Warimpex Finanz- und Beteiligungs AG

Warimpex generates best annual results since initial public offering

Public disclosure of inside information according to article 17 MAR

Wien (pta011/26.04.2018/08:00) - * Positive remeasurement result for office properties and sale of eight hotel holdings lead to profit for the period of EUR 40.5 million
* Dividend of EUR 0.06 for the 2017 financial year to be proposed at the next Annual General Meeting
* NNNAV per share up 26 per cent to EUR 2.40
* Progress continues on development projects in Łódź and Krakow, completion in St. Petersburg
* Transactions in Poland, Russia, and Hungary

In the 2017 financial year, Warimpex Finanz- und Beteiligungs AG generated its best result since the initial public offering in 2007, with a profit for the period of EUR 40.5 million. The excellent results were driven primarily by positive office property valuations and sales proceeds from the disposal of eight hotel holdings in May 2017. Due to a change in the remeasurement result, the audited profit for the year is slightly lower than the preliminary earnings published at the beginning of April.

Warimpex had an eventful and successful year in 2017. The partial portfolio sale allowed the company to accomplish something in one fell swoop that had not been possible at a sufficient return during the economically challenging previous years. This transaction not only significantly improved the operating figures and put Warimpex back on strong footing, but also confirmed the viability of the company's corporate strategy, which is based on a long-term and flexible approach: to develop hotel and office properties and hold them in the portfolio until the time at which the highest added value can be realised through sale.

The positive annual results will allow the company to implement three key measures: new developments that are already under construction or in the planning stage, strategic acquisitions, and a commensurate dividend of EUR 0.06 that will be proposed at the coming Annual General Meeting.

Company performance in 2017
The sale of the eight hotel holdings significantly strengthened the company's financial base. Overall, the consolidated liabilities were reduced by roughly EUR 133 million, resulting in a considerable decline in the interest costs within the Group. The equity ratio also improved substantially,
increasing from 12 per cent in 2016 to 32 per cent in 2017.

With regard to operating figures, revenues in the Hotels segment fell from EUR 51.9 million to EUR 27.5 million due to the elimination of the eight hotel holdings that were sold. This decline was offset by the increase in revenues from the rental of office properties from EUR 8.6 million to EUR 13.2 million. This can be attributed primarily to the completion of the fully occupied Bykovskaya multi-use building at AIRPORTCITY St. Petersburg. Consolidated revenues contracted from EUR 62.2 million to EUR 42.4 million.