Preliminary results S IMMO AG: Consolidated net income for the year increased tenfold
Rental income increase of 21.1%
- EBIT increase of 52.4%
- Consolidated net income for year rose from EUR 2.1m to EUR 21.3m
- FFO yield reaches 9.4%
- Dividend proposal for Annual General Meeting of EUR 0.10 per Share
S IMMO AG’s preliminary results show a thoroughly positive picture for the financial year 2011. Ernst Vejdovszky, Member of S IMMO AG’s Management Board, comments: “Despite the challenging economic environment, we have managed our activities very successfully. All key indicators are up significantly – an impressive proof that a high-quality portfolio, active asset management and a long-term approach to our properties bear fruit even in difficult times.”
Gross profit increased by 33.4%
S IMMO Group’s rental income in 2011 was exceptionally strong, at EUR 125.9m (2010: EUR 104.0m), a year-on-year increase of 21.1%. The development projects completed in 2010 were a major factor in this improvement, together with the Group’s acquisitions. Gross profit from hotel operations also put on 3.9% in spite of the difficulties posed by the overall uncertain economic climate, and ended the year at EUR 9.0m (2010: EUR 8.7m). The total gross profit climbed by an impressive EUR 26.8m, to EUR 107.0m, after EUR 80.2m in 2010, an increase of 33.4%.
Growth in EBIT and cash flow
Operating profit (EBIT) of EUR 92.3m improved by EUR 31.7m compared with the EUR 60.5m achieved in 2010, a marked increase of 52.4%. Consolidated net income for the financial year 2011 came out at EUR 21.3m (2010: EUR 2.1m).
Operating cash flow for the year was also very satisfactory and rose to EUR 96.0m, compared with EUR 74.2m in 2010. The cash flow from investing activities was EUR 4.5m, compared with EUR -36.5m in 2010, while the cash flow from financing activities in 2011 amounted to EUR -124.9m (2010: EUR -84.4m).
Funds from operations (FFO)
S IMMO’s funds from operations (FFO) in 2011 improved considerably – by 54.6% – to EUR 28.9m (2010: EUR 18.7m). This gives a very respectable FFO yield related to the Share price of 9.4%. FFO before participating certificates expense was EUR 40.1m, compared with EUR 28.9m in 2010.
Dividend for the financial year 2011
At the Annual General Meeting on 01 June 2012 the Management Board will for the first time in the Group’s history propose a dividend distribution of EUR 0.10 per Share and propose an adjustment in the annual distribution on the S IMMO INVEST participating certificates to bring it into line with current earnings.
S IMMO AG’s final results for the year will be presented on 20 April 2012.
|01 – 12/2011||01 – 12/2010|
|Revenues from service charges||41.3||32.6|
|Revenues from hotel operations||40.6||38.3|
|Other operating income ||7.7||5.0|
|Expenses directly attributable to properties||-77.0||-70.1|
|Hotel operating expenses||-31.6||-29.6|
|Income from property disposals||46.5||102.7|
|Carrying value of property disposals||-34.9||-92.8|
|Gains on property disposals||11.6||9.9|
|Earnings before interest, tax, depreciation and amortisation (EBITDA)||101.4||71.4|
|Depreciation and amortisation||-9.3||-10.1|
|Gains / losses on property valuation||0.1||-0.8|
|Operating result (EBIT)||92.3||60.5|
|Participating certificates results||-11.2||-10.2|
|Net income before taxes (EBT) ||29.7||9.1|
|Taxes on income||-8.4||-7.0|
|Consolidated net income for the period||21.3||2.1|
|of which attributable to shareholders in parent company||20.0||1.8|
|of which attributable to non-controlling interests||1.2||0.3|
|Earnings per share (EUR)||0.29||0.03|