Warimpex Finanz- und Beteiligungs AG

Warimpex posts profit of EUR 12.3 million in the first half of 2016

Public disclosure of inside information according to article 17 MAR

Vienna (pta012/30.08.2016/08:00) - * Result for the period turns to a positive EUR 12.3 million (1-6 2015: minus EUR 24.9 million)
* Increase in revenues from the letting of office properties due to completions in St. Petersburg and Budapest, slight decrease in hotel revenues due to disposals
* Financial result improves from minus EUR 3.4 million to plus EUR 3.9 million
* Building permits issued for projects in Lodz and Krakow
* Letter of intent signed for hotel sale - deal expected to close in the second half of 2016

The positive trend from the first quarter continued for Warimpex Finanz- und Beteiligungs AG. On the one hand, operating activities developed well and had a positive impact on the result for the first half of 2016. On the other, the Russian rouble recovered further in the second quarter, offsetting part of the non-cash foreign currency losses posted in prior periods, and the International Monetary fund slightly upped its projections for economic growth in Russia in 2016 and 2017. We also made pleasing progress in our development activities.

Occupancy at the fully consolidated hotels rose while room rates remained stable. However, the reduction in the number of rooms that resulted from the sale of the two establishments in Ekaterinburg caused revenues from the Hotels segment to decline by 6 per cent to EUR 24.2 million. Including the joint ventures on a proportionate basis, the NOP per available room declined by 6 per cent in part due to the sale of the andel's hotel in Berlin in July 2015 and in part due to the poorer performance of the two hotels in Paris, where the market has contracted following recent events. Revenues from office buildings rose. The completion and letting of the Zeppelin office tower at AIRPORTCITY St. Petersburg and of the Erzsébet office building in Budapest caused a EUR 0.7 million increase in revenues from the rental of office properties to EUR 4 million. This boosted total revenues by 4 per cent to EUR 29 million. The gross income from revenues also improved by 25 per cent to EUR 12.1 million.

EBITDA climbed from EUR 5.9 million to EUR 6.3 million, and EBIT improved from EUR -19.2 million to a positive EUR 10,2 million. This was largely due to measurement gains of EUR 7.9 million in our development projects. Because of non-cash foreign currency gains, the financial result pleasingly turned from a negative EUR 3.4 million to plus EUR 3.9 million. Interest costs decreased substantially from EUR 11.8 million to EUR 6.4 million. In addition to the reduction of loan obligations, this resulted from the arrangement of refinancing under better terms. All in all, this led to a profit of EUR 12.3 million for the period, a marked improvement over the comparison period (1-6 2015: loss of EUR 24.9 million).