DGAP-News

IMMOFINANZ: Increase in net profit for the first half-year, results of operations negatively influenced by rent reductions in Moscow and non-recurring effects from settlements with investors

DGAP-News: IMMOFINANZ AG / Key word(s): Real Estate/Miscellaneous
IMMOFINANZ: Increase in net profit for the first half-year, results of
operations negatively influenced by rent reductions in Moscow and
non-recurring effects from settlements with investors

16.12.2015 / 21:34
The issuer is solely responsible for the content of this announcement.

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KEY FIGURES (in MEUR)* // 1 May 2015 - 31 Oct. 2015 // Δ in % // 1 May 2014
- 31 Oct. 2014

Rental income // 160.3 // -24.8% // 213.2
Results of asset management // 102.1 // -38.8% // 166.8
Results of property sales // 6.1 // -10.9% // 6.9
Results of property development // -5.6 // n.a. // 5.5
Other operating expenses // -53.5// 95.2% // -27.4
Results of operations // 68.3 // -56.0% // 155.3
Revaluation of investment properties // 359.5 // >100% // 18.4
Financial results // -203.1 // 32.2% // -153.5
Net profit // 132.2 // >100% // 3.4
Cashflow from operating activities // 83.6 // 1.2% // 82.6

* Due to the sale of the logistics portfolio, the earnings contribution
from these properties is now reported under results of discontinued
operations. The comparable prior year data were adjusted accordingly.

IMMOFINANZ generated net profit of EUR 132.2 million in the first half of
the 2015/16 financial year (H1 2014/15: EUR 3.4 million). This increase was
supported primarily by positive effects from property valuation. The
results of operations totalled EUR 68.3 million (H1 2014/15: EUR 155.3
million) and resulted from a decline in rental income to EUR 160.3 million
(H1 2014/15: EUR 213.2 million) that was caused by temporary rent
reductions in Moscow and the planned sale of properties. Another
contributing factor was the increase in other operating expenses to EUR
-53.5 million (H1 2014/15: EUR -27.4 million) as a non-recurring effect for
the settlement of legal proceedings by investors.

"IMMOFINANZ's results of operations for the first half of 2015/16 were
influenced, above all, by two factors: on the one hand, we have the
continuing tense political and economic situation in Russia, which has led
us to grant temporary rent reductions to the tenants in our Moscow shopping
centers. We are reviewing and renegotiating these agreements on a regular
basis, but the situation remains challenging and estimates for the future
course of the Russian economy are still connected with considerable
uncertainty. On the other hand, we addressed the difficult and prolonged