EANS-Adhoc: Sparkassen Immobilien AG posts profits in first half of 2009
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6-month report
26.08.2009
Ad hoc information Vienna, 26 August 2009
Sparkassen Immobilien AG posts profits in first half of 2009
> s IMMO Share: strong market performance over six months (up 117%)
> EBIT significantly positive at EUR 23.8 million (HY1 2008: EUR 32.2m)
> Consolidated net profit of EUR 3.2 million (HY1 2008: EUR 9.0m)
> Steady increase in revenues and rental income: up 6% and 4% respectively
> Overall gross rental yield of 6.7%, steady occupancy rate of over 90%
> High-quality and widely diversified property portfolio worth EUR 1.85
billionStock exchange listed Sparkassen Immobilien AG (Bloomberg: SPI:AV, Reuters: SIAG.VI) can look back on a successful first half of 2009, with a significantly positive EBIT, a net profit, an increase in rental income and revenues and a positive performance on the stock market.
Operating results: growth in revenues and rental income Compared with the same period last year, revenues were up 6% to EUR 57.3m and rental income was up 4% to EUR 44.7m. Other operating income rose to EUR 10m (HY1 2008: EUR 2.2m). This increase is mainly due to the higher income from the Marriott Vienna and Marriott Budapest hotels after completion of renovation.
Revaluations and disposal of properties In the first six months of 2009 revaluation of properties led to a slight decrease in value of EUR 4.9m, compared with a break-even outcome with a minimal gain of EUR 118,000 for the same period last year. In the same period, two property sales were finalised, resulting in gains on disposal of EUR 290,000 (HY1 2008: EUR 5.43m). The properties realised a profit compared with their values at the time of the last revaluation, carried out just a few months earlier.
Earnings performance: EBIT significantly positive Cash flow from operating activities was up by 17% to EUR 33.0m from EUR 28.3m in the first half of 2008. At EUR 11.3m, funds from operations (FFO) were marginally lower than in the same period last year (EUR 11.8m). EBITDA fell slightly by 3% to EUR 33.5m (HY1 2008: EUR 34.3m), while EBIT was down 26% from EUR 32.2m (first six months of 2008) to EUR 23.8m. This fall was due to lower gains on disposal compared with the first half of 2008 and lower property valuations. Finance costs were stable at EUR 15.0m after EUR 14.9m for the first half of 2008. Expenditure for participating certificates is dependent on EBIT, and therefore fell from EUR 6.4m for the first half of 2008 to EUR 5.1m in the same period this year. This is where the equity character of this financial instrument shows to good advantage. Net profit before tax (EBT) was EUR 3.8m (HY1 2008: EUR 11.0m), and consolidated net profit came out at EUR 3.2m. Earnings per share (EPS) were EUR 0.05 compared with EUR 0.13 for the first six months of 2008.
Growth of property portfolio With development projects on schedule, in the first half of 2009 Sparkassen Immobilien AG's property portfolio grew to EUR 1.85bn (31 December 2008: EUR 1.78bn). At 30 June 2009 the portfolio comprised 261 properties with total lettable area of 1,517,300 sq m. The majority of the properties are in Austria and Germany (27% and 51% respectively), with 19% in Central Europe (the Czech Republic, Slovakia, Hungary) and 3% in Southeast Europe (Croatia, Bulgaria, Romania). For the first half of 2009 the gross rental yield was 6.7%. At 30 June 2009 the average occupancy rate was almost unchanged at 90.5%. With the exception of a single office building in EU candidate country Croatia, all Sparkassen Immobilien AG's investments are in EU states.
All development projects on schedule Sparkassen Immobilien AG's ongoing development projects continue to make steady progress, and the pre-letting ratios are excellent. The students' hall of residence and senior citizens' day centre in Vienna's Sechshauser Strasse, which is let long-term to a City of Vienna service organisation, together with Hotel Vysoká and the office and retail building Galvaniho 4 in Bratislava will be completed and opened by the end of the year. Completion of the residential and office building Neutorgasse in Vienna's Inner City is scheduled for the second quarter of 2010. The sale of most of the apartments has already been contractually agreed. The two shopping centres - Serdika Center in Sofia and Sun Plaza in Bucharest - will be opened in early 2010 and both have pre-letting ratios of over 85%.
s IMMO Share: six-month performance shows 117% gain Throughout the second quarter of 2009 s IMMO Share performed strongly. The closing price at 30 June 2009 was EUR 4.29, for a six-month gain of 116.7%. This still represents a discount of 51% to net asset value (NAV), which stood at EUR 8.8 at 30 June 2009, compared with EUR 9.9 a year ago. Currently (closing price on 25 August 2009) the share is quoted at EUR 4.88.
Consolidated income statement for the half year ended 30 June 2009
EUR m / fair value basis
| |01.01. - |01.01. - |Change | | |30.06. |30.06. |% | | |2009 |2008 | | | | | | | |Revenues |57.3 |54.1 |+ 6 | | whereof rental income |44.7 |42.9 |+ 4 | |Revaluation of properties |-4.9 |0.1 | | |Other operating income |10.0 |2.2 | | |Gains on property disposals |0.3 |5.4 | | |Operating revenue |62.7 |61.8 | | |Depreciation and amortisation |- 4.7 |- 2.2 | | |Other operating expenses |-34.1 |-27.4 | | |Operating profit (EBIT) |23.8 |32.2 |- 26 | |Finance costs |- 15.0 |- 14.9 | | |Expenses of participating certificates|- 5.0 |- 6.3 | | |Profit before tax (EBT) |3.8 |11.0 |- 66 | |Taxes on income |-0.6 |- 2.0 | | |Consolidated net profit |3.2 |9.0 |- 64 |
Property information as at 30 June 2009
|Number of properties |261 | |Total lettable area in sq m |1,517,300 | |- Austria |326,900 | |- Germany |602,700 | |- Eastern Europe / Southeastern Europe |587,700 | |Property portfolio at fair value (EUR m) |1,852.0 | |Occupancy rate |90.5% | |Average gross rental yield |6.7% |
Sparkassen Immobilien AG Sparkassen Immobilien AG (Bloomberg: SPI.AV, Reuters: SIAG.VI) has been listed on the Vienna Stock Exchange for 21 years, making it Austria's oldest real estate investment company. It is a long-term value investor in residential, office, hotel and retail property in Austria, Germany, the Czech Republic, Slovakia, Croatia, Hungary, Romania and Bulgaria. As of 30 June 2009 the total value of the portfolio was EUR 1.85bn and total lettable space was 1,517,300 m2.
end of announcement euro adhoc
Further inquiry note:
Rebecca Reichmann, MRICS
Investor Relations
Tel.: 0043 50 100 27402
email: rebecca.reichmann@s-immoag.at
Bosko Skoko
Corporate Communications
Tel.: 0043 50 100 27522
email: bosko.skoko@s-immoag.at
Branche: Real Estate
ISIN: AT0000652250
WKN: 065225
Index: ATX Prime, Immobilien-ATX
Börsen: Wien / official market