S IMMO AG

S IMMO AG: Record FFO in first half of 2018

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Wien (pta008/30.08.2018/07:45) - S IMMO AG: Record FFO in first half of 2018

* Record half-year FFO I of EUR 34.4m
* Financial result improves by roughly EUR 20m
* NAV per share rises to EUR 14.44
* EPRA NAV per share advances to EUR 17.96

The listed real estate investment company S IMMO AG continues to demonstrate its operational strength midway through the 2018 financial year. Despite the extensive sales completed in recent years and the resulting reduction of rental income for the first half of 2018, FFO I - a key indicator for assessing a property company's operating success - increased substantially to EUR 34.4m (HY 2017: EUR 26.7m) and thus reached an all-time high. Along with a solid like-for-like performance, this outstanding achievement was primarily the result of higher dividend income and lower financing costs. The financial result improved significantly to EUR -1.3m (HY 2017: EUR -21.6m). Ernst Vejdovszky, Chairman of S IMMO AG's Management Board, had the following comment: "From next year on, purchases and our ongoing project developments will make up for these reductions in rental income again. What makes us even prouder is the fact that even in a transition year like this we still managed to achieve this record figure at the operating level. It illustrates both the effectiveness of our strategy and the high quality of our day-to-day work on and with our portfolio."

Positive like-for-like performance
Due to property sales in the previous year, current revenues amounted to EUR 91.0m (HY 2017: EUR 97.5m) in the first half of 2018. The decrease in rental income due to disposals was partly offset by property purchases in Germany and the persistently positive like-for-like performance of the portfolio properties. In addition, there was an increase in revenues from hotel operations to EUR 24.1m (HY 2017: EUR 19.6m) in the first half of 2018. Gross profit from hotel operations rose to EUR 7.1m (HY 2017: EUR 3.6m). Property management expenses declined to EUR 26.2m (HY 2017: EUR 29.9m).

Active in the acquisition of properties
In the first half of 2018, S IMMO was active in terms of acquisitions and purchased properties with a total value of EUR 57.9m. The focus was on properties in medium-sized German cities with strong potential for economic and demographic growth.

Development of EBITDA and EBIT
Due to effects from the profitable disposals in 2016 and 2017, EBITDA amounted to EUR 39.6m (HY 2017: EUR 43.8m) in the first half of 2018. Although S IMMO did not match the record revaluation gains seen in 2016 and 2017, it once again achieved a very positive revaluation result in all segments with gains of EUR 18.6m (HY 2017: EUR 69.3m). EBIT came to EUR 54.4m (HY 2017: EUR 108.9m) in the first half of 2018.