Very strong half-year results
- EPRA NAV per share up significantly to EUR 24.27
- Operating performance: FFO I increases by 13.4% to EUR 39.0m
- EBIT more than triples from EUR 54.4m to EUR 173.3m
S IMMO AG once again enjoyed considerable success in the first half of the current financial year. The significant improvements in the net asset value and in FFO I – an important indicator for the operating performance – were particularly impressive. EPRA NAV per share came to EUR 24.27 as of the middle of the year. FFO I increased to EUR 39.0m. The results from property valuation, chiefly attributable to the Germany segment, were also remarkable.
Ernst Vejdovszky, CEO at S IMMO AG, had the following comment: “These figures clearly demonstrate the operating strength with which we manage our portfolio. We buy the right properties and are able to leverage potential and achieve increases in value. All this led to highly positive effects on the income statement, and we were once again able to significantly improve our key indicators. Thus, S IMMO is still fully on course for substantial growth.” EBITDA rose by nearly 10% and EBIT more than tripled compared with the prior year thanks to the results from property valuation. Net income for the period increased to EUR 147.9m – this corresponds to earnings of EUR 2.23 per share.
Increase in revenues and gross profit
In the first half of 2019, revenues saw an increase of 11.0% compared with the same period last year and amounted to EUR 101.0m (HY 2018: EUR 91.0m). The improvement in revenues can be attributed primarily to the acquisitions in Germany, the good like-for-like performance and the substantial growth in hotel income. Property management expenses increased to EUR 31.0m (HY 2018: EUR 26.2m). This was primarily due to higher operating costs. Overall, gross profit improved to EUR 52.7m (HY 2018: EUR 48.8m) – an increase of around 8.0%.
Increase in EBITDA
At EUR 9.4m (HY 2018: EUR 9.2m), management expenses were in line with the prior-year level, which meant EBITDA improved by around 9.4% year-on-year and amounted to EUR 43.3m (HY 2018: EUR 39.6m).
Significant rise in the results from property valuation
In the first half of 2019, the results from property valuation amounted to EUR 134.1m (HY 2018: EUR 18.6m). The majority of positive valuations is attributable to Germany. However, satisfying increases in valuations were also seen in Austria and CEE. Due to the excellent results from property valuation in the first half of 2019, EBIT increased to EUR 173.3m (HY 2018: EUR 54.4m) and EBT to EUR 170.8m (HY 2018: EUR 53.1m). As a result of these positive developments, net income for the period increased to EUR 147.9m (HY 2018: EUR 47.9m). Consequently, earnings per share (EPS) increased to a very gratifying level of EUR 2.23 (HY 2018: EUR 0.72).
The company can also look back on an extremely strong first half-year on the capital market. The S IMMO share gained 33.4% in the first six months, thus delivering the best year-to-date performance of any ATX stock at the midway point of the year. As of 30 June 2019, it was trading at EUR 19.04. Compared with the EPRA NAV of EUR 24.27, the share continues to show great potential.
S IMMO was once again active in terms of acquisitions and purchased properties with a total value of roughly EUR 42.0m (HY 2018: EUR 57.9m) in the first half of 2019. These acquisitions include properties in Germany and Budapest and one centrally located plot of land in Bucharest.
S IMMO will continue to pursue its acquisition strategy. Promising cities such as Leipzig will remain a focal point here. At the same time, the company has bought over a million square metres of land in Berlin’s commuter belt over the past year. According to Friedrich Wachernig, member of S IMMO AG´s Management Board, “We see great potential in this region and have plans for several exciting projects. However, we are also looking at some very interesting investment opportunities in our other markets at the moment. These acquisitions enable ongoing income, secure the value-enhancement potential of our portfolio and are likely to ensure stable, solid earnings development in the years ahead.”