Preliminary results for S IMMO AG: Record profit in 2015
Earnings per share up from EUR 0.46 to EUR 1.17.
• EBIT improved by roughly 20%
• EBT nearly doubled to EUR 112m
• Net income increased to EUR 77.2m
The stock exchange listed real estate investment company S IMMO AG (Bloomberg: SPI:AV, Reuters: SIAG.VI) has once again achieved a significant increase in its annual results, thus exceeding the goals it had set for the financial year 2015. The primary contributors to this success were the positive developments in Germany and the substantial reduction of financing costs.
Ernst Vejdovszky, CEO of S IMMO AG: “These results clearly show that our strategy is paying off. We are benefiting from cycles and are able to quickly use market conditions to our advantage. Securing the low interest rate level was a major step towards ensuring a favourable environment for ourselves in the coming years. Against this backdrop, I am very optimistic for the coming quarters.”
Rental income and gross profit
In 2015, S IMMO AG’s total revenues amounted to EUR 190.7m (2014: EUR 188.5m), slightly higher than the prior-year figure. The rental income included in this figure was on target at EUR 111.7m (2014: EUR 111.8m). Revenues from hotel operations improved to EUR 45.5m (2014: EUR 42.1m). Higher room occupancy and an increase in room rates contributed to this positive development. Gross profit for the financial year totalled EUR 105.2m (2014: EUR 105.7m). EBITDA for the financial year 2015 came to EUR 88.7m (2014: EUR 89.8m).
Positive valuation results
As expected, valuation gains developed very positively, amounting to EUR 84.6m as at 31 December 2015 (2014: EUR 56.6m). This was largely due to the asset management activities aimed at raising the value of the properties along with the steadily improving sentiment in S IMMO’s markets. EUR 73.1m (2014: EUR 33.4m) of this amount can be attributed to Germany alone.
Thanks to this positive development, S IMMO was able to boost EBIT by 19.4% to EUR 165.7m (2014: EUR 138.7m).
Significant improvement in financing result
The financing result including the participating certificate result totalled EUR -53.4m as at 31 December 2015 (2014: EUR -79.2m). This significant improvement can be attributed to lower interest payments due to newly concluded interest rate hedging instruments and a better foreign currency result compared to the prior year.
Annual result improves once again
As a result, EBT came in at EUR 112.3m (2014: EUR 59.5m), an increase of 88.6% over the previous year. On balance, S IMMO ended the financial year 2015 with net income of EUR 77.2m (2014: EUR 33.8m). Earnings per share also improved significantly and came to EUR 1.17 (2014: EUR 0.46).
The company plans to further improve its FFO (Funds from Operations) during the financial year 2016. The positive trend on the German real estate market will persist and this will likely continue to be reflected in the valuation results for properties in Germany this year. Therefore, S IMMO expects additional value increases in its portfolio.
In terms of investments, S IMMO sees the greatest potential in Berlin, especially for commercial properties offering development opportunities. In Vienna, S IMMO is involved in office development projects at Vienna Central Station. Construction is expected to start on one of these projects this spring. In addition, various activities have been launched in Bucharest.
Friedrich Wachernig, Member of S IMMO AG’s Management Board, comments: “We are especially pleased that the ongoing recovery in Bucharest has reached a point that also makes us optimistic with regards to our development projects. We will soon start on the development of the office property The Mark and are expanding our Sun Plaza shopping centre. Along with Vienna, there are several exciting projects in the pipeline in Berlin as well.”
Please note the changes to our financial calendar:
Publication of the annual results for 2015
Thu., 28 April 2016
Record date Annual General Meeting
Tue., 24 May 2016
Results for the first quarter of 2016
Tue., 24 May 2016
Annual General Meeting
Fri., 03 June 2016
Wed., 08 June 2016
Record date for dividend
Thu., 09 June 2016
Dividend payment date
Fri., 10 June 2016
Results for the first half-year of 2016
Thu., 25 August 2016
Results for the first three quarters of 2016
Tue., 29 November 2016
Preliminary consolidated income statement according to IFRS for the period 01 January 2015–31 December 2015 in EUR m
01 – 12/2015
01 – 12/2014
thereof rental income
thereof revenues from operating costs
thereof revenues from hotel operations
Other operating income
Expenses directly attributable to properties
Hotel operating expenses
Income from property disposals
Book value of property disposals
Gains on property disposals
Depreciation and amortisation
Gains on property valuation
Operating result (EBIT)
Participating certificates results
Net income before tax (EBT)
Taxes on income
Consolidated net income
of which attributable to shareholders in parent company
of which attributable to non-controlling interests
Earnings per share (EUR)