IMMOFINANZ reports strong growth and net profit recovery in H1 2024

IMMOFINANZ Group reported a strong financial performance in the first half of 2024, demonstrating substantial growth across all key indicators despite a volatile market environment. The company’s rental income rose by 13% to €292.5 million, while the results of asset management increased by 15.2% to €249.8 million. Notably, the results of operations surged by 88% to €221.9 million, reflecting the company’s robust operational strategy and effective portfolio management.

Net profit for the period also saw a significant turnaround, reaching €43.0 million compared to a loss of €144.5 million in the same period last year. This improvement was supported by a more stable interest rate environment, which helped limit valuation declines, resulting in revaluations totaling -€81.6 million, a considerable improvement from the -€197.2 million recorded in the first half of 2023.

The company’s financial results also showed positive momentum, with earnings before taxes (EBT) standing at €97.7 million, a significant recovery from the loss recorded in the previous year. Funds from operations (FFO 1) after tax increased by 46.6% to €149.9 million, further underscoring IMMOFINANZ’s solid financial foundation.

IMMOFINANZ continued to optimize its property portfolio, achieving total sales of €446.6 million during the first half of 2024. The company successfully sold office buildings in Austria, Croatia, Poland, and Germany, while also acquiring new assets in the Czech Republic, enhancing its portfolio’s value and stability. As of June 30, 2024, IMMOFINANZ’s property portfolio comprised 491 properties valued at €8.2 billion, with a stable occupancy rate of 92.2%.

The company’s balance sheet remains robust, with an equity ratio of 47.7% and a net loan-to-value ratio of 41.6%. Cash and cash equivalents were maintained at a high level of €767.9 million, providing a strong financial base for future growth. Additionally, approximately 96% of the company’s financial liabilities are hedged against interest rate increases, ensuring stability in its financing structure.

Looking ahead, IMMOFINANZ is optimistic about its growth prospects, focusing on expanding its retail portfolio and pursuing strategic opportunities. The company is also preparing for a squeeze-out of S IMMO AG and exploring a potential business combination with CPI Property Group to optimize its capital structure and capture operational efficiencies.