IMMOFINANZ AG / Key word(s): Real Estate/Final Results
06.08.2012 / 07:55

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KEY DATA in MEUR: 1 May 2011 - 30 April 2012 // Δ in % // 1 May 2010 - 30 April 2011
   
Rental income: 585.7 // 1.2% // 578.9
Income from asset management: 468.6 // 6.3% // 440.8 Income from property sales: 57.6 // 8.0% // 53.3
Income from property development: 43.3 // -1.2% // 43.8 Administrative expenses: -139.8 // -5.8% // -148.4 Results of operations: 478.6 // 4.3% // 458.7
Operating profit (EBIT): 691.0 // 62.9% // 424.1
Net profit for the period: 271.4 // -13.4% // 313.5 Net profit adjusted for foreign exchange effects: 311.9 // -6.1% // 332.0 Net profit adjusted for foreign exchange effects and derivatives: 385.7 // +25.4 // 307.7

IMMOFINANZ Group confirmed the positive operating trend set in recent quarters with the close of the 2011/12 financial year, which brought a slight 1.2% year-on-year increase in rental income from EUR 578.9 million to EUR 585.7 million. This positive development was supported chiefly by the retail segment. Results of operations totalled EUR 478.6 million, which represents a plus of 4.3% (2010/11: EUR 458.7 million). Other valuation results of EUR 212.4 million (incl. foreign exchange effects) led to an improvement of over 60% in EBIT to EUR 691.0 million (2010/11: EUR 424.1 million). Net profit for the 2011/12 financial year declined to EUR 271.4 million (2010/11: EUR 313.5 million), above all due to negative, non-cash effects from the valuation of derivatives. After an adjustment for foreign exchange effects and derivatives, IMMOFINANZ Group recorded a 25.4% increase in net profit for the year to EUR 385.7 million.
'During the past year we took a number of important strategic decisions and also generated sound earnings. Of special note is the fact that we earned nearly twice the total dividend - from the improvement in operating results alone. All in all, 2011/12 was a good year: we became the first real estate company to be included in the ATX five, and shortly after that we were added to the EPRA's international Emerging Europe Index. Our operating highlights included, among others, the expansion of the Silesia City Center, the full takeover of the Golden Babylon Rostokino and the acquisition of the fully rented Park Postepu. These successes demonstrate that we are on the right course', commented Eduard Zehetner, Chief Executive Officer of IMMOFINANZ Group, on the sound results recorded for the 2011/12 financial year. 'We now plan to further accelerate our growth course through the continuous optimisation of the standing investment portfolio, a reduction in operating costs and a further improvement in cash flows. Our new orientation as a real estate machine, which was announced at the beginning of this year, will support an increase in profitability along the entire value chain by linking our various areas of business. However, the most important target is - and will remain - our progressive dividend.'

INCOME STATEMENT

Income from asset management
Income from asset management comprises rental income, other revenues, operating income and operating costs as well as real estate expenses. Rental income rose by a slight 1.2% to EUR 585.7 million in 2011/12. This positive development is attributable chiefly to the retail segment, where rental income increased by EUR 12.7 million or 6.4% year-on-year. The opening of the extension to the Silesia City Center in Katowice, Poland, and the Maritimo Shopping Center in Constanta, Romania, made an important contribution to this income. The office and logistics asset classes recorded lower rental income, whereby the decline in the office segment resulted chiefly from the sale of properties. In the residential asset class, rental income was 3.7% higher than the previous year. Revenues increased 2.4% to EUR 781.4 million in 2011/12. Income from asset management rose by 6.3% or EUR 27.8 million due to an increase in rental income and a reduction in maintenance costs.

Income from property sales 
Income from property sales increased 8.0% to EUR 57.6 million. Most of these properties represent development projects and standing investments in Austria and Germany. Property sales during the reporting year included the 50% joint venture investments in the Andreasquartier development project in Düsseldorf and the Office Campus Gasometer complex in Vienna as well as other office buildings in Vienna - above all the Bankgasse 2, a palace in the first district of this capital city. IMMOFINANZ Group also sold its 30% stake in the logistics company MyPlace-SelfStorage and a number of residential properties owned by BUWOG.

Income from property development 
Income from property development covers the sale of inventories as well as the valuation of development projects completed during the reporting year or currently in progress. This income was nearly constant in year-on-year comparison with EUR 43.3 million generated in 2011/12: the largest positive contributions were made by the Silesia City Center and the Maritimo Shopping Center, while negative earnings contributions were recorded above all from the GOODZONE project in Russia. Progress on the GOODZONE was adversely influenced by delays and higher costs, which are now under control following the full takeover of the project. Another negative factor was the delayed transfer of the BUWOG development project Heller Park (geriatric center) to the city of Vienna.

Administrative expenses 
Administrative expenses (overhead expenses and personnel costs) were EUR 8.7 million lower than the previous year, although this position includes a non-recurring negative effect of approx. EUR 10.0 million from the transition consolidation of Adama. On a comparable basis, overhead expenses were nearly 13% lower.

Results of operations, EBIT, EBT, net profit
Results of operations for the 2011/12 financial year totalled EUR 478.6 million, which reflects an increase of 4.3%. Positive other revaluation results of EUR 212.4 million (incl. foreign exchange effects) led to an improvement of over 60% in operating profit to EUR 691.0 million (2010/11: EUR 424.1 million). This development is attributable, above all, to an increase in operating results, higher results from property revaluation (+ EUR 144.1 million) and higher foreign exchange effects (EUR +107.5 million). Earnings before tax were 6.9% lower at EUR 318.8 million (2010/11: EUR 342.3 million), whereby the decline was caused primarily by negative, non-cash valuation effects from derivatives that followed the drop in interest rates. The increase in results of operations was unable to fully offset the negative shift of EUR -123.1 million in other financial results, and net profit for 2011/12 therefore declined to EUR 271.4 million (2010/11: EUR 313.5 million).

BALANCE SHEET
Investment property represented 84.6% of total assets and amounted to EUR 10.4 billion at the end of the 2011/12 financial year. This represents a year-on-year increase of 9.1%. Equity rose by 7.4% to EUR 5.6 billion as of 30 April 2012, among others due to net profit and the nearly full conversion of the 2011 convertible bond. Cash and cash equivalents amounted to EUR 559.2 million as of 30 April 2012. IMMOFINANZ Group increased liquid funds after the end of the 2011/12 financial year by issuing a EUR 100 million corporate bond and through credit lines from the refinancing of the Golden Babylon Rostokino shopping center in Moscow. As of 30 June 2012 IMMOFINANZ Group held cash and cash equivalents totalling EUR 979.8 million (including undrawn credit lines and money market funds). The net asset value (NAV) remained nearly unchanged at EUR 5.33.
CASH FLOW
Gross cash flow rose by 4.0% from EUR 363.8 million to EUR 378.3 million due to the improvement in operating results. Cash flow from operating activities increased 7.1% from EUR 317.0 million to EUR 339.6 million. Cash flow from investing activities amounted to
EUR -113.3 million for the reporting year (2010/11: EUR 173.4 million). This shift resulted, above all, from the acquisition of the Park Postepu office complex, the expansion of development activities and the payment of the purchase price for the Golden Babylon Rostokino shopping center. Positive effects were generated by the sale of investment properties and non-core assets. Cash flow from financing activities consists primarily of additions to and repayments of financial liabilities and convertible bonds and totalled
EUR -267.6 million in 2011/12 (2010/11: EUR -445.2 million). Cash and cash equivalents declined by a slight 1.4% year-on-year to EUR 559.2 million as of 30 April 2012.

OUTLOOK
IMMOFINANZ Group will continue to concentrate on accelerating the real estate machine during the 2012/13 financial year. Activities will focus on linking the three core business areas: the development of sustainable, specially designed top properties in prime locations, the professional management of these properties and cycle-optimised sales. Through the adjustment of the portfolio and optimisation of the balance sheet, the Group will steadily improve the quality of the properties in its eight core markets and four asset classes. Free cash flows from the sales programme will be reinvested, above all, in new development projects, but also in high-quality standing investments. In this way, the share of directly owned property assets should increase to more than 90% of the balance sheet total over the medium-term. IMMOFINANZ Group also intends to increase the portfolio turnover and thereby generate the funds to strengthen property development activities and to complete or selectively reactivate development projects. Regional focal points are currently being set in Russia, Austria, Poland and Germany. Operational and organisational measures are also planned, and include a greater concentration on active and decentralised asset management to reduce vacancies as well as the further streamlining of overhead expenses. These optimisation measures will support a steady improvement in earnings and form the basis for IMMOFINANZ Group's progressive, sustainable dividend policy.


Under http://www.immofinanz.com/en/press/press-releases/ the balance sheet, income statement and cash flow statement for the 2011/12 financial year are now available for download.

The annual report for 2011/12 will be available beginning on 22 August 2012 under the menu point 'Financial Reports' in the Investor Relations section of the company's homepage: www.immofinanz.com.


On IMMOFINANZ Group
IMMOFINANZ Group is one of the leading listed property companies in Europe and is included in the leading ATX index of the Vienna Stock Exchange. Since its founding in 1990, the company has compiled a high-quality property portfolio that now comprises more than 1,820 investment properties with a carrying amount of approx. EUR 10.36 billion. The core business of IMMOFINANZ Group covers the acquisition and management of investment properties, the realisation of development projects and the sale of objects. IMMOFINANZ Group concentrates its activities in the retail, office, logistics and residential segments of eight regional core markets: Austria, Germany, Czech Republic, Slovakia, Hungary, Romania, Poland and Russia. Further information under: www.immofinanz.com.

Contact:
For additional information contact:

INVESTOR RELATIONS

Stefan Schönauer
Head of Corporate Finance & Investor Relations 
IMMOFINANZ AG
M +43 (0)699 1685 7312
investor@immofinanz.com 

Simone Korbelius
Investor Relations
IMMOFINANZ AG
T +43 (0)5 7111 2291
investor@immofinanz.com 

MEDIA INQUIRIES

Sandra Bauer
Head of Corporate Communications | Press Spokesperson IMMOFINANZ AG
T +43 (0)5 7111 2292
M +43 (0)699 1685 7292
communications@immofinanz.com 

A-1100 Wien, Wienerbergstraße 11
www.immofinanz.com


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Language: English Company: IMMOFINANZ AG Wienerbergstraße 11 1100 Wien Austria Phone: +43 (0) 5 7111 - 2291 Fax: +43 (0) 5 7111 - 8291 E-mail: investor@immofinanz.com Internet: http://www.immofinanz.com ISIN: AT0000809058 WKN: 911064 Listed: Freiverkehr in Berlin, München, Stuttgart; Open Market in Frankfurt; Wien (Amtlicher Handel / Official Market)  
 
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