DGAP-News

IMMOFINANZ confirms results: First quarter 2014/15 with solid operational performance, but negatively affected by FX-related revaluations

DGAP-News: IMMOFINANZ AG / Key word(s): Real Estate/Quarter Results
IMMOFINANZ confirms results: First quarter 2014/15 with solid
operational performance, but negatively affected by FX-related
revaluations

23.09.2014 / 18:52

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KEY FIGURES (in MEUR) // 1 May 2014 - 31 July 2014 // Δ in % // 1 May 2013
- 31 July 2013

Rental income // 117.6 // -6.8% // 126.1
Results of asset management // 95.4 // -13.5% // 110.3
Results of property sales // 7.3 // n.a. // -0.9
Results of property development // -2.0 // n.a. // 3.3
Expenses not directly attributable // -13.2 // -30.9% // -19.0
Results of operations // 90.9 // -6.5% // 97.2
Operating profit (EBIT) // 11.9 // -92.3% // 155.3
Net profit // -14.0 // n.a. // 119.8
Cashflow from operating activities // 73.3 // 12.9% // 64.9

IMMOFINANZ Group generated solid results of operations amounting to EUR
90.9 million in the first quarter of the 2014/15 financial year. The
year-on-year decline of 6.5% (Q1 2013/14: EUR 97.2 million) resulted, above
all, from the planned sale of properties in the previous financial year.
Rental income remained generally stable in like-for-like comparison during
2013/14 (-1.3%), but the first quarter of 2014/15 saw an increase of 1.4%
(versus Q4 2013/14). These figures confirm the preliminary data for Q1
2014/15 that were announced by IMMOFINANZ on 19 September.

In spite of this solid operating performance, net profit for the first
quarter of 2014/15 was negative at EUR -14.0 million (Q1 2013/14: EUR 119.8
million). This development resulted primarily from negative effects caused
by the foreign exchange-based revaluation of investment properties, which
reflected the increase in the value of the Ruble versus the Euro and US DollarDollar from the beginning of May to the end of July 2014. These foreign
exchange-based revaluation results of EUR -75.9 million reduced net profit,
but have no effect on cash. The foreign exchange-adjusted revaluation
results did not have a significant effect on net profit and amounted to EUR
-2.7 million for the first quarter.

The development of the Ruble since the beginning of August 2014 points to a
reversal of this effect during the second quarter of 2014/15. In other
words, positive foreign exchange-based results from the revaluation of the
investment properties are to be expected from the current point of view.

"In 2013/14, which saw a substantial decline in the value of the Ruble
versus the Euro and US Dollar, the foreign exchange-based revaluation of
investment properties made a positive contribution of EUR 311.0 million to
Group net profit. The fluctuations in the Ruble exchange rate cause high