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9-month report
S IMMO AG: Q3 results right on track
· Profit for the period increases to EUR 28.2m
· Considerable improvement in financing result
· Investment volume of over EUR 140m in Germany and Austria so far this year
· Goal: doubling FFO
With the results for the third quarter of 2015, stock exchange listed real
estate company S IMMO AG (Bloomberg: SPI:AV, Reuters: SIAG.VI) is confirming its
positive trend for the current year. Ernst Vejdovszky, CEO of S IMMO AG: "S IMMO
is completely on track with its ambitious plans for 2015, and all of our key
figures are in line with the targets for the year as a whole. The historically
low interest rate level offers particularly favourable conditions for real
estate companies. Our markets have recovered well and are stable. Our strategy -
capital cities within the European Union with a current focus on Berlin - is
proving effective and is very successful."
In the first nine months of 2015, S IMMO increased its profit for the period by
more than 27% to EUR 28.2m. Earnings per share improved accordingly and came to
EUR 0.40 - a gain of over 33%. In the second and third quarters of 2015, the
company closed out derivatives that had been concluded in the past when interest
rates were much higher, and at the same time negotiated new agreements, thus
securing the current, historically low interest rate level for the future. The
positive effects of these measures on cash flow and FFO will become fully
apparent in the 2016 financial year.
Development of earnings
In the reporting period, S IMMO AG's total revenues amounted to EUR 141.6m (Q3
2014: EUR 140.5m), slightly higher than the prior-year figure. The rental income
included in this figure came to EUR 83.2m (Q3 2014: EUR 84.5m) and reflects the
property sales completed since the beginning of 2014.
In the first three quarters of 2015, S IMMO sold six properties in Germany and
Austria with a total book value of EUR 45.9m (Q3 2014: EUR 48.4m). At the same
time, S IMMO bought properties in Germany and Austria at a total purchasing
price of EUR 72.6m during the first three quarters. In addition, purchases
amounting to EUR 70.5m for which S IMMO AG will not obtain ownership until after
30 September 2015 were contractually agreed. This brings the total investment
volume in Germany and Austria to over EUR 140m so far this year.
EBITDA came to EUR 65.2m in the first three quarters of 2015 (Q3 2014: EUR
67.6m). The decline reflects lower rental income as a result of disposals and
increased costs that can largely be attributed to non-recurring effects.
Revaluation gains developed very positively, amounting to EUR 16.8m as at 30
September 2015 (Q3 2014: EUR 12.8m). This was due to both the asset management
activities aimed at raising the value of the properties and the steadily
improving sentiment in S IMMO's markets. The portfolio in Germany made a
particularly significant contribution to the increase in revaluation gains.
Overall, EBIT was higher than in the previous year at EUR 76.1m (Q3 2014: EUR
74.9m). EBT came in at EUR 34.6m (Q3 2014: EUR 27.3m), an increase of 26.7% over
the previous year. The profit for the period rose by 27.1% to EUR 28.2m (Q3
2014: EUR 22.2m). Earnings per share improved again to EUR 0.40 (Q3 2014: EUR
0.30), corresponding to an increase of 33.3%.
Capital market
As in the previous quarters, the S IMMO share significantly outperformed the ATX
and the IATX during the reporting period. At the end of the quarter, the share
price stood at EUR 7.60 - a gain of more than 23% since the beginning of the
year. Since 30 September 2015 the share price further increased and currently
stands at a level of around EUR 8.00. The company's clear goal is and remains to
position the S IMMO share as a consistently dividend-paying stock.
Both book value per share and EPRA NAV per share increased once again in the
first three quarters of 2015, with the book value of equity per share improving
to EUR 8.52 as at 30 September 2015 (30 September 2014: EUR 7.97) and EPRA NAV
advancing to EUR 10.43 (30 September 2014: EUR 9.89) per share.
Outlook for 2015: Investments and a further increase in consolidated net income
After three highly successful quarters of the 2015 financial year, S IMMO
expects a positive performance for the final quarter as well. Accordingly, the
company is reaffirming its target of further increasing consolidated net income
and other key figures such as cash flow and FFO. The company aims to increase
FFO, raising it from EUR 21.3m for the 2014 financial year to over EUR 40m by
the end of 2018.
Friedrich Wachernig, Member of the Management Board at S IMMO AG: "The fact that
we secured the low interest rate level will have an extremely positive impact on
our key figures. But we will also continue to create value with our investment
activities. We currently see the greatest potential in Germany, particularly
among commercial properties in Berlin offering attractive development
opportunities."
S IMMO AG
As Austria's first stock exchange listed real estate investment company, S IMMO
AG has stood for expertise, a strong portfolio, and profitable growth since
1987. The company invests in commercial property (office, retail, and hotel) as
well as residential property in four regions (Austria, Germany, and Central and
Southeastern Europe). S IMMO AG's strategic core shareholders are Erste Group
and Vienna Insurance Group.
Consolidated income statement for the period 01 January 2015-30 September 2015
in EUR m / fair value method
01-09/2015 01-09/2014
Revenues 141.6 140.5
thereof rental income 83.2 84.5
thereof revenues from operating costs 25.4 25.9
thereof revenues from hotel operations 33.0 30.2
Other operating income 2.3 3.5
Expenses directly attributable to properties -42.6 -41.0
Hotel operating expenses -23.9 -23.2
Gross profit 77.4 79.7
Income from property disposals 15.9 48.4
Carrying amount of sold assets -15.9 -48.4
Gains or losses on property disposals 0 0
Management expenses -12.2 -12.1
Results before tax,property valuation,
depreciation and amortisation, and 65.2 67.6
financing result (EBITDA)
Depreciation and Amortisation -5.8 -5.5
Results on property valuation 16.8 12.8
Operating result (EBIT) 76.1 74.9
Financing costs -41.1 -45.6
Financing income 0.9 1.7
Results from companies recognised
according to the equity method 0.8 0.4
Participating certificates result -2.2 -4.1
Net income before tax (EBT) 34.6 27.3
Taxes on income -6.4 -5.1
Profit for the period 28.2 22.2
thereof attributable to shareholders
in parent company 26.5 20.2
thereof attributable to non-
controlling interests 1.6 2.0
Earnings per share (in 0.40 0.30
EUR)
Key data on properties 30 September 2015
Portfolio properties number 205
Total useable space million m2 1.2
Gross rental yield % 7.0
Occupancy rate % 91.5
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
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 ...
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 ...
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 ...