EANS-Adhoc: Sparkassen Immobilien AG starts 2009 with stable, positive first quarter
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quarterly report
25.05.2009
> Significantly positive EBIT of EUR13.5m (Q1 2008: EUR18.9m)
> Consolidated net profit of EUR0.5m (Q1: EUR6.2m)
> Revenues and rental income up by 6% and 5% respectively
> Gross rental yield 6.8%, occupancy rate high at 91%
> Solid, broadly diversified property portfolio of EUR 1.83 billion with
high proportion of residential properties
> Core shareholder Vienna Insurance Group increases stake
> OMV to remain Sparkassen Immobilien AG's most important tenantStock exchange listed Sparkassen Immobilien AG (Bloomberg: SPI:AV, Reuters: SIAG.VI) is happy to be able to report stable results for the first quarter of 2009 - significantly positive EBIT, a profit, and increases in rental income and total revenues.
Operating results: increases in revenues and rental income Sparkassen Immobilien AG's revenues and rental income for the first quarter of 2009 grew to EUR28.5m and EUR22.3m, increases of 6% and 5% respectively compared with the same period last year. There were no changes in property valuations in the quarter, since the annual financial statements for 2008 had already incorporated the results of up-to-date external valuations (Q1 2008: EUR0.1m). Other operating income increased considerably, from EUR0.5m to EUR1.4m, reflecting the significantly higher gross operating profits of Hotels Marriott Vienna and Marriott Budapest. In the first quarter of this year no properties were disposed of, while in the same period in 2008 there was a gain on property disposal of EUR5m. This difference to the property disposals of the first quarter 2008 is also reflected in the EBIT and FFO.
Earnings performance: EBIT significantly positive EBITDA for the first quarter fell from EUR19.9m by 20% to EUR15.9m. Sparkassen Immobilien AG's EBIT of EUR13.5m (Q1 2008: EUR18.9m) was significantly positive. Financing costs moved from EUR-7.5m to EUR-10.2m. Participation certificate expenses fell from EUR-3.8m to EUR-2.8m. EBT fell back from EUR7.6m to EUR0.4m. Consolidated net profit after minority interests for the quarter ended 31 March 2009 came to EUR0.5m (Q1 2008: EUR6.2m). The net operating income (NOI) stands at EUR17.7m slightly below the value of the first quarter of 2008 (EUR17.9m), a decrease of 1%. The NOI margin (NOI / revenues) stood at 61%. Cash flow from operating activities increased from EUR14.3m to EUR15.9m. Funds from operations (FFO) fell by 75% to EUR2.1m (Q1 2008: EUR8.2m). This also reflects the difference of property disposals of the first quarter 2008.
Portfolio growth Development projects are progressing according to plan, and as a result the Group's property portfolio in the past quarter grew to EUR1.83bn. Development projects, which are recognised at cost of acquisition and construction, made up approximately 17% of the total. The standing portfolio by area is made up of residential property (44%), office property (28%), commercial property (17%), hotels (7%) and other property (4%). More than half the properties are in Germany, 27% of the portfolio is in Austria, and the remaining 22% is in Slovakia, the Czech Republic, Croatia, Romania and Hungary. With the exception of a single office property in EU candidate country Croatia, all Sparkassen Immobilien AG's properties are in EU states.
The occupancy rate of the standing portfolio at balance sheet date remained unchanged, at 91%. The average gross rental yield (rent divided by market value) for all countries together at 31 March 2009 was 6.8%.
All development projects on schedule All ongoing development projects of Sparkassen Immobilien AG are on schedule, the progress of construction work is very satisfactory, and the pre-letting
rates are excellent. For the shopping centres Sun Plaza in Bucharest and Serdika Center in Sofia the pre-letting rates are over 80%. The Hotel Vysoká in Bratislava is also on schedule, will be completed this year and will be operated by Austria Trend Hotels. Together with the Viennese projects - the residential and office building in Neutorgasse and the student hall of residence in Sechshauser Strasse - the development projects, which are scheduled for completion in 2009/2010, will return significant increases in rental income in the years to come.
s IMMO Share: market price up 18.7% at end of quarter, core shareholder increases stake s IMMO Share's closing price at the end of the first quarter of 2009 was EUR2.35, an 18.7% improvement since the beginning of the year, and a very encouraging stock market performance. This positive trend and a marked increase in trading volumes have continued in recent weeks. Currently (22 May 2009), the price is EUR4.22. This represents a discount of 52% to Net Asset Value (NAV), which at 31 March 2009 was EUR8.8 compared with EUR9.6 a year earlier. The second core shareholder after Erste Group - Vienna Insurance Group - exceeded the 10% notification threshold in April. Sparkassen Immobilien AG sees this increase in the stake as a long-term vote of confidence. The combination of these two major shareholders, with their networks, their size and their knowledge and experience of Sparkassen Immobilien AG's core markets is a source of enduring, long-term strength for the Group and its future development.
Acquisition of new OMV Head Office in Viertel Zwei With the acquisition of OMV AG's new Head Office in Vienna and the disposal of its old headquarters, Sparkassen Immobilien AG has demonstrated its ability to take advantage of special opportunities even in a difficult environment. The new Head Office forms part of the Viertel Zwei development, one of Vienna's most attractive office locations, and with its 47,000 sq m of prime office space provides ideal working conditions for OMV employees. Both deals are expected to close in the coming months.
Consolidated income statement for the three months ended 31 March 2009
EUR m / fair value basis
1.1.-31.3. 1.1.-31.3. Change in %
2009 2008|Revenues |28.5 |26.9 |+ 6 whereof rental income |22.3 |21.2 |+ 5 |Revaluation of properties |0 |0.1 | |Other operating income |1.4 |0.5 | |Gains on property disposals |0 |5.0 | |Operating revenue (EBIT) |29.9 |32.6 |- 8 |Depreciation and amortisation |- 2.4 |- 1.1 | |Other operating expenses |- 14.1 |- 12.6 | |Operating profit (EBIT) |13.5 |18.9 |- 29 |Finance costs |- 10.2 |- 7.5 | |Participation certificate expenses |- 2.8 |- 3.8 | |Profit before tax (EBT) |0.4 |7.6 | |Taxes on income |0.0 |- 1.4 | |Consolidated net profit |0.5 |6.2 |- 92
Property information as at 31 March 2009
|Number of properties |263 | |Total lettable space in sq m |1,511,400 | |- Austria |339,900 | |- Germany |602,700 | |- Eastern Europe/Southeastern Europe |568,800 | |Property portfolio at fair value (EURm) |1,828.2 | |Occupancy rate |91% | |Average rental yield |6.8% |
end of announcement euro adhoc
Further inquiry note:
Rebecca Reichmann, MRICS
Investor Relations
Tel.: 0043 50 100 27402
E-Mail: rebecca.reichmann@s-immoag.at
Bosko Skoko
Corporate Communications
Tel.: 0043 50 100 27522
E-Mail: bosko.skoko@s-immoag.at
Branche: Real Estate
ISIN: AT0000652250
WKN: 065225
Index: ATX Prime, Immobilien-ATX
Börsen: Wien / official market