Austrian Portfolio exceeds IPD-benchmark by 100%

Corporate news
  • According to the IPD index S IMMO portfolio generates highest profit over past 10 years
  • Return twice as high as IPD benchmark in 2017
  • Also significantly outperforms European and global indexes

The internationally respected company MSCI Inc. prepared the IPD benchmark for Austria once again this year. The Austrian real estate index generated a total return of 6.4% in 2017, which means that S IMMO more than doubled the industry average with a portfolio return of 12.9%. The IPD Global Property Index measures the performance of more than 50,000 properties in 25 industrialised countries, thus allowing various portfolios to be compared. S IMMO has been participating in the annual calculation for several years now, in which a total of 14 real estate portfolios with roughly 350 properties and a capital value of around EUR 7 bn are analysed in Austria.

All income and expenses that are directly associated with the property (rental income, sales proceeds, investments, value increases, etc.) are taken into account in the calculation of the portfolio return. Therefore, the portfolio return provides an estimate of a company’s actual performance in relation to the portfolio value. The successful sale of the OMV property at Viertel Zwei also made a positive contribution to S IMMO’s very high portfolio return in 2017. However, the values for the past several years also confirm the outstanding success of S IMMO’s portfolio. S IMMO had the most profitable portfolio in Austria over both the medium and long term (three-, five- and ten-year average). The company’s Austrian portfolio also significantly outperformed the European and global indexes – both in 2017 and in terms of the three-, five- and ten-year average (see accompanying chart).

“The analysis of our portfolio return confirms not only the success of our day-to-day operations, but above all the sustainability of our strategy. Active asset management, our market expertise that has been built up over decades and our partnership-based relationships with our tenants are what allow us to consistently deliver such strong performance over a period of many years. In this way, we create lasting value – also for our shareholders,” commented Friedrich Wachernig, member of S IMMO AG’s Management Board.