DGAP-News: IMMOFINANZ with strong 18% increase in results of operations in Q1 2020, negative valuation results due to Covid-19
The results of asset management increased by 18.1% to EUR 59.5 million, and the results of operations were 18.0% higher at EUR 43.5 million.
DGAP-News: IMMOFINANZ AG / Key word(s): Real Estate/Quarterly / Interim Statement IMMOFINANZ with strong 18% increase in results of operations in Q1 2020, negative valuation results due to Covid-19 27.05.2020 / 17:57 The issuer is solely responsible for the content of this announcement. IMMOFINANZ with strong 18% increase in results of operations in Q1 2020, negative valuation results due to Covid-19
¹ The comparative data were adjusted "We started the year with a strong operational base and were able to benefit from our high-quality portfolio expansion. The Covid-19 crisis slowed this growth beginning in mid-March, but we are working steadily to master these challenges. By now, 79% of our retail space has already reopened. We want to emerge from this crisis even stronger and continue IMMOFINANZ's growth course, whereby our focus will remain on the office and retail asset classes and on our brand strategy", indicated Ronny Pecik, CEO of IMMOFINANZ. FFO 1 from the standing investment business (before tax) improved by 3.6% to EUR 29.1 million (Q1 2019: EUR 28.1 million). This indicator includes, for the first time, the annual coupon for the corporate bond 2023, which totalled EUR 13.1 million and was paid in January 2020. FFO 1 per share improved to EUR 0.29 (Q1 2019: EUR 0.26). If the coupon payment were spread over the full year, FFO 1 in Q1 2020 would equal EUR 38.9 million (plus 38.7% versus Q1 2019). Occupancy rate stable at high level Robust balance sheet indicators Basic EPRA NAV per share rose to EUR 31.95 as of 31 March 2020 (31 December 2019: diluted EUR 31.05). The calculation of EPRA NAV - in contrast to 31 December 2019 - does not include any potential diluting effects from the conversion of the IMMOFINANZ convertible bond 2024 because the bond was "not in the money" as of 31 March 2020. The book value per share equalled EUR 28.69 (31 December 2019: EUR 29.34). Covid-19 update The legal regulations implemented to contain Covid-19 have been gradually lifted in recent weeks, beginning with mid-April in Austria, in nearly all countries where IMMOFINANZ owns retail properties. At the present time, 79% of IMMOFINANZ's retail space has reopened. Romania represents an exception, where the four VIVO! shopping centers are still closed. "We are also making very good progress on the conclusion of agreements with our major retail tenants to develop fair solutions for the crisis months and the reopening phase. However, it is still to early to estimate the effects of the pandemic. Due to our operating performance and our solid liquidity position and financing structure, we are well positioned to handle the current challenges", explained Dietmar Reindl, COO of IMMOFINANZ. A clear positive development in visitor frequency, above all in the retail parks, is visible in the retail properties that have recently reopened. With approximately 3.2 million visitors per week in the STOP SHOP retail parks, the level reflects the beginning of the year. This development underscores the competitive advantage of the STOP SHOP concept: one-stop shopping with direct access from the parking area to the individual shops and reduced possibilities for contacts. Results in detail The results of property sales amounted to EUR -1.8 million (Q1 2019: EUR 1.0 million), and the results of property development improved to EUR -0.7 million (Q1 2019: EUR -4.6 million). Other operating expenses were 29.2% higher at EUR -13.8 million (Q1 2019: EUR -10.7 million). The increase in personnel expenses included under this position is primarily attributable to a non-recurring effect (resignation of Oliver Schumy from the Executive Board). The results of operations improved by 18.0% to EUR 43.5 million (Q1 2019: EUR 36.8 million). The revaluation results from standing investments and goodwill totalled EUR -45.0 million due to the negative effects of the Covid-19 pandemic (Q1 2019: EUR 7.1 million). That represents 0.9% of IFRS investment property. The internal valuation of the portfolio properties reflected slightly higher market yields, above all for the retail business. Financing costs rose to EUR -19.5 million (Q1 2019: EUR -14.9 million) based on property acquisitions and a resulting increase of 9.4% in the total financing volume. Moreover, the comparative prior year value included a positive effect of EUR 4.2 million from the reduction of the coupon for the convertible bond 2024 (adjustment of the effective interest method). Other financial results amounted to EUR -5.3 million (Q1 2019: EUR -7.9 million) and resulted chiefly from the valuation of interest rate derivatives in the current low-interest environment. The share of profit/loss from equity-accounted investments amounted to EUR -4.2 million (Q1 2019: EUR 4.9 million), whereby EUR -5.5 million are attributable to the share of earnings from S IMMO. Financial results totalled EUR -30.3 million for the first quarter of 2020 (Q1 2019: EUR -18.7 million). Earnings before tax amounted to EUR -31.8 million (Q1 2019: EUR 25.3 million), and income tax equalled EUR -5.9 million. Consequently, net profit totalled EUR -37.6 million for the first quarter of 2020 (Q1 2019: EUR 30.4 million). Earnings per share (basic) equalled EUR -0.37 (Q1 2019: EUR 0.28). The interim financial statement by IMMOFINANZ AG on the first quarter 2020 as of 31 March 2020 will be available on the company's website under http://www.immofinanz.com/en/investor-relations/financial-reports starting on 28 May 2020.
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27.05.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | IMMOFINANZ AG |
Wienerbergstraße 11 | |
1100 Vienna | |
Austria | |
Phone: | +43 (0) 1 88090 - 2290 |
Fax: | +43 (0) 1 88090 - 8290 |
E-mail: | [email protected] |
Internet: | http://www.immofinanz.com |
ISIN: | AT0000A21KS2 |
WKN: | A2JN9W |
Listed: | Regulated Unofficial Market in Berlin, Frankfurt, Munich, Stuttgart; Warschau, Vienna Stock Exchange (Official Market) |
EQS News ID: | 1056623 |
End of News | DGAP News Service |
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1056623 27.05.2020