Preliminary results S IMMO AG: Consolidated net income for the year increased tenfold

Ad hoc notification

Rental income increase of 21.1%

• EBIT increase of 52.4%
• Consolidated net income for year rose from EUR 2.1m to EUR 21.3m 
• FFO yield reaches 9.4% 
• Dividend proposal for Annual General Meeting of EUR 0.10 per Share 

S IMMO AG’s preliminary results show a thoroughly positive picture for the financial year 2011. 

Gross profit increased by 33.4% 
S IMMO Group’s rental income in 2011 was exceptionally strong, at EUR 125.9m (2010: EUR 104.0m), a year-on-year increase of 21.1%. The development projects completed in 2010 were a major factor in this improvement, together with the Group’s acquisitions. Gross profit from hotel operations also put on 3.9% in spite of the difficulties posed by the overall uncertain economic climate, and ended the year at EUR 9.0m (2010: EUR 8.7m). The total gross profit climbed by an impressive EUR 26.8m, to EUR 107.0m, after EUR 80.2m in 2010, an increase of 33.4%. 

Growth in EBIT and cash flow
Operating profit (EBIT) of EUR 92.3m improved by EUR 31.7m compared with the EUR 60.5m achieved in 2010, a marked increase of 52.4%. Consolidated net income for the financial year 2011 came out at EUR 21.3m (2010: EUR 2.1m). 

Operating cash flow for the year was also very satisfactory and rose to EUR 96.0m, compared with EUR 74.2m in 2010. The cash flow from investing activities was EUR 4.5m, compared with EUR -36.5m in 2010, while the cash flow from financing activities in 2011 amounted to EUR -124.9m (2010: EUR -84.4m). 

Funds from operations (FFO) 
S IMMO’s funds from operations (FFO) in 2011 improved considerably – by 54.6% – to EUR 28.9m (2010: EUR 18.7m). This gives a very respectable FFO yield related to the Share price of 9.4%. FFO before participating certificates expense was EUR 40.1m, compared with EUR 28.9m in 2010.

Dividend for the financial year 2011 
At the Annual General Meeting on 01 June 2012 the Management Board will for the first time in the Group’s history propose a dividend distribution of EUR 0.10 per Share and propose an adjustment in the annual distribution on the S IMMO INVEST participating certificates to bring it into line with current earnings. 

S IMMO AG’s final results for the year will be presented on 20 April 2012.

01 – 12/201101 – 12/2010
Revenues 207.8174.9
Rental income 125.9104.0
Revenues from service charges41.332.6
Revenues from hotel operations40.638.3
Other operating income 
Expenses directly attributable to properties-77.0-70.1
Hotel operating expenses -31.6-29.6
Gross profit
Income from property disposals 46.5102.7
Carrying value of property disposals -34.9-92.8
Gains on property disposals
Management expenses-17.2-18.7
Earnings before interest, tax, depreciation and amortisation (EBITDA)
Depreciation and amortisation-9.3-10.1
Gains / losses on property valuation 0.1-0.8
Operating result (EBIT)
Financing costs -51.5-41.2
Participating certificates results-11.2-10.2
Net income before taxes (EBT) 
Taxes on income -8.4-7.0
Consolidated net income for the period
of which attributable to shareholders in parent company20.01.8
of which attributable to non-controlling interests 1.20.3
Earnings per share (EUR) 0.290.03