S IMMO AG

Positive annual trend continues

Business news for the stock market

Wien (pta007/28.11.2017/07:45) - S IMMO AG: Positive annual trend continues

* Cash result (FFO I) improved by 17.6%
* Operating result (EBITDA) up by 3.8%
* EPRA NAV increases to EUR 16.06
* S IMMO share posts price gain of around 50%

The first three quarters of the 2017 financial year were extremely successful for S IMMO: major drivers in this outcome were gains from property valuation, which amounted to EUR 68.2m as of 30 September 2017, and were mainly attributable to property increases in Germany, Austria and Bulgaria. FFO I for the first three quarters of 2017 came to EUR 36.8m and was thus up 17.6% year-on-year. Ernst Vejdovszky, CEO of S IMMO AG, comments: "Timing is everything in the real estate business. For both the two office buildings in Vienna's Viertel Zwei and the Serdika Center in Sofia, we saw clear indications that it was the right time to sell. You seldomly reach the absolute peak, but making profits is a key element of our business and creates sustainable value for our shareholders."

Strong operating performance again
S IMMO's total income for the first nine months of 2017 amounted to EUR 144.2m (Q3 2016: EUR 147.1m), roughly on a par with the previous year. The rental income included in this figure amounted to EUR 86.0m (Q3 2016: EUR 88.5m) and reflected the sales compared with the previous year.

Property management expenses amounted to EUR 47.2m (Q3 2016: EUR 48.9m) in the first three quarters of 2017. Gross profit came to EUR 74.2m (Q3 2016: EUR 77.6m).

Successful property transactions
In the third quarter of 2017, S IMMO sold the office buildings "Hoch Zwei" and "Plus Zwei" in Vienna and the Serdika Center shopping centre along with its associated office property in Sofia. The profit on disposals stems largely from the sale of the Serdika property. Now that this property has been sold, S IMMO no longer owns any leased properties in Bulgaria.

At the same time, S IMMO was also active in terms of acquisitions in the first three quarters of 2017. German properties representing a transaction volume of around EUR 61m were added to the S IMMO portfolio in the reporting period. In addition, the equity investments in CA Immo and Immofinanz were continued.

EBITDA and EBIT
In the first three quarters of 2017, EBITDA amounted to EUR 71.3m (Q3 2016: EUR 68.7m). Revaluation gains developed very positively, amounting to EUR 68.2m (Q3 2016: EUR 107.6m) as of 30 September 2017. This development was mainly driven by the German market, although Austria and CEE also made a substantial contribution to the revaluation gains.