EANS-News: S IMMO AG S IMMO AG remains on course for record-setting year
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9-month report
· Substantial value increases, particularly in Germany
· Revaluation gains realised through sales
· Further investments planned in Germany
· Profit for the period increases to EUR 119.8m
The 2016 financial year is set to be another record year for S IMMO. As at the
end of the third quarter, the positive trend of the preceding quarters has been
reaffirmed and can be attributed to various factors. With the sale of around one
third of its German residential portfolio, the company realised the valuation
gains of the past years. Success was also achieved in the company's operating
business. Ernst Vejdovszky, CEO of S IMMO AG, had the following comment: "Taking
advantage of peaks on our markets and taking profits is a key element of our
cycle-oriented strategy. At the same time, we are making purchases on the
markets in which we see upside potential."
Development of earnings
The first three quarters of the financial year 2016 were extremely successful
for S IMMO. This was largely due to the revaluation gains, which amounted to EUR
107.6m as at 30 September 2016 (Q3 2015: EUR 16.8m). This development was
primarily attributable to the dynamic growth on the German real estate market
and sales-related revaluation gains. Key indicators such as EBIT, EBT, and net
income for the period increased significantly compared with the same period of
the previous year. EBIT climbed to EUR 170.5m (Q3 2015: EUR 76.1m), EBT totalled
EUR 118.4m (Q3 2015: EUR 34.6m), and net income for the period amounted to EUR
119.8m (Q3 2015: EUR 28.2m).
In the third quarter of 2016, S IMMO sold part of its German property portfolio.
The sale comprised a total of around 1,500 residential units in Berlin and the
region of Hamburg. In terms of space, the transaction volume accounts for
roughly one-third of S IMMO's German residential portfolio. The closing for the
majority of the properties in Berlin already took place in the third quarter.
The transactions for one property in Berlin and the remaining properties that
are held for sale as at 30 September are expected to close in late 2016/early
2017. In the interim financial statements as at 30 September, the sale described
above makes a positive contribution, primarily to revaluation gains and - due to
the reversal of deferred taxes - also to the tax result.
Capital market
At the end of the quarter, the S IMMO share was listed at a price of EUR 9.37,
having achieved a year-to-date gain of 14.27%. It thus significantly
outperformed both the ATX and the IATX once again. The average target price of
the analysis firms that assess the S IMMO share was EUR 10.17 as at 30 September
2016. In the reporting period, the share also posted increased trading volumes
as well as growing investor interest from countries such as Switzerland and
Hungary.
At the end of September, the Management Board approved the launch of an
additional share repurchase programme. The volume is up to 669,171 shares,
equivalent to 1% of the current share capital. Prior to the launch of the
programme, the company held 190,003 treasury shares, equivalent to around 0.28%
of the current share capital. The approved programme started on 04 October 2016
and will run until 09 December 2016.
Outlook
The sale of parts of the German residential portfolio does not change the fact
that Germany will remain the focus of S IMMO AG's investment activities. Over
the past three quarters, eight properties with total space of more than 45,000
m² were added to the German portfolio, and additional purchases are planned in
the coming months. In addition, the company is working intensively to prepare
for exciting development projects in Berlin.
S IMMO is also active in Vienna. Along with the Quartier Belvedere Central
development next to the new Vienna Central Station, another project in the fifth
district of Vienna is ready to go. In Bucharest, the conversion of the Sun Plaza
shopping centre is going according to plan and the construction of the office
property The Mark started in the summer.
According to Friedrich Wachernig, member of S IMMO AG's Management Board, "We
can look back at several successful months and are very confident that we will
close 2016 with another record result. At this point, we are not resting on our
laurels, but are instead working hard to create additional value for our
shareholders in the coming years."
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 2016-30 September 2016
in EUR m / fair value method
01-09/2016 01-09/2015
Revenues 147.1 141.6
rental income 88.5 83.2
revenues from operating costs 28.3 25.4
revenues from hotel operations 30.2 33.0
Other operating income 2.1 2.3
Expenses directly attributable to properties -48.9 -42.6
Hotel operating expenses -22.7 -23.9
Gross profit 77.6 77.4
Income from property disposals 192.9 15.9
Book value of property disposals -188.5 -15.9
Gains on property disposals 4.4 0
Management expenses -13.2 -12.2
Earnings before interest,tax, depreciation and
amortisation (EBITDA) 68.7 65.2
Depreciation and amortisation -5.9 -5.8
Results from property valuation 107.6 16.8
Operating result (EBIT) 170.5 76.1
Financing costs -50.9 -41.1
Financing income 2.2 0.9
Results from companies measured at equity 0.5 0.8
Participating certificates result -3.9 -2.2
Net income before tax (EBT) 118.4 34.6
Taxes on income 1.4 -6.4
Consolidated net income for the period 119.8 28.2
Of which attributable to shareholders
in parent company 118.6 26.5
Of which attributable to
non- controlling interests 1.2 1.6
Earnings per share (in 1.78 0.40
EUR)
Key data on properties 30 September 2016
Portfolio properties number 190
Total useable space millions of m2 1.2
Gross rental yield % 6.5
Occupancy rate % 93.5
Due to automatic data processing, this press release may contain apparent
mathematical errors in the rounding of figures.
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 1 22795-0
FAX: +43 1 22795-91125
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 ...