EQS-Adhoc

InCity Immobilien AG: ON THE BASIS OF PRELIMINARY FIGURES FOR 2023, INCITY ACHIEVES A CONSOLIDATED NET LOSS FOR THE YEAR OF APPROXIMATELY EUR 6.0 M AND A SINGLE-ENTITY NET LOSS FOR THE YEAR OF APPROXI - Seite 2

Overall, it should be noted that the EUR 6.0 m consolidated net loss for FY 2023 includes non-liquidity-related (ordinary and extraordinary) depreciations on the portfolio properties pursuant to HGB totalling EUR 5.0 m, which reduced earnings. The “hidden reserves” – i.e. the difference between all five remaining portfolio properties’ market value and HGB carrying amount (amortised cost) – totalled approximately EUR 33.9 m as of the balance sheet date (31 December 2022: EUR 58.3 m). Despite the decrease in externally assessed market values as of the balance sheet date, this still means that the market values remain around 24% higher than the HGB carrying amounts (31 December 2022: approx. 39%).

The Group’s equity ratio is approximately 49.5% as of the balance sheet date (31 December 2022: 45.9%). In spite of the consolidated net loss for the year, the equity ratio increased on the previous year. This was mainly due to the balance sheet being contracted as a result of the part handover of the office property in Schönefeld, which was built as a general contractor for a third party, and the HGB non-liquidity-related depreciations on the portfolio properties.

The LTV (loan-to-value) was 35% as of 31 December 2023 (31 December 2022: 30%), which continues to be a comparatively low level for the industry.

The net asset value (NAV) of InCity AG’s shares was EUR 1.30 per share as of  31 December 2023 (31 December 2022: EUR 1.66 per share). The NAV per share decrease reflects the development of the property portfolio’s market value in particular.

At the level of InCity Immobilien AG’s single-entity annual financial statement, the early non-liquidity-related extraordinary depreciation undergone by the portfolio property at “Stiftstrasse 18/20” in December 2023 led to loss absorption by InCity AG due to the profit and loss transfer agreement between InCity AG and the subsidiary holding the portfolio property. As a result, the earnings forecast for InCity AG (single entity) for 2023 as a whole was revised downwards to between EUR -2.3 m and EUR -2.8 m in December 2023.