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DGAP-News: InCity Immobilien AG / Key word(s): Annual Report
INCITY GROUP CLOSES 2020 SLIGHTLY ABOVE FORECAST AND RECORDS GROUP PROFIT OF EUR 2.4 M
Frankfurt am Main, 29 April 2021. Today, InCity Immobilien AG ("InCity") published its annual report for fiscal year 2020. Despite the challenging economic environment, the results at Group level at EUR 2.4 m were slightly above the forecast figures (between EUR 1.8 m and EUR 2.3 m). The net income at single-entity financial statement level was also positive at approximately EUR 4.5 m and was at the upper end of the initially planned range (between EUR 4.1 m and EUR 4.6 m). The positive financial statements were significantly influenced by the sale of the portfolio property located at "Brönnerstrasse 13/15" in Frankfurt am Main with a positive contribution to consolidated earnings of around EUR 4.4 m. For the current year, the Management Board expects a net loss of between EUR -1.8 m and EUR -2.3 m at Group level and between EUR -0.1 m and EUR -0.6 m at single-entity annual financial statement level, excluding earnings contributions from potential acquisitions or disposals. "However, the Group forecast must be evaluated under the premise that the HGB accounts do not reflect the value development of our portfolio," says Michael Freund, CEO of InCity. "This means that scheduled depreciation and amortisation reduce earnings, while appreciation in the value of our properties is not recognised."
As of the balance sheet date on 31 December 2020, the InCity Group's portfolio included six residential and commercial buildings and two office properties in Berlin and Frankfurt am Main, making a total of eight portfolio properties (31 December 2019: nine portfolio properties). On 3 January 2020, the change of ownership and transfer of risks and rewards took place as part of the sale of the property company holding the portfolio property located at "Brönnerstrasse 13/15" in Frankfurt am Main ("share deal").
Despite the crisis caused by COVID-19 in the past fiscal year, the rate of payment in the properties was very satisfactory. For example, the Federal German Act to Mitigate the Consequences of the COVID-19 Pandemic under Civil, Insolvency and Criminal Procedure Law (COVFAbG) allowed tenants to stop making rental payments in the period from 1 April to 30 June 2020 if non-payment was due to the effects of the COVID-19 pandemic. Nevertheless, the payment rate was between 95% and 98% in the months concerned. "This represents a very good rate of payment in a crisis situation and highlights the value stability and crisis resilience of our portfolio of high-quality core properties," says Helge H. Hehl, CFO of InCity.
The consolidated net income in fiscal year 2020 was clearly positive at EUR 2.4 m (prior year: consolidated net loss of EUR -1.9 m). At around EUR 6.5 m, Group EBITDA was also significantly better (EUR +4.6 m) than in the prior year (EUR 1.9 m) and was also primarily influenced by the positive earnings contribution of around EUR 4.4 m from the sale of the portfolio property located at "Brönnerstrasse 13/15" as part of a share deal. In addition, the operating surplus from the managed property portfolio increased by around EUR 0.5 m. In the prior year, EBITDA also included an earnings contribution of EUR 0.3 m from the sale of the property company holding the portfolio property located at "Jacobsohnstrasse 27" in Berlin. The main changes in earnings below EBITDA are higher scheduled depreciation and amortisation, a lack of interest income from the current management of funds, as in the prior year, and slightly higher tax expenses. The Group's equity ratio was approximately 47% as of the balance sheet date (31 December 2019: 45%). This increase is mainly due to the consolidated net income achieved for the year.
The result at single-entity annual financial statement level was also clearly positive at around EUR 4.5 m (prior year: EUR 39 k) and was also influenced by the positive earnings contribution from the sale of the property located at "Brönnerstrasse 13/15". In particular, other operating expenses that were lower than planned (around EUR +0.2 m) meant that the single entity net income for the year was at the upper end of the original planning range.
The 2021 fiscal year will be characterised by a clearly negative net income, particularly in the consolidated financial statements. Excluding earnings contributions from potential acquisitions or disposals, the Management Board currently expects the InCity Group's net loss for the year to be between EUR -1.8 m and EUR -2.3 m and InCity AG's net loss to be between
By contrast, InCity's positive development can be seen in a third-party market valuation of its eight portfolio properties as of 31 December 2020. Based on this market valuation amounting to EUR 218.9 m and taking into account the other Group balance sheet items, a net asset value of EUR 1.68 per share results (31 December 2019: EUR 1.62 per share).
InCity AG plans to continue to expand its property portfolio. "We will only take action if our strict requirements as to intrinsic value and return are fulfilled. In addition, we still want to keep our options open and take advantage of opportunities to sell properties if we judge that this is in the best interest of the company," says Michael Freund, CEO of InCity. Beyond this - or rather building on its solid property portfolio - InCity plans to again increase its activities in the areas of project development and project participations. This also includes services for third parties such as project management activities in connection with new construction projects. In a further step, the Group plans to expand this area and thus increase the associated revenues.
During the preparation of the annual report, the impact of the COVID-19 virus pandemic on the economic situation was still not definitively predictable or quantifiable. However, based on the solid and secured financing and on the quality of the property portfolio, which mainly includes properties in prime locations, InCity believes that it is still very well positioned.
The annual report is available on the company's homepage (www.incity.ag) and printed versions can be sent upon request. Details on the portfolio properties can be found in the updated company presentation, which can also be viewed on the website.
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About InCity Immobilien AG
29.04.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
InCity Immobilien AG
60325 Frankfurt am Main
IR: +49 (0)69 7191889 55 PR: +49 (0)69 7191889 66
+49 (0) 69 719 18 89 790
Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Basic Board), Hamburg, Stuttgart, Tradegate Exchange
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