29.04.2015 – 07:32

S IMMO AG

EANS-News: S IMMO AG plans to raise dividend to EUR 0.24

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annual result

S IMMO AG plans to raise dividend to EUR 0.24
 

·    EBIT increases by 45% to EUR 138.7m
·    Net income up more than 20%
·    EPRA NAV advances to EUR 10.63
·    Capital market measures secure strategic possibilities
·    Consolidated earnings to be boosted in 2015 again
 

The stock exchange listed S IMMO AG (Bloomberg: SPI:AV, Reuters: SIAG.VI) has
confirmed the preliminary figures released on 25 March 2015. In the 2014
financial year, S IMMO was able to once again significantly improve its net
income, and the year marks a turning point for the company. Ernst Vejdovszky,
CEO of S IMMO AG, comments: "After doing our homework in the field of efficiency
in recent years and laying the groundwork for future growth, we are now
profiting from the low interest rate conditions and good economic performance in
our markets. The outstanding results for 2014 thus justify a dividend increase.
Consequently, we will propose a dividend distribution of EUR 0.24 to the Annual
General Meeting."
 
Friedrich Wachernig, Member of S IMMO AG's Management Board, adds: "It is our
stated goal to continue on a course of profitable growth and increase the
company's value for our shareholders over the long run. We are planning on
investments of around EUR 180m this year, with about two thirds of this focused
in Germany. But beyond that, we are also looking at interesting opportunities in
our markets in Austria, Central and Southeastern Europe."
 
EBIT increases by 45%, driven by upswing in core markets
Rental income amounted to EUR 111.8m in 2014 (2013: EUR 116.7m), reflecting the
property sales as expected. Revenues from hotel operations increased to EUR
10.8m (2013: EUR 10.5m). Gross profit for the reporting period was EUR 105.7m
(2013: EUR 109.6m). During the 2014 financial year, a total of six properties
were sold, with gains from these sales amounting to EUR 51.6m (2013: EUR
128.1m).
 
In the past financial year, property valuations were supported by the positive
market development in the regions where S IMMO operates and amounted to EUR
56.6m (2013: EUR 6.9m). Valuations developed very well across all segments.
Especially the positive trend on the German property market continued, as
reflected by the valuation result for properties in Germany, which accounts for
EUR 33.4m (2013: EUR 23.8m).
 
Due to this positive development of the markets, S IMMO was able to boost EBIT
to EUR 138.7m (2013: EUR 95.8m), marking an increase of 44.8% on the previous
year.
 
Net income rises again
The 2014 financing result (excluding the participating certificate result) was
EUR -71.7m (2013: EUR -53.9m), which also includes effects from the valuation of
derivative financial instruments and expenses from currency translation. Due to
the exchange of participating certificates into a seven-year-bond, which was
issued in June 2014, the expenses for participating certificates decreased to
EUR 7.5m (2013: EUR 9.3m). Overall, S IMMO ended the 2014 financial year with a
net income of EUR 33.8m (2013: EUR 28.1m), marking an increase of 20.6% compared
to the previous year.
 
Capital market: good performance and a higher dividend
S IMMO also made important progress on the capital market last year. In autumn,
for example, the company had great success in placing a EUR 100m bond. In order
to optimise and streamline the company's capital structure, the amount of
participating certificate capital was reduced significantly. These measures give
S IMMO additional strategic possibilities.
 
The S IMMO share ended 2014 with a gain of 16.64%, thus beating the ATX and the
IATX. For the first time in five years, the share price edged over six euros.
EPRA-NAV per share rose to EUR 10.63 as at 31 December 2014 (31 December 2013:
EUR 9.73). The performance during the current financial year has also been
particularly positive. The S IMMO share closed the first quarter of 2015 at a
price of EUR 8.45, recording an increase of 36.95% since the beginning of the
year.
 
The Management Board feels that the further improvement in the business results
justifies an increase in the dividend. Consequently, a proposal to raise the
dividend to EUR 0.24 per share will be submitted to the Annual General Meeting
on 03 June 2015. The positioning of the S IMMO share as a sustainable dividend-
paying stock is in line with the company's long-term strategy.
 
Outlook for 2015: investments and a further increase in consolidated net income
S IMMO is benefiting from the current low-interest environment and the positive
economic developments in its markets. The company is taking advantage of these
factors to make investments in the countries in which it operates. Roughly two
thirds of the planned investments involve acquisitions in Germany. The remaining
funds are earmarked for opportunistic purchases and development projects in
Austria as well as in Central and Southeastern Europe. In Germany, S IMMO will
focus more on the commercial segment, placing emphasis on properties in Berlin
and the area surrounding the German capital. Existing plots will be used for
developments, and standing properties and land plots will also be purchased.
Further investments are also planned in residential properties.
 
Ernst Vejdovszky summarises: "Our strategy remains unchanged: We will continue
to concentrate on commercial and residential properties in our regions. This
gives us the perfect basis to grow profitably in the future."
 
In the current financial year, S IMMO intends to improve its consolidated net
income yet again.
 
 
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 2014 - 31 December 2014
in EUR m/ fair value method
 


                                          01-12/2014                 01-12/2013
Revenues                                      188.5                      193.7
thereof rental income                         111.8                      116.7
thereof revenues from operating costs          34.5                       36.8
thereof revenues from hotel operations         42.1                       40.2
Other operating income                          4.7                        6.2
Expenses directly attributable to properties  -56.2                      -60.6
Hotel operating expenses                      -31.3                      -29.7
Gross profit                                  105.7                      109.6
Income from property disposals                 51.6                      128.1
Book value of disposed properties             -51.4                     -121.7
Gains on property disposals                     0.2                        6.4
Management expenses                           -16.1                      -15.1
Earnings before interest,tax, depreciation
and  amortisation (EBITDA)                     89.8                      100.9
Depreciation and amortisation                  -7.6                      -12.0
Results on property valuation                  56.6                        6.9
Operating result (EBIT)                       138.7                       95.8
Financing costs                               -73.1                      -53.9
Financing income                                0.4                        1.6
Results from companies  measured at equity      0.9                       -1.5
Participating certificates result              -7.5                       -9.3
Net income before tax  (EBT)                   59.5                       32.6
Taxes on income                               -25.7                       -4.6
Consolidated net income                        33.8                       28.1
thereof attributable to shareholders
in parent company                              31.0                       27.3
thereof attributable to non-
controlling interests                           2.8                        0.7
                                                                                
Earnings per share (in EUR)                     0.46                       0.41


 
 
 

Property key figures                                            31 December 2014
Properties                                  Number                           203
Total useable space                     million m2                           1.2
Gross rental yield                               %                           6.9
Occupancy rate                                   %                          91.1

Further inquiry note:
Investor Relations:
Andreas J. Feuerstein
Phone: +43(0)50100-27556
Fax:  +43(0)05100-927556
E-mail:  andreas.feuerstein@simmoag.at
www.simmoag.at 

Corporate Communications:
Bosko Skoko
Phone: +43(0)50100-27522
Fax:  +43(0)05100-927522
E-mail:  bosko.skoko@simmoag.at
www.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