14.6 percent of Austrian Immofinanz’s total portfolio represents properties in Romania, including 73 properties (17 standing investments, 11 developments and 45 pipeline projects) with a carrying amount of EUR 907.1 million (EUR 649.2 million standing, EUR 28.3 million developments, EUR 229.6 million pipeline), a press release informs. This compared to EUR 952 million in July.
Thus, the value of Immofinanz’s real estate portfolio in Romania has decreased by almost EUR 50 million after selling the entire logistics projects portfolio to Logicor, division of US giant Blackstone.
The expected fair value after completion of the current Group’s development projects in Romania amounts to EUR 117.7 million.
“In the first half of the 2015-2016 financial year, rental income in Romania presents itself stable and totals EUR 22.2 million (previous period: EUR 22.5 million), which accounts for 13.9 percent of the Group’s total rental income,” the release shows.
Romanian results of operations amount to EUR 21.8 million and represent 31.9 percent of Immofinanz’s total results of operations. At the same time, the operating profit (EBIT) in Romania amounts to EUR 34.8 million.
At group level, Immofinanz generated net profit of EUR 132.2 million in the first half of the 2015-2016 financial year (H1 of 2014-2015: EUR 3.4 million). This increase was supported primarily by positive effects from property valuation.
The results of operations totalled EUR 68.3 million (H1 of 2014-2015: EUR 155.3 million) and resulted from a decline in rental income to EUR 160.3 million (H1 of 2014-2015: EUR 213.2 million) that was caused by temporary rent reductions in Moscow and the planned sale of properties.