Final results 2008/09: difficult financial year for IMMOFINANZ AG (DE)

IMMOFINANZ AG is looking back on a very challenging financial year (May 1, 2008 to April 30, 2009. The reasons for this are, on the one hand, the worldwide financial and economic crisis, which has caused a significant economic slump in the real estate sector. On the other hand, also the malversations caused by the management of Constantia Privatbank AG had a massive impact on the business activities of IMMOFINANZ AG.

Since the management change in November of last year, the company now consistently works on clearing mistakes and omissions from the past and stabilizing the financial and profit situation of IMMOFINANZ. Particularly worth mentioning is the success of the exchange offer directed at convertible bond holders, which allowed reducing the nominal liabilities from conversion bonds by €344.4 mln. and considerably improving the capital structure of IMMOFINANZ. Furthermore, it was possible to eliminate a liability threatening the existence of the company with the sale of IMMOAUSTRIA Immobilien Anlagen GmbH to IMMOEAST AG.

While on the operative side, mainly increases in rental income (€546.7 mln. compared with €501.3 mln. in the previous year) and in revenues (€763 mln. compared with €670.8 mln. in the previous year) can be reported, and also the EBITDA of €310.5 mln. is higher than in the previous year (€306.2 mln.), the financial result of €-1,332.2 mln. in the past financial year is considerably lower than in the previous year (€40.8 mln.). This decrease can be attributed to the valuation of financial instruments (€-565.3 mln.), impairments of associated companies (€-367.5 mln.) as well as to exchange rate effects (€-326 mln.) and the negative interest balance (€-182 mln.).

With €-1,347.4 mln., the revaluation of investment properties is markedly negative and so are the impairments on development projects, goodwill and on receivables with €-871.4 mln. This also includes a partial write down (€-171.3 mln.) on the amount receivable from Constantia Packaging B.V. from the so-called "IBAG bond" to €350 mln.. Furthermore, losses are to be expected from development projects to be completed amounting to €163 mln.. Not taking into account the positive balance sheet exchange rate effects, the revaluation of investment properties would have been €1,810.4 mln.

Thus, the EBIT is €-2,071.3 mln. (financial year 2007/08: €514.5 mln.), the EBT €
-3,403.4 mln. (financial year 2007/08: €555.3 mln.). The book value per share is €4.75 (financial year 2007/08: €9.47) and the NAV (Net Asset Value) per share €5.25 (compared with €11.55 in the previous year). The result per share (undiluted) is calculated with €-4.29 (financial year 2007/08: €0.66).

The capital structure of IMMOFINANZ can be called as very sound also in the future. Thus, the IMMOFINANZ Group has equity of €4,565.3 mln. and a balance sheet equity ratio of 39.1%. In the individual financial statement, the net assets as of April 30, 2009, are €2,338.2 mln. and the equity ratio is 56.8%. The net loss for the year in the individual financial statement of IMMOFINANZ AG amounting to €-530.9 mln. can mainly be attributed to the depreciation of interests (€-930.4 mln.), namely €-596.9 mln. on the interest in IMMOEAST AG and €-333.5 mln. on the interest in IMMOWEST Immobilien Anlagen AG, and mainly result from the effected real estate depreciations. Extraordinary profits amounting to €315.7 mln. could be achieved due to the success of the exchange offer directed at convertible bond holders.

The outlook for the current financial year is cautiously positive. While in the segments IMMOWEST and IMMOAUSTRIA there are more and more signs of increasing real estate values, other depreciations in individual markets or asset classes still cannot be excluded in Eastern Europe after the expected bottom has been reached.


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