DGAP-News

IMMOFINANZ with stable operating performance in the first half year, but burdened by Russian crisis - share repurchase program resolved

DGAP-News: IMMOFINANZ AG / Key word(s): Real Estate/Half Year Results
IMMOFINANZ with stable operating performance in the first half year,
but burdened by Russian crisis - share repurchase program resolved

17.12.2014 / 19:53

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KEY FIGURES (in MEUR) // 1 May 2014 - 31 Oct. 2014 // Δ in % // 1 May 2013
- 31 Oct. 2013

Rental income // 234.6 // -4.7% // 246.1
Results of asset management // 184.4 // -11.0% // 207.1
Results of property sales // 5.7 // -20.8% // 7.2
Results of property development // 5.1 // n.a. // -8.2
Expenses not directly attributable // -29.8 // 33.2% // -44.6
Results of operations // 169.5 // 1.6% // 166.8
Operating profit (EBIT) // 194.4 // -15.5% // 230.2
Net profit* // -30.2 // n.a. // 165.0
Gross cashflow* // 143.9 // -24.6% // 190.9

* The comparable prior year figure is including 100% BUWOG


The results of operations generated by IMMOFINANZ Group were stable in a
year-on-year comparison at EUR 169.5 million in the first half of 2014/15
(H1 2013/14: EUR 166.8 million). In spite of this performance, net profit
for the first half of 2014/15 was negative at EUR -30.2 million (H1
2013/14: EUR 110.3 million resp. EUR 165.0 million incl. 100% BUWOG). This
development resulted primarily from the negative effects caused by the
foreign exchange-adjusted revaluation of investment properties in the
second quarter, which reflected the decline in the value of properties in
Eastern Europe and above all in Russia, Poland and the Czech Republic.
These foreign exchange-adjusted revaluation results of EUR -75.0 million
reduced net profit, but have no effect on cash. Current income tax expense
was also higher in the second quarter, among others due to the sale of
logistics properties in Switzerland. Earnings before tax improved
substantially over the first quarter to plus EUR 8.9 million in the second
quarter (Q1 2014/15: EUR -18.5 million), but net profit for the second
quarter was negative at EUR -16.2 million (Q1 2014/15: EUR -14.0 million).

"The Ruble continued to weaken against US Dollar and Euro during the second
quarter of our 2014/15 financial year, this trend has intensified within
the last weeks and days, with the decline in the Ruble from the beginning
of 2014 to the beginning of December amounting to nearly 40%. These
developments have also had an effect on our business in Russia and, in
turn, could have a stronger-than-expected influence on our operating
results during the coming quarters through the extension of short-term
temporary reductions in lease payments and a possible further decline in
the exchange rate", says Eduard Zehetner, CEO of IMMOFINANZ Group. The