S IMMO AG

EANS-News: S IMMO AG
goals for 2014 confirmed by good start to year

--------------------------------------------------------------------------------
  Corporate news transmitted by euro adhoc. The issuer/originator is solely
  responsible for the content of this announcement.
--------------------------------------------------------------------------------

3-month report

S IMMO AG: goals for 2014 confirmed by good start to year

  - Net income for the period up again to EUR 6.7m
  - NOI margin increased by 2.4 percentage points
  - Management costs reduced again

After highly successful annual results for 2013, stock exchange listed S IMMO
AG (Bloomberg: SPI:AV, Reuters: SIAG.VI) made a good start to the first quarter
of 2014. Ernst Vejdovszky, Chairman of S IMMO AG's Management Board, comments:
"The operative success of our business is demonstrated by the net operating
income margin, which we have further increased. Our net profit for the period
was also slightly higher. With these results, we are pleased to reaffirm our
goal for 2014: for the year as a whole, we want to achieve another increase in
consolidated net income."

The four regions in which the Group operates make differing contributions to
its performance. Friedrich Wachernig, Member of S IMMO AG's Management Board,
explains: "We can feel the markets' growing optimism - particularly in
Bucharest and Sofia, the news is getting more and more encouraging. What
continues to be a challenge is the market for office properties in Budapest.
But with the wholehearted commitment of our local team, even there we have
letting successes to report time and again."

Gross profit
S IMMO AG's revenues in the first quarter of 2014 totalled EUR 44.8m, compared
with EUR 46.7m in the same period last year. As expected, the rental income of
EUR 28.2m was lower than the EUR 29.4m achieved in the first quarter of 2013,
as a result of the property disposals. While the property portfolio was reduced
by more than 7% since the start of 2013, rental income decreased by less
than 4%. Revenues from hotel operations (revenues from the Vienna and Budapest
Marriott Hotels, both operated under management agreements) came to EUR 7.9m
(Q1 2013: EUR 8.0m). The gross profit from hotel operations nonetheless
improved to EUR 1.2m (Q1 2013: EUR 0.9m).

Expenses of property management in the first quarter of 2014 of EUR 12.9m were
down by another 11.0% compared with EUR 14.5m for the same period last year.
The higher gross profit from hotel operations combined with the lower property
management expenses made up for the reduction in rental income. Since however
other operating income of EUR 0.4m was significantly lower (Q1 2013: EUR 2.3m),
the gross profit came out at EUR 25.6m (Q1 2013: EUR 27.5m).

Successful property sales
For the year 2014 S IMMO is planning on property disposals amounting to
about 5% of the portfolio. In the first quarter of the year three properties
were sold for a total of EUR 21.6m (Q1 2013: EUR 32.6m). In the income
statement for the first quarter of 2014 there were no gains to be recognised on
these sales, because the properties in question had already been revalued in
2013 to reflect the final selling prices. Without the revaluations, the gains
on sale would have amounted to EUR 5.1m, more than 20%.

EBITDA and EBIT
As with the property management expenses, general management expenses were
reduced once again, and for the first quarter came to EUR 3.2m (Q1 2013:
EUR 3.6m) - savings of more than 11%. EBITDA was EUR 22.4m (Q1 2013:
EUR 25.3m). Overall valuation gains amounted to EUR 5.9m (Q1 2013: EUR 4.1m),
and EBIT came out at EUR 26.5m (Q1 2013: EUR 27.0m).

Net profit for period up slightly
Financing costs including the participating certificates result amounted to
EUR 17.8m, more or less the same as the EUR 17.6m in the first quarter of 2013.
Foreign currency effects, principally the result of changes in the exchange
rate of the Hungarian forint, were also at the same level as in the first
quarter of last year. The resulting EBT came to EUR 8.7m (Q1 2013: EUR 9.4m).
The lower costs and higher valuation gains meant that the net profit for the
period of EUR 6.7m (Q1 2013: EUR 6.6m) was slightly up despite lower other
operating income.

Operative efficiency
In spite of the reduced size of the property portfolio, the cost savings
detailed above resulted in a slight increase in net operating income (NOI),
which for the first quarter came to EUR 25.20m (Q1 2013: EUR 25.16m). The NOI
margin increased by an impressive 2.4 percentage points, highlighting S IMMO's
operative efficiency.

In the first quarter of 2014 both the book value per share and EPRA NAV rose
again: the book value at 31 March 2014 stood at EUR 7.95 (31 December 2013:
EUR 7.83) per share, while EPRA NAV was EUR 9.87 (31 December 2013: EUR 9.76)
per share.

Capital markets
The mood in the capital markets is noticeably more optimistic, and the interest
of international investors in S IMMO has increased significantly. On the basis
of the very satisfactory results for 2013, at the Annual General Meeting on
11 June 2014 the Management Board will propose a dividend of EUR 0.20 per
share. The S IMMO share has performed extremely satisfactorily over the past
weeks, and on 26 May 2014 stood at EUR 5.890.

An offer that opened on 21 May 2014 allows holders of participating
certificates to exchange their certificates for a 7-year fixed term bond with a
fixed coupon of 4.5% at the rate of EUR 79.11 per certificate. The offer closes
on 06 June 2014.

Outlook
Over the coming months S IMMO AG's main focus will be on the booming
residential property market in Germany. In the light of current developments,
the Management Board continues to see the greatest potential in the residential
property market in Berlin, where there is still a pressing need for more homes.
S IMMO is exploiting this potential by beginning the planning and development
of freehold apartments on land the Group already owns.

S IMMO AG
As Austria's first stock exchange listed real estate investment company, S IMMO
AG has stood for experience, a
balanced portfolio and sustainable growth since 1987. The Company's strategic
core shareholders, Erste Group
and Vienna Insurance Group, are two of the largest financial services groups in
CEE and SEE. S IMMO AG is
invested in residential, office, hotel and retail property in Austria, Germany,
the Czech Republic, Slovakia, Hungary, Croatia, Romania and Bulgaria.
Consolidated income statement for the three months ended 31 March 2014
(EUR m)


|                                                   |01 - 03/2014 |01 - 03/2013
|
|                                                   |             |1           
|
|Revenues                                           |44.8         |46.7        
|
| Rental income                                     |28.2         |29.4        
|
| Revenues from operating costs                     |8.7          |9.3         
|
| Revenues from hotel operations                    |7.9          |8.0         
|
|Other operating income                             |0.4          |2.3         
|
|Expenses directly attributable to properties       |-12.9        |-14.5       
|
|Hotel operating expenses                           |-6.7         |-7.1        
|
|Gross profit                                       |25.6         |27.5        
|
|Proceeds of property disposals                     |21.6         |32.6        
|
|Carrying value of property disposals               |-21.6        |-31.2       
|
|Gains on property disposals                        |0            |1.4         
|
|Management expenses                                |-3.2         |-3.6        
|
|Earnings before interest, tax, depreciation and    |22.4         |25.3        
|
|amortisation (EBITDA)                              |             |            
|
|Depreciation and amortisation                      |-1.9         |-2.4        
|
|Gains on property valuation                        |5.9          |4.1         
|
|Operating profit (EBIT)                            |26.5         |27.0        
|
|Financing expense                                  |-15.5        |-14.7       
|
|Financing income                                   |0.4          |0.3         
|
|Income from companies measured at equity           |0.03         |0           
|
|Participating certificates result                  |-2.7         |-3.2        
|
|Net income before tax (EBT)                        |8.7          |9.4         
|
|Taxes on income                                    |-2.0         |-2.8        
|
|Consolidated net income                            |6.7          |6.6         
|
| of which attributable to shareholders in parent   |5.7          |5.9         
|
|company                                            |             |            
|
| of which attributable to non-controlling          |1.0          |0.7         
|
| interests                                         |             |            
|
|Earnings per share (EUR)                           |0.08         |0.09        
|

1 Adjusted

|Property information       |                 |31 March 2014|
|Standing properties        |number           |205          |
|Total usable space         |m²               |1,235,587    |
|Gross rental yield         |%                |6.9          |
|Occupancy rate             |%                |90.4         |

Further inquiry note:
Investor Relations:
Andreas J. Feuerstein
Phone: +43(0)50100-27556
Fax:  +43(0)05100-927556
E-mail: andreas.feuerstein@simmoag.at
www.simmoag.at 

Corporate Communications:
Bosko Skoko
Phone: +43(0)50100-27522
Fax:  +43(0)05100-927522
E-mail: bosko.skoko@simmoag.at
www.simmoag.at

end of announcement                               euro adhoc 
--------------------------------------------------------------------------------


company:     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
 



Weitere Meldungen: S IMMO AG

Das könnte Sie auch interessieren: