CPI Europe AG — Earnings Release 2013

Sep 24, 2013

News Details

Corporate | 24 September 2013 18:08

IMMOFINANZ Group increases results of operations by nearly nine per cent in the first quarter of 2013/14

IMMOFINANZ AG / Key word(s): Real Estate/Quarter Results

24.09.2013 / 18:08

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KEY FIGURES (in MEUR): 1 May 2013 - 31 July 2013 // Δ in % // 1 May 2012 -
31 July 2012

Rental income: 161.4 // -0.5% // 162.3
Results of asset management: 136.3 // 0.5% // 135.6
Results of property sales: 5.7 // 21.4% // 4.7
Results of property development: 8.1 // n.a. // -1.0
Expenses not directly attributable: -21.1 // -0.9% // -21.2
Results of operations: 134.0 // 8.9% // 123.0
Operating profit (EBIT): 199.8 // 4.7% // 190.8
Net profit: 117.7 // >100% // 9.6
Gross cash flow: 104.0 // -3.4% // 107.7
Sustainable cash flow (FFO): 65.4 // -16.4% // 78.2

IMMOFINANZ Group continued its positive business development by generating
sound operating results in the first quarter of the 2013/14 financial year.
Rental income declined slightly to EUR 161.4 million for the reporting
period (Q1 2012/13: EUR 162.3 million) as a result of properties sold in
the previous year. The results of property sales rose from EUR 4.7 million
to EUR 5.7 million (+21.4%), and the results of property development
amounted to EUR 8.1 million (Q1 2012/13: EUR -1.0 million). The results of
operations increased 8.9% to EUR 134.0 million (Q1 2012/13: EUR 123.0
million). Net profit totalled EUR 117.7 million for the reporting period
(Q1 2012/13: EUR 9.6 million). This strong increase was based on the sound
development of the operating business as well as positive effects from
foreign currency translation and the valuation of derivatives.

'The first quarter of our 2013/14 financial year failed to bring any
positive economic impulses, but we still made sound progress with the
optimisation of our portfolio. All three operating areas - asset
management, trade and development - contributed to the increase in results
from operations, the occupancy rate in our properties improved slightly,
and our sales programme was successfully continued', explained Eduard
Zehetner, CEO of IMMOFINANZ Group. 'The large number of property sales in
recent months and the accompanying repayment of financing led to an
increase in the equity ratio from 42.3% on 30 April 2013 to 43.6%.'

OUTLOOK:

The current growth and optimisation course will be continued during and
after the current financial year. Activities will also focus on the
reduction of operating costs and cash flow generation. BUWOG will be
strengthened through further property acquisitions on the German market in
preparation for a possible initial public offering (IPO) or spin-off during
the 2014 calendar year. Furthermore, the positioning of IMMOFINANZ Group as
one of the leading real estate companies in Europe will be improved with
specifically designed development activities in the commercial property
segment of Central and Eastern Europe.

'Our goals for separating BUWOG, the West European residential property
portfolio in Austria and Germany, from our commercial real estate
portfolio, are to allow for a market valuation of BUWOG's residential
property portfolio that is significantly higher than its current standing
as part of IMMOFINANZ Group's mixed portfolio and to improve IMMOFINANZ
Group's key indicators through a concentration on higher yield commercial
properties in Western and Eastern Europe', commented Zehetner.

DEVELOPMENTS IN DETAIL:

Results of asset management
Rental income of EUR 161.4 million was generated in the first quarter of
2013/14. This represents a marginal decline of 0.5% below the comparable
prior year level (EUR 162.3 million) and resulted from the sale of
properties during the past financial year.

Results of asset management improved slightly by 0.5% to EUR 136.3 million
due to a year-on-year decline in real estate expenses (Q1 2012/13: EUR
135.6 million).

Results of property sales
Property sales, before foreign exchange effects, generated results of EUR
5.7 million for the reporting period (Q1 2012/13: EUR 4.7 million). As part
of the portfolio optimisation, the Egerkingen logistics property in
Switzerland and a number of smaller properties in Austria were sold during
the first quarter. The largest contribution to earnings was made by
property sales in the BUWOG segment: in Upper Austria, 48 properties with
1,135 apartments and nearly 84,000 sqm of total space - representing most
of the portfolio in this province - were sold. After the sale of the
Vorarlberg portfolio and parts of the portfolio in Styria and Carinthia,
this represents a further step by BUWOG in shifting the focus of its
business to the core markets. The greater Vienna area represents the focal
point for Austria, while the northern provinces and the capital city Berlin
are the main focus of activities in Germany.

Results of property development
The sale of inventories and the valuation of active development projects
generated income of EUR 1.4 million, before foreign exchange effects,
during the reporting period (Q1 2012/13: EUR -1.6 million). Including
foreign exchange effects this figure increased to EUR 8.1 million (Q1
2012/13: EUR -1.0 million). The sale of BUWOG condominium apartments also
made the largest contribution to income in this area.

Administrative expenses
Administrative expenses that are not directly attributable (overhead costs
and personnel expenses) declined slightly from EUR -21.2 million in the
first quarter of the previous year to EUR -21.1 million.

Results of operations, EBIT, EBT and net profit
Results of operations rose by 8.9% to EUR 134.0 million in the first
quarter of 2013/14 (Q1 2012/13: EUR 123.0 million). This increase reflects
improved operating development in all three income categories (asset
management, property sales and property development).

Valuation results, adjusted for foreign exchange effects, were lower than
the comparable prior year period at EUR 4.7 million for the first quarter
of 2013/14 (Q1 2012/13: EUR 12.4 million). However, EBIT rose by 4.7% to
EUR 199.8 million (Q1 2012/13: EUR 190.8 million).

Financial results were substantially better in year-on-year comparison at
EUR -51.0 million (Q1 2012/13: EUR -179.3 million). This position includes
non-cash foreign exchange accounting effects of EUR -20.0 million (Q1
2012/13: EUR -94.0 million). Other financial results of EUR 30.8 million
also include, among others, positive effects from the non-cash valuation of
derivatives that are held to hedge interest rate risk (Q1 2012/13: EUR
-31.9 million). Earnings before tax increased significantly from EUR 11.5
million in the first quarter of the prior year to EUR 148.7 million.

The sound development of the operating business and positive effects from
foreign currency translation and the valuation of derivatives led to an
improvement in net profit to EUR 117.7 million (Q1 2012/13: EUR 9.6
million).

Cash flow
Gross cash flow declined slightly in year-on-year comparison to EUR 104.0
million (Q1 2012/13: EUR 107.7 million). Sustainable cash flow *) totalled
EUR 65.4 million (Q1 2012/13: EUR 78.2 million) - due to an increase in tax
expenses as a consequence of property sales and higher financing costs. In
contrast, cash flow from operating activities rose by a sound 49.4% from
EUR 48.8 million to EUR 73.0 million, and cash flow from investing
activities improved to EUR 63.3 million (Q1 2012/13: EUR -45.6 million).
Higher repayments of borrowings led to cash flow of EUR -235.5 million from
financing activities (Q1 2012/13: EUR 227.5 million). The large number of
property sales in recent months and the accompanying repayment of financing
led to an increase in the equity ratio from 42.3% on 30 April 2013 to 43.6%
and a reduction of EUR 210.8 million in financial liabilities.

NAV per share and earnings per share
Diluted net asset value (NAV) per share equalled EUR 5.59 as of 31 July
2013, which represents an increase of 1.5% over the level on 30 April 2013
(EUR 5.51).

Based on the share price as of 20 September 2013 (EUR 3.13), the IMMOFINANZ
share traded at a discount of 44.1% to the diluted NAV per share price.

The current report on the first quarter will be available for download as
of 25 September 2013 on our website (http://www.immofinanz.com) in the
Investor Relations section under 'Financial Reports'.

*) Gross cash flow (EUR 104.0 million) + interest received (EUR 4.7
million) - interest paid (EUR -40.2 million) - cash outflows for derivative
transactions (EUR -8.8 million) + results of property sales (EUR 5.7
million)

On IMMOFINANZ Group
IMMOFINANZ Group is one of the leading listed property companies in Europe.
The company is included in the leading ATX index of the Vienna Stock
Exchange and also trades on the Warsaw Stock Exchange. Since its founding
in 1990, the company has compiled a high-quality property portfolio that
now comprises more than 1,700 investment properties with a carrying amount
of approx. EUR 10.4 billion. As a 'real estate machine' the company
concentrates on linking its three core business areas: the development of
sustainable, specially designed prime properties in premium locations, the
professional management of these properties and cycle-optimised sales.
IMMOFINANZ Group concentrates its activities in the retail, office,
logistics and residential segments of eight regional core markets: Austria,
Germany, Czech Republic, Slovakia, Hungary, Romania, Poland and Russia.
Further information under: http://www.immofinanz.com |
http://blog.immofinanz.com | http://properties.immofinanz.com

For additional information please contact:

MEDIA INQUIRIES

Bettina Schragl
Head of Corporate Communications | Press Spokesperson
IMMOFINANZ Group
T +43 (0)1 88 090 2290
M +43 (0)699 1685 7290
communications@immofinanz.com

INVESTOR RELATIONS

Stefan Schönauer
Head of Corporate Finance & Investor Relations
IMMOFINANZ Group
T +43 (0)1 88 090 2312
M +43 (0)699 1685 7312
investor@immofinanz.com

End of Corporate News

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Language: English
Company: IMMOFINANZ AG
Wienerbergstraße 11
1100 Wien
Austria
Phone: +43 (0) 1 88090 - 2291
Fax: +43 (0) 1 88090 - 8291
E-mail: investor@immofinanz.com
Internet: http://www.immofinanz.com
ISIN: AT0000809058
WKN: 911064
Listed: Freiverkehr in Berlin, München, Stuttgart; Frankfurt in
Open Market ; Wien (Amtlicher Handel / Official Market)

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