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6-month report
· Significant value increases, particularly in Germany
· Revaluation gains realised through sales
· Further investments planned in Germany
· Profit for the period increases to EUR 85.5m
The first six months of the 2016 financial year were extremely successful for S
IMMO. This was largely due to the revaluation gains, which amounted to EUR
106.9m in the first half of 2016. The dynamic growth on the German real estate
market was the primary driver of this development. According to Ernst
Vejdovszky, CEO of S IMMO AG, "Berlin's residential property market has enjoyed
highly dynamic development in recent months. We decided to realise a portion of
the value increases achieved in our portfolio by selling around 20% of our space
in Germany. This is in line with our cycle-oriented strategy and creates value
for our investors."
Development of earnings
In the first half of 2016, S IMMO AG's total revenues amounted to EUR 95.3m (HY
2015: EUR 92.2m), an increase over the prior-year figure. The rental income
included in this figure reflects the property purchases completed since the
beginning of 2015 and came to EUR 58.5m (HY 2015: EUR 54.6m). Gross operating
profit from hotel operations declined to EUR 3.5m (HY 2015: EUR 5.0m) due to the
overhaul of the Vienna Marriott Hotel, which resulted in a temporary reduction
in room occupancy in the first half of the year.
Property management expenses amounted to EUR 31.2m in the first half of the year
(HY 2015: EUR 27.0m). The gross profit was EUR 50.5m (HY 2015: EUR 50.7m).
EBITDA came to EUR 43.0m in the first half of 2016 (HY 2015: EUR 43.1m). This
slight decrease was due to the temporary decline in the profit from hotel
operations. Revaluation gains developed very positively, amounting to EUR 106.9m
as at 30 June 2016 (HY 2015: EUR 9.7m). In addition to the continued outstanding
development in Germany, both Austria and CEE (Hungarian office properties)
contributed to this positive result.
Overall, EBIT was up significantly on the previous year at EUR 145.9m (HY 2015:
EUR 48.9m). As a result, EBT amounted to EUR 107.3m (HY 2015: EUR 26.9m). The
net profit for the period increased to EUR 85.5m (HY 2015: EUR 20.9m). Earnings
per share improved once again and came to EUR 1.27 (HY 2015: EUR 0.30).
Capital market
S IMMO continues to benefit from the current low interest rates. At the end of
May, the share price briefly reached EUR 9.00 for the first time since 2007.
Despite the turbulent environment on the stock markets, the S IMMO share closed
the quarter at EUR 8.40, a gain of 2.44% (ex dividend) compared with the closing
price on 31 December 2015.
S IMMO increased the dividend for its shareholders for the fourth time in a row.
The payout for the 2015 financial year was 30 cents per share, which equates to
a dividend yield of over 3.6% in relation to the closing price on 31 December
2015. This payment was made on 10 June 2016.
Outlook for 2016
Germany remains an important market for S IMMO. The company bought six
properties there at a total price of EUR 9.2m over the first six months of 2016.
In addition, purchases amounting to EUR 54.1m for which S IMMO AG will not
obtain ownership until after 30 June 2016 were contractually agreed as at the
editorial deadline. The company currently sees tremendous potential in office
properties in particular. There are also a number of development projects on the
agenda: In Bucharest, the development of a promising office property called The
Mark is starting. The refurbishment of the Sun Plaza shopping centre is also
proceeding according to plan. S IMMO is active on its home market of Vienna as
well, including at Quartier Belvedere Central.
According to Friedrich Wachernig, member of S IMMO AG's Management Board, "We
are also extremely optimistic for the second half of the year. We are working
intensively on development projects and value-enhancement measures across our
portfolio. Several hugely busy quarters lie ahead in which we will extend,
develop, and optimise our portfolio."
Consolidated income statement for the period 01 January 2016-30 June 2016
in EUR millions / fair value method
01-06/2016 01-06/2015
Revenues 95.3 92.2
thereof rental 58.5 54.6
income
thereof
revenues from operating 18.4 16.7
costs
thereof
revenues from hotel 18.3 20.9
operations
Other operating income 1.3 1.4
Expenses directly -31.2 -27.0
attributable to properties
Hotel operating expenses -14.9 -15.9
Gross profit 50.5 50.7
Income from property 3.9 15.9
disposals
Book value of property -3.1 -15.9
disposals
Gains on property 0.8 0
disposals
Management expenses -8.3 -7.7
Earnings before interest,
tax, depreciation and 43.0 43.1
amortisation
(EBITDA)
Depreciation and -4.0 -3.8
amortisation
Results from property 106.9 9.7
valuation
Operating result (EBIT) 145.9 48.9
Financing cost -36.4 -22.3
Financing income 1.1 0.7
Results from companies 0 1.0
measured at equity
Participating certificates -3.3 -1.4
result
Net income before tax 107.3 26.9
(EBT)
Taxes on income -21.7 -6.0
Consolidated net income 85.5 20.9
for the period
of which
attributable to 84.6 19.9
shareholders in parent
company
of which
attributable to non- 0.9 1.0
controlling interests
Earnings per share (in 1.27 0.30
EUR)
Key data on properties 30 June 2016
Portfolio properties number 228
Total useable space millions of m2 1.3
Gross rental yield % 6.2
Occupancy rate % 93.3
Apparent mathematical errors may be the result of rounding errors caused by
software.
Further inquiry note:
Investor Relations:
Sylwia Milke
phone: +43(0)50100-27402
fax: +43(0)05100-927402
mailto:sylwia.milke@simmoag.at
www.simmoag.at
Corporate Communications:
Elisabeth Wagerer
phone: +43(0)50100-27867
fax: +43(0)05100-927867
mailto:elisabeth.wagerer@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
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 ...
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 ...
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 ...