EANS-Adhoc: Sparkassen Immobilien AG
record cash flows, portfolio valuation
impacted by economic crisis
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement.
9-month report
19.11.2009
Ad hoc information Vienna, 19 November 2009
Sparkassen Immobilien AG: record cash flows, portfolio valuation impacted by economic crisis
- Non-cash valuation effects totalling EUR -96.5 million
- First ever accounting loss: EUR -71.6 million
- Record operating cash flows: up 17%
- Steady increase in revenues and rental income: up 6% and +4 %
respectively
- Occupancy rate stable at 90.2%
- 12 November 2009: EUR 110 million Gemini sale - one of biggest CEE
transactions in 2009Stock exchange listed Sparkassen Immobilien AG (Bloomberg: SPI:AV, Reuters: SIAG.VI) is reporting operating successes for the first nine months of 2009, although the results of the property valuation were massively impacted by the effects of the international economic and financial crisis. "The continuing disappointing performance of our markets - in particular the higher yields expected by investors from property investments in Eastern Europe and the consequent decline in property valuations - had no effect on cash flows but meant that valuations had to be revised downwards, resulting in an accounting loss," comments Holger Schmidtmayr, member of Sparkassen Immobilien AG´s Management Board, on the Group´s performance for the first three quarters of 2009.
Operating results: increases in revenues, rental income and cash flows Revenues for the first three quarters of 2009 came to EUR 86.0m, compared with EUR 81.5m for the same period last year. Of this, EUR 66.62m was rental income. This represents an increase of 6% and 4% respectively, as against the comparable period in 2008. Other operating income in the same period also climbed, from EUR 4.3m to EUR 11.0m. Operating cash flows for the first three quarters rose by a satisfactory 17% to EUR 48.2m, compared with EUR 41.3m for the same period last year.
Property valuations Valuation writedowns for the period amounted to EUR -96.5m (Q3 2008: valuation losses of EUR -1.0m). Of this amount, 98% was attributable to Central and South Eastern Europe. "The results of the revaluation in the main reflect the repeated increases in property yields resulting from persisting effects of the economic and financial crisis - the yield shift. This triggered a decline in real estate values, necessitating the revision of book valuations downwards, but these are non-cash effects," says Ernst Vejdovszky, Sparkassen Immobilien AG Management Board member.
Earnings performance EBITDA for the first nine months of 2009 was steady at EUR 49.4m (Q3 2008: EUR 49.6m), while EBIT dropped from EUR 45.4m (Q3 2008) to EUR -54.1m. The overall results for the period were a loss of EUR -71.6m, compared with a profit of EUR 11.7m for the same period last year. Finance costs increased to EUR -30.8m from EUR 22.4m in the same period last year, due to higher financing volumes.
Net operating income (NOI) grew from EUR 52.2m to EUR 54.4m, and the NOI margin (NOI / revenues) stood at 60%. Growth of property portfolio All Sparkassen Immobilien AG´s development projects are progressing to schedule, and in the first three quarters of 2009 the Group´s property portfolio grew to EUR 1.839 billion. As at 30 September 2009, Sparkassen Immobilien AG´s property portfolio comprised 260 properties with total lettable space of 1,515,100 m². The occupancy rate was a steady 90.2%, and the gross rental yield was around 6.7%.
The Group´s cash reserves stood at EUR 188m.
All development projects on schedule "The market environment continues to be difficult, but on all our projects construction is proceeding to plan, and some of them have recently been completed and officially opened. In the first three quarters of 2009 Sparkassen Immobilien AG has invested more than EUR 150m in its development projects, which make up 20% of the property portfolio. When the projects are completed our rental income will grow significantly, and our cash flow will be doubled," explains Friedrich Wachernig, Sparkassen Immobilien AG Management Board member.
The topping out ceremony for the Neutor 1010 office and residential project took place at the start of October 2009. The students´ hall of residence and senior citizens´ day care centre in the Sechshauserstrasse in Vienna´s Fifteenth District was completed in September 2009 and opened in November. It is 100% let on a long-term basis. In addition to the Galvaniho 4 office building, the Austria Trend Vysoka Hotel is Sparkassen Immobilien AG´s second development project in Bratislava. This 4-star hotel in the centre of the old city, began operations in October 2009. The formal opening ceremony takes place on 19 November. The two shopping centres - Serdika Center in Sofia and Sun Plaza in Bucharest - will be opening in early 2010, and both have pre-letting ratios of roughly 90%.
s IMMO Aktie: year-to-date gain of 163.6% Sparkassen Immobilien AG´s stock market performance this year has also been a positive factor: the improvement in the stock market price of s IMMO Share continued unabated in the third quarter of 2009. The closing price of the share at the end of the quarter was EUR 5.22, making the year-to-date gain 163.6%. This was in itself a successful achievement for the nine months, but the stock also outstripped the ATX index, which put on only 50.6% over the period. Sparkassen Immobilien AG numbers two of the Region´s largest financial service providers - Erste Group and Vienna Insurance Group - among its core shareholders. There is also a strong revival of interest among other institutional investors.
12 November 2009 - Most successful project in the Group´s history With the successful sale of the Gemini office development project in Prague to Deka Immobilien GmbH, Sparkassen Immobilien AG has realised impressive cash gains. With a total value of around EUR 110m, this reference deal is not only the biggest sale in the history of Sparkassen Immobilien AG, but also its most successful development project ever. With it, the Group has more than doubled the value of its transactions in the Czech Republic to date. This is one of the biggest transactions in Central and Eastern Europe in 2009 so far.
Outlook Sparkassen Immobilien AG will continue to pursue its proven strategy - a solid, well balanced portfolio, reliable business partners and stable core shareholders - with the overriding goal of creating enduring value for its shareholders. Completion of the development projects will in future years lead to significant increases in rental income and a doubling of cash flows.
Consolidated income statement for the nine months ended 30 September 2009
EUR m / fair value basis
| | | | | |01.01. - 30.09.|01.01.- 30.09.| | |2009 |2008 | | | | | | | | | |Revenues |86.0 |81.5 | | whereof rental income |66.6 |63.9 | |Revaluation of properties |-96.5 |-1.0 | |Other operating income |11.0 |4.3 | |Gains on property disposals |0.8 |7.7 | |Operating revenue (EBIT) |1.3 |92.5 | |Depreciation and amortisation |-7.0 |-3.2 | |Other operating expenses |-48.4 |-43.9 | |Operating profit (EBIT) |-54.1 |45.4 | |Finance costs |-30.8 |-22.4 | |Participating certificates results |11.4 |-8.8 | |Profit before tax (EBT) |-73.5 |14.2 | |Taxes on income |1.9 |-2.6 | |Consolidated net loss / profit |-71.6 |11.5 |
Property information as at 30 November 2009
|Number of properties |260 | |Total lettable space in m2 |1,515,100 | |- Austria |324.600 | |- Germany |602.700 | |- Eastern Europe / South Eastern Europe |587.800 | |Property portfolio at fair value (EUR mn) |1,839 | |Occupancy rate |90.2% | |Average 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 22 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 at 30 September 2009 the total value of the portfolio was EUR 1.839 billion and total lettable space was 1,515,100 m2.
end of announcement euro adhoc
Further inquiry note:
Investor Relations:
Rebecca Reichmann
Tel.: +43(0)50100-27402
Fax: +43(0)05100-927402
mailto:rebecca.reichmann@s-immoag.at
wwww.sparkassenimmobilienag.at
Corporate Communications:
Bosko Skoko
Tel.: +43(0)50100-27522
Fax: +43(0)05100-927522
mailto:bosko.skoko@s-immoag.at
wwww.sparkassenimmobilienag.at
Branche: Real Estate
ISIN: AT0000652250
WKN: 065225
Index: ATX Prime, Immobilien-ATX
Börsen: Wien / official market