S IMMO AG

EANS-News: S IMMO AG
results higher again

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9-month report

S IMMO AG: results higher again
 

·    Net profit for period increased to EUR 22.2m
·    EBIT up  at EUR 74.9m
·    EBT improved by 6.6%
·    Successful issue of EUR 100m corporate bond
·    Targets for 2014 confirmed
 

Stock exchange listed S IMMO AG (Bloomberg: SPI.AV, Reuters: SIAG.VI) looks back
on a highly successful third quarter of 2014. Ernst Vejdovszky, Chairman of
S IMMO AG's Management Board, comments: "We are definitely on the way to
achieving our targets for the current financial year. Based on these impressive
quarterly figures, we are happy to confirm that for the year as a whole we shall
improve upon the Group's very good results in 2013."
 
Friedrich Wachernig, member of S IMMO AG's Management Board, continues: "We
sense movement and growing optimism in the countries we are active in.
Successful lettings - such as those in Budapest recently - provide further
confirmation. In addition, the historically low level of interest rates is also
having very beneficial effects on our industry."
 
Gross profit
In the first nine months of 2014, S IMMO's revenues amounted to EUR 140.5m,
compared with EUR 145.3m in the same period last year. Despite property
disposals, the rental income still came out at EUR 84.5m (Q3 2013: EUR 88.3m).
Revenues from hotel operations rose to EUR 30.2m, after EUR 29.2m for the first
three quarters of 2013. Gross profit from hotel operations improved from
EUR 6.5m to EUR 6.9m.
 
Property management expenses of EUR 41.0m in the first three quarters of 2014
decreased by 10.6%, compared with EUR 45.9m for the same period last year.
Reductions in property related costs, combined with a higher gross profit from
hotel operations, largely made up for the lower rental income as a result of
property sales. The good operating performance meant that the gross profit
remained nearly unchanged as against the previous year despite the reduction in
rental income resulting from property disposals.
 
EBITDA and EBIT
EBITDA for the first three quarters was EUR 67.6m, compared with EUR 75.4m in
the same period in 2013. Total property revaluations amounted to EUR 12.8m (Q3
2013: EUR 4.0m). EBIT came to EUR 74.9m, being higher than the EUR 72.2m in the
same period last year.
 
Net profit for period higher again
The financial result for the first three quarters of 2014 including the
participating certificates results amounted to EUR -47.6m, as against EUR -46.6m
for the first nine months of 2013. This was achieved in spite of negative
foreign currency effects. EBT came out at EUR 27.3m, an increase of 6.6% on the
EUR 25.6m for the same period last year. The consolidated net profit rose to
EUR 22.2m (Q3 2013: EUR 21.4m).
 
 
 
Key indicators at last year's very satisfactory levels
FFO I (Funds from operations) for the first three quarters of 2014 amounted to
EUR 17.9m, compared with EUR 22.5m a year earlier. FFO II, which includes gains
on property sales and valuation gains on properties sold in the current year,
was EUR 33.1m, 3.2% better than the EUR 32.1m in the same period in 2013.
 
Net operating income (NOI) for the period was EUR 76.3m, compared with EUR 76.7m
a year earlier. The NOI margin improved by 1.5 percentage points to 54.3%.
 
As at 30 September 2014, both balance sheet NAV (book value) and EPRA NAV per
share rose: the book value per share stood at EUR 7.97 (31 December 2013:
EUR 7.83), while EPRA NAV per share was EUR 9.89 (31 December 2013: EUR 9.76).
 
Capital markets
Capital markets continue to be dynamic: The S IMMO share closed the third
quarter at EUR 6.160 for a very satisfactory year-to-date gain of 16.5%. This
means that the share significantly outperformed the ATX and IATX.
 
At the end of September, S IMMO issued a EUR 100m five-year corporate bond with
a coupon of 3% p.a., thus using the favourable interest environment to drive the
growth of the Group forward. The bond was almost three times oversubscribed when
placed with institutional investors and was a complete success.
 
Outlook
S IMMO AG's strategy remains unchanged: the Group invests in four property use
types and in four regions, focusing on European Union capital cities. This makes
it possible to take advantage of different real estate cycles, and recognise
potential early. The focus is primarily on the booming property market in
Berlin, where the home ownership ratio of around 15% and continuing high influx
make for a very attractive scenario. S IMMO is planning to construct freehold
apartment projects on land it already owns. At the same time, the Group is
looking into investments in commercial properties.
 
On the basis of the good quarterly results, the Management Board reaffirms its
goal for the financial year 2014: once again to increase the results of the
previous year. The Group also intends to continue to pursue its steady dividend
policy.
 
 
 
 
 
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 three quarters ended 30 September 2014
(EUR m)
 


                                  01 - 09/2014              01 - 09/2013 1
Revenues                              140.5                      145.3
Rental income                          84.5                       88.3
Revenues from operating costs          25.9                       27.9
Revenues from hotel operations         30.2                       29.2
Other operating income                  3.5                        4.6
Expenses directly attributable
to properties                         -41.0                      -45.9
Hotel operating expenses              -23.2                      -22.7
Gross profit                           79.7                       81.4
Income from property disposals         48.4                       90.9
Book value of property disposals      -48.4                      -85.8
Gains on property  disposals            0                          5.1
Management expenses                   -12.1                      -11.0
Earnings before interest,tax,
depreciation and amortisation (EBITDA) 67.6                       75.4
Depreciation and amortisation          -5.5                       -7.2
Gains on property valuation            12.8                        4.0
Operating profit (EBIT)                74.9                       72.2
Financing cost                        -45.6                      -39.7
Financing income                        1.7                        1.9
Income from companies                   0.4                        0
measured at equity
Participating certificates results     -4.1                       -8.8
Net income before tax  (EBT)           27.3                       25.6
Taxes on income                        -5.1                       -4.2
Consolidated net income                22.2                       21.4
of which attributable to
shareholders in parent company         20.2                       19.6
of which attributable to               2.0                         1.8
non-controlling interests
                                                                                
Earnings per share (EUR)               0.30                       0.29

 

1 Adjusted  
 


Property information                                           30 September 2014
Standing properties                         number                           203
Total usable space                    (million m²)                           1.2
Gross rental yield                             (%)                           7.0
Occupancy rate                                 (%)                          90.9

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 
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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
 



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