EANS-News: S IMMO AG Record result leads to dividend increase
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annual result
S IMMO AG: Record result leads to dividend increase
· Dividend expected to be raised to EUR 0.30
· EBT up 88%
· Net income more than doubled to EUR 77.2m
· EPRA NAV advances to EUR 11.75
Stock exchange listed S IMMO AG (Bloomberg: SPI:AV, Reuters: SIAG.VI) has
confirmed the preliminary figures released on 31 March 2016. The company once
again delivered a record result in the 2015 financial year - net income more
than doubled, coming in at EUR 77.2m. Ernst Vejdovszky, CEO of S IMMO AG,
comments: "The positive development on the German real estate market played a
key role in this success. In addition, the consistent reduction of our financing
costs also had a very positive impact. Based on these results, we will propose a
dividend distribution of EUR 0.30 at the Annual General Meeting."
Friedrich Wachernig, member of S IMMO AG's Management Board, adds: "It is our
stated goal to continue on a course of profitable growth and increase the
company's net worth for our shareholders over the long run. In the 2016
financial year, we expect to see a further improvement in FFO, which in
simplified terms represents cash flow after interest."
Development of gross profit
S IMMO generated rental income of EUR 111.7m in 2015 (2014: EUR 111.8m). The
sales completed over the past two years have naturally led to a reduction of
rental income in annual comparison. Revenues from hotel operations (Vienna
Marriott and Budapest Marriott Hotel) improved to EUR 45.5m (2014: EUR 42.1m).
Higher room occupancy and an increase in room rates contributed to this positive
development. As a result, S IMMO's total revenues amounted to EUR 190.7m in
2015, slightly higher than in the previous year (2014: EUR 188.5m). Gross profit
totalled EUR 105.2m (2014: EUR 105.7m).
Acquisitions in Germany
In the 2015 financial year, S IMMO sold six properties in Germany and Austria
with a total book value of EUR 45.9m (2014: EUR 51.6m). At the same time, S IMMO
bought 24 properties in Germany and one property in Vienna at a total purchasing
price of EUR 140.5m during the reporting period.
EBIT increases thanks to very strong revaluation gains
EBITDA for the 2015 financial year came to EUR 88.7m (2014: EUR 89.8m).
Revaluation gains developed very positively in 2015, amounting to EUR 84.6m as
at 31 December 2015 (2014: EUR 56.6m). This was due to both the asset management
activities aimed at raising the value of the properties and the steadily
improving sentiment on the German real estate market. Properties in Germany
accounted for EUR 73.1m (2014: EUR 33.4m) of the revaluation gains. As a result,
EBIT improved to EUR 165.7m (2014: EUR 138.7m), an increase of 19.4%.
Improvement in financing result
The financing result including the participating certificate result amounted to
EUR -53.4m as at 31 December 2015 (2014: EUR -79.2m). This significant
improvement can be attributed to, among other factors, the improved results from
derivatives, lower interest payments, and a better foreign currency result
compared with the prior year.
Net income at record level
Consequently, EBT came in at EUR 112.3m (2014: EUR 59.5m), an increase of 88.6%
over the previous year. On balance, S IMMO ended the 2015 financial year with a
net income of EUR 77.2m (2014: EUR 33.8m). Earnings per share also improved
significantly and came to EUR 1.17 (2014: EUR 0.46).
Success on the capital market
The S IMMO share had an outstanding year in 2015: On 31 December, the share was
listed at EUR 8.20, an increase of 32.90%. Adding the distributed dividend of
EUR 0.24 to the closing price results in a performance of 36.79%. The ATX
delivered annual performance of 11.16%, while the industry index IATX gained
17.59%. Consequently, the S IMMO share significantly outperformed both indices.
The Management Board feels that the further improvement in the business results
justifies an increase in the dividend. Therefore, a proposal to raise the
dividend to EUR 0.30 per share will be submitted to the Annual General Meeting
on
03 June 2016. The positioning of the S IMMO share as a sustainable dividend-
paying stock is in line with the company's long-term strategy.
Outlook for 2016
In the 2016 financial year, S IMMO expects to see a further improvement in FFO
(funds from operations) compared with 2015. The company expects to achieve value
enhancements in the existing portfolio once again in 2016 through targeted asset
management, successful letting, refurbishment measures, and positive
developments in some of our core markets, particularly in Berlin. In terms of
investments, S IMMO sees the greatest potential in Germany, especially for
office properties and plots of land offering development opportunities. The
company is evaluating rezoning measures, refurbishment projects, and the
development of spaces on plots of land already in the portfolio.
In Vienna, the company is involved in office development projects at Vienna
Central Station. Construction will start on one of these projects this spring.
In addition, construction will start on the office project The Mark in the heart
of Bucharest's main business district. The renovation of Sun Plaza shopping
centre has also already begun in Bucharest. According to Ernst Vejdovszky,
"Overall, we expect 2016 to be a good year - for the real estate industry in
general and for S IMMO in particular."
S IMMO AG
As Austria's first stock exchange listed real estate investment company, S IMMO
AG has stood for expertise, a strong portfolio, and profitable growth since
1987. The company invests in commercial property (office, retail, and hotel) as
well as residential property in four regions (Austria, Germany, and Central and
Southeastern Europe). S IMMO AG's strategic core shareholders are Erste Group
and Vienna Insurance Group.
Consolidated income statement for the period 01 January 2015-31 December 2015
in EUR m / fair value method
01-12/2015
01-12/2014
Revenues 190.7 188.5
thereof rental income 111.7 111.8
thereof revenues from operating costs 33.5 34.5
thereof revenues from hotel operations 45.5 42.1
Other operating income 3.5 4.7
Expenses directly attributable to properties -55.8 -56.2
Hotel operating expenses -33.2 -31.3
Gross profit 105.2 105.7
Income from property disposals 15.9 51.6
Book value of disposed properties -15.9 -51.4
Gains or losses on property disposals 0 0.2
Management expenses -16.5 -16.1
Results before tax,property valuation,
depreciation and amortisation, and
financing result (EBITDA) 88.7 89.8
Depreciation and amortisation -7.7 -7.6
Results on property valuation 84.6 56.6
Operating result (EBIT) 165.7 138.7
Financing result -48.9 -71.7
Participating certificates result -4.6 -7.5
Net income before tax (EBT) 112.3 59.5
Taxes on income -35.0 -25.7
Consolidated net income 77.2 33.8
thereof attributable to shareholders in parent
company 78.2 31.0
thereof attributable to non-controlling
interests -1.0 2.8
Earnings per share (in 1.17 0.46
EUR)
Key data on properties 31 December 2015
Portfolio properties Number 222
Total useable space millions of m2 1.2
Gross rental yield % 6.7
Occupancy rate % 92.7
Further inquiry note:
Investor Relations:
Andreas J. Feuerstein
Tel.: +43(0)50 100-27556
Fax: +43(0)50 100 9-27556
E-Mail: andreas.feuerstein@simmoag.atwww.simmoag.at
Corporate Communications:
Bosko Skoko
Tel.: +43(0)50 100-27522
Fax: +43(0)50 100 9-27522
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
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 ...