DGAP-News

IMMOFINANZ confirms preliminary data: improvement in results of operations, but net profit negatively influenced by valuation effects

DGAP-News: IMMOFINANZ AG / Key word(s): Real Estate/Final Results
IMMOFINANZ confirms preliminary data: improvement in results of
operations, but net profit negatively influenced by valuation effects

06.08.2015 / 20:12

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KEY DATA (in MEUR)* // 1 May 2014 - 30 April 2015 // Δ in % // 1 May 2013 -
30 April 2014

Rental income // 426.3 // -10.9% // 478.5
Results of asset management // 313.3 // -18.4% // 383.9
Results of property sales // 43.5 // >100% // 5.7
Results of property development // 11.0 // n.a. // -45.0
Other operating expenses // -73.6 // -19.1% // -91.1
Results of operations // 316.5 // 17.0% // 270.5
Other revaluation results // -100.5 // n.a. // 199.2
Operating profit (EBIT) // 216.0 // -54.0% // 469.7
Financial results // -565.2 // >100% // -248.6
Net profit from continuing operations // -361.4 // n.a. // 72.0

* The comparable prior year figures were adjusted accordingly


IMMOFINANZ generated results of operations totalling EUR 316.5 million in
2014/15, for an increase of 17.0% over the previous financial year
(2013/14: EUR 270.5 million). Higher earnings contributions from property
sales (EUR 43.5 million versus EUR 5.7 million in 2013/14) and property
development (EUR 11.0 million versus EUR -45.0 million in 2013/14) more
than offset the expected decline in results of asset management (EUR 313.3
million versus EUR 383.9 million in 2013/14), which reflected the temporary
reduction in rental income from Russia and the sale of properties during
the year. The increase was also supported by a reduction in overhead costs:
other operating expenses were 19.1% lower at EUR -73.6 million for the
reporting year.

In spite of this positive development, net profit for the year is negative
at EUR -361.4 million (2013/14: EUR 72.0 million, resp. EUR 176.9 million
incl. 100.0% of BUWOG). This development is attributable above all to the
current economic conditions in Russia, which were reflected in the
valuation of the Moscow shopping centers, and to the write-down of a number
of properties in Eastern Europe because of the competitive market
environment or pending modernisation projects. These non-cash foreign
exchange-adjusted revaluations of EUR -312.3 million (2013/14: EUR -179.7
million) included EUR -197.0 million from the Russian portfolio and led to
a reduction in net profit. Financial results were also substantially lower
than the previous year (EUR -565.2 million versus EUR -248.6 million in