IMMOFINANZ: Net profit more than doubles to 185.3 million EUR in the first half of 2019

“This very good first half-year follows our strong performance in 2018. Against this backdrop, we are raising our outlook for pre-tax FFO 1 in 2019 and now expect more than 115 million Euros. That means FFO 1 before tax of roughly 128 million Euros together with our dividend from S IMMO“, indicated Oliver Schumy, CEO of IMMOFINANZ. “We have successfully returned to a growth course following the portfolio restructuring measures and efficiency improvements implemented in recent years. Together with our latest acquisitions in the office and retail areas, our property portfolio is approaching a value of roughly five billion Euros.“  

The results of asset management improved by 6.6% to EUR 101.0 million (Q1–2 2018: EUR 94.8 million). The results of property sales amounted to EUR 1.7 million (Q1-2 2018: EUR 20.6 million) and the results of property development totalled EUR 14.3 million (Q1–2 2018: EUR 24.2 million). Results from the revaluation of investment property and goodwill increased substantially to EUR 104.7 million (Q1–2 2018: EUR 9.3 million), above all due to the positive market development in Germany and Austria. Operating profit (EBIT) therefore rose significantly yearon-year to EUR 203.4 million (Q1-2 2018: EUR 124.1 million). 
The Group’s financial results benefited from a further decline in financing costs (6.4% reduction to  EUR -31.6 million). The share of profit/loss from equity-accounted investments amounted to EUR 43.4 million (Q1–2 2018: EUR 31.3 million), whereby the proportional share of earnings from the S IMMO investment represents the main component. Financial results for the first half of 2019 totalled EUR -4.6 million (Q1–2 2018: EUR 1.5 million). 
Net profit more than doubled to EUR 185.3 million (Q1–2 2018: EUR 86.2 million). Basic earnings per share equalled EUR 1.72 (Q1–2 2018: EUR 0.79) and diluted earnings per share EUR 1.53 (Q1–2 2018: EUR 0.73). 
The development of sustainable funds from operations (FFO 1) underscores IMMOFINANZ’s stronger earning power. FFO 1 (before tax) from the standing investment business rose by 22.0% to EUR 59.0 million during the reporting period (Q1–2 2018: EUR 48.4 million). FFO 1 per share increased by 25.5% to EUR 0.54 (Q1–2 2018: EUR 0.43), whereby this indicator excludes dividends as well as the economic interest in S IMMO. Including the respective dividend payments, FFO 1 (before tax) equals EUR 72.7 million and EUR 0.67 per share. 

The real estate portfolio included 214 properties with a combined carrying amount of approximately EUR 4.5 billion as of 30 June 2019. Most of these properties – roughly 90% or EUR 4.1 billion – are standing investments. The occupancy rate equaled 94.8% as of 30 June 2019 (30 June 2018: 94.7%; 31 December 2018: 95.8%), and the gross return was stable at 6.3%.   

IMMOFINANZ has a robust balance sheet structure with an equity ratio of 47.1% (31 December 2018: 48.0%). Cash and cash equivalents totalled EUR 560.4 million (31 December 2018: EUR 631.8 million). The net loan-tovalue ratio equalled 38.0% (31 December 2018: 37.3%). Average financing costs declined further during the first half of 2019 and, including derivatives, equalled 1.99% per year at the end of June (31 December 2018: 2.14%). The hedging quota increased since the beginning of the year to 88.5% (31 December 2018: 73.8%). 
Diluted EPRA NAV per share rose to EUR 29.24 as of 30 June 2019 (31 December 2018: basic EUR 28.80). The calculation of EPRA NAV as of 30 June 2019 – in contrast to 31 December 2018 and 31 March 2019 – includes the diluting effects which would result from the conversion of the IMMOFINANZ convertible bond 2024 because this bond was “in the money” at the end of the reporting period. The dilution equalled EUR 0.70 per share. The book value per share rose by 4.5% to EUR 27.48 as of 30 June 2019 (31 December 2018: EUR 26.29).  

FFO 1 before tax for the 2019 financial year is expected to exceed EUR 115 million (previous guidance: > EUR 100 million). Including the dividend received from S IMMO, the guidance amounts to roughly EUR 128 million before tax. The planned dividend distribution for 2019 equals 75% of FFO 1 before tax (incl. the dividend from S IMMO).