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CPI Europe AG — Earnings Release 2011
Sep 26, 2011
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Earnings Release
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Corporate | 26 September 2011 08:17
IMMOFINANZ AG:
IMMOFINANZ AG / Key word(s): Quarter Results/Miscellaneous
26.09.2011 / 08:17
Corporate News Vienna, 26 September 2011
IMMOFINANZ Group with increasing rental income in the first quarter of 2011/12
| KEY DATA (in MEUR) | 31/07/2011 | Δ in % | 31/07/2010 | ||
| Rental income | 142.1 | +2.5 | 138.6 | ||
| Income from asset management | 112.9 | -3.7 | 117.2 | ||
| Income from property sales | 1.9 | -71.0 | 6.7 | ||
| Income from property development | 10.5 | +53.8 | 6.8 | ||
| Results of operations | 99.2 | -2.9 | 102.2 | ||
| Net profit Net profit excl. foreign exchange effects Operating cash flow (FFO) |
28.2 78.1 154.0 |
-52.3 +17.0 +31.9 |
59.0 66.7 116.7 |
The first quarter of the 2011/12 financial year for IMMOFINANZ Group was characterised by volatile financial markets, fluctuating foreign currencies and unusually high negative foreign exchange effects. This was reflected in net profit, which amounted to EUR 28.2 million for the reporting period. However, an adjustment for foreign exchange effects shows that the company would have been able to generate net profit of EUR 78.1 million – among others, through a further increase in rental income (+2.5%), higher income from property development (+53.8%) and a 13.6% reduction in administrative costs.
'We are still in the optimisation phase. That is illustrated by higher maintenance and renovation costs for our properties, by rising rental income and by declining administrative costs. At the same time, our sale programme has gone into operation: during the first three months of the current financial year, we sold assets with a value of EUR 317.1 million. These transactions will give us the necessary flexibility to realise further development projects and acquire attractive properties – like the Park Postepu , a top office property in Warsaw that we purchased last week', commented Eduard Zehetner, Chief Executive Officer of IMMOFINANZ Group, on developments in the company during the first quarter.
Income from asset management
IMMOFINANZ Group generated rental income of EUR 142.1 million in the first quarter of 2011/12, which represents an increase of 2.5% over the comparable prior year period (EUR 138.6 million). This positive development is attributable chiefly to the retail segment, where rental income rose by 15.1% or EUR 6.6 million over the first quarter of the previous year. The residential and logistics segments also reported a sound improvement in rental income, with an increase of 2.3% and 0.2%, respectively. Rental income in the office segment fell by 12.2%, primarily due to the sale of properties. IMMOFINANZ Group sold five office properties in Austria during the first three months of the new financial year.
Revenues for the first quarter also increased: by 2.4% from EUR 183.7 million to EUR 188.2 million. The EUR 9.5 million or 33.5% year-on-year rise in property expenses reflects the company's optimisation course and the related increase in maintenance and renovation activities. Income from asset management therefore declined slightly to EUR 112.9 million (2010/11: EUR 117.2 million). 'We expect these optimisation measures will lead to a significant increase in occupancy rates and rental income over the medium-term', added Zehetner on these necessary investments. 'Above all in the residential segment, these types of measures can create additional added value for future sales.'
Income from property sales
Property sales generated income of EUR 1.9 million for IMMOFINANZ Group during the reporting period (2010/11: EUR 6.7 million). These transactions were concentrated mainly on properties in Austria, Germany and Switzerland. Income of EUR 32.1 million from properties sold during the first quarter of the current financial year was reported during the fourth quarter of 2010/11 in accordance with International Financial Reporting Standards (fair value measurement, IAS 40). These property sales included, among others, the 30% stake in the MyPlace SelfStorage logistics property as well as the Office Campus Gasometer in Vienna, the Cirrus development project in Warsaw and various fund investments. The sale transactions reflect the steady implementation of the Group's strategy to sell non-controlling interests and joint venture investments or to develop them into majority holdings.
Income from property development
The sale of inventories and the valuation of active development projects brought IMMOFINANZ Group income from property development of EUR 11.9 million, which represents an increase of more than 100% over the previous year (EUR 5.5 million).
Administrative expenses
The liquidation of numerous companies and the subsequent integration of the related asset management activities into existing structures led to a further reduction in overhead costs during the first quarter of 2011/12. Administrative expenses (overhead costs and personnel expenses) were cut 13.6% from EUR 37.8 million to EUR 32.7 million.
Results of operations, EBIT, EBT, net profit and cash flow
Results of operations totalled EUR 99.2 million for the reporting period, which is slightly lower than the first quarter of the previous year (-2.9%). This development resulted primarily from the EUR 9.5 million increase in real estate expenses.
Based on positive valuation results of EUR 44.5 million (2010/11: EUR 65.0 million), IMMOFINANZ Group recorded EBIT of EUR 143.7 million for the first quarter (2010/11: EUR 167.2 million). The decline resulted chiefly from the absence of positive foreign exchange effects, which totalled EUR 52.9 million in the previous year and only EUR 0.2 million for the reporting period. Moreover, the first quarter of 2011/12 includes a negative non-cash effect of EUR 7.8 million from the purchase of the remaining 25% stake in the GoodZone shopping center development project in Moscow. This effect reflects the application of IFRS 3 to a successive share purchase, with the revaluation of the investment through profit or loss after control over a company has been obtained.
Financial results were clearly negative at EUR -111.7 million (2010/11: EUR -101.6 million). However, this amount also includes negative non-cash accounting effects of EUR 40.9 million as well as negative effects from the valuation of derivatives. The negative effects from the valuation of derivatives amounted to EUR 14.1 million and resulted from a decline in SWAP rates as of 31 July 2011.
Earnings before tax (EBT) fell from EUR 65.5 million to EUR 32.0 million, above all due to the high non-cash foreign exchange effects. Net profit for the period amounted to EUR 28.2 million. Excluding the non-cash foreign exchange effects, net profit would have equalled EUR 78.1 million for an increase of 17% over the first quarter of the previous year.
Operating cash flow (FFO, funds from operations), which comprises cash flow from operating activities and cash flow from investing activities, rose by more than 31.9% to EUR 154,0 million (2010/11: EUR 116.7 million). This improvement resulted primarily from the sound development of earnings and the successful sale programme. During the first quarter of the current financial year, IMMOFINANZ Group sold assets totalling EUR 317.1 million. In accordance with the Group's strategy, cash and cash equivalents, including short-term deposits, were increased by EUR 42.6 million and interest-bearing liabilities were reduced by EUR 55.6 million during the reporting period.
NAV per share and earnings per share
The diluted net asset value (NAV) per share rose by 12.4% from EUR 4.82 on 31 July 2010 to EUR 5.42 as of 31 July 2011. Based on the share price as of 20 September 2011 (EUR 2.306), the IMMOFINANZ share is trading at a discount of 57.4% to the NAV per share. Diluted earnings for the first quarter of the 2011/12 financial year equalled EUR 0.04.
The full report on the first quarter of 2011/12 is published on the Group's homepage under www.immofinanz.com .
On IMMOFINANZ Group
IMMOFINANZ Group is one of the five largest listed property companies in Europe and is included in the leading ATX index of the Vienna Stock Exchange. Since its founding in 1990, the company has compiled a high-quality property portfolio that now comprises more than 1,600 standing investments with a carrying amount of approx. EUR 8.4 billion. The core business of IMMOFINANZ Group covers the acquisition and management of standing investments, the realisation of development projects and the sale of properties. The business activities of IMMOFINANZ Group are concentrated in the retail, office, logistics and residential segments of eight regional core markets: Austria, Germany, Czech Republic, Slovakia, Hungary, Romania, Poland and Russia.
For additional information please contact:
INVESTOR RELATIONS
Stefan Schönauer
Head of Corporate Finance & Investor Relations
IMMOFINANZ AG
M +43 (0)699 1685 7312
Simone Korbelius
Investor Relations
IMMOFINANZ AG
T +43 (0)5 7111 2291
A-1100 Wien, Wienerbergstraße 11
MEDIA INQUIRIES
Sandra Bauer
Head of Corporate Communications | Pressesprecherin
T +43 (0)5 7111 2292
M +43 (0)699 1685 7292
A-1100 Wien, Wienerbergstraße 11
End of Corporate News
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| Language: | English |
| Company: | IMMOFINANZ AG |
| Wienerbergstraße 11 | |
| 1100 Wien | |
| Austria | |
| Phone: | +43 (0) 5 7111 – 2291 |
| Fax: | +43 (0) 5 7111 – 8291 |
| E-mail: | [email protected] |
| Internet: | http://www.immofinanz.com |
| ISIN: | AT0000809058 |
| WKN: | 911064 |
| Listed: | Freiverkehr in Berlin, München, Stuttgart; Open Market in Frankfurt; Wien (Amtlicher Handel / Official Market) |
| End of News | DGAP News-Service |
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| 140271 26.09.2011 |