S IMMO AG

S IMMO AG: Record FFO in first half of 2018 - Seite 2

Significantly improved financial result
In the first half of 2018, the financial result including participating certificates improved to EUR -1.3m (HY 2017: EUR -21.6m). This positive development was the result of higher dividend income of EUR 14.3m (HY 2017: EUR 4.3m) from the shareholdings in IMMOFINANZ AG and CA Immobilien Anlagen AG, improved derivatives valuations and lower financing costs. Another positive effect was achieved with the elimination of participating certificate expenses (HY 2017: EUR 2.7m). The cost of funding (financing costs excluding bonds and participating certificate costs) was reduced from 2.84% as of 30 June 2017 to 2.21% as of 30 June 2018.

Development of EBT and earnings per share
Despite the solid operational performance and the improvement in the financial result, EBT dropped to EUR 53.1m (HY 2017: EUR 87.2m) due to lower revaluation gains compared with the prior year. Net income for the period attributable to the shareholders of the parent company amounted to EUR 47.8m (HY 2017: EUR 68.5m). Earnings per share came to EUR 0.72 (HY 2017: EUR 1.03).

Capital market
S IMMO AG's share has developed positively thus far in 2018 and was trading at EUR 18.14 as of 28 August 2018. Interest in the company's share from national and international investors remains high, which is also reflected by the sharp rise in liquidity in the first half-year. In addition, as a continuation of the sustainable dividend strategy, a distribution of EUR 0.40 per share was approved at the Annual General Meeting.

Outlook for 2018
S IMMO AG is currently observing a very high price level in its markets. Nevertheless, there are still attractive buying opportunities in individual regions, especially in Germany. As Friedrich Wachernig, Member of S IMMO AG's Management Board, explained, "We are primarily focusing on cities with substantial demographic and economic growth potential such as Leipzig, Rostock or Kiel. But we are also considering exciting investment opportunities in our other markets. At the same time, we are continuing our project developments. The Einsteinova Business Center - which is already fully leased - will be handed over to the tenants during the summer, and we are still on target to finish the office building The Mark in Bucharest this year. There are also several exciting projects on our agenda in Berlin. Consequently, our situation at mid-year is once again robust, and we look forward to continuing our dedicated work successfully."