CPI Europe AG — Earnings Release 2015

Sep 16, 2015

News Details

Corporate | 16 September 2015 19:08

IMMOFINANZ: increase in net profit for Q1 2015/16, results of operations negatively affected by lower rental income in Moscow – successful placement of BUWOG share package

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

2015-09-16 / 19:08

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KEY FIGURES (in MEUR) // 1 May 2015 - 31 July 2015 // Δ in % // 1 May 2014
- 31 July 2014

Rental income // 91.4 // -22.3% // 117.6
Results of asset management // 59.6 // -37.5% // 95.4
Results of property sales // 1.0 // -86.3% // 7.3
Results of property development // -2.0 // -3.8% // -2.0
Other operating expenses // -13.5 // 2.3% // -13.2
Results of operations // 53.6 // -41.0% // 90.9
Other revaluation results // 243.0 // n.a. // -79.0
Operating profit (EBIT) // 296.6 // >100% // 11.9
Net profit // 126.2 // n.a. // -6.0
Gross Cashflow // 68.8 // -14.9% // 80.9

IMMOFINANZ generated net profit of EUR 126.2 million in the first quarter
of the 2015/16 financial year (Q1 2014/15: EUR -6.0 million), whereby the
increase was supported primarily by positive effects from property
revaluation. Results of operations totalled EUR 53.6 million (Q1 2014/15:
EUR 90.9 million) and resulted, above all, from a 22.3% decline in rental
income to EUR 91.4 million (Q1 2014/15: EUR 117.6 million) that was caused
by temporary rental reductions in Russia and the planned sale of
properties.

"The development of business in the first quarter of 2015/16 reflected the
year-on-year deterioration in the Russian economy in the form of rent
reductions offered to our tenants", commented Oliver Schumy, CEO of
IMMOFINANZ. The company remains in close contact with the tenants in its
Moscow shopping centers and continues to help with temporary reductions to
offset the foreign exchange-based increase in rents. "These measures are
intended to hold the occupancy and visitor frequency in our shopping
centers at the highest possible level. We are reviewing these steps on a
quarterly basis and will continue them as long as necessary", explained the
CEO.

Like-for-like rental income, excluding Moscow, remained generally stable
compared with the fourth quarter of 2014/15. "We concluded numerous leases
for office space with new major tenants in all of our core markets during
the reporting period and see these successes as confirmation of our strong
customer and market orientation. In the management of our standing
investments, we want to further improve our operating performance, increase
occupancy and optimise our offering", added Schumy.

Positive effects from property valuation supported an increase in EBIT to
EUR 296.6 million for the reporting period (Q1 2014/15: EUR 11.9 million).
Revaluation results adjusted for foreign exchange effects amounted to EUR
54.3 million (Q1 2014/15: EUR -2.7 million). Of the total increase, EUR
55.0 million is attributable to positive valuation effects in the GOODZONE
shopping center which followed the start of settlement for the investment
agreement with the city of Moscow. The contract between IMMOFINANZ and the
city government was - as is common practice in Moscow - concluded before
the start of construction on the shopping center. It gives the city rights
to approx. 30% of the space in the shopping center, which must be settled
after completion. The revaluation resulting from foreign exchange effects
in the valuation of the Russian properties amounted to of EUR 187.4 million
(Q1 2014/15: EUR -75.9 million).

Financial results amounted to EUR -109.6 million (Q1 2014/15: EUR -19.8
million) based on generally stable net financing costs (EUR -42.4 million
versus EUR -41.6 million). The negative foreign exchange effects (EUR -94.1
versus EUR 17.1 million) resulted primarily from the Russian financings.
Net profit rose to EUR 126.2 million (Q1 2014/15: EUR -6.0 million), which
represents earnings per share (diluted) of EUR 0.12 (Q1 2014/15: EUR
-0.01). NAV per share equalled EUR 4.30 (Q1 2014/15: EUR 4.19).

Cash and cash equivalents rose by EUR 102.1 million over the level on 30
April 2015 to EUR 492.8 million as of 31 July 2015. That represents EUR 0.5
per share (excluding treasury shares).

Outlook

IMMOFINANZ has followed the BUWOG spin-off by successfully establishing a
position as a commercial real estate company with a focus on Central and
Eastern Europe. Activities in 2015/16 will focus on strengthening the
standing investments through the further streamlining of the portfolio
structure and value-creating growth.

In line with these objectives, the Executive Board and Supervisory Boards
have approved the sale of the company's logistics portfolio at the
beginning of August. Negotiations are currently in progress with potential
buyers.

The company also intends to reduce its investment in BUWOG this financial
year through the sale of shares. "With the repurchase of the exchangeable
bond for BUWOG shares and the successful placement of 8.5 million BUWOG
shares, we have marked a successful start in the implementation of this
strategy. We are also maintaining full flexibility with regard to the sale
of our remaining investment in BUWOG," indicated Oliver Schumy. "BUWOG's
capital market profile will now be stronger with this higher free float
component of roughly 60%."

The robust balance sheet and available liquidity form a solid foundation
for the continued utilisation of suitable investment opportunities in the
retail and office sectors. The opportunities can include the acquisition of
standing investments as well as development projects with a focus on
Austria, Germany and Poland. This growth is also intended to achieve a more
balanced geographical distribution of the portfolio between Western and
Eastern Europe.

Rents should remain generally stable on a like-for-like basis, with the
exception of Russia. The forecasts for future economic developments in
Russia are still connected with substantial uncertainty, and reliable
estimates are therefore not possible. The temporary rental reductions and
fixed exchange rates for the tenants in the Moscow shopping centers will be
re-evaluated quarterly and continued if necessary.

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

On IMMOFINANZ

IMMOFINANZ is a commercial real estate company whose activities are
currently focused on the retail, office and logistics 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 6.6 billion that covers more than 440 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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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)

End of News DGAP News Service

395151 2015-09-16