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3-month report
S IMMO AG: Successful start into 2016
· Significant increase in value for residential properties in Berlin
· Rental income up
· FFO I advances by 39%
· Net income for the period increases to EUR 27.6m
Following the record annual results in 2015, stock exchange listed S IMMO AG
(Bloomberg: SPI:AV, Reuters: SIAG.VI) continued the positive trend in the first
quarter of 2016. According to Ernst Vejdovszky, CEO of S IMMO AG, "We are seeing
highly dynamic price development on Berlin's residential property market. Under
these conditions, our residential properties enjoyed significant increases in
value, which in turn led to a sharp rise in our results. But other key operating
figures also developed very positively."
Development of earnings
During the first three months of 2016, S IMMO's total revenues amounted to EUR
46.3m (Q1 2015: EUR 44.3m), exceeding the prior-year figure. The rental income
included in this figure came to EUR 29.2m (Q1 2015: EUR 27.2m). Gross operating
profit from hotel operations totalled EUR 0.4m (Q1 2015: EUR 1.2m). This decline
is due to the overhaul of the Vienna Marriott Hotel, which involves a temporary
reduction in room occupancy.
The gross profit was EUR 24.0m (Q1 2015: EUR 23.3m). EBITDA increased to EUR
20.3m in the first quarter of 2016 (Q1 2015: EUR 19.7m). This increase can
mainly be attributed to the rise in rental income as well as a strong like-for-
like performance.
Revaluation gains developed very positively, amounting to EUR 36.9m as at 31
March 2016 (Q1 2015: EUR 0.8m). This was due to the positive development of the
Berlin residential property market. Overall, EBIT was up significantly on the
previous year at EUR 55.3m (Q1 2015: EUR 18.6m).
EBT came to EUR 34.7m, which is also considerably higher than the prior-year
figure (Q1 2015: EUR 9.6m). Due to the effects described above, the net income
for the period increased by EUR 19.5m to EUR 27.6m (Q1 2015: EUR 8.1m). Earnings
per share also improved and came to EUR 0.40 (Q1 2015: EUR 0.11).
FFO I, which is a key indicator for the operating performance of a property
company and does not include the sale of standing properties, rose by 39% and
totalled EUR 8.8m as at 31 March 2016 (Q1 2015: EUR 6.3m).
Capital market
The S IMMO share posted a slight loss of 0.62% during the first quarter of the
year and closed at EUR 8.149 as at 31 March 2016. However, the share rallied in
the subsequent weeks and was listed at EUR 8.710 on 20 May 2016.
In view of the excellent results for 2015, the Management Board will submit a
proposal to raise the dividend to EUR 0.30 per share to the Annual General
Meeting on 03 June 2016. Sustainability and predictability are key factors in S
IMMO's dividend policy.
Outlook for 2016
The first quarter saw very pleasing revaluations in Berlin, and S IMMO continues
to see very dynamic development on this market. In addition, S IMMO is working
on various development projects. For instance, an extensive renovation of the
Sun Plaza shopping centre is already in progress in Bucharest - a total of
20,000 m² is being redesigned in order to create space for up to 40 more shops.
Preparations are also under way for several exciting projects in Berlin and
Vienna that will get off the ground this year.
Friedrich Wachernig, member of S IMMO's Management Board, comments: "We started
this year full of optimism and our performance in the first quarter only
strengthened this. Our strategy is opening up lots of potential and the
environment for property companies remains highly favourable. As a result, our
outlook for the rest of 2016 is very positive."
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 2016 - 31 March 2016
in EUR millions / fair value method
01-03/2016 01-03/2015
Revenues 46.3 44.3
whereof rental income 29.2 27.2
whereof revenues from operating costs 9.9 8.5
whereof revenues from hotel operations 7.2 8.7
Other operating income 0.5 0.5
Expenses directly attributable to properties -16.1 -14.1
Hotel operating expenses -6.8 -7.4
Gross profit 24.0 23.3
Income from property disposals 1.4 6.7
Book value of disposals -0.8 -6.7
Gains or losses on property disposals 0.5 0
Management expenses -4.2 -3.7
Earnings before interest,tax, depreciation
and amortisation (EBITDA) 20.3 19.7
Depreciation and amortisation -1.9 -1.9
Results from property valuation 36.9 0.8
Operating result (EBIT) 55.3 18.6
Financing costs -20.1 -13.0
Financing income 0.8 4.2
Results from companies measured at equity 0 0.8
Participating certificates result -1.4 -1
Net income before tax (EBT) 34.7 9.6
Taxes on income -7.1 -1.5
Consolidated net income for the period 27.6 8.1
of which attributable to shareholders
in parent company 27.0 7.5
of which attributable to non-
controlling interests 0.6 0.6
Earnings per share (in 0.40 0.11
EUR)
Key data on properties 31.03.2016
Portfolio properties number 225
Total useable space millions of m2 1.3
Gross rental yield % 6.5
Occupancy rate % 93.0
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:
Elisabeth Wagerer
Tel.: +43(0)50 100-27867
Fax: +43(0)50 100 9-27867
E-Mail: Elisabeth.Wagerer@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 ...
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 ...