IMMOFINANZ Group continued its positive business development by generating sound operating results in the first quarter of the 2013/14 financial year.
Rental income declined slightly to €161.4 million for the reporting period (Q1 2012/13: €162.3 million) as a result of properties sold in the previous year. The results of property sales rose from €4.7 million to €5.7 million (+21.4%), and the results of property development amounted to €8.1 million (Q1 2012/13: €-1.0 million). The results of operations increased 8.9% to €134.0 million (Q1 2012/13: €123.0 million). Net profit totaled €117.7 million for the reporting period (Q1 2012/13: €9.6 million). This strong increase was based on the sound development of the operating business as well as positive effects from foreign currency translation and the valuation of derivatives.
"The first quarter of our 2013/14 financial year failed to bring any positive economic impulses, but we still made sound progress with the optimization of our portfolio. All three operating areas - asset management, trade and development - contributed to the increase in results from operations, the occupancy rate in our properties improved slightly, and our sales program was successfully continued", explained Eduard Zehetner, CEO of IMMOFINANZ Group. "The large number of property sales in recent months and the accompanying repayment of financing led to an increase in the equity ratio from 42.3% on 30 April 2013 to 43.6%."
Outlook
The current growth and optimization course will be continued during and after the current financial year. Activities will also focus on the reduction of operating costs and cash flow generation. BUWOG will be strengthened through further property acquisitions on the German market in preparation for a possible initial public offering (IPO) or spin-off during the 2014 calendar year. Furthermore, the positioning of IMMOFINANZ Group as one of the leading real estate companies in Europe will be improved with specifically designed development activities in the commercial property segment of Central and Eastern Europe.
"Our goals for separating BUWOG, the West European residential property portfolio in Austria and Germany, from our commercial real estate portfolio, are to allow for a market valuation of BUWOG's residential property portfolio that is significantly higher than its current standing as part of IMMOFINANZ Group's mixed portfolio and to improve IMMOFINANZ Group's key indicators through a concentration on higher yield commercial properties in Western and Eastern Europe", commented Zehetner.
Source: Immofinanz
