S IMMO AG: dividend to be raised from EUR 0.15 to EUR 0.20 per share
S IMMO confirms preliminary results for 2013
- Highest gross profit in the Group’s history
- Net income for the year up again to EUR 28.1m
- Earnings per share up by about 13%
- Proposed dividend: 20 cents per share
Stock exchange listed S IMMO AG (Bloomberg: SPI:AV, Reuters: SIAG.VI) confirms the preliminary results for the financial year 2013 first published on 27 March 2014. The results are in line with all the Group’s targets, and all key financial indicators continue their uninterrupted rise since 2010. Ernst Vejdovszky, Chairman of S IMMO AG’s Management Board, comments: “S IMMO AG has again proved what an efficient, profitable and highly successful property company it is. The key indicators are proof of S IMMO’s strength and the correctness of our strategy. We are determined to continue this positive trend in the current year as well.”
Friedrich Wachernig, Member of S IMMO AG’s Management Board, continues: “These successes, the increasing recovery of our markets and the gradually returning optimism – all these factors make us feel very positive about the quarters and the years to come. We want our shareholders to benefit from these successes too, and will propose to the Annual General Meeting an increased dividend of 20 cents per share.”
Gross profit at all-time high
Rental income in 2013 came to EUR 116.7m (2012: EUR 118.5m), the reduction reflecting the property disposals realised as expected. Cost savings 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. This 5.0% increase was attributable to the improvement in the gross profit from hotel operations together with a reduction in property-related costs, and represents an all-time high in S IMMO AG’s history.
Property sales exceed target
For the financial year 2013 S IMMO had planned on property disposals amounting to about EUR 100m. A total of twelve properties were in fact sold, with sales proceeds amounting to EUR 128.1m (2012: EUR 132.2m). This was significantly higher than the original target, and realised gains on sale of EUR 6.4m (2012: EUR 10.8m).
Management expenses were again reduced – from EUR 16.3m in 2012 to EUR 15.1m in 2013 – an impressive saving of 7.7%. EBITDA was raised by 2.0%, to EUR 100.9m (2012: EUR 98.9m). The EBITDA margin was 52.1% (2012: 50.3%). The ratio of EBITDA to the portfolio value was an excellent 5.7% (2012: 5.3%).
Positive revaluation results
Market sentiment in Germany continued positive in 2013. A major part of the positive valuation results in Germany was attributable to revaluation gains in connection with property sales. While revaluation results in Germany and Austria were positive, impairment writedowns were necessary in Central and Southeastern Europe, above all on office properties in Budapest. Overall gains from property valuations over the year came to EUR 6.9m (2012: EUR 16.8m).
EBIT came out at EUR 95.8m (2012: EUR 106.9m). The decrease reflected the reduced size of the property portfolio.
Profit for year up again
Financing costs (excluding participating certificate results) for the financial year 2013 amounted to EUR 53.9m (2012: EUR 61.8m), including non-cash valuation losses on derivatives of EUR 2.3m (2012: EUR 8.0m). Financing costs were lower than in 2012, mainly as a result of the repayment of borrowings from the proceeds of property sales. The Group’s consolidated net income for the year came out at a very satisfactory EUR 28.1m (2012: EUR 26.1m), an increase of 7.6%.
Key performance indicators up
The reduction in property-related costs and the increased profit from hotel operations resulted in a further increase in net operating income (NOI), which totalled EUR 103.4m for the financial year 2013 (2012: EUR 97.5m), an improvement of 6.0%. Success in 2013 was also reflected in a 7.6% increase in operating cash flow to EUR 99.3m (2012: EUR 92.3m). The book value per share also rose, and as at 31 December 2013 stood at EUR 7.83 (2012: EUR 7.18) per share. The EPRA NAV also improved, and as at 31 December 2013 stood at EUR 9.76 (2012: EUR 9.35) per share.
Capital markets: proposed dividend increase to EUR 0.20 per share
After moving mainly sideways in the first nine months of 2013, the price of S IMMO Share improved significantly in the last quarter, and ended the year at EUR 5.290. This was an overall gain for the year of 9.98%, and – counting in the dividend – of 13.10%.
In Management’s opinion, the significant improvement in results justifies an increase in dividend – at the Annual General Meeting on 11 June 2014 an increase of the dividend to EUR 0.20 per share will be proposed. The payment will take the form of a repayment of capital not liable to investment income withholding tax (KESt).
Outlook for 2014
S IMMO AG’s strategy remains unchanged: The Group invests in four property use types and in four regions within the European Union, focusing on capital cities. The Group can thus use property cycles to strategic advantage to benefit from the various different developments. At present, S IMMO AG sees the greatest potential in Berlin: on the basis of demographic developments and the still low proportion of home ownership, the Group is planning to construct freehold apartments on land it already owns. Further possible investments in Berlin and Vienna are also being examined. The company will continue to buy back S IMMO Shares and S IMMO INVEST participating certificates until the repurchase programmes end, with the aim of further increasing its attractiveness in the capital markets.
CEO Ernst Vejdovszky sums it up: “Our aim is to improve our results even further in 2014. Our ambition is to continue the positive trend of recent years and to prove that our successes are sustainable.”
|01 – 12/2013||01 – 12/2012*|
|Revenues from operating costs||36.8||36.2|
|Revenues from hotel operations||40.2||42.0|
|Other operating income||6.2||6.9|
|Expenses directly attributable to properties||-60.6||-67.0|
|Hotel operating expenses||-29.7||-32.1|
|Proceeds of property disposals||128.1||132.2|
|Carrying value of property disposals||-121.7||-121.4|
|Gains on property disposals||6.4||10.8|
|Earnings before interest, tax, depreciation and amortisation (EBITDA)||100.9||98.9|
|Depreciation and amortisation||-12.0||-8.8|
|Gains on property valuation||6.9||16.8|
|Operating result (EBIT)||95.8||106.9|
|Income from companies measured at equity||-1.5||0.5|
|Participating certificates results||-9.3||-12.8|
|Net income before taxes (EBT)||32.6||32.3|
|Taxes on income||-4.6||-6.2|
|Consolidated net income for the period||28.1||26.1|
|of which attributable to shareholders in parent company||27.3||24.4|
|of which attributable to non-controlling interests||0.7||1.7|
|Earnings per share (EUR)||0.41||0.36|