IMMOFINANZ properties in Romania mounted to EUR 807. 7 million, representing 19% of the total portfolio of the company. The portfolio of concluded investments, worth EUR 625.2 million consists of nine office buildings (13.8% of the total office portfolio of the group) and six retail properties (22.4% of the entire retail portfolio).
In the first half of the 2018 financial year, the incomes from renting in Romania mounted to EUR 23.9 million, representing 19.9% from the total renting at group level.
Overall at group level, IMMOFINANZ more than tripled the results of operations to EUR 114.8 million in the first half of 2018 (Q1-2 2017: EUR 33.8 million). Rental income rose by 3.5% to EUR 119.0 million. The results of asset management increased by 19.8% to EUR 94.8 million, supported by the increase in rental income and a sizeable reduction in property expenses. The results of property sales rose to EUR 20.6 million (Q1-2 2017: EUR 2.0 million), while the results of property development turned positive at EUR 24.2 million following a loss in the first half of the previous year.
Financial results for the period benefited, on the one hand, from a substantial reduction in financing costs – which fell by 35.3% to EUR -33.8 million as a result of the refinancing transactions carried out during the past year. On the other hand, financial results declined, as expected, to EUR 1.5 million (Q1-2 2017: EUR 104.4 million) due to the absence of the high positive valuation effects from the favourable development of the CA Immo and BUWOG share prices in 2017. Net profit for the first half-year amounted to EUR 86.2 million, compared with EUR 105.3 million in the first half of the previous year, and earnings per share (basic) equaled EUR 0.79 (Q1-2 2017: EUR 1.05).
“IMMOFINANZ can report on a successful first half of 2018. The measures we have implemented to date are taking effect – our operating business is growing stronger and the expected improvement in our key performance indicators is now visible. With EUR 114.8 million in the first six months, we have now generated higher results of operations than in the entire 2017 financial year“, indicated Oliver Schumy, CEO of IMMOFINANZ. “The development of sustainable funds from operations underscores IMMOFINANZ’s strengthened earning power. FFO 1 from the standing investment business improved by roughly 74% to EUR 48.4 million. In addition, FFO 1 per share increased by roughly 60% to EUR 0.43. With these results, we are well on target to meet our goal and generate FFO 1 of more than 100 million Euros in 2019.” The calculation of FFO 1 does not include the dividend or the economic interest in CA Immo.
Earnings before tax (EBT) totaled EUR 125.6 million (Q1-2 2017: EUR 140.2 million). Income tax amounted to EUR -36.2 million (Q1-2 2017: EUR -27.0 million), whereby EUR -31.9 million represent deferred taxes for the income taxes that could become due in later financial years. Included here, among others, are EUR -18.2 million of deferred taxes from property valuation.
Net profit for the first half of 2018 equaled EUR 86.2 million (Q1-2 2017: EUR 105.3 million) and represents earnings per share (basic) of EUR 0.79 (Q1-2 2017: EUR 1.05).