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EQS-News: IMMOFINANZ AG / Key word(s): Annual Results/Real Estate
IMMOFINANZ with strong results in 2021: 46% increase in results of operations, net profit reaches EUR 346 million
The 2021 financial year brought a massive increase in IMMOFINANZ's earning power: The results of operations rose by roughly 46% to EUR 210.1 million and clearly topped the previous year as well as the pre-crisis period in 2019. Net profit improved significantly to EUR 345.8 million, compared with the crisis-related loss of
IMMOFINANZ successfully implemented its value-creating growth strategy in 2021, even though the markets were still negatively influenced by the Covid-19 pandemic. The results of operations rose by 45.9% to EUR 210.1 million. The company realised an increase in the results of asset management and a significant improvement in the earnings from property sales and property development as well as cost savings. The pandemic-related revaluation losses recognised to property in the previous year were in part recovered. Revaluation results from the standing investment portfolio totalled EUR 85.9 million, compared with EUR -156.6 million in the previous year. Financial results improved to EUR 90.4 million due to a substantial increase in the profit from investments. In total, IMMOFINANZ generated net profit of EUR 345.8 million, compared with EUR -165.9 million in the previous year. That represents diluted earnings per share of EUR 2.6 (2020: EUR -1.5).
"2021 was an eventful and, at the same time, a very successful financial year. Our portfolio is optimally positioned: With our mix of low-cost retail solutions for consumers and high-quality, innovative and flexible office products, we meet the demands of our tenants as well as their customers and employees. We intend to extend our strong market position in 2022 and grow with our STOP SHOP and myhive brands - and drive the portfolio expansion towards sustainable and affordable housing with our new brand On Top Living", explained Dietmar Reindl, member of the Executive Board of IMMOFINANZ. "The improvement of our sustainability performance is also a key priority. With our ESG strategy, we have set ambitious goals along the entire value chain to make IMMOFINANZ emission-free by 2040. This illustrates and underscores our responsibility for people and the environment, and we want to actively support the fight against climate change in our industry. In this connection, we are especially pleased that IMMOFINANZ was chosen as one of 45 companies worldwide to participate in the United Nation's World Climate Summit at Sharm El-Sheikh in November 2022 where we can share our innovations and sustainable activities and inspire other companies throughout the world."
Steady high occupancy rate
More than EUR 1 billion of available liquid funds
Outlook and dividend
"IMMOFINANZ pursues an attractive dividend policy, and we want our shareholders to also participate in the company's success during the extremely productive 2021 financial year. Since the current outlook is still heavily influenced by numerous external factors and assumptions, we will wait with a detailed recommendation for the dividend for the year 2021 - but announce this on a timely basis before the annual general meeting", explained Executive Board member Stefan Schönauer. The annual general meeting for the 2021 financial year will be held on 12 July 2022. The dividend guidance for the 2022 financial year remains unchanged at roughly 70% of the FFO 1 generated in 2022.
Results 2021 in detail
The results of property sales more than tripled to EUR 25.7 million (2020: EUR 7.9 million), whereby the largest positive effect was the sale of the Cluster Produktionstechnik office building in Aachen for EUR 124.0 million. Overall, properties with a volume of EUR 328.4 million were sold during 2021 in line with the corporate strategy. In addition to the building in Aachen, this mainly involved older non-core office properties in Warsaw and Budapest. A substantial improvement was also recorded in the results of property development, which turned positive to EUR 18.9 million (2020: EUR -24.2 million). This increase was based, above all, on positive valuation effects from the office development project in Düsseldorf.
Other operating expenses declined by 2.6% to EUR -47.7 million (2020: EUR -48.9 million). The results of operations therefore rose by a strong 45.9% to EUR 210.1 million (2020: EUR 143.9 million). Results from the revaluation of standing investments totalled EUR 85.9 million, following crisis-related write-downs of EUR -156.6 million in the previous year due to the COVID-19 pandemic. Of the total revaluations, EUR 65.7 million are related primarily to office properties in Düsseldorf, Vienna and Warsaw. The revaluations to standing investments in the retail business amounted to EUR 21.0 million and were supported by positive effects from individual VIVO! shopping centers in Romania and the Czech Republic following an improvement in the operating environment. These factors were responsible for a significant improvement in operating profit (EBIT), which rose to EUR 296.0 million (2020: EUR -12.7 million).
Financing costs amounted to EUR -81.1 million (2020: EUR -64.0 million) and also reflected the year-on-year increase in the financing volume during 2021 - above all due to the issue of a EUR 500 million corporate bond in October 2020. Average financing costs, including hedging, declined to 1.92% per year (31 December 2020: 1.99% per year). Other financial results of EUR 29.3 million (2020: EUR -14.6 million) resulted mainly from the positive valuation of interest rate derivatives (2021: EUR 25.2 million) based on the increase in long-term interest rates. The share of profit/loss from equity-accounted investments increased substantially to EUR 139.8 million (2020: EUR -69.5 million). Of this total, EUR 134.0 million are attributable to S IMMO (revaluation of EUR 85.3 million to the investment based on the higher share price and the EUR 48.8 million share of earnings)[(]. Financial results amounted to EUR 90.4 million (2020: EUR -147.8 million).
Profit before tax improved significantly to EUR 386.3 million (2020: EUR -160.4 million). After the deduction of EUR -40.5 million (2020: EUR -5.5 million) in income taxes, net profit totalled EUR 345.8 million (2020: EUR -165.9 million; 2019: EUR 352.1 million). That represents earnings per share[((] of EUR 2.8 (basic), respectively EUR 2.6 (diluted), compared with EUR -1.50 in 2020.
The financial report by IMMOFINANZ AG for the 2021 financial year as of 31 December 2021 will be available on the company's website under https://immofinanz.com/en/investor-relations/financial-reports starting on 21 April 2022.
20.04.2022 This Corporate News was distributed by EQS Group AG. www.eqs.com
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