S IMMO AG

S IMMO AG: Strong start to 2018

Business news for the stock market

Wien (pta010/29.05.2018/07:45) - S IMMO AG: Strong start to 2018

* Earnings per share increased to EUR 0.22
* EBT rose to EUR 18.1m
* 2018 to be a transitional year after large-scale sales in prior years
* EPRA NAV improved to EUR 17.79 per share

The listed real estate investment company S IMMO AG once again demonstrated its operational strength in the first quarter of 2018. S IMMO pursues a cycle-oriented strategy and has realised profitable property sales in the past two years with a total volume of roughly EUR 700m. Despite the therefore reduced rental income, the net result for the period remained stable in annual comparison. According to Ernst Vejdovszky, CEO of S IMMO AG, "2018 is a transitional year for us. We will offset the sales that have been completed in the past few years with purchases and project developments, but it will take a little bit of time. That's why we are especially proud of the fact that we were still able to increase our earnings per share."

Rental income and strong profit from hotel operations
During the first three months of 2018, S IMMO's total revenues amounted to EUR 43.5m (Q1 2017: EUR 46.5m). As expected, the large-scale sales in recent years led to a decline, but this was mitigated by a positive like-for-like performance of the portfolio properties and acquisitions. Following the successfully completed renovation of the Vienna Marriott Hotel, revenues from hotel operations increased significantly to EUR 10.0m (Q1 2017: EUR 7.4m). Positive development was also observed in property operation, the operating expenses were improved from EUR 16.5m in the prior year to EUR 14.4m in the first quarter of 2018.

Active in the acquisition of properties
The sales completed in recent years will be gradually mitigated through investments and project developments. To this end, S IMMO has been particularly active on the German market this year, with a continued focus on medium-sized German cities that are enjoying strong economic development and offer growth potential. 18 properties with a total purchase price of EUR 26.3m were acquired in the first quarter, and agreements were concluded for 13 additional properties with a total transaction volume of EUR 43.6m through the end of May.