Preliminary results of S IMMO AG: Net income up by 20%

Other notification

EBIT roughly 45% higher

  • Net income for the year increased to EUR 33.8m
  • Earnings per share up to EUR 0.46

Stock exchange listed S IMMO AG (Bloomberg: SPI:AV, Reuters: SIAG.VI) has maintained the sound trend of recent years with its preliminary figures for the financial year 2014 and another significant increase in net income. The positive development across all the company’s markets was a key factor in this success.

Ernst Vejdovszky, CEO of S IMMO AG, comments: “These preliminary results confirm the positive trend that we have been noticing for several quarters both in our markets and on the capital market. Our business model enables us to draw long-term benefit from the positive developments in the real estate markets and to create value for our shareholders.”

Friedrich Wachernig, Member of S IMMO AG’s Management Board, adds: “We are particularly pleased that there is good news from all our markets. The performance of the Berlin property market continues to be strong, and we are delighted about this. Even markets that were fairly challenging in previous quarters are increasingly recovering, and benefiting from a resurgence in interest from investors.”

Rental income and gross profit
Rental income totalled EUR 111.8m in the financial year 2014 (2013: EUR 116.7m), and reflected the property disposals made, as expected. Revenues from hotel operations (Vienna Marriott and Budapest Marriott Hotel) improved to EUR 42.1m (2013: EUR 40.2m). Gross profit from hotel operations increased to EUR 10.8m (2013: EUR 10.5m).

In the last financial year, the Group’s gross profit came to EUR 105.7m (2013: EUR 109.6m). The sales-related decrease in rental income was a factor here. EBITDA amounted to EUR 89.8m (2013: EUR 100.9m).

Revaluation gains
In the last financial year, revaluation gains were bolstered by the positive market development in the regions in which S IMMO operates. Property valuation was very pleasing across all segments. The upswing on the German property market is continuing and is also positively reflected in the revaluation gains, of which Germany’s share amounts to EUR 33.4m. Around EUR 7m of the revaluation gains relate to properties that were sold in 2014 or held for sale as at 31 December 2014.

As a result of the strong performance in its markets, S IMMO saw EBIT rise to EUR 138.7m (2013: EUR 95.8m), an increase of around 45% year-on-year.
 
Further increase in net income
In the financial year 2014, the financial result (excluding participating certificates) amounted to EUR -71.7m (2013: EUR -53.9m). It included non-cash effects from the valuation of derivatives and currency translation. Overall, S IMMO ended the financial year 2014 with a net income of EUR 33.8m (2013: EUR 28.1m), an increase of 20%.

Outlook
S IMMO is benefiting from the current low interest rates and the sound economic development in its markets. The company is using this potential for future investments in the countries in which it already operates. Around two thirds of the investment volume planned will be used for acquisitions in Germany.

S IMMO AG will present its final annual results 2014 on 29 April 2015.

 

Preliminary consolidated income statement as per IFRS for 01 January 2014 to 31 December 2014 in EUR m  

 

01 – 12/201401 – 12/2013
Revenues 188.5193.7
Rental income 111.8116.7
Revenues from operating costs34.536.8
Revenues from hotel operations42.140.2
Other operating income4.76.2
Expenses directly attributable to properties-56.2-60.6
Hotel operating expenses -31.3-29.7
Gross profit105.7109.6
Income from property disposals 51.6128.1
Book value of property disposals -51.4-121.7
Gains on property disposals0.26.4
Management expenses-16.1-15.1
EBITDA89.8100.9
Depreciation and amortisation-7.6-12.0
Gains on property valuation 56.66.9
Operating profit (EBIT)138.795.8
Financing result-71.7-53.9
Participating certificates results-7.5-9.3
Net income before tax (EBT) 59.532.6
Taxes on income -25.7-4.6
Consolidated net income for the period33.828.1
of which attributable to shareholders in parent company31.027.3
of which attributable to non-controlling interests 2.80.7
Earnings per share (EUR) 0.460.41