2016 Cycle | Miscellaneous | 1.1.2018 |
| Amendments to IFRS 2 | Classification and Measurement of Share-based Payment Transactions | 1.1.2018 |
| Amendments to IAS 40 | Transfers of Investment Property | 1.1.2018 |
| IFRIC 22 | Foreign Currency Transactions and Advance Considerations | 1.1.2018 |
1) The standards and interpretations are to be applied to business years commencing on or after the effective date.
The first time application of the amended standards and interpretations have no essential impact on the consolidated financial statements. The first time application of IFRS 9 and IFRS 15 has material impact on the consolidated financial statements and is explained in more detail below.
"IFRS 9 Financial Instruments" replaces "IAS 39 Financial Instruments: Recognition and Measurement". CA Immo Group does not apply IFRS 9 retrospectively and therefore all necessary changes are reflected in the balance sheet as at 31.12.2017.
The subsequent measurement of financial assets/ liabilities is based on three categories with different valuations and a different recognition of changes in value. The categorization results both from the dependence of the contractual cash flows of the instrument and from the business model according to which the instrument is held/ managed. As financial instruments measured at "amortized cost" qualify only those, whose business model gives rise to cash flows that are solely payments of principal and interests (SPPI –"solely payments of principal and interest"). All other financial assets are measured at fair value through profit and loss. For equity instruments that are not held/ managed for trading purposes, i.e. for which the primary objective is not the short-term value appreciation/realization, an option for recognition in the other comprehensive income continues to exist. CA Immo Group makes use of this option for the securities which were classified as available for sale (AFS – available for sale) according to IAS 39.
IFRS 9 provides a three-step model for the recognition of losses. Accordingly, in the first step an expected 12-month loss must be recognized at the recognition date. In the second step, a significant increase in the risk of default should lead to an increase in the risk provision for the expected loss of the entire residual term. In the third step, upon occurrence of an objective indication of impairment, the interest has to be recognized based on the net book value (book value less risk provision). For leasing receivables according to IAS 17 there is an option to recognize the risk provision in the amount of the expected loss over the entire residual term at the recognition date. CA Immo Group exercises this option: as at 31.12.2017 the additional recognition of the allowance for leasing receivables is € 56 K. The allowances for cash at banks is € 223 K and the allowances for other financial assets stands at € 71 K.
Consequences will result in the recognition in the profit and loss for the changes in value of German partnerships participations classified as "available for sale" according to IAS 39, since these changes in value have previously been recorded without affecting profit and loss. Now these changes are recorded through profit and loss. As at 31.12.2017 the change results only from a reclassification in shareholders' equity.
The application of IFRS 9 leads to changes in the financial statements of CA Immo Group in connection with the modification of debt instruments, since previous accounting method applied by the CA Immo Group under IAS 39 measured the liability at amortized cost (effective interest method). Now IFRS 9 regulates that changes in present value due to loan modifications are to be recognized immediately in the profit and loss and distributed over the residual term by means of the effective interest method. This change increases the shareholders' equity as at 31.12.2017 with € 3,291 K.
IFRS 15 supersedes IAS 11, IAS 18 and the related interpretations and stipulates when and in which amount revenue has to be recognized. Income from leases (rental income) are excluded from the new IFRS 15 standard, as they fall under IAS 17 or starting 2019, under IFRS 16. The new standard provides a single, principle-based five-step model, which, apart from certain exceptions, has to be applied to all contracts with customers.
CA Immo Group retrospectively applies IFRS 15 and makes use of practical easements for application, such as no restatement of completed contracts.
IFRS 15 requires, that if the entitiy's performance does not create an asset with alternative use to the entity and the entity has an enforceable right of payment, revenue is recognized over time. This applies, depending on the contract and on the legal environment, to the sale of residential projects as soon as they are sold. All capitalized cost according to IAS 2, including interest according to IAS 23, for the residential project are expensed as cost to fulfill the contract. On the other hand, the contractual payment according to the stage of completion is recognized as revenue. The incremental costs of obtaining a contract are also capitalized and expensed according to the stage of completion. Any received advance payment is netted off against the contract asset and might lead to a contract liability.
The identification of the performance obligations in the contract in connection with the identification of the contract with the customer also leads to a differentiated recognition of revenue in respect of public interest development contracts. As a consequence, the amount recognized as deferred revenue is replaced by a provision resulting in an increase of equity.
This also influences the result from joint ventures, since some of the residential projects are in joint ventures entities.
The initial application of IFRS 9 (not retrospectively) and IFRS 15 (retrospectively) has the following effects on consolidated profit and loss, consolidated comprehensive income, consolidated balance sheet and consolidated statement of cash flows:
| € 1,000 | 1st Quarter 2017 | Change due to | 1st Quarter 2017 |
|---|---|---|---|
| IFRS 15 | according to IFRS 15 | ||
| as reported | restated | ||
| Rental income | 43,781 | 0 | 43,781 |
| Operating costs charged to tenants | 16,227 | 0 | 16,227 |
| Operating expenses | –18,258 | 0 | –18,258 |
| Other expenses directly related to properties rented | –3,499 | 0 | –3,499 |
| Net rental income | 38,249 | 0 | 38,249 |
| Other expenses directly related to properties under | |||
| development | –982 | 0 | –982 |
| Income from the sale of properties and construction works | 3,538 | 3,862 | 7,400 |
| Book value of properties sold incl. ancillary and | |||
| construction costs | –3,148 | –2,956 | –6,104 |
| Result from trading and construction works | 390 | 906 | 1,295 |
| Result from the sale of investment properties | 358 | –2,377 | –2,019 |
| Income from services rendered | 2,715 | 0 | 2,715 |
| Indirect expenses | –10,460 | 0 | –10,460 |
| Other operating income | 177 | 0 | 177 |
| EBITDA | 30,447 | –1,471 | 28,976 |
| Depreciation and impairment of long-term assets | –799 | 0 | –799 |
| Depreciation and impairment/reversal | –799 | 0 | –799 |
| Revaluation gain | 17,264 | –159 | 17,105 |
| Revaluation loss | –7,732 | 0 | –7,732 |
| Result from revaluation | 9,532 | –159 | 9,373 |
| Result from joint ventures | 4,190 | 1,021 | 5,211 |
| Result of operations (EBIT) | 43,370 | –609 | 42,761 |
| Finance costs | –10,217 | –89 | –10,305 |
| Foreign currency gains/losses | –67 | 0 | –67 |
| Result from derivatives | 1,007 | 0 | 1,007 |
| Result from financial investments | 544 | 28 | 572 |
| Result from other financial assets | –3,459 | 0 | –3,459 |
| Financial result | –12,192 | –60 | –12,253 |
| Net result before taxes (EBT) | 31,177 | –669 | 30,508 |
| Current income tax | –2,551 | 0 | –2,551 |
| Deferred taxes | –5,403 | 606 | –4,797 |
| Income tax expense | –7,955 | 606 | –7,348 |
| Consolidated net income | 23,222 | –63 | 23,160 |
| thereof attributable to non-controlling interests | 1 | 0 | 1 |
| thereof attributable to the owners of the parent | 23,222 | –63 | 23,159 |
| Earnings per share in € (basic) | €0.25 | €0.00 | €0.25 |
| Earnings per share in € (diluted) | €0.25 | €0.00 | €0.25 |
| € 1,000 | 1st Quarter 2017 | Change due to | 1st Quarter 2017 |
|---|---|---|---|
| IFRS 15 | according to IFRS 15 | ||
| as reported | restated | ||
| Consolidated net income | 23,222 | –63 | 23,160 |
| Other comprehensive income | |||
| Cash flow hedges - changes in fair value | 936 | 0 | 936 |
| Foreign currency gains/losses | 130 | 0 | 130 |
| Assets available for sale - changes in fair value | 600 | –600 | 0 |
| Revaluation other investments | 0 | 600 | 600 |
| Income tax related to other comprehensive income | –446 | 0 | –446 |
| Other comprehensive income for the period | |||
| (realised through profit or loss) | 1,221 | 0 | 1,221 |
| Other comprehensive income for the period | 1,221 | 0 | 1,221 |
| 0 | |||
| Comprehensive income for the period | 24,443 | –63 | 24,380 |
| thereof attributable to non-controlling interests | 1 | 0 | 1 |
| thereof attributable to the owners of the parent | 24,442 | –63 | 24,380 |
| € 1,000 | 31.12.2017 | Changes due to | Change due to | 31.12.2017 |
|---|---|---|---|---|
| IFRS 9 | IFRS 15 | according to IFRS 9 | ||
| and IFRS 15 | ||||
| as reported | restated | |||
| ASSETS | ||||
| Investment properties | 3,155,677 | 0 | 0 | 3,155,677 |
| Investment properties under development | 579,274 | 0 | 0 | 579,274 |
| Own used properties | 5,500 | 0 | 0 | 5,500 |
| Office furniture and equipment | 5,462 | 0 | 0 | 5,462 |
| Intangible assets | 6,703 | 0 | 0 | 6,703 |
| Investments in joint ventures | 207,182 | 0 | 7,768 | 214,950 |
| Financial assets | 85,570 | –35 | 931 | 86,466 |
| Deferred tax assets | 2,025 | 0 | –91 | 1,934 |
| Long-term assets | 4,047,393 | –35 | 8,608 | 4,055,966 |
| Long-term assets as a % of total assets | 84.9% | 85.5% | ||
| Assets held for sale and relating | ||||
| to disposal groups | 40,106 | 0 | 0 | 40,106 |
| Properties held for trading | 79,317 | 0 | –42,858 | 36,459 |
| Receivables and other assets | 81,314 | –92 | 9,361 | 90,583 |
| Current income tax receivables | 19,343 | 0 | 0 | 19,343 |
| Securities | 117,668 | 0 | 0 | 117,668 |
| Cash and cash equivalents | 383,512 | –223 | 0 | 383,288 |
| Short-term assets | 721,259 | –316 | –33,497 | 687,447 |
| Total assets | 4,768,653 | –351 | –24,888 | 4,743,413 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| Share capital | 718,337 | 0 | 0 | 718,337 |
| Capital reserves | 794,493 | 0 | 0 | 794,493 |
| Other reserves | 22,940 | –4,213 | 0 | 18,727 |
| Retained earnings | 862,689 | 7,153 | 17,819 | 887,662 |
| Attributable to the owners of the parent | 2,398,459 | 2,940 | 17,819 | 2,419,219 |
| Non-controlling interests | 51 | 0 | 0 | 51 |
| Shareholders' equity | 2,398,510 | 2,940 | 17,819 | 2,419,270 |
| Shareholders' equity as a % of total assets | 50.3% | 51.0% | ||
| Provisions | 5,646 | 0 | 31,110 | 36,756 |
| Interest-bearing liabilities | 1,684,170 | –3,760 | 0 | 1,680,410 |
| Other liabilities | 86,434 | 0 | –35,523 | 50,911 |
| Deferred tax liabilities | 291,305 | 468 | 5,098 | 296,871 |
| Long-term liabilities | 2,067,555 | –3,291 | 685 | 2,064,948 |
| Current income tax liabilities | 17,638 | 0 | 0 | 17,638 |
| Provisions | 100,658 | 0 | 26,728 | 127,386 |
| Interest-bearing liabilities | 68,920 | 0 | 0 | 68,920 |
| Other liabilities | 115,303 | 0 | –70,121 | 45,182 |
| Liabilities relating to disposal groups | 71 | 0 | 0 | 71 |
| Short-term liabilities | 302,588 | 0 | –43,393 | 259,196 |
| Total liabilities and shareholders' equity | 4,768,653 | –351 | –24,888 | 4,743,413 |
| € 1,000 | 31.12.2016 | Change due to | 31.12.2016 |
|---|---|---|---|
| IFRS 15 | according to IFRS 15 | ||
| as reported | restated | ||
| ASSETS | |||
| Investment properties | 2,923,676 | 0 | 2,923,676 |
| Investment properties under development | 433,049 | 0 | 433,049 |
| Own used properties | 6,643 | 0 | 6,643 |
| Office furniture and equipment | 5,599 | 0 | 5,599 |
| Intangible assets | 8,195 | 0 | 8,195 |
| Investments in joint ventures | 191,369 | 3,469 | 194,838 |
| Financial assets | 89,713 | 486 | 90,199 |
| Deferred tax assets | 1,563 | 0 | 1,563 |
| Long-term assets | 3,659,806 | 3,955 | 3,663,761 |
| Long-term assets as a % of total assets | 84.9% | 85.1% | |
| Assets held for sale and relating to disposal groups | 26,754 | 0 | 26,754 |
| Properties held for trading | 34,147 | –18,598 | 15,549 |
| Receivables and other assets | 76,235 | 8,699 | 84,934 |
| Current income tax receivables | 15,552 | 0 | 15,552 |
| Securities | 101,555 | 0 | 101,555 |
| Cash and cash equivalents | 395,088 | 0 | 395,088 |
| Short-term assets | 649,332 | –9,899 | 639,433 |
| Total assets | 4,309,138 | –5,943 | 4,303,194 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Share capital | 718,337 | 0 | 718,337 |
| Capital reserves | 819,068 | 0 | 819,068 |
| Other reserves | –894 | 0 | –894 |
| Retained earnings | 667,984 | 14,541 | 682,525 |
| Attributable to the owners of the parent | 2,204,495 | 14,541 | 2,219,036 |
| Non-controlling interests | 46 | 0 | 46 |
| Shareholders' equity | 2,204,541 | 14,541 | 2,219,082 |
| Shareholders' equity as a % of total assets | 51.2% | 51.6% | |
| Provisions | 13,242 | 42,816 | 56,058 |
| Interest-bearing liabilities | 1,412,635 | 0 | 1,412,635 |
| Other liabilities | 87,180 | –50,215 | 36,965 |
| Deferred tax liabilities | 239,969 | 5,343 | 245,312 |
| Long-term liabilities | 1,753,026 | –2,056 | 1,750,970 |
| Current income tax liabilities | 16,736 | 0 | 16,736 |
| Provisions | 84,766 | 26,545 | 111,311 |
| Interest-bearing liabilities | 153,004 | 0 | 153,004 |
| Other liabilities | 97,064 | –44,973 | 52,091 |
| Short-term liabilities | 351,571 | –18,429 | 333,142 |
| Total liabilities and shareholders' equity | 4,309,138 | –5,943 | 4,303,194 |
| € 1,000 | 1st Quarter 2017 | Change due to | 1st Quarter 2017 |
|---|---|---|---|
| IFRS 15 | according to IFRS 15 | ||
| as reported | restated | ||
| Operating activities | |||
| Net result before taxes | 31,177 | –669 | 30,508 |
| Revaluation result incl. change in accrual and deferral of rental income | –9,564 | 159 | –9,405 |
| Depreciation and impairment/reversal | 799 | 0 | 799 |
| Result from the sale of long-term properties and office furniture and | |||
| other equipment | –385 | 2,377 | 1,992 |
| Taxes paid/refunded excl. taxes for the sale of long-term properties | –1,974 | 0 | –1,974 |
| Finance costs, result from financial investments and other financial result | 9,673 | 60 | 9,733 |
| Foreign currency gains/losses | 67 | 0 | 67 |
| Result from derivatives | –1,007 | 0 | –1,007 |
| Result from other financial assets and non-cash income from investments in | |||
| at equity consolidated entities | –731 | –1,021 | –1,752 |
| Cash flow from operations | 28,056 | 905 | 28,962 |
| Properties held for trading | –4,404 | 3,976 | –428 |
| Receivables and other assets | –2,988 | 749 | –2,239 |
| Provisions | 1,309 | –1,014 | 295 |
| Other liabilities | 2,525 | –4,616 | –2,091 |
| Cash flow from change in net current assets | –3,558 | –905 | –4,463 |
| Cash flow from operating activities | 24,498 | 0 | 24,498 |
| Investing activities | |||
| Acquisition of and investment in long-term properties incl. prepayments | –22,749 | 0 | –22,749 |
| Acquisition of property companies, less cash and cash equivalents of € 2,387 K | –27,536 | 0 | –27,536 |
| Acquisition of office equipment and intangible assets | –229 | 0 | –229 |
| Acquisition/repayment of financial assets | –208 | 0 | –208 |
| Investments in joint ventures | –295 | 0 | –295 |
| Disposal of investment properties and other assets | 9,745 | 0 | 9,745 |
| Disposal of investment property companies, less cash and cash equivalents of € 0 K | –1,972 | 0 | –1,972 |
| Disposal of joint ventures | 11,983 | 0 | 11,983 |
| Loans made to joint ventures | –267 | 0 | –267 |
| Loan repayments made by joint ventures | 1,607 | 0 | 1,607 |
| Taxes paid/refunded relating to the sale of long-term properties and loans granted | –1,392 | 0 | –1,392 |
| Dividend distribution/capital repayment from at equity consolidated entities and | |||
| other investments | 5,799 | 0 | 5,799 |
| Interest paid for capital expenditure in investment properties | –789 | 0 | –789 |
| Interest received from financial investments | 788 | 0 | 788 |
| Cash flow from investing activities | –25,516 | 0 | –25,516 |
| Financing activities | |||
| Cash inflow from loans received | 2,998 | 0 | 2,998 |
| Cash inflow from the issuance of bonds | 173,447 | 0 | 173,447 |
| Acquisition of treasury shares | –1,496 | 0 | –1,496 |
| Repayment of loans incl. interest rate derivatives | –119,411 | 0 | –119,411 |
| Other interest paid | –16,215 | 0 | –16,215 |
| Cash flow from financing activities | 39,323 | 0 | 39,323 |
| Net change in cash and cash equivalents | 38,306 | 0 | 38,306 |
| Cash and cash equivalents as at 1.1. | 395,088 | 0 | 395,088 |
| Changes in the value of foreign currency | 277 | 0 | 277 |
| Cash and cash equivalents as at 31.3 | 433,671 | 0 | 433,671 |
| € 1,000 | Classification | Classification | Book value | Book value |
|---|---|---|---|---|
| IAS 39 1) | IFRS 9 2) | according to IAS 39 | according to IFRS 9 | |
| Cash and cash equivalents with | ||||
| drawing restrictions | L&R | AC | 10,066 | 10,031 |
| Derivative financial instruments | HFT | FVTPL | 293 | 293 |
| Primary financial instruments | L&R | AC | 18,336 | 18,336 |
| Other investments | AFS | FVTPL | 56,875 | 56,875 |
| Financial assets | 85,570 | 85,535 | ||
| Cash and cash equivalents with | ||||
| drawing restrictions | L&R | AC | 3,679 | 3,655 |
| Other receivables and assets | L&R | AC | 58,639 | 58,571 |
| Receivables and other assets | 62,318 | 62,226 | ||
| Securities | AFS | FVOCI | 117,668 | 117,668 |
| Cash and cash equivalents | L&R | AC | 383,512 | 383,288 |
| Total | 649,068 | 648,717 |
The following tables show the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of financial assets and financial liabilities as at 31.12.2017:
| € 1,000 | Classification IAS | Classification IFRS | Book value | Book value |
|---|---|---|---|---|
| 39 1) | 9 2) | according to IAS 39 | according to IFRS 9 | |
| Convertible bond | FLAC | AC | 184,334 | 184,334 |
| Bonds | FLAC | AC | 648,447 | 648,447 |
| Other interest-bearing liabilities | FLAC | AC | 920,308 | 916,549 |
| Interest-bearing liabilities | 1,753,089 | 1,749,330 | ||
| Derivative financial instruments | HFT | FVTPL | 23,021 | 23,021 |
| Other primary liabilities | FLAC | AC | 55,098 | 55,098 |
| Other liabilities | 78,120 | 78,120 | ||
| 1,831,209 | 1,827,450 |
1) HFT – held for trading, AFS – available for sale, L&R – loans and receivables, FLAC – financial liabilities at amortised cost 2) FVTPL – fair value through profit orloss, FVOCI – fair value through other other comprehensive income, AC – amortised cost
CA Immo Group currently evaluates the effects of the new standard IFRS 16 (effective date 1.1.2019) in a project in order to assess the necessary adjustments for accounting as well as processes and systems.
The new standard defines a lease as a contract that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To be classified as lease, the contract needs to fulfill the following criteria:
Under IFRS 16, lessors classify all leases in the same manner as under IAS 17, distinguishing between two types of leases: finance and operating. Lessees, however, do not need to separate between the types of leases but need to recognize an asset as a "right of use" for all lease contracts upon lease commencement and need to book a corresponding leasing liability. Leases of low-value assets and short-term leases are excepted.
The changes of IFRS 16 on the operating leases of CA Immo Group will have no material impact on the financial statements of CA Immo Group, since these mainly concern leases for furniture and office equipment and immaterial rental agreements in Germany.
The application of IFRS 16 may lead to the recognition of a right of use and a liability in those cases where CA Immo Group is lessee and not owner of a land plot. From the current perspective, the effect on the financial statements of the CA Immo Group is not material.
In the first quarter of 2018 the closing of the sale of the Tower 185 Betriebs GmbH as well as the closing of the sale of a subsidiary with a property in Austria took place.
The financial assets (long term assets) consist of the following items:
| € 1,000 | 31.3.2018 | 31.12.2017 |
|---|---|---|
| restated | ||
| Loans to joint ventures | 2,982 | 3,061 |
| Loans to associated companies | 13,121 | 15,176 |
| Other investments | 57,515 | 56,875 |
| Other financial assets | 9,954 | 11,354 |
| Financial assets | 83,572 | 86,466 |
As at 31.3.2018, one plot in Germany as well as an investment in a joint venture in Bulgaria (segment Eastern Europe other regions) amounting to € 11,000 K were reclassified to assets held for sale and relating to disposal groups. A sale within one year from the date of reclassification was regarded as highly probable.
As at 31.3.2018, CA Immo Group held cash and cash equivalents amounting to € 573,098 K, cash and cash equivalents contain bank balances of € 14,664 K (31.12.2017: € 16,140 K) to which CA Immo Group only has restricted access for a period of at most three months and act as collateral for ongoing loan repayments and investments in ongoing development projects.
These balances serve the purpose of securing current loan repayments (principal and interest), current investments in projects under development and cash deposits as guarantees. In addition, cash and cash equivalents subject to drawing restrictions from 3 up to 12 months are presented in caption 'receivables and other assets'. Restricted cash with a longer lock-up period (over 12 months) is presented under 'financial assets'.
| € 1,000 | 31.3.2018 | 31.12.2017 |
|---|---|---|
| restated | ||
| Maturity > 1 year | 8,204 | 10,031 |
| Maturity from 3 to 12 months | 6,673 | 3,655 |
| Cash at banks with drawing restrictions | 14,877 | 13,686 |
The result from revaluation in the first quarter of 2018 results from revaluation gain of € 1,866 K (mainly from segment Germany) and revaluation loss of € -2,459 K, which mainly results from the segment Eastern Europe core region.
The result from derivatives comprises the following:
| € 1,000 | 1st Quarter 2018 | 1st Quarter 2017 |
|---|---|---|
| Valuation interest rate derivative transactions | 1,572 | 1,007 |
| Reclassification of valuation results recognised in equity | –367 | 0 |
| Valuation derivative convertible bond | –10,497 | 0 |
| Result from derivatives | –9,292 | 1,007 |
The result from the measurement of interest rate derivatives is attributable to the change in fair values of the interest rate swaps for which no cash flow hedge relationship exists or, in the case of "reclassification", no longer exists. The reclassifications result from early repayment of the borrowings.
Tax expenses comprise the following:
| € 1,000 | 1st Quarter 2018 | 1st Quarter 2017 |
|---|---|---|
| restated | ||
| Current income tax (current year) | –26,953 | –2,072 |
| Current income tax (previous years) | –2,065 | –479 |
| Current income tax | –29,018 | –2,551 |
| Change in deferred taxes | 19,382 | –4,977 |
| Tax benefit on valuation of assets available for sale in equity | –104 | 180 |
| Income tax expense | –9,740 | –7,348 |
| Effective tax rate (total) | 25.2% | 24.1% |
Current income tax (current year) mainly arises in the segment Germany (€ –24,159 K). The change in income tax (previous years) is mainly explained by provisions for findings during tax audits in Germany. In the first quarter of 2018 the change in deferred taxes results in amount of € 19,361 K from the segment Germany.
| 1st Quarter 2018 | 1st Quarter 2017 | ||
|---|---|---|---|
| restated | |||
| Weighted average number of shares outstanding | pcs. | 93,128,120 | 93,375,300 |
| Consolidated net income | € 1,000 | 28,841 | 23,159 |
| basic earnings per share | € | 0.31 | 0.25 |
| 1st Quarter 2018 | 1st Quarter 2017 | ||
|---|---|---|---|
| restated | |||
| Weighted average number of shares outstanding | pcs. | 93,128,120 | 93,375,300 |
| Dilution effect: | |||
| Convertible bond | pcs. | 6,542,704 | 0 |
| Weighted average number of shares | pcs. | 99,670,824 | 93,375,300 |
| Consolidated net income attributable to the owners of the | |||
| parent | € 1,000 | 28,841 | 23,159 |
| Dilution effect: | |||
| Effective interest on convertible bond | € 1,000 | 1,152 | 0 |
| less taxes | € 1,000 | –288 | 0 |
| Consolidated net income attributable to the owners of the | |||
| parent adjusted by dilution effect | € 1,000 | 29,705 | 23,159 |
| Diluted earnings per share | € | 0.30 | 0.25 |
At the end of November 2016, another share buyback programme was launched for up to 1,000,000 shares (approx. 1% of the company's current capital stock) with an upper limit of € 17.50 per share, which was raised to € 24.20 per share end of August 2017. Additionally, the price has to comply with the authorizing resolution of the Annual General Meeting, meaning that the lowest amount payable on repurchase is not to be less than 30% and not to exceed 10% of the average unweighted price at the close of the market on the ten trading days preceding the repurchase. As in previous instances, the repurchase will be undertaken to support the purposes permitted by resolution of the Ordinary General Meeting and will end on 2.11.2018 at the latest. By the balance sheet date, further 197,983 shares (ISIN AT0000641352) had been acquired through the programme at a weighted equivalent value per share of approximately € 23.55.
As at 31.3.2018, CA Immobilien Anlagen AG held 5,780,037 treasury shares in total; given the total number of voting shares issued (98,808,336), this is equivalent to around 5.8% of the voting stock.
| Category | Book value | Fair value | Book value | Fair value |
|---|---|---|---|---|
| € 1,000 | 31.3.2018 | 31.3.2018 | 31.12.2017 | 31.12.2017 |
| restated | ||||
| Cash at banks with drawing restrictions | 8,204 | 8,231 | 10,031 | 10,066 |
| Derivative financial instruments | 651 | 651 | 293 | 293 |
| Primary financial instruments | 74,717 | 76,142 | ||
| Financial assets | 83,572 | 86,466 | ||
| Cash at banks with drawing restrictions | 6,673 | 6,703 | 3,655 | 3,679 |
| Other receivables and other financial assets | 83,039 | 67,748 | ||
| Non financial assets | 19,000 | 19,180 | ||
| Receivables and other assets | 108,712 | 90,583 | ||
| Securities | 115,859 | 115,859 | 117,668 | 117,668 |
| Cash and cash equivalents | 573,098 | 383,288 | ||
| 881,242 | 678,005 |
The fair value of the other receivables and financial assets as well as the primary financial instruments essentially equals the book value due to short-term maturities. The book values of the other investments that are included in the primary financial instruments correspond to their fair values. Financial assets are partially mortgaged as security for financial liabilities.
| Category | Book value | Fair value | Book value | Fair value |
|---|---|---|---|---|
| € 1,000 | 31.3.2018 | 31.3.2018 | 31.12.2017 | 31.12.2017 |
| restated | ||||
| Convertible bond | 185,486 | 188,492 | 184,334 | 186,330 |
| Bonds | 640,103 | 676,821 | 648,447 | 687,811 |
| Other interest-bearing liabilities | 930,101 | 930,913 | 916,549 | 921,656 |
| Interest-bearing liabilities | 1,755,689 | 1,749,330 | ||
| Derivative financial instruments | 32,305 | 32,305 | 23,021 | 23,021 |
| Other primary liabilities | 203,119 | 73,072 | ||
| Total other liabilities | 235,424 | 96,093 | ||
| 1,991,113 | 1,845,423 |
The stock exchange price of the convertible bond amounts to € 218,923 K. The fair value of the embedded derivative of the convertible bond amounts to € 30,431 K. The debt component of the convertible bond and the embedded derivative of the convertible bond are separately reported.
The fair value of other primary liabilities essentially equals the book value due to daily and/or short-term maturities.
| 31.3.2018 | 31.12.2017 | |||||
|---|---|---|---|---|---|---|
| € 1,000 | Nominal value | Fair value | Book value | Nominal value | Fair value | Book value |
| Interest rate swaps - assets | 138,389 | 651 | 651 | 92,343 | 293 | 293 |
| Interest rate swaps - liabilities | 316,382 | –1,873 | –1,874 | 363,645 | –3,088 | –3,088 |
| Total interest rate swaps | 454,771 | –1,222 | –1,222 | 455,987 | –2,795 | –2,795 |
| Derivative convertible bond | 0 | –30,431 | –30,431 | 0 | –19,934 | –19,934 |
| Total derivatives | 454,771 | –31,653 | –31,653 | 455,987 | –22,729 | –22,729 |
| - thereof stand alone (fair value derivatives) | ||||||
| - assets | 138,389 | 651 | 651 | 92,343 | 293 | 293 |
| - thereof stand alone (fair value derivatives) | ||||||
| - liabilities | 316,382 | –32,304 | –32,304 | 363,645 | –23,021 | –23,021 |
The derivative of the convertible bond results from the repayment option of the convertible bond into shares of CA Immo AG and is reported at fair value.
| € 1,000 | Nominal value | Fair value | 31.3.2018 Book value |
Nominal value | Fair value | 31.12.2017 Book value |
|---|---|---|---|---|---|---|
| - fair value derivatives (HFT) - assets |
138,389 | 651 | 651 | 92,343 | 293 | 293 |
| - fair value derivatives (HFT) - liabilities |
316,382 | –1,873 | –1,873 | 363,645 | –3,088 | –3,088 |
| Interest rate swaps | 454,771 | –1,222 | –1,222 | 455,987 | –2,795 | –2,795 |
| Nominal value | Start | End | Fixed | Reference | Fair value | |
|---|---|---|---|---|---|---|
| in € 1,000 | interest rate | interest rate | in € 1,000 | |||
| Interest rate swaps | as at | |||||
| 31.3.2018 | 31.3.2018 | |||||
| EUR - stand alone - assets | 138,389 | 12/2016 | 6/2027 | 0.29%–0.70% | 3M-Euribor | 651 |
| EUR - stand alone - liabilities | 316,382 | 7/2016 | 12/2027 | –0.18%–0.94% | 3M-Euribor | –1,873 |
| Total interest swaps = variable in fixed | 454,771 | –1,222 |
| Nominal value | Start | End | Fixed | Reference | Fair value | |
|---|---|---|---|---|---|---|
| in € 1,000 | interest rate | interest rate | in € 1,000 | |||
| Interest rate swaps | as at | |||||
| 31.12.2017 | 31.12.2017 | |||||
| EUR - stand alone - assets | 92,343 | 12/2016 | 6/2027 | 0.29%–0.66% | 3M-Euribor | 293 |
| EUR - stand alone - liabilities | 363,645 | 7/2016 | 12/2027 | –0.18%–0.94% | 3M-Euribor | –3,088 |
| Total interest swaps = variable in fixed | 455,987 | –2,795 |
| € 1,000 | 2018 | 2017 |
|---|---|---|
| As at 1.1. | –842 | –3,201 |
| Change in valuation of cash flow hedges | 0 | 936 |
| Reclassification cash flow hedges | 367 | 0 |
| Income tax cash flow hedges | –88 | –269 |
| As at 31.3. | –563 | –2,533 |
| thereof: attributable to the owners of the parent | –563 | –2,533 |
Financial instruments measured at fair value relate to derivative financial instruments as well as securities and other investments. As in prior year, the valuation of derivative financial instruments is based on inputs which can be observed either directly or indirectly (e.g. interest rate curves or foreign exchange forward rates). This represents level 2 of the fair value hierarchy in accordance with IFRS 13.81. The valuation of securities is based on stock market prices and therefore represents level 1 of the fair value hierarchy. The fair value of other not listed investments is internally assessed and so represents level 3 of the fair value hierarchy. There were no reclassifications between the levels.
Net debt and gearing ratio:
| € 1,000 | 31.03.2018 | 31.12.2017 |
|---|---|---|
| restated | ||
| Interest-bearing liabilities | ||
| Long-term interest-bearing liabilities | 1,689,574 | 1,680,410 |
| Short-term interest-bearing liabilities | 66,115 | 68,920 |
| Interest-bearing assets | ||
| Cash and cash equivalents | –573,098 | –383,288 |
| Cash at banks with drawing restrictions | –947 | –939 |
| Net debt | 1,181,644 | 1,365,102 |
| Shareholders' equity | 2,442,017 | 2,419,270 |
| Gearing ratio (Net debt/equity) | 48.4% | 56.4% |
For the calculation of the gearing ratio the book value of cash and cash equivalents is taken into consideration for practical easement. Cash at banks with drawing restrictions were considered in the calculation of net debt, in case they are used to secure the repayments of financial liabilities.
| € 1,000 | 31.3.2018 | 31.12.2017 |
|---|---|---|
| restated | ||
| Investments in joint ventures | 194,121 | 214,950 |
| Investments in joint ventures held for sale | 5,900 | 2,276 |
| Loans | 2,982 | 3,061 |
| Receivables | 16,366 | 8,582 |
| Liabilities | 127,796 | 9,409 |
| Provisions | 12,806 | 12,420 |
| 1st Quarter 2018 | 1st Quarter 2017 | |
|---|---|---|
| restated | ||
| Joint ventures result | 17,048 | 4,382 |
| Result from sale of joint ventures | –66 | 828 |
| Result from joint ventures | 16,982 | 5,211 |
| Other income | 1,538 | 572 |
| Other expenses | –240 | –265 |
| Interest income | 73 | 57 |
| Interest expense | –4 | 0 |
The loans to and a large portion of the receivables from joint ventures existing at the reporting date, serve to finance properties. The interest rates are at arm's length. No guarantees or other forms of securities exist in connection with these loans.
| € 1,000 | 31.3.2018 | 31.12.2017 |
|---|---|---|
| Loans | 13,121 | 15,176 |
| 1st Quarter 2018 | 1st Quarter 2017 | |
| Expenses due to associated companies | –207 | 0 |
| Result from associated companies | –207 | 0 |
| Interest income from associated companies | 351 | 0 |
The loans to associated companies existing as of the reporting date serve to finance properties. All loans have interest rates at arm's length. No guarantees or other forms of security exist in connection with these loans. In the book value of loans to associated companies, a cumulated impairment amounting to € 7,432 K (31.12.2017: € 7,226 K) is included.
Since 2.8.2016, IMMOFINANZ Group holds through its 100% owned subsidiary GENA ELF Immobilienholding GmbH 25,690,163 bearer shares as well as four registered shares of CA Immo AG representing with approximately 26% of the capital stock the largest single shareholder of the company.
Between IMMOFINANZ Group and CA Immo Group there is a reciprocal shareholding. The CA Immo Group holds 54,805,566 bearer shares of IMMOFINANZ AG (equivalent to approximately 4.9% of the capital stock of IMMOFINANZ AG).
In 2016 CA Immo AG and IMMOFINANZ AG had agreed to enter into a constructive dialogue concerning a potential merger of the two companies. On 28.2.2018, IMMOFINANZ AG announced to continue the suspension of detailed discussions over a possible merger between both companies for the time being and to also evaluate other strategic options, among others, the possible sale of its CA Immo AG investment. A corresponding bidding process for a package sale of its 26% investment in CA Immo AG had been started.
As at 31.3.2018, contingent liabilities of CA Immo Germany Group resulting from concluded purchase agreements for cost assumptions in connection with contaminated sites or war damage amount to € 566 K (31.12.2017: € 608 K). In addition, letters of support exist for a joint venture in Germany, amounting to € 2,000 K (31.12.2017 : € 2,000 K). As security for liabilities from loans guarantees, letters of comfort and declarations for joint liabilities were issued for two (2017: two) joint ventures in an extent of € 2,500 K (31.12.2017: € 2,500 K). Furthermore as security for warranty risks in Germany a guarantee was issued in an amount of € 15,066 K (31.12.2017: € 11,066 K).
CA Immo Group has agreed to adopt a guarantee in connection with the refunding of the project "Airport City St. Petersburg" in the extent of € 8,469 K (31.12.2017: € 8,469 K).
In connection with disposals, marketable guarantees exist between CA Immo Group and the buyer for coverage of possible warranty- and liability claim for which in the expected extent financial dispositions were made. The actual claims may exceed the expected extent.
For the purpose of recognising tax provisions, estimates have to be made. Uncertainties exist concerning the interpretation of complex tax regulations as well as calculation methods in practice and as regards the amount and timing of taxable income. Due to these uncertainties and the grade of complexity, estimates may vary from the real tax expense also in a material amount. This may include amended interpretations of tax authorities for previous periods.
CA Immo Group recognises appropriate provisions for known and probable charges arising from ongoing tax audits.
Uncertainties also relate to the retrospective application of subsequent tax changes concerning completed and law-aligned restructurings in Eastern Europe. CA Immo Group estimates the possibility of incurring actual expenses due to the subsequent change of tax law and their implications for past restructurings, as low.
Existing uncertainties are continually evaluated and may lead to adjustments of estimates.
Mortgages, pledges of rental receivables, bank accounts and share pledges as well as similar guarantees are used as market collateral for bank liabilities.
In addition, there are other financial obligations of order commitments related to building site liabilities for work carried out in the course of developing real estate in Austria in the amount of € 11,194 K (31.12.2017: € 8,789 K), in Germany in the amount of € 184,197 K (31.12.2017: € 153,549 K) and in Eastern Europe in the amount of € 19,989 K (31.12.2017: € 22,533 K). In addition as at 31.3.2018, CA Immo Group is subject to other financial commitments resulting from construction costs from urban development contracts which can be capitalised in the future with an amount of € 12,210 K (31.12.2017 restated: € 16,241 K).
The total obligation of the payments of equity in joint ventures for which no adequate provisions have been recognised amount in Austria to € 6,035 K (31.12.2017: € 6,035 K) in Germany to € 1,990 K (31.12.2017: € 1,990 K) and in Eastern Europe to € 0 K (31.12.2017: € 0 K) as per 31.3.2018. Besides the mentioned obligations of equity-payments, no further obligations to joint ventures exist.
Borrowings, for which the financial covenants have not been met as at 31.3.2018, thus enabling the lender in principle to prematurely terminate the loan agreement, have to be recognised in short-term financial liabilities irrespective of the remaining term under the contract. This classification applies notwithstanding the status of negotiations with the banks concerning the continuation or amendment of the loan agreements. As at 31.3.2018, this applied to no loan (31.12.2017: no loan).
On 18 April 2018, SOF-11 Starlight 10 EUR S.à.r.l. of Luxembourg (the 'bidder'), an indirect, wholly owned subsidiary of SOF-11 International, SCSp, part of the group of companies known as Starwood Global Opportunity Fund XI and a member of the Starwood Capital Group ('Starwood'), presented a voluntary public takeover bid in accordance with article 4ff of the Austrian Takeover Act to the shareholders of CA Immo. The takeover bid envisaged the acquisition of up to 25,690,167 bearer shares of CA Immo (ISIN AT0000641352), equivalent to as much as 26% of company shares issued to the bearer. The offer price of €27.50 per share was linked to the dividend for business year 2017, i.e. the offer price will be reduced by the amount of any dividend declared between the announcement of the takeover bid and the processing thereof. Completion of the takeover bid is subject to approval by the antitrust authorities and the condition that CA Immo shall incur no other significant adverse consequences (e.g. merger, demerger or spin-off); moreover, approval by the Management Board of CA Immo is not required for transfer of the four registered shares subject to transfer restrictions. The offer may be accepted from 18 April 2018 until 5:00pm (Vienna local time) on 30 May 2018.
The contract for the acquisition of Campus 6.1 office building in Bukarest with an area of 22,000 square meters was signed. The closing is expected end of 2018.
In the 31st ordinary shareholders' meeting of CA Immobilien Anlagen AG, held on 9.5.2018, a dividend distribution for the 2017 financial year of € 0.80 per no-par share entitled to a dividend, was resolved upon.
Vienna, 23.5.2018
The Management Board
Andreas Quint (Chief Executive Officer)
Dr. Hans Volckens (Member of the Management Board)
CA Immobilien Anlagen AG Mechelgasse 1, 1030 Vienna Phone +43 1 532 59 07–0 Fax +43 1 532 59 07–510 [email protected] www.caimmo.com
Investor Relations Free info hotline in Austria: 0800 01 01 50 Christoph Thunberger Claudia Höbart Phone +43 1 532 59 07–0 Fax +43 1 532 59 07–595 [email protected]
Corporate Communications Susanne Steinböck Cornelia Kellner Phone +43 1 532 59 07–0 Fax +43 1 532 59 07–595 [email protected]
Listed on Vienna Stock Exchange ISIN: AT0000641352 Reuters: CAIV.VI Bloomberg: CAI: AV
This Interim Report contains statements and forecasts which refer to the future development of CA Immobilien Anlagen AG and their companies. The forecasts represent assessments and targets which the Company has formulated on the basis of any and all information available to the Company at present. Should the assumptions on which the forecasts have been based fail to occur, the targets not be met, then the actual results may deviate from the results currently anticipated. This Interim Report does not constitute an invitation to buy or sell the shares of CA Immobilien Anlagen AG.
We ask for your understanding that gender-conscious notation in the texts of this Interim Report largely had to be abandoned for the sake of undisturbed readability of complex economic matters.
Published by: CA Immobilien Anlagen AG, 1030 Vienna, Mechelgasse 1 Text: Susanne Steinböck, Christoph Thurnberger, Claudia Höbart Layout: Cornelia Kellner, Photographs: CA Immo, Production: 08/16; this report is set inhouse with FIRE.sys
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