CPI Europe AG — Earnings Release 2016

Sep 20, 2016

News Details

Corporate | 20 September 2016 18:05

IMMOFINANZ: Stable operating results in Q1 2016A

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

2016-09-20 / 18:05
The issuer is solely responsible for the content of this announcement.

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KEY FIGURES (in MEUR)* // Q1 2016A // Δ in % // Q1 2015/16

Rental income // 76.8 // -6.5% // 82.2
Results of asset management // 54.5 // 3.9% // 52.5
Results of property sales // 0.7 // -34.2% // 1.0
Results of property development // -1.4 // 30.2% // -1.9
Results of operations // 45.3 // -3.6%// 46.9
Revaluations // -8.6 // n/a // 241.1
Financial results // 10.9 // n/a // -106.8
Net profit // 21.9 // -81.0% // 115.0
FFO1 (excl. results of property sales) // 9.3 // 17.3% // 7.9
FFO2 (incl. results of property sales) // 10.0 // 11.4% // 9.0

* The comparable data for 2015/16 were adjusted accordingly. The
abbreviated 2016 financial year (2016A) covers eight months from May to
December 2016.

The operating results recorded by IMMOFINANZ were stable in year-on-year
comparison at EUR 45.3 million in the first quarter of the abbreviated 2016
financial year (Q1 2015/16: EUR 46.9 million). Rental income fell from EUR
82.2 million to EUR 76.8 million due to temporary rent reductions in Moscow
and the planned sale of properties. A like-for-like analysis (i.e. after an
adjustment for new acquisitions, completions and sales to achieve
comparability with the fourth quarter 2015/16) shows the stable development
of rental income in total during the first quarter of 2016A. The results of
asset management improved by 3.9% to EUR 54.5 million based on a decline in
property expenses. Net profit for the reporting period amounted to EUR 21.9
million (Q1 2015/16: EUR 115.0 million). This decline resulted, above all,
from the more stable development of the Ruble during the reporting period,
which led to substantially lower foreign exchange-based revaluations of
investment property (EUR -6.8 million vs. EUR 184.8 million in the first
quarter of 2015/16).

"Our focus for the operating business in the first quarter included further
quality and efficiency improvements, the strengthening of ties with current
tenants and the acquisition of new tenants as well as the optimisation of
our offering and the roll-out of our new international office concept
myhive. In the retail sector, we opened three further STOP SHOPs in Poland
and Serbia since the beginning of May. These retail parks have roughly
13,500 sqm of rental space in total and are fully occupied", commented
Oliver Schumy, CEO of IMMOFINANZ.

Development of earnings in detail

Rental income fell from EUR 82.2 million to EUR 76.8 million due to
temporary rent reductions in Moscow and the planned sale of properties. A
like-for-like analysis (i.e. after an adjustment for new acquisitions,
completions and sales to achieve comparability with the previous quarter)
shows the stable development of rental income, in total, to EUR 67.8
million in the first quarter of 2016A (Q4 2015/16: EUR 68.3 million). The
rental income from Russia was EUR 0.7 million lower than the fourth quarter
2015/16 at EUR 18.3 million, but was contrasted by a slight increase in
Romania.

The standing investment portfolio had an occupancy rate of 86.4% as of 31
July 2016 (30 April 2016: 86.3%). The occupancy rate was stable in the
office properties at 81.6% (30 April 2016: 81.7%) and in the retail
properties at 91.2% (30 April 2016: 91.1%). Excluding Russia, the occupancy
rate in the retail properties equalled 94.6% (30 April 2016: 94.1%).

The results of asset management rose by 3.9% year-on-year to EUR 54.5
million based on a decrease in property expenses. The results of property
sales totalled EUR 0.7 million for the reporting period (Q1 2015/16: EUR
1.0 million). The optimisation and adjustment of the portfolio was
reflected in the sale of several residential properties and smaller office
buildings in Austria. The results of property development cover the sale of
real estate inventories as well as the valuation of development projects
completed or currently in progress. In the first quarter of 2016A, the
results of property development totalled EUR -1.4 million (Q1 2015/16: EUR
-1.9 million).

The foreign exchange-based revaluations of investment property totalled EUR
-6.8 million and reflected the substantially more stable development of the
Ruble in the first quarter of 2016A (Q1 2015/16: EUR 184.8 million). These
adjustments resulted from the valuation of the Russian properties in US
Dollars and the subsequent translation of the Ruble property values in the
local Russian companies. The foreign exchange-adjusted revaluations
amounted to EUR -4.4 million, compared with EUR 53.4 million in the first
quarter of 2015/16 when the investment contract with the city of Moscow for
the GOODZONE shopping center was settled. Operating profit (EBIT) for the
first quarter of 2016A equalled EUR 32.8 million (Q1 2015/16: EUR 286.4
million).

Financial results totalled EUR 10.9 million (Q1 2015/16: EUR -106.8
million), in part due to a reduction in net financing costs, and include
positive foreign exchange effects of EUR 11.9 million (Q1 2015/16 EUR -93.0
Million). The negative effects of EUR -19.0 million recorded under other
financial results are attributable primarily to the valuation of
derivatives. They are contrasted by positive effects of EUR 55.3 million
from equity-accounted investments, which represent the proportional share
of earnings from BUWOG and the gain on the sale of approx. 18.5 million
BUWOG shares.

Income tax expense equalled EUR -20.7 million for the reporting period (Q1
2015/16: EUR -70.4 million). Net profit amounted to EUR 21.9 million (Q1
2015/16: 115.0 million), and diluted earnings per share equalled EUR 0.02
(Q1 2015/16: EUR 0.11). The NAV per share equalled EUR 3.41 (Q1 2015/16:
EUR 3.39).

Gross cash flow (before tax) declined by 8.9% from EUR 51.7 million to EUR
47.1 million. FFO1 (excluding the results of property sales) improved by
17.3% year-on-year to EUR 9.3 million, while FFO2 (including the results of
property sales) rose to EUR 10.0 million (Q1 2015/16: EUR 9.0 million).

Cash and cash equivalents increased by EUR 423.6 million over the level on
30 April 2016 to EUR 795.2 million. That represents EUR 0.82 per share
(excluding treasury shares) and resulted from the sale of 18.5 million
BUWOG shared during the reporting period.

Outlook

"After finalising the acquisition of roughly 26% plus four registered
shares of CA Immobilien Anlagen AG and receiving the release of the
transaction by the antitrust authorities in six countries within a very
short time, we will now work with CA Immo on the details of the planned
merger. The related process has started and working groups have been
established. Our goal is to schedule the annual general meetings that will
decide on the merger during the summer of 2017", explained CEO Oliver
Schumy. "The separation of our Russian portfolio is also in preparation. We
intend to spin off or sell our five Moscow shopping centers prior to the
merger, since they are characterised by distinct market dynamics and a
different risk profile, and are also working to realise these plans as soon
as possible."

The company still plans to distribute a basic dividend of 6 cents per share
for the abbreviated 2016 financial year.

The report by IMMOFINANZ AG on the first quarter of the 2016A financial
year as of 31 July 2016 will be available on the company's website under
http://www.immofinanz.com/en/investor-relations/financial-reports starting
on 21 September 2016.

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 5.4 billion that covers
more than 360 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 please 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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2016-09-20 Dissemination of a Corporate News, transmitted by DGAP - a
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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 - 2290
Fax: +43 (0) 1 88090 - 8290
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 ; Warschau, Wien (Amtlicher
Handel / Official Market)

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