In the first half of the 2016 financial year, the rental income of Austrian real estate company Immofinanz in Romania increased by 2.9 percent and totals EUR 22.9 million, which accounts for 14.9 percent of the Group’s total rental income.
The properties in Romania represent 16.3 percent of the company’s total portfolio, a press release informs on Tuesday.
This includes 76 properties (20 standing investments, 2 developments, 9 real estate inventories – apartments that are intended for sale after completion – and 45 pipeline projects) with a carrying amount of EUR 853.2 million (EUR 633.3 million standing, EUR 44.8 million developments, EUR 1.7 million real estate inventories, EUR 173.5 million pipeline).
The expected fair value after completion of the current Group’s development projects in Romania amounts to EUR 105.4 million.
Overall, Immofinanz generated results of operations totalling EUR 87.6 million in the first two quarters of the abbreviated 2016 financial year, for an increase of 28.2 percent over the comparable prior year period.
“This growth was supported, above all, by an improvement in the results of asset management (plus 5.1 percent to EUR 107.3 million) following a substantial decline in the write-off of receivables in Russia and lower vacancy-related and operating costs charged to building owners as well as a reduction in other operating expenses (from EUR -53.5 million to EUR -26.1 million). In the previous year, these expenses were influenced by non-recurring costs for the settlement of legal proceedings with investors,” the release reads.