IMMOEAST AG is looking back on the most challenging financial year (May 1, 2008, to April 30, 2009) since the company's foundation. The reasons for this are, on the one hand, the massive economic slump, which started as real estate crisis and continued as financial and economic crisis and, on the other hand, the malversations caused by the management of Constantia Privatbank AG.
Since the management change in November of last year, the company consistently works on clearing mistakes and omissions from the past and stabilising the profit situation of IMMOEAST. Particularly worth mentioning is the acquisition of IMMOAUSTRIA, thanks to which receivables of just under 1.8bn from subsidiaries of the IMMOFINANZ Group could be significantly reduced and which allowed IMMOEAST to acquire a real estate portfolio in one of the soundest markets in the region.
While on the operative side, encouraging increases can be reported, namely 28% in rental income (282.7m compared with 220.7m in the previous year) and 37% (407m compared with 297.2m in the previous year) in revenues and also the EBITDA of 163.4m is higher than in the previous year (146.1m), the financial result of -913.2m in the past financial year is considerably lower than in the previous year (251.0m). -367.5m of the decrease can be attributed to impairments of associated companies (in particular Trigranit), -331.2m to exchange rate effects and -219.6m to the valuation of financial instruments.
With -913.2m, the revaluation of investment properties is negative and so are the impairments on development projects, goodwill amortisations and depreciations on receivables with -822.9m. This also includes a partial write down (-171.3m) of the amount receivable from Constantia Packaging B.V. from the so-called "IBAG bond" to 350m. Furthermore, losses are to be expected from development projects to be completed amounting to -141m. Not taking into account the positive balance sheet exchange rate effects, the devaluation of investment properties would have been -1,377.6m.
Thus, the EBIT is -1,713.8m (financial year 2007/08: 15.0m), the EBT -2,627.0m (financial year 2007/08: 266.0m). The book value per share is 6.45 (financial year 2007/08: 9.42) and the NAV (Net Asset Value) per share 7.09 compared with 10.27 in the previous year. The profit per share is calculated with -2.85 (financial year 2007/08: 0.21).
A largely stable situation is expected for the current financial year, whereas devaluations in individual countries and/or asset classes in Eastern Europe cannot be excluded.
The capital structure of IMMOEAST can be called as very sound also in the future. Thus, the IMMOEAST Group has equity of 5,387.1m and an equity ratio of 50.5%. In the individual financial statement, the equity as of April 30, 2009, are 5,242.8m and the equity ratio is 84.4%. The net loss for the year in the individual financial statement of IMMOEAST AG amounting to -2,110.3m can mainly be attributed to the value adjustment on receivables from group financing (-1,691.6m) and to the impairment of interests (-589.6m). Both effects are caused by real estate devaluations (and impairments).
In the current financial year it will be important to enhance the already achieved success in the stabilisation and optimisation of the existing investments and to complete the development projects, which have not been halted and fully funded on schedule. Regarding the frozen or suspended development projects, there is the chance to reactivate these selectively.
Since the management change in November of last year, the company consistently works on clearing mistakes and omissions from the past and stabilising the profit situation of IMMOEAST. Particularly worth mentioning is the acquisition of IMMOAUSTRIA, thanks to which receivables of just under 1.8bn from subsidiaries of the IMMOFINANZ Group could be significantly reduced and which allowed IMMOEAST to acquire a real estate portfolio in one of the soundest markets in the region.
While on the operative side, encou
