Immofinanz reports declining revenues in Romania on fewer tenants

Austrian real estate company Immofinanz has reported revenues from rents worth EUR 11.6 million for the period May 1 – July 31 2014 (Q1 fiscal year) in Romania, down from EUR 12.6 million during the same period of the previous year, according to a company report. Immofinanz, which owns 16 office, retail and logistics properties in Romania, saw rent revenues decline in Q1 mainly because the vacancy rate for its office schemes went down.

The company’s nine office projects – properties such as Bucharest Corporate Centre, Iride Park or Victoria Park – generated EUR 4.8 million in revenues, down from EUR 5.6 million in Q1 2013. The overall occupancy rate for the 206,411 sqm (GLA) of office space was 76.7 percent at the end of July, down from about 90 percent a year ago.

The developer’s five shopping malls (145,752 sqm) generated EUR 5 million (down from EUR 5.1 million) and its three logistics centers (52,341 sqm GLA) generated EUR 0.88 million (down from EUR 0.98 million). In the case of the retail projects the occupancy rate dropped from 93.4 percent last year to 92.1 percent at the end of July but it increased from 67  percent to 93 percent for the logistics projects.

The return generated by the properties range from 6.9 percent for office to 7 percent for retail and 8.3 percent for logistics.

Overall, Immofinanz owned 83 projects in Romania at the end of July (down from 88 last July), 16 of which are completed, 55 are in the pipeline – meaning planned development projects, undeveloped land or temporarily suspended projects –  and the remaining 12 are presently being developed. The entire portfolio is estimated at EUR 964 million (EUR 658.4 million for completed projects, EUR 264 million for the pipeline projects and EUR 41 million for the projects presently being developed) down from approximately EUR 1 billion at the end of July 2013.

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Immofinanz Group’s core markets are Austria, Germany, the Czech Republic, Poland, Hungary, Romania, Slovakia and Russia. Local properties represent 14.5 percent of the company’s entire portfolio.

Immofinanz Group’s operations amounted to EUR 90.9 million in the first quarter of the 2014/15 financial year, down 6.5 percent y-o-y  while net profit was negative at EUR -14.0 million (Q1 2013/14: EUR 119.8 million).

Simona Bazavan