CPI Europe AG — Earnings Release 2015

Aug 6, 2015

News Details

Corporate | 6 August 2015 20:12

IMMOFINANZ confirms preliminary data: improvement in results of operations, but net profit negatively influenced by valuation effects

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

2015-08-06 / 20:12

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KEY DATA (in MEUR)* // 1 May 2014 - 30 April 2015 // Δ in % // 1 May 2013 -
30 April 2014

Rental income // 426.3 // -10.9% // 478.5
Results of asset management // 313.3 // -18.4% // 383.9
Results of property sales // 43.5 // >100% // 5.7
Results of property development // 11.0 // n.a. // -45.0
Other operating expenses // -73.6 // -19.1% // -91.1
Results of operations // 316.5 // 17.0% // 270.5
Other revaluation results // -100.5 // n.a. // 199.2
Operating profit (EBIT) // 216.0 // -54.0% // 469.7
Financial results // -565.2 // >100% // -248.6
Net profit from continuing operations // -361.4 // n.a. // 72.0

* The comparable prior year figures were adjusted accordingly

IMMOFINANZ generated results of operations totalling EUR 316.5 million in
2014/15, for an increase of 17.0% over the previous financial year
(2013/14: EUR 270.5 million). Higher earnings contributions from property
sales (EUR 43.5 million versus EUR 5.7 million in 2013/14) and property
development (EUR 11.0 million versus EUR -45.0 million in 2013/14) more
than offset the expected decline in results of asset management (EUR 313.3
million versus EUR 383.9 million in 2013/14), which reflected the temporary
reduction in rental income from Russia and the sale of properties during
the year. The increase was also supported by a reduction in overhead costs:
other operating expenses were 19.1% lower at EUR -73.6 million for the
reporting year.

In spite of this positive development, net profit for the year is negative
at EUR -361.4 million (2013/14: EUR 72.0 million, resp. EUR 176.9 million
incl. 100.0% of BUWOG). This development is attributable above all to the
current economic conditions in Russia, which were reflected in the
valuation of the Moscow shopping centers, and to the write-down of a number
of properties in Eastern Europe because of the competitive market
environment or pending modernisation projects. These non-cash foreign
exchange-adjusted revaluations of EUR -312.3 million (2013/14: EUR -179.7
million) included EUR -197.0 million from the Russian portfolio and led to
a reduction in net profit. Financial results were also substantially lower
than the previous year (EUR -565.2 million versus EUR -248.6 million in
2013/14), primarily due to negative non-cash foreign exchange effects (EUR
-270.6 versus EUR -126.9 million in 2013/14), above all, from the valuation
of the USD financing for the Moscow shopping centers and a negative
non-cash effect from the valuation of the exchangeable bond for BUWOG
shares (EUR -49.3 million). However, this latter factor was contrasted as
of 30 April 2015 by undisclosed reserves of approx. EUR 155.7 million (1)
in IMMOFINANZ's 49.0% investment in BUWOG.

"IMMOFINANZ followed the successful spin-off of BUWOG by further sharpening
its profile as a pure commercial property company and continuing its
portfolio adjustments with targeted sales during the past financial year.
Our exit from Switzerland and the USA during the year and from the
Netherlands after the end of April 2015 illustrates this process",
explained Oliver Schumy, CEO of IMMOFINANZ. "We also completed a number of
development projects, for example in the retail segment: the Tarasy Zamkowe
shopping center in Lublin and the first shopping center in our new VIVO!
brand. These achievements are clearly reflected in the results of property
sales and property development."

The deterioration of the economic environment in Russia led, as expected,
to a notable decline in the rental income from the Moscow shopping centers
and, consequently, also to lower valuation results. Rental income in the
Russia segment totalled EUR 140.2 million in 2014/15 (2013/14: EUR 167.3
million) and declined by EUR 36.3 million to EUR 127.2 million on a
like-for-like basis.

"However, we are well prepared to deal with this situation. We have granted
temporary rental reductions to provide short-term financial relief for our
tenants and, at the same time, hold the occupancy in our shopping centers
as high as possible", added Schumy. As the forecasts for future economic
developments in Russia are still connected with substantial uncertainty,
the temporary rental reductions and fixed exchange rates for the tenants in
the Moscow shopping centers can, from the current point of view, be
expected to continue on a quarterly basis.

Based on the earnings situation in 2014/15 and the uncertainty connected
with future forecasts for Russia, the Executive Board of IMMOFINANZ has
decided not to recommend a dividend for the 2014/15 financial year to the
annual general meeting. IMMOFINANZ repurchased shares for approx. EUR 102.0
million, i.e. approx. EUR cents 10 per share, in connection with its
2014/15 and 2015 share buyback programmes.

Detailed information on business development is provided in the Earnings,
Balance Sheet and Cash Flow Analysis:
http://www.immofinanz.com/de/presse/presseinformationen/

The annual report of IMMOFINANZ AG for 2014/15 as of 30 April 2015 can be
reviewed on the company's website under
http://www.immofinanz.com/en/investor-relations/financial-reports/ starting
on 20 August 2015.

(1) 48.8 mn BUWOG shares x EUR 18.09 (share price on 30 April 2015) - EUR
14.9 (book value per share on 30 April 2015) x 48.8 mn shares = EUR 155.7
mn

On IMMOFINANZ Group
IMMOFINANZ Group is a pure commercial property company with a focus on
Europe. Since its founding in 1990, the company has developed a
high-quality portfolio that now includes more than 470 properties with a
carrying amount of approx. EUR 6.7 billion. IMMOFINANZ Group concentrates
its activities in the retail, office and logistics segments of eight
regional core markets: Austria, Germany, Czech Republic, Slovakia, Hungary,
Romania, Poland and Russia. Its primary business covers the management and
development of properties in these core markets. The goal is to create a
diversified, risk-optimised and sustainable portfolio of standing
investments. IMMOFINANZ AG is listed on the stock exchanges in Vienna
(leading ATX index) and Warsaw. Further information under:
http://www.immofinanz.com / http://blog.immofinanz.com /
http://properties.immofinanz.com

For additional information please contact:

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

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2015-08-06 Dissemination of a Corporate News, transmitted by DGAP - a
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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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