S IMMO again at the top of the Austrian real estate index
- S IMMO’s Austria portfolio posts strongest earnings in MSCI/IPD comparison for the 15th year
- Again over 100% higher portfolio return than the industry average
- Significant outperformance in European and international comparison
The internationally respected company MSCI Inc. prepared the MSCI/IPD benchmark for Austria again in 2019. The Austrian real estate index generated a total return of 7.1% for all portfolios in 2018, which means that S IMMO once again more than doubled the industry average with a portfolio return of 15.4% – putting it in first place for a further time. The MSCI/IPD Global Property Index measures the performance of more than 55,000 properties in 25 industrialised countries, thus allowing various portfolios to be compared. For many years, S IMMO has participated with its Austria portfolio in the annual calculation in which a total of 15 real estate portfolios with a capital value of around EUR 7.5 billion are analysed.
Friedrich Wachernig, member of S IMMO AG’s Management Board, noted: “The outperformance shown again by our portfolio is an impressive demonstration of the success of our daily work, and underscores our value-creating strategy. Maintaining such a high level of performance over many years is no easy task, and would be impossible without committed asset managers, in-depth market expertise, strong partnerships with our tenants, and good intuition. We continuously maintain all of these aspects and in that way create lasting value for our shareholders.”
In 2018, a significant increase in gross receipts, a decreasing vacancy rate, and positive valuation effects made particularly positive contributions to this outstanding result. The figures for the past several years confirm the above-average success of S IMMO’s portfolio. S IMMO had the most profitable portfolio in Austria over both the medium and long term (three-, five- ten- and fifteen-year average). The company’s Austria portfolio also significantly outperformed the European and global indexes – both in 2018 and in terms of the three-, five- and ten-year average (see accompanying chart).
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.