Preliminary results for S IMMO AG: Record profit in 2015

Other notification

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).

Outlook

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
(previously 31 May 2016)

Annual General Meeting

Fri., 03 June 2016

Dividend ex-date

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
(previously 31 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

Revenues

190.7

188.5

thereof rental income

111.7

111.8

thereof revenues from operating costs

33.5

34.5

thereof revenues from hotel operations

45.5

42.1

Other operating income

3.5

4.7

Expenses directly attributable to properties

-55.8

-56.2

Hotel operating expenses

-33.2

-31.3

Gross profit

105.2

105.7

Income from property disposals

15.9

51.6

Book value of property disposals

-15.9

-51.4

Gains on property disposals

0

0.2

Management expenses

-16.5

-16.1

EBITDA

88.7

89.8

Depreciation and amortisation

-7.7

-7.6

Gains on property valuation

84.6

56.6

Operating result (EBIT)

165.7

138.7

Financing result

-48.9

-71.7

Participating certificates results

-4.6

-7.5

Net income before tax (EBT)

112.3

59.5

Taxes on income

-35.0

-25.7

Consolidated net income

77.2

33.8

of which attributable to shareholders in parent company

78.2

31.0

of which attributable to non-controlling interests

-1.0

2.8

 

 

 

Earnings per share (EUR)

1.17

0.46