S IMMO AG continues on successful course in third quarter of 2019

Corporate news
  • EPRA NAV per share improves to EUR 25.09
  • Operating performance: FFO I increases by 11.2% to EUR 53.0m
  • EBIT up by 93.2% to EUR 198.8m


Once again, S IMMO AG has extremely positive results to report for the third quarter of 2019. FFO I – an important indicator for the operating performance – continued its strong trend and increased to EUR 53.0m. EPRA NAV per share came to EUR 25.09, which demonstrates significant value-enhancement potential. Ernst Vejdovszky, S IMMO AG’s CEO, had the following comment: “Midway through the year, the S IMMO share displayed the best year-to-date performance in the ATX. We have successfully continued this trend and are still the strongest stock in the Austrian benchmark index. As of 30 September, our share was trading at EUR 21.10 – equivalent to a price increase of 45.1% since the beginning of the year. The S IMMO share has considerably outperformed other stocks in its sector in recent years. This shows that we can deliver consistently strong results, which is also reflected in the development of our share price.”

Increase in revenues, gross profit and EBITDA

Compared with the first three quarters of the 2018 financial year, total revenues saw an increase of 10.7% to EUR 154.5m (Q3 2018: EUR 139.6m). The increase in total revenues was driven by property purchases as well as a very good like-for-like performance by the property portfolio. Property management expenses rose to EUR 44.8m (Q3 2018: EUR 38.8m). Overall, gross profit advanced to EUR 82.5m (Q3 2018: EUR 76.2m), an increase of 8.3%. At EUR 14.7m (Q3 2018: EUR 13.4m), management expenses were in line with the prior-year level, which meant EBITDA improved by 8.0% versus the prior year to EUR 67.8m (Q3 2018: EUR 62.8m).

Significant rise in the results from property valuation

The results from property valuation for the first three quarters of 2019 amounted to EUR 137.3m (Q3 2018: EUR 45.8m). The majority of the positive valuations is attributable to the Germany segment. However, satisfying increases were also seen in the Austria and CEE segments. Due to the operating successes and the excellent results from property valuation, EBIT increased by 93.2% to EUR 198.8m (Q3 2018: EUR 102.9m). EBT rose by 92.0% and amounted to EUR 183.2m (Q3 2018: EUR 95.4m).

Due to the developments described above, net income for the period increased by EUR 79.2m compared with the prior-year period and totalled EUR 158.9m (Q3 2018: EUR 79.7m). Earnings per share (EPS) improved to a very gratifying level of EUR 2.40 (Q3 2018: EUR 1.20).

Property transactions

In the first three quarters of 2019, S IMMO was also active in terms of acquisitions and purchased properties in Germany and Budapest as well as a centrally located plot of land in Bucharest.


S IMMO will continue to pursue its acquisition strategy. According to Friedrich Wachernig, member of S IMMO AG’s Management Board, “We are working intensively on our portfolio and thereby securing the basis for future value enhancement. In the short term, this primarily means purchasing existing properties that generate income directly. At the end of October, we purchased an office property in the heart of Zagreb. In the medium term, we are focusing on project developments in all of our markets and, taking a long-term perspective, we have secured large plots of land in the area around Berlin over the past few quarters. We now own more than 1.25 million square metres of land in that region.”

Download P&L (.xlsx)


Consolidated income statement for the period from 01 January 2019 to 30 September 2019

in EUR million/fair-value method

  01–09/2019 01–09/2018
Revenues 154.5 139.6
thereof rental income 88.2 76.5
thereof revenues from operating costs 24.3 24.7
thereof revenues from hotel operations 42 38.3
Other operating income 1.5 1.4
Property operating expenses -44.8 -38.8
Hotel operating expenses -28.6 -26
Gross profit 82.5 76.2
Income from property disposals 52.8 6.6
Book value of property disposals -52.8 -6.6
Gains on property disposals 0 0
Management expenses -14.7 -13.4
Earnings before interest. tax. depreciation and amortisation (EBITDA) 67.8 62.8
Depreciation and amortisation -6.3 -5.7
Results from property valuation 137.3 45.8
Operating result (EBIT) 198.8 102.9
Financing result -15.5 -7.4
Net income before tax (EBT) 183.2 95.4
Taxes on income -24.3 -15.7
Consolidated net income 158.9 79.7
of which attributable to shareholders in parent company 158.6 79.6
of which attributable to non-controlling interests 0.4 0.1
Earnings per share (in EUR) 2.4 1.2

Key data on properties

Properties number 319
Total space millions of m² 1.2
Gross rental yield % 5.5
Occupancy rate % 95.4