Significant increase in key earning figures and successful transactions

Corporate news

"The annual results confirm S IMMO's operational strength and our strategic approach. In 2023, we continually disposed of properties in Germany and instead set a clear investment focus on Austria and the CEE region. This has had a significant impact on our earning power. We have succeeded in significantly increasing rental income by more than 30% and raising EBITDA to a record level," comments Radka Doehring, member of the Management Board.

 

Operational highlights:

  • Rental income increased by more than 30%, mainly due to the acquisition of high-yielding properties
  • Income from hotel operations improved year-on-year to EUR 70.0m (2022: EUR 56.4m)
  • The sales volume totalled EUR 682.4m (2022: EUR 49.2m) and mainly related to Germany, but also Austria and Croatia
  • Acquisition of several office properties and a hotel on Wienerberg in Vienna with a total gross leasable area of around 147,000 m² and annual rental income of around EUR 21.0m
  • Acquisition of three office buildings and a hotel in the Czech Republic with an annual rental income of around EUR 8.4m
  • Acquisition of a portfolio in the Czech Republic consisting of seven office properties, three commercial properties and a plot of land with a total leasable area of around 138,000 m² and annual rental income of around EUR 29m

 

Financial highlights:

  • EPRA NRV per share came to EUR 28.01 as of 31 December 2023
  • Rental income increased to EUR 202.6m
  • Revenues increased to EUR 336.5m
  • Gross profit increased significantly to EUR 179.3m
  • EBITDA reached EUR 142.6m, the highest figure in the company's history
  • FFO I amounted to EUR 99.6m as of 31 December 2023
  • In July 2023, S IMMO successfully issued another green bond with a volume of EUR 75m, a term of five years and a coupon of 5.5% p.a.

 

"In the third quarter of 2023, we established the Czech Republic as another core market for S IMMO and have already acquired a large, profitable portfolio in this context. We are also working intensively on the acquisition of a further portfolio of office and retail properties with a total leasable area of around 134,600 m², a total asset value of EUR 494.5m and annual rental income of around EUR 28m and have already signed a non-binding letter of intent" says Tomáš Salajka, member of the Management Board. "All of these acquisitions will help us to further improve and increase the strong operating result of 2023."

 

Events and updates after the balance sheet date

On 15 January 2024, S IMMO AG launched a share buyback programme, which is expected to end on 31 March 2024.

At the beginning of March, the Management Board and Supervisory Board further adjusted the portfolio strategy. The focus is on the gradual streamlining of the portfolio, particularly disposing of small and medium-sized office properties with limited development potential. Depending on market developments and only if appropriate prices can be realised, this strategic course will primarily involve substantial disposals in Croatia, Slovakia and Austria and could lead to a complete market exit in Croatia and Slovakia. In any case, a relevant portfolio is to be retained in Austria. Sales activities in Germany are to continue and the sales programme was expanded to the entire German portfolio. The proceeds from the disposals are to be reinvested in profitable office and commercial properties in the CEE region in line with the current strategy. In this context, a letter of intent was signed in February 2024 for the possible purchase of a property portfolio in the Czech Republic from CPI Property Group S.A.

 

The result in detail

Total assets

S IMMO Group's total assets increased from EUR 3,774.4m to EUR 4,179.9m as of 31 December 2023. Cash and cash equivalents stood at EUR 445.1m at the end of the year (31 December 2022: EUR 246.9m).

 

Equity and EPRA NRV

Equity excluding minority interests decreased to EUR 1,648.4m as of 31 December 2023 (31 December 2022: EUR 1,697.2m). The book value per share fell accordingly to EUR 23.43 (31 December 2022: EUR 24.07). The equity ratio decreased from 47.2% to 40.7%. The EPRA NRV per share was EUR 28.01.

 

Total revenues

Total revenues increased from EUR 260.5m in the previous year to EUR 336.5m. This is due, among other things, to successful acquisitions in Austria and the Czech Republic.

 

Property operating expenses

Expenses from property management increased to EUR 108.7m (2022: EUR 79.5m) due to inflation and property acquisitions. This increase is also due to higher operating costs, which could only be partially passed on to the existing tenants.

 

Result from hotel operations

Gross profit from hotel operations improved by almost 30% from EUR 13.4m to EUR 17.3m.

 

Management expenses

Management expenses for the 2023 financial year amounted to EUR 36.6m (2022: EUR 34.1m).

 

Property valuation

The result from property valuation was negative at EUR -109.3m (2022: EUR -78.4m), which is mainly due to the current difficult economic conditions.

 

Financial result and taxes on income

The financial result deteriorated compared to the previous year to EUR -70.4m (2022: EUR 16.9m), primarily due to non-cash negative effects from the valuation of derivatives. Taxes on income decreased from EUR -15.9m to EUR 5.0m.

 

Consolidated income statement

Consolidated income statement for the period 01 January 2023-31 December 2023

in EUR m / fair value method

  01–12/2023 01–12/2022
Revenues 336.5 260.5
Rental income 202.6 155.7
Revenues from operating costs 63.8 48.4
Revenues from hotel operations 70.0 56.4
Other operating income 4.2 2.2
Property operating expenses -108.7 -79.6
Hotel operating expenses -52.7 -43.0
Gross profit 179.3 140.2
Income from property disposals 682.4 49.2
Book value of property disposals -682.4 -49.2
Result from property disposals 0 0
Management expenses -36.6 -34.1
EBITDA 142.6 106.1
Depreciation and amortisation -9.2 -9.7
Results from property valuation -109.3 -78.4
Operating income (EBIT) 24.1 18.0
Financial result -70.4 16.9
Earnings before tax (EBT) -46.4 34.8
Taxes on income 5.0 -15.9
Consolidated net income -41.4 18.9
of which attributable to shareholders in the parent company -32.2 27.2
of which attributable to non-controlling interests -9.2 -8.3
     
Earnings per share (in EUR) -0.46 0.39

Download P&L 2023

 

For further details on the annual result please refer to the annual report on the company’s website: www.simmoag.at/financial-reports