Warimpex Finanz- und Beteiligungs AG

Slight loss in first half of 2018

Public disclosure of inside information according to article 17 MAR

Wien (pta012/30.08.2018/08:00) - * Office projects in Łódź and Krakow nearing completion, development potential in Białystok
* Acquisition of fully occupied office building in Budapest to bring new cash flows
* Decline in operating activities due to partial portfolio sale and exchange rate losses lead to loss of EUR 4.3 million for the period

The elimination of the eight hotel holdings sold last year once again impacted the development of operating activities for Warimpex Finanz- und Beteiligungs AG in the first half of 2018.

The reduction of the number of rooms by 57 per cent resulting from the sale caused revenues in the Hotels segment to decline from EUR 20.8 million to EUR 6.3 million. In this context, it is important to note that the revenues of the hotel holdings that were sold were still included in the revenue figures until May 2017. Revenues from the rental of office properties rose from EUR 6.1 million to EUR 7.5 million, primarily due to the completion of the fully occupied Bykovskaya multi-use building at AIRPORTCITY St. Petersburg in May 2017. Overall, consolidated revenues contracted from EUR 27.5 million to EUR 14.4 million.

The reduced property portfolio and the lack of gains from the disposal of properties in the current financial year also resulted in a decline in EBITDA from EUR 29.5 million to EUR 2.9 million. EBIT went from EUR 43.4 million to EUR 2.7 million. Although the financial result including joint ventures improved from minus EUR 9.2 million to minus EUR 7.2 million, it was negatively impacted by non-cash exchange rate losses in the amount of EUR 4.9 million, which can be attributed primarily to the fluctuations in the rouble exchange rate. All in all, this led to a loss for the period of EUR 4.3 million in the first half of 2018 (2017: profit of EUR 33.5 million).

Warimpex's express goal for 2018 and the coming years is to resume growing and build up the property portfolio. To this end, the completion of ongoing projects, the development of new projects, and the acquisition of cash flow-generating assets with potential for the future are now at the top of the company's agenda - in line with its strategic orientation. At the same time, the company plans to complete selective property sales at favourable terms in order to secure proceeds that will enable it to rapidly execute reinvestments.