CPI Europe AG — Earnings Release 2015

Dec 16, 2015

News Details

Corporate | 16 December 2015 21:34

IMMOFINANZ: Increase in net profit for the first half-year, results of operations negatively influenced by rent reductions in Moscow and non-recurring effects from settlements with investors

DGAP-News: IMMOFINANZ AG / Key word(s): Real Estate/Miscellaneous

2015-12-16 / 21:34
The issuer is solely responsible for the content of this announcement.

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KEY FIGURES (in MEUR)* // 1 May 2015 - 31 Oct. 2015 // Δ in % // 1 May 2014
- 31 Oct. 2014

Rental income // 160.3 // -24.8% // 213.2
Results of asset management // 102.1 // -38.8% // 166.8
Results of property sales // 6.1 // -10.9% // 6.9
Results of property development // -5.6 // n.a. // 5.5
Other operating expenses // -53.5// 95.2% // -27.4
Results of operations // 68.3 // -56.0% // 155.3
Revaluation of investment properties // 359.5 // >100% // 18.4
Financial results // -203.1 // 32.2% // -153.5
Net profit // 132.2 // >100% // 3.4
Cashflow from operating activities // 83.6 // 1.2% // 82.6

* Due to the sale of the logistics portfolio, the earnings contribution
from these properties is now reported under results of discontinued
operations. The comparable prior year data were adjusted accordingly.

IMMOFINANZ generated net profit of EUR 132.2 million in the first half of
the 2015/16 financial year (H1 2014/15: EUR 3.4 million). This increase was
supported primarily by positive effects from property valuation. The
results of operations totalled EUR 68.3 million (H1 2014/15: EUR 155.3
million) and resulted from a decline in rental income to EUR 160.3 million
(H1 2014/15: EUR 213.2 million) that was caused by temporary rent
reductions in Moscow and the planned sale of properties. Another
contributing factor was the increase in other operating expenses to EUR
-53.5 million (H1 2014/15: EUR -27.4 million) as a non-recurring effect for
the settlement of legal proceedings by investors.

"IMMOFINANZ's results of operations for the first half of 2015/16 were
influenced, above all, by two factors: on the one hand, we have the
continuing tense political and economic situation in Russia, which has led
us to grant temporary rent reductions to the tenants in our Moscow shopping
centers. We are reviewing and renegotiating these agreements on a regular
basis, but the situation remains challenging and estimates for the future
course of the Russian economy are still connected with considerable
uncertainty. On the other hand, we addressed the difficult and prolonged
issue of investors' lawsuits in recent months and achieved an out-of-court
settlement. That creates legal security and puts an end to the uncertainty
surrounding the length of the court proceedings and the related costs",
explained Oliver Schumy, CEO of IMMOFINANZ. Most of the expenses connected
with the termination of the legal proceedings initiated by investors are
covered by provisions in the consolidated financial statements of
IMMOFINANZ AG. The difference of approx. EUR 28.1 million was recognised as
an expense in the financial statements for the first half of the 2015/16
financial year.

Adjusted rental income fell by 5.9% from the first quarter of 2015/16 to
EUR 70.1 million in the second quarter, but was generally stable excluding
Moscow. The occupancy rate in the standing investment portfolio was 82.8%.
"Our focus for the management of the standing investments is unchanged - we
want to improve our operating performance and raise the occupancy rate",
emphasised CEO Schumy. "In the office segment, our investments are designed
to further increase the quality of our offering in order to meet the rising
demands in our East European core markets. In the retail sector, we are
expanding our market position through the roll-out of our successful
STOP.SHOP. and VIVO! brands."

With the sale of the entire logistics portfolio, IMMOFINANZ has also taken
an important step to further strengthen its positioning as a leading
commercial property company for the office and retail sectors. "The
liquidity released by the sale will be invested in the expansion of our
portfolio in Germany, where we recently announced another milestone project
with the development of the new corporate headquarters for trivago in the
Düsseldorf Medienhafen", added CEO Schumy.

Operating profit (EBIT) rose to EUR 430.8 million in the first half of
2015/16 (H1 2014/15: EUR 172.6 million), primarily based on positive
results from property valuation. Revaluations adjusted for foreign exchange
effects equalled EUR 24.0 million (H1 2014/15: EUR -80.7 million) and are
attributable, above all, to the settlement for the investment agreement for
the shopping center GOODZONE in Moscow and also to the sound performance of
the shopping centers in Romania. This contract gave the city rights to
approx. 30% of the space in the shopping center, which were subsequently
repurchased. In addition, foreign exchange-based revaluations totalled EUR
335.4 million in the first half-year (H1 2014/15: EUR 99.1 million). They
originated almost entirely in Russia, since the Euro is the functional
currency in all other core countries, and were based on the translation of
the Ruble property values in the local Russian companies.

This effect was reversed in part under financial results because a weaker
Ruble also leads to an increase in the foreign currency liabilities in the
Russian subsidiaries. Negative foreign currency effects amounted to EUR
-180.5 million for the first half of 2015/16, compared with EUR -103.7
million in the first six months of the previous financial year. Financial
results totalled EUR -203.1 million for the first half of 2015/16 (H1
2014/15: EUR -153.5 million).

Net profit equalled EUR 132.2 million (H1 2014/15: EUR 3.4 million) and
represents earnings per share (diluted) of EUR 0.13 (H1 2014/15: EUR 0.01).
The NAV per share equalled EUR 4.18 (30 April 2015: EUR 4.19).

Cash and cash equivalents totalled EUR 357.5 million as of 31 October 2015
(versus EUR 390.7 million as of 30 April 2015) and represent approx. EUR
0.37 per share (excluding treasury shares).

The report by IMMOFINANZ AG on the first half of 2015/16 as of 31 October
2015 will be available on the company's website under
http://www.immofinanz.com/en/investor-relations/financial-reports starting
on 17 December 2015.

On IMMOFINANZ
IMMOFINANZ is a commercial real estate company whose activities are focused
on the retail and office segments of eight core markets in Europe: Austria,
Germany, Czech Republic, Slovakia, Hungary, Romania, Poland and Moscow. The
core business includes the management and development of properties. The
company has a real estate portfolio of approx. EUR 6.2 billion that covers
more than 390 properties. IMMOFINANZ is listed on the stock exchanges in
Vienna (leading ATX index) and Warsaw. Further information under:
http://www.immofinanz.com

For additional information contact:
Bettina Schragl
Head of Corporate Communications and Investor Relations
IMMOFINANZ
T +43 (0)1 88 090 2290
M +43 (0)699 1685 7290
communications@immofinanz.com
investor@immofinanz.com

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2015-12-16 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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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: Regulated Unofficial Market in Berlin, Munich, Stuttgart;
Open Market in Frankfurt ; Wien (Amtlicher Handel /
Official Market)

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