S IMMO AG

Best result in company's history

Yearly financial report according to article 82 section 4 BörseG

Wien (pta009/05.04.2017/07:30) - S IMMO AG: Best result in company's history

- Net income for the year increased by 165% to EUR 204.3m
- EPRA NAV up 24.4% at EUR 14.62 per share
- Earnings per share improved to EUR 2.98
- Dividend totalling EUR 0.40 planned

Stock exchange listed S IMMO ended the financial year 2016 with a net income of EUR 204.3m (2015: EUR 77.2m), the best result in the company's history. Ernst Vejdovszky, CEO of S IMMO AG, commented: "An important element of our business strategy is to take advantage of property cycles. In the past financial year, we generated substantial profits - primarily through the sale of a part of our Germany portfolio. This is also a key driver of our excellent results."

Development of gross profit
In 2016, S IMMO AG increased its rental income to EUR 118.2m (2015: EUR 111.7m). Revenues from hotel operations (Vienna Marriott and Budapest Marriott Hotel) amounted to EUR 42.9m (2015: EUR 45.5m). The lower revenues compared to the previous year are due to the renovation of the Vienna Marriott Hotel in the first half of the year, in which around half of the available rooms were renovated. S IMMO's total income amounted to EUR 198.8m, up on the previous year's figure (2015: EUR 190.7m). Gross profit totalled EUR 106.0m (2015: EUR 105.2m).

Disposals in Germany
In the financial year 2016, S IMMO sold a total of around 1,500 residential units in Berlin and the Hamburg region - accounting for around one-third of the German residential portfolio in terms of area. With the sale, S IMMO secured the increases in value achieved by then for this portion of the portfolio.

Higher EBIT thanks to very strong revaluation gains
EBITDA for the financial year 2016 consequently increased to EUR 92.5m (2015: EUR 88.7m). Revaluation gains more than doubled in 2016, amounting to EUR 194.0m as at 31 December 2016 (2015: EUR 84.6m). The measures aimed at increasing the value of properties in Asset Management and in particular the constantly improving sentiment on the German property market played a part here.

Properties in Germany accounted for EUR 136.7m (2015: EUR 73.1m) of revaluation gains. Overall, revaluation gains for the Germany/Austria segments amounted to EUR 174.8m (2015: EUR 87.8m), while CEE/SEE accounted for EUR 19.2m (2015: EUR -3.2m) in total. EBIT consequently rose to EUR 278.7m (2015: EUR 165.7m), representing an increase of around 68% compared to 2015.