Preliminary results for S IMMO AG: profit up again

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Earnings per share up more than 13%

  • All-time high gross profit
  • Consolidated net income increased to EUR 28.1m
  • Dividend increase planned

After a very successful financial year 2012, S IMMO AG (Bloomberg: SPI:AV, Reuters: SIAG.VI) continued its good performance in 2013. Earnings per share increased highly satisfactorily by 13.1% to EUR 0.41 (2012: EUR 0.36). Administrative expenses were reduced once again by more than 8%. The ratio of EBITDA to property value came to 5.7%, which compared with the industry average is a further demonstration of S IMMO AG’s high efficiency.

Ernst Vejdovszky, CEO of S IMMO AG, comments: “These preliminary results show that our record of successes is sustainable. We have improved our key indicators every year since 2010, and have every intention of continuing the trend. Our business model has proved its value, and makes us optimistic for the future.”

Gross profit up
In 2013 S IMMO AG sold twelve properties; the sale proceeds came to EUR 128.1m (2012: EUR 132.2m), which was significantly better than the target. The profits on sale came to EUR 6.4m (2012: EUR 10.8m).

Rental income for the financial year 2013 came to EUR 116.7m (2012: EUR 118.5m), the reduction reflecting the property disposals as expected. Income from hotel operations (Vienna Marriott and Budapest Marriott hotels) came to EUR 40.2m (2012: EUR 42.0m). Cost reductions helped improve the gross profit from hotel operations by 6.0% to EUR 10.5m (2012: EUR 9.9m). The overall gross profit increased from EUR 104.4m in 2012 to EUR 109.6m in 2013 which represents an all-time high in S IMMO AG’s history. The increase was attributable to the improvement in the gross profit from hotel operations together with a reduction in property-related costs.

Positive revaluation results
Market sentiment in Germany continued positive in 2013, and a major part of the valuation results in Germany was attributable to revaluation gains in connection with property sales. While revaluation results in Germany and Austria were positive, devaluations were necessary in Central and Southeastern Europe, above all on office properties in Budapest.

EBIT came out at EUR 95.8m (2012: EUR 106.8m). The effects on EBIT of the reduced size of the property portfolio were in part compensated for by cost reductions.

Further increase in consolidated net income
Financing costs (excluding participating certificate results) for the financial year 2013 amounted to EUR 53.9m (2012: EUR 61.8m), including largely non-cash foreign exchange losses of EUR 0.8m (2012: EUR 2.0m), which were mainly attributable to the change in value of the Hungarian forint against the euro.

For the whole of the financial year 2013, the Group’s consolidated net income came out at a very satisfactory EUR 28.1m (2012: EUR 26.0m), an increase of 7.8%.

Dividend increase planned
At the Annual General Meeting on 11 June 2014 the Management Board will again propose the distribution of a dividend. In Management’s opinion, the improved results justify a higher dividend.

S IMMO will continue to pursue its tried-and-tested strategy in the current year. Friedrich Wachernig, Member of S IMMO AG’s Management Board, comments: “Increasingly, we are seeing a recovery in our markets – optimism is in order again. Our many years of accumulated expertise and competence enable us to put property cycles to strategic use, so that we can continue in future to profit from the various different developments. In the coming months we see the greatest potential in Berlin, and are planning investments in new projects there.”

S IMMO AG’s final results for the year will be presented on 29 April 2014. 

01 – 12/201301 – 12/2012
Revenues 193.7196.7
Rental income 116.7118.5
Revenues from operating costs36.836.2
Revenues from hotel operations40.242.0
Other operating income6.26.9
Expenses directly attributable to properties-60.6-67.0
Hotel operating expenses -29.7-32.1
Gross profit109.6104.4
Income from property disposals 128.1132.2
Carrying value of property disposals -121.7-121.4
Gains on property disposals6.410.8
Management expenses-15.1-16.4
Earnings before interest, tax, depreciation and amortisation (EBITDA)100.998.8
Depreciation and amortisation-12.0-8.8
Results from property valuation 6.916.8
Operating result (EBIT)95.8106.8
Financing costs -53.9-61.8
Participating certificates results-9.3-12.8
Net income before taxes (EBT) 32.632.2
Taxes on income -4.6-6.2
Consolidated net income for the period28.126.0
of which attributable to shareholders in parent company27.324.3
of which attributable to non-controlling interests 0.71.7
Earnings per share (EUR) 0.410.36