EANS-News: S IMMO AG results for the first half year right on target
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6-month report
S IMMO AG: results for the first half year right on target
· Net profit for period increased to EUR 16.4m
· EBIT up by 9%
· Net operating income higher again
· Successful exchange of participating certificates for corporate bonds
Halfway through 2014, stock exchange listed S IMMO AG (Bloomberg: SPI:AV,
Reuters: SIAG.VI) can look back on two very successful quarters. Ernst
Vejdovszky, Chairman of S IMMO AG's Management Board, comments: "The results for
the first half make us feel very optimistic about the rest of the year. We have
been successful in improving our key indicators, and we are happy to reaffirm
our goal of doing even better in 2014 than the excellent results we achieved in
2013."
Friedrich Wachernig adds: "Even from those of our markets that have been more
than challenging in the past, the news we are now hearing is increasingly
positive - they have left their troughs behind them. Exchanging our
participating certificates in the capital markets has also sent a strong signal,
and encourages us to view the future with confidence."
Gross profit
S IMMO AG's total income for the first half of 2014 came to EUR 93.2m, compared
with EUR 97.0m in the same period last year. The rental income of EUR 56.8m was
lower than the EUR 59.0m achieved a year earlier, as an expected result of the
property disposals. Revenues for the half year from hotel operations (revenues
from the Vienna and Budapest Marriott Hotels, both operated under management
agreements) were EUR 19.1m, after EUR 19.2m in the first half of 2013. The gross
profit from hotel operations improved from EUR 3.9m to EUR 4.5m.
Property management expenses in the first half of 2014 of EUR 26.2m were reduced
by 12.8% compared with the same period last year. Improvements in the cost
structure together with a higher gross profit from hotel operations
substantially made up for the reduction in rental income as a result of property
sales. Despite lower other operating income (EUR 2.3m), the overall gross profit
of EUR 54.6m held up more or less at last year's level (HY 2013: EUR 55.1m).
This was attributable to the excellent operating performance.
Successful property sales
For the financial year 2014 S IMMO is planning on property disposals of up to 5%
of the portfolio. In the first half of the year four properties were sold for a
total of EUR 39.6m, compared with EUR 83.8m in the first six months of 2013.
There were no gains to be recognised on these sales in the income statement for
the first half of 2014, because the properties in question had already been
revalued in 2013 to reflect the final selling prices.
EBITDA and EBIT
EBITDA came to EUR 47.0m, compared with EUR 49.9m in the same period last year.
At 30 June 2014, properties with a total fair value of EUR 8.8m were classified
as held for sale and the value was increased correspondingly. Total property
revaluations amounted to EUR 8.9m (HY 2013: EUR 2.8m). EBIT for the period was
also significantly higher than last year: at EUR 52.2m, it was up EUR 4.2m -
nearly 9% - on the EUR 48.0m reported for the first half of 2013.
Net profit for period higher again
The financial results for the first half of 2014 including the participating
certificate results amounted to EUR -31.6m, as against EUR -30.4m for the first
half of 2013. In spite of negative foreign currency effects, this was
essentially at the same level as last year. EBT came out at EUR 20.6m, an
increase of 17% on the result for the same period last year. The consolidated
net profit was once again higher at EUR 16.4m (HY 2013: EUR 16.0m).
Key indicators at very satisfactory levels
The lower rental income resulting from property sales had only minor effects on
Funds from Operations not including the effects of property sales (FFO I),
because operating performance was very good, and the negative effects of lower
rents and other operating income were largely balanced out by cost savings.
FFO I for the first half of 2014 came to EUR 15.2m, compared with EUR 16.0m in
the same period last year. FFO II, which includes gains on property sales in the
year to date and valuation gains on properties still forming part of the
portfolio, was EUR 29.1m, markedly better than the EUR 23.0m achieved in the
first half of 2013.
The cost savings discussed above also resulted in a further improvement in Net
Operating Income (NOI) for the period, which totalled EUR 52.4m, compared with
EUR 51.6m for the first six months last year. The NOI margin also improved by
3.0 percentage points despite the reduced property portfolio.
In the first half of 2014 both book value (balance sheet NAV) and EPRA NAV per
share rose: the book value at 30 June 2014 stood at EUR 7.87 (31 December 2013:
EUR 7.83) per share, while EPRA NAV was EUR 9.80 (31 December 2013: EUR 9.76)
per share.
Capital markets
During the most recent quarter, the exchange offer to the holders of
participating certificates was a further important and successful step towards
simplifying S IMMO AG's capital structure. The dividend policy now consistently
pursued is also having an effect: S IMMO share put on more than 12% in the first
half year.
Ernst Vejdovszky explains: "We are registering increasing investor interest -
also on the part of international investors - and are very pleased with the
improvement. We still see significant upside potential for our share, and will
continue to work hard to bring the stock market price closer to the share's
inner value."
Outlook
As in earlier years, the Management continues to vet promising property
purchases and examine sales opportunities. Sales during the year of roughly 5%
of the property portfolio are planned, concentrating on Austria and Germany.
S IMMO AG still sees attractive investment opportunities in Berlin, and
predominantly in residential property. The lively demand for apartments means
that S IMMO's focus is on development of freehold apartment blocks on land
already owned by the Group. The start of some projects is scheduled for this
year.
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 Group invests in residential, office, hotel and retail property
in Austria, Germany, the Czech Republic, Slovakia, Hungary, Croatia, Romania and
Bulgaria. The Company's strategic core shareholders, Erste Group and Vienna
Insurance Group, are two of the region's largest financial services groups.
Consolidated income statement for the six months ended 30 June 2014
(EUR m)
01 - 06/2014 01 - 06/20131
Revenues 93.2 97.0
Rental income 56.8 59.0
Revenues from operating costs 17.3 18.8
Revenues from hotel operations 19.1 19.2
Other operating income 2.3 3.5
Expenses directly -26.2 -30.1
attributable to properties
Hotel operating expenses -14.6 -15.3
Gross profit 54.6 55.1
Income from property disposals 39.6 83.8
Book value of property disposals -39.6 -81.4
Gains on property disposals 0 2.4
Management expenses -7.6 -7.6
Earnings before interest,tax, 47.0 49.9
depreciation and amortisation (EBITDA)
Depreciation and amortisation -3.7 -4.7
Results from property valuation 8.9 2.8
Operating profit (EBIT) 52.2 48.0
Financing cost -29.8 -25.8
Financing income 0.8 1.4
Income from companies 0.3 0
measured at equity
Participating certificates result -2.9 -5.9
Net income before tax(EBT) 20.6 17.6
Taxes on income -4.2 -1.6
Consolidated net income 16.4 16.0
for the period
of which attributable to 14.8 14.5
shareholders in parent company
of which attributable to non- 1.6 1.5
controlling interests
Earnings per share (EUR) 0.22 0.22
1 Adjusted
Property key figures 30 June 2014
Standing properties number 204
Total usable space m² 1,222,379
Gross rental yield % 6.9
Occupancy rate % 89.9
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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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
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 ...
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 ...
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 ...