Warimpex Finanz- und Beteiligungs AG

Positive third quarter for Warimpex: Revenues from the letting of office properties up 54 per cent

Public disclosure of inside information according to article 17 MAR

Vienna/Warsaw (pta008/30.11.2017/08:00) - * Profit for the period improved significantly from EUR 6.6 million in the prior year to EUR 34.2 million
* Hotel revenues down by 38 per cent due to partial sale of hotel portfolio, revenues from the rental of office properties increased by 54 per cent
* Development projects: Completion in St. Petersburg, topping out in Łódź, and start of construction in Krakow

Warimpex Finanz- und Beteiligungs AG generated an extremely positive result in the first nine months of 2017: At EUR 34.2 million, the profit for the period was significantly higher than in the prior-year period (Q1-3 2016: EUR 6.6 million). The last three quarters were primarily marked by progress in the development projects in St. Petersburg, Łódź, and Krakow as well as the partial sale of the hotel portfolio at the end of May. The company significantly strengthened its financial base by selling eight hotel holdings. The equity ratio improved substantially from 7 per cent to 34 per cent. The group's liabilities were lowered by roughly EUR 164 million in total, resulting in a considerable reduction of the interest costs within the group.

A detailed look at the results for the first three quarters
Due to the decline in the number of rooms, hotel revenues fell to EUR 24.6 million (minus 38 per cent) in the first nine months of the year. This effect was not yet significant in the first half of the year because the hotel revenues were included in the results up to the closing of the transaction at the end of May. They were no longer included from June onward. By contrast, revenues from the letting of office properties increased to EUR 9.6 million (plus 54 per cent), largely due to the completion of the fully occupied multi-use building at AIRPORTCITY St. Petersburg and index adjustments. Consolidated revenues declined to EUR 35.5 million (minus 24 per cent).
EBITDA increased from EUR 11.1 million to EUR 31.8 million due to sales proceeds, and EBIT also improved considerably from EUR 14.6 million to EUR 45.5 million. The financial result including joint ventures went from minus EUR 6.3 million to minus EUR 11.5 million due to non-cash exchange rate losses in Russia. Overall, the result for the period for Warimpex improved from EUR 6.6 million in the previous year to EUR 34.2 million.