IMMOFINANZ sees strong growth in rental income and results of operations

IMMOFINANZ Group recorded strong growth in both rental income and operating results in the first three quarters of 2023 due to acquisitions, the full consolidation of S IMMO and successful asset management. Rental income rose by 79.4% year-on-year to EUR 389.2 million; the results of asset management, at EUR 323.7 million, were even 92.2% higher than in the previous year. The results of operations increased to EUR 209.1 million and sustainable FFO 1 from the standing investment business more than doubled to EUR 214.4 million.

“The results show that we are in a resilient position and are operating successfully with our strategy. Despite the challenging market environment, we performed strongly with acquisitions, the full consolidation of S IMMO and our asset management and recorded significant growth in all operating key figures. We also continued to improve our financial basis, which puts us in a solid position for the future,” says Radka Doehring, member of the IMMOFINANZ Executive Board

At the same time, IMMOFINANZ Group also recorded market-related property write-downs of EUR -219.5 million, which were primarily related to low-yielding properties. As a result, net profit fell to EUR -105.9 million (Q1–3 2022: EUR 248.6 million) and earnings per share declined to EUR -0.48 (Q1–3 2022: EUR 1.82).

High occupancy, high rental income
The property portfolio of IMMOFINANZ Group included 501 properties with a combined value of EUR 7.8 billion. Of this total, EUR 7.3 billion represented standing investments with 3.3 million sqm of rentable space and a gross return of 7.0%. The occupancy rate remained high at 92.3% (31 December 2022: 92.9%).

Like-for-like rental income (i.e., adjusted for acquisitions, completions and sales, excluding S IMMO) rose significantly by 9.3% year-on-year in the first three quarters of 2023.

The strategic sales programme to optimise the portfolio was successfully continued despite below-average transaction market activity. Property sales of approximately EUR 649 million (incl. S IMMO) were concluded during the reporting period.

Robust balance sheet
IMMOFINANZ Group had a very robust balance sheet structure as of 30 September 2023. Cash and cash equivalents increased significantly to EUR 831.5 million (31 December 2022: EUR 684.7 million). The net loan-to-value ratio (net LTV) improved to 37.8% (31 December 2022: 40.7%) and the equity ratio rose to 50.0% (31 December 2022: 47.9%). Roughly 92% of financial liabilities are hedged against interest rate increases.

The IFRS book value per share amounted to EUR 27.31 (31 December 2022: EUR 27.47). The EPRA NTA was EUR 28.50 (31 December 2022: EUR 29.82).

Outlook
Based on the results for the first three quarters of 2023, IMMOFINANZ Group expects FFO 1 from the standing investment business (before tax) to exceed EUR 275 million for the full year 2023.