EANS-News: S IMMO AG final results for 2011 confirm tenfold increase in
consolidated net income
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annual result
Wien (euro adhoc) - S IMMO AG: final results for 2011 confirm tenfold increase
in consolidated net
income
EBIT up by 52.4%
Consolidated net income up from EUR 2.1m to EUR 21.2m
FFO yield reaches 9.4%
Dividend proposal for Annual General Meeting of EUR 0.10 per share
The financial year 2011 proved to be highly successful for S IMMO AG
(Bloomberg: SPI:AV, Reuters: SIAG.VI): Major performance indicators like EBIT
and funds from operations (FFO) were much higher than in the previous year.
Gross profit up 33.4%
S IMMO Group´s rental income in 2011 was remarkably strong, at EUR 125.9m
(2010: EUR 104.0m), a year-on-year increase of 21.1%. The development projects
completed in 2010 were a major contributor in this improvement, together with
the Group´s acquisitions. Gross profit from hotel operations also rose by 3.9%,
in spite of the difficulties posed by the uncertain economic climate, and ended
the year at EUR 9.0m (2010: EUR 8.7m). Total gross profit climbed by an
impressive EUR 26.8m, to EUR 107.0m, compared to EUR 80.2m in 2010. This
represents an increase of 33.4%.
EBITDA up 42.0%
In 2011, management expenses were cut back by EUR 1.5m from EUR 18.7m to
EUR 17.2m, a reduction of more than 8%. In addition, eleven properties and 16
freehold apartments in Vienna and Berlin were sold. This is in line with the
Group´s strategy of disposing of parts of the portfolio where a profit can be
realised. The properties were sold well above most recent estimated values, and
the gains on disposal amounted to EUR 11.6m (2010: EUR 9.9m). Altogether, these
factors accounted for a 42.0% increase in EBITDA, or EUR 30.0m, to EUR 101.4m
(2010: EUR 71.4m).
Significant growth in EBIT
As in 2010, valuation adjustments were not material coming in at EUR 0.1m
(2010: EUR -0.8m). Germany and Austria in particular showed significant
valuation gains, while values in Central and Southeastern Europe were down.
Operating profit (EBIT) of EUR 92.3m improved by EUR 31.7m compared with the
EUR 60.5m achieved in 2010, an increase of 52.4%.
Excellent financial results
Net financing costs totalled EUR 51.5m (2010: EUR 41.2m), including a non-cash
foreign exchange gain of EUR 7.3m. The gain was attributable to the rise of the
euro against functional currencies in Central and Southeastern Europe (Romanian
leu, Hungarian forint, Czech crown and Croatian kuna). The income entitlements
of participating certificate holders for 2011 resulted in expenses of EUR 11.2m
(2010: EUR 10.2m).
Consolidated net income up to EUR 21.2m
Total tax expense for 2011 amounted to EUR 8.4m (2010: EUR 7.0m) and for the
most part consisted of non-cash changes in deferred taxes. Compared with the
previous year, consolidated net profit for 2011 increased tenfold, to EUR 21.2m
(2010: EUR 2.1m), of which EUR 20.0m (2010: EUR 1.8m) was attributable to
shareholders of the parent company.
All key performance indicators up
S IMMO´s funds from operations (FFO) in 2011 improved by 54.6% to EUR 28.9m
(2010: EUR 18.7m). This gives a very respectable FFO yield (ratio of FFO to
share price) of 9.4%. The Group´s excellent performance was also reflected in
the improved net operating income (NOI), which rose from EUR 75.2m to
EUR 99.3m, also partly as a result of the projects completed in 2010. Operating
cash flow for the year was also very satisfactory, and rose from EUR 74.2m in
2010 to EUR 96.0m in 2011.
As at 31 December 2011, the balance sheet net asset value (NAV) stood at
EUR 6.96 per share (31 December 2010: EUR 7.07 per share). The EPRA NAV, the
inner value of the share calculated in accordance with the guidelines of the
European Public Real Estate Association, was EUR 8.70 per share (31 December
2010: EUR 8.34 per share). EPRA NAV represents the value of equity adjusted for
the factors that have no long-term effect on the business activities of the
Group, such as valuations of derivatives and deferred taxes.
Capital markets: share repurchase and second market maker
The S IMMO Share performed considerably better than the industry average in
2011, most notably in the fourth quarter. The Management took advantage of the
gap between market price and net asset value of the share and launched a share
repurchase programme last autumn. By adding a second market maker S IMMO is
also aiming to improve the share´s liquidity and to gain greater access to new
groups of investors.
Outlook and proposed dividend
In spite of the positive developments in Germany, the European property market
overall presents a far from stable picture. Debt crises, euro crash scenarios,
and the Austrian capital gains tax on securities are just some of the negative
issues that will continue to dominate the headlines in the coming months. Even
though the overall economic situation will remain challenging, S IMMO is
exceptionally well positioned to meet the tasks of the coming years.
In Germany, the refurbishment programme will, for the most part, be completed
by the end of the year. This will reduce exceptional investment costs, while
simultaneously increasing the value of the properties. S IMMO will take
advantage of opportunities to sell properties at a profit, particularly in
Austria and Germany, and aims to dispose of approximately 5% of its portfolio
every year. In the medium term, the focus will be on the Quartier Belvedere
Central development project, part of one of Europe´s largest inner-city
development projects centred next to Vienna´s future Central Station. In
successive stages, S IMMO and its partners will be constructing a mixture of
office, hotel and retail properties with a gross floor space of around
136,000 m².
S IMMO will continue to buy back shares until the repurchase programme ends on
31 May 2012, with the aim of further increasing the Group´s attractiveness in
the capital markets. At the Annual General Meeting on 01 June 2012 S IMMO´s
Management Board will propose a dividend distribution of EUR 0.10 per share to
the shareholders.
Consolidated income statement for the year ended 31 December 2011
EUR m / fair value basis
| |01 - 12/2011 |01 - 12/2010 |
|Revenues |207.8 |174.9 |
| Rental income |125.9 |104.0 |
| Revenues from service charges |41.3 |32.6 |
| Revenues from hotel operations |40.6 |38.3 |
|Other operating income |7.7 |5.0 |
|Expenses directly attributable to properties |-77.0 |-70.1 |
|Hotel operating expenses |-31.6 |-29.6 |
|Gross profit |107.0 |80.2 |
|Income from property disposals |46.5 |102.7 |
|Carrying value of property disposals |-34.9 |-92.8 |
|Gains on property disposals |11.6 |9.9 |
|Management expenses |-17.2 |-18.7 |
|Earnings before interest, tax, depreciation and |101.4 |71.4 |
|amortisation | | |
|Depreciation and amortisation |-9.3 |-10.1 |
|Gains/losses on property valuation |0.1 |-0.8 |
|Operating profit (EBIT) |92.3 |60.5 |
|Financing costs |-51.5 |-41.2 |
|Participating certificates result |-11.2 |-10.2 |
|Net income before taxes (EBT) |29.6 |9.1 |
|Taxes on income |-8.4 |-7.0 |
|Consolidated net income for the year |21.2 |2.1 |
| of which attributable to shareholders in parent |20.0 |1.8 |
| company | | |
| of which attributable to non-controlling |1.2 |0.3 |
| interests | | |
| | | |
|Earnings per share (EUR) |0.29 |0.03 |
|Property information | |31 December |
| | |2011 |
|Standing properties |units |236 |
|Floor space |m² |1,409,623 |
|Gross rental yield |% |6.7 |
|Occupancy rate |% |92.5 |
Further inquiry note:
Investor Relations:
Andreas J. Feuerstein
Phone: +43(0)50100-27556
Fax: +43(0)05100-927556
E-mail: andreas.feuerstein@simmoag.atwww.simmoag.at
Corporate Communications:
Bosko Skoko
Phone: +43(0)50100-27522
Fax: +43(0)05100-927522
E-mail: bosko.skoko@simmoag.atwww.simmoag.at
end of announcement euro adhoc
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company: S IMMO AG
Friedrichstraße 10
A-1010 Wien
phone: +43(0)50100-27550
FAX: +43(0)050100-927559
mail: office@simmoag.at
WWW: www.simmoag.at
sector: Real Estate
ISIN: AT0000652250
indexes: ATX Prime, IATX
stockmarkets: official market: Wien
language: English
issuer: S IMMO AG Friedrichstraße 10 A-1010 Wien phone: +43(0)50100-27550 FAX: +43(0)050100-927559 mail: office@simmoag.at WWW: www.simmoag.at sector: Real Estate ISIN: AT0000652250 indexes: ATX Prime, IATX stockmarkets: official market: Wien language: English ...
issuer: S IMMO AG Friedrichstraße 10 A-1010 Wien phone: +43(0)50100-27550 FAX: +43(0)050100-927559 mail: office@simmoag.at WWW: www.simmoag.at sector: Real Estate ISIN: AT0000652250 indexes: ATX Prime, IATX stockmarkets: official market: Wien language: English ...
issuer: S IMMO AG Friedrichstraße 10 A-1010 Wien phone: +43(0)50100-27550 FAX: +43(0)050100-927559 mail: office@simmoag.at WWW: www.simmoag.at sector: Real Estate ISIN: AT0000652250 indexes: ATX Prime, IATX stockmarkets: official market: Wien language: English ...