EANS-Adhoc: S IMMO AG /third quarter net profit up again
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Financial Figures/Balance Sheet/9-month report
21.11.2013
S IMMO AG: third quarter net profit up again
- EBIT increased by 12.7%
- Attractive FFO yield of 11.6%
- Net income for the period up again to EUR 21.4m
- Higher net profit for 2013 and increase in dividend expected
For stock exchange listed S IMMO AG (Bloomberg: SPI:AV, Reuters: SIAG.VI) the
third quarter of 2013 was once again highly successful. Once again, financial
indicators such as gross profit, EBT and funds from operations have been
successfully raised compared to the same period last year.
Highly satisfactory improvement in gross profit
In the first three quarters of 2013, S IMMO AG's total revenues came to
EUR 145.3m (Q3 2012: EUR 146.3m). As expected, the rental income of EUR 88.3m
was lower than the EUR 89.5m achieved in the same period last year, as a result
of property disposals. According to plan, the property portfolio was reduced by
more than 4% since the beginning of the year, while rental income decreased by
only 1.3%. In the first three quarters of 2013 expenses directly attributable
to properties of EUR 45.9m were 8.8% lower than in the same period last year.
The increase in gross profit from hotel operations and the reduction in
property-related expenses more than made up for the decrease in rental income,
leading to a higher gross profit of EUR 81.3m (Q3 2012: EUR 77.8m), an
improvement of 4.6%.
Successful property sales
In 2013 S IMMO plans to dispose of properties to the value of around EUR 100m.
The sales during the first nine months consisted of two freehold apartments,
four residential properties and one retail property, all in Austria and
Germany. As at 30 September 2013 the sale proceeds totalled EUR 90.9m, compared
with EUR 130.1m in the first three quarters of 2012. Gains on disposals came to
EUR 5.1m, as against EUR 9.7m in the same period last year. Compared with the
estimated values as at 30 September 2012, the gains were EUR 10.1m.
Net profit for period up again
Similarly to property-related expenses, management expenses were also reduced
again, and for the first nine months amounted to EUR 11.0m (Q3 2012: EUR 12.2m)
- a reduction of 9.5%. EBITDA rose to EUR 75.4m (Q3 2012: EUR 75.3m). As at
30 September 2013 properties with a fair value of EUR 49.9m were classified as
"held for sale". Selling prices in signed contracts for sale were EUR 14.3m
higher than the estimated values of the respective properties as at 30 June
2013, and their fair values were adjusted to match. At the same time, it became
necessary to recognise impairments on Budapest office properties. Overall
valuation gains amounted to EUR 4.0m (Q3 2012: EUR 5.5m), and EBIT came out at
EUR 72.1m (Q3 2012: EUR 73.9m).
In the first three quarters of 2013 financing costs were down by 9.8% to
EUR 37.7m (Q3 2012: EUR 41.8m), reflecting among other things the lower
borrowings. Financing costs also include non-cash effects from the valuation of
derivatives and foreign currencies totalling EUR -0.6m (Q3 2012: EUR -1.7m).
Lower financing costs also resulted in a 12.7% increase in EBT to EUR 25.6m
(Q3 2012: EUR 22.7m). Overall, net profit for the period improved by 5.2% to
EUR 21.4m, compared with EUR 20.4m for the first nine months of 2012.
Number one in efficiency
The positive earnings performance was also reflected in higher funds from
operations (FFO): At the end of the third quarter of 2013, it had climbed 10.6%
to EUR 27.5m, compared to EUR 24.9m a year earlier. With a market
capitalisation of EUR 315.4m as at 30 September 2013, the FFO yield is a very
attractive 11.6%. The cost savings detailed above resulted in a further
increase in net operating income (NOI), which amounted to EUR 76.7m (Q3 2012:
EUR 72.7m) at balance sheet date. For the first three quarters of 2013,
operating cash flow was up 10.7% to EUR 75.2m (Q3 2012: EUR 68.0m). In the same
period both book value (balance sheet NAV) per share and EPRA NAV were up
again: As at 30 September 2013 book value stood at EUR 7.62 (31 December 2012:
EUR 7.17) per share, while EPRA NAV was EUR 9.45 (31 December 2012: EUR 9.18)
per share.
Capital markets
Daily volumes traded for the S IMMO Share have increased in the past few
months, but the overall share price performance at balance sheet date was still
lacklustre at -3.7%. Taking the dividend distribution into account improves the
performance to -0.6% since the beginning of the year. In the third quarter
S IMMO continued its repurchase programmes for the S IMMO Share and the S IMMO
INVEST participating certificate.
Since October 2013 an upward trend has become noticeable, with respect to the
share price and the traded volumes. This encouraging development is supported
by two new analysts' coverage reports - both buy recommendations - underlining
the Share's potential. The average Share price target of the six analysts is
EUR 5.915. The current price of the S IMMO Share is EUR 5.050 (closing price 20
November 2013).
Outlook for 2013 confirmed
Over the coming months S IMMO AG's main focus will continue to be on the
booming residential property market in Germany. The Group is planning to
selectively sell properties in Berlin and Hamburg, while at the same time
looking at various investment possibilities in Berlin. The Management is
expecting a strong performance in the final quarter of 2013 as well. For the
financial year 2013 as a whole S IMMO AG is expecting better results than in
2012, which suggests that a further increase in dividend will be justified.
Consolidated income statement for the nine months ended 30 September 2013
EUR m / fair value basis
| |01 - 09/2013 |01 - 09/2012 |
|Revenues |145.3 |146.3 |
| Rental income |88.3 |89.5 |
| Revenues from operating costs |27.9 |27.3 |
| Revenues from hotel operations |29.2 |29.5 |
|Other operating income |4.6 |5.1 |
|Expenses directly attributable to properties |-45.9 |-50.3 |
|Hotel operating expenses |-22.8 |-23.3 |
|Gross profit |81.3 |77.8 |
|Proceeds of property disposals |90.9 |130.1 |
|Carrying value of property disposals |-85.8 |-120.4 |
|Gains on property disposals |5.1 |9.7 |
|Management expenses |-11.0 |-12.2 |
|Earnings before interest, tax, depreciation and |75.4 |75.3 |
|amortisation (EBITDA) | | |
|Depreciation and amortisation |-7.2 |-6.8 |
|Gains on property valuation1 |4.0 |5.5 |
|Operating profit (EBIT) |72.1 |73.9 |
|Financing costs |-37.7 |-41.8 |
|Participating certificates result |-8.8 |-9.4 |
|Net income before tax (EBT) |25.6 |22.7 |
|Taxes on income |-4.2 |-2.3 |
|Consolidated net income |21.4 |20.4 |
| of which attributable to shareholders in parent|19.6 |19.3 |
|company | | |
| of which attributable to non-controlling |1.8 |1.1 |
| interests | | |
|Earnings per share (EUR) |0.29 |0.29 |
1 Includes EUR 14.3m revaluation gains resulting from already signed sales
contracts.
|Property information | |30 September 2013 |
|Standing properties |number |213 |
|Total usable space |m² |1,277,309 |
|Gross rental yield |% |6.9 |
|Occupancy rate |% |89.6 |
Further inquiry note:
Investor Relations:
Andreas J. Feuerstein
Phone: +43(0)50100-27556
Fax: +43(0)05100-927556
E-mail: andreas.feuerstein@simmoag.atwww.simmoag.at
Corporate Communications:
Bosko Skoko
Phone: +43(0)50100-27522
Fax: +43(0)05100-927522
E-mail: bosko.skoko@simmoag.atwww.simmoag.at
end of announcement euro adhoc
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issuer: S IMMO AG
Friedrichstraße 10
A-1010 Wien
phone: +43(0)50100-27550
FAX: +43(0)050100-927559
mail: office@simmoag.at
WWW: www.simmoag.at
sector: Real Estate
ISIN: AT0000652250
indexes: ATX Prime, IATX
stockmarkets: official market: Wien
language: English
issuer: S IMMO AG Friedrichstraße 10 A-1010 Wien phone: +43(0)50100-27550 FAX: +43(0)050100-927559 mail: office@simmoag.at WWW: www.simmoag.at sector: Real Estate ISIN: AT0000652250 indexes: ATX Prime, IATX stockmarkets: official market: Wien language: English ...
issuer: S IMMO AG Friedrichstraße 10 A-1010 Wien phone: +43(0)50100-27550 FAX: +43(0)050100-927559 mail: office@simmoag.at WWW: www.simmoag.at sector: Real Estate ISIN: AT0000652250 indexes: ATX Prime, IATX stockmarkets: official market: Wien language: English ...
issuer: S IMMO AG Friedrichstraße 10 A-1010 Wien phone: +43(0)50100-27550 FAX: +43(0)050100-927559 mail: office@simmoag.at WWW: www.simmoag.at sector: Real Estate ISIN: AT0000652250 indexes: ATX Prime, IATX stockmarkets: official market: Wien language: English ...