Immofinanz properties in Romania represent 18.6 pc of overall company’s portfolio


The value of Immofinanz properties in Romania amounts EUR 797 million, representing 18.6 percent of the total portfolio of the company, according to the financial report. Investment portfolio of EUR 619.5 million is represented by 9 office buildings (13.8 percent of the entire portfolio of offices) and 6 retail properties (22 percent of the entire retail portfolio).

In the first three quarters of FY 2018, the rental income of Austria-based real estate company in Romania totals EUR 35.4 million, which represents 20.2 percent of total rental income at group level.

Until end-September 2018, the results of operations more than doubled year-on-year to EUR 149.7 million (Q1-3 2017: EUR 66.2 million), sustainable FFO 1 from the standing investment business rose by 100 percent to EUR 63.0 million or EUR 0.57 per share, and net profit turned positive with a significant increase to EUR 135.0 million (Q1-3 2017: EUR -59.1 million).

“We can now see the results of Immofinanz’s repositioning as one of the leading commercial real estate companies in Central and Eastern Europe with a focus on the office and retail asset classes – and the expected improvement is clearly visible in our key performance indicators for the 2018 financial year. The Group has a very solid foundation for further growth and is successfully positioned to utilise the opportunities resulting from changes in the market environment, ”commented Oliver Schumy, CEO of Immofinanz, on these developments.

The company’s net profit improved significantly to EUR 135 million, after loosing EUR -59.1 million in the same interval in 2017.

The revaluation of investment property (foreign exchange-adjusted and foreign exchange-based) totalled EUR 0.5 million for the reporting period (Q1-3 2017: EUR -0.1 million). In contrast, the total revaluation results recorded by Immofinanz in Q1-3 2018 were clearly positive at EUR 31.2 million (Q1-3 2017: EUR 11.3 million). This amount includes EUR 16.4 million (Q1-3 2017: EUR 7.9 million) of foreign exchange-adjusted revaluations.

“Positive effects were provided, among others, by an increase in the value of the FLOAT and trivago Campus development projects in Germany, whereby the latter was reclassified to investment property as of 30 June 2018, and by two office properties, the myhive Metroffice in Bucharest and the Polus Towers in Bratislava. The start of modernisation in the VIVO! Cluj shopping center represented a temporary negative valuation effect,” the report reads.

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