EQS-News

InCity Immobilien AG: INCITY’S DEVELOPMENT IS ON TARGET FOR THE FIRST HALF OF 2023 – VERY GOOD LETTING SITUATION CONTINUES - Seite 2

As of the reporting date on 30 June 2023, the InCity Group’s property portfolio was unchanged, comprising five residential and commercial buildings and two office properties in Berlin and Frankfurt am Main. The HGB carrying amounts of these seven properties amounted to approximately EUR 148 m as of the reporting date (31 December 2022: approximately EUR 149 m). The decrease can be explained by the standard annual amortisations and depreciations to be carried out according to HGB. 

The InCity Group’s sales revenue amounted to approximately EUR 3.7 m in the first half of 2023 (prior year: approximately EUR 4.1 m). The greater part of this by far was due to rental income from portfolio properties, which amounted to approximately EUR 3.5 m in the reporting period and thus decreased by approximately EUR 0.3 m in comparison to the same period of the prior year. This decrease was mainly due to the lower net cold rents generated
(EUR -0.2 m) that, on the one hand, resulted from the temporary higher vacancy rate due to renovation measures in the property located at “Jägerstrasse 34/35” in Berlin and, on the other hand, from the increased vacancy rate in the property located at “Stiftstrasse 18/20” in Frankfurt am Main after the expiry of a lease agreement with an existing tenant. Part of the decrease in net cold rents for these two properties was offset by an increase in the net cold rents generated by the remaining five portfolio properties. While various scenarios for future use or exploitation are currently being developed for the property in Frankfurt am Main, the marketing of the residential units at Jägerstrasse 34/35 in Berlin, which are temporarily vacant due to renovation measures, is due to start presently.

The InCity Group’s EBITDA was approximately EUR 0.6 m in the first half of 2023. This decline of EUR 0.8 m compared to the prior-year value of around EUR 1.4 m is largely explained by scheduled investments of EUR 0.4 m made in the portfolio properties in the reporting period, the already mentioned lower operating income from net cold rents (EUR -0.2 m) and slightly higher one-off and/or special effects (EUR -0.2 m) in other operating expenses. These are mainly due to specific bad debt allowances on rent receivables from two former tenants. Overall, the InCity Group’s property portfolio continued to prove its resilience and profitability. Accordingly, the very good letting situation continues unchanged for almost all the portfolio properties.