Immofinanz reaches Romanian properties of EUR 768.5 million, 17.7 percent of the company’s total portfolio

Aurel Dragan 11/04/2019 | 13:54

IMMOFINANZ properties in Romania have an accounting value of EUR 768.5 million and represent 17.7 percent of the company’s total portfolio, according to data for the financial year 2018. The investment portfolio of EUR 635.7 million is divided into 9 office buildings (14.2 percent of the total office portfolio) and 6 retail properties (21.5 percent of the total retail portfolio). In 2018, the employment rate remained at a high level of 94.4 percent.

In the financial year 2018, rental income in Romania amounts to EUR 48.2 million, which represents 20.3 percent of IMMOFINANZ’s total rental income.

The company published last year financial results and pointed out that it has a record occupancy of 95.8 percent.

“The past financial year made IMMOFINANZ a significantly stronger player on the European commercial real estate market“, commented Oliver Schumy, CEO of IMMOFINANZ, on the company’s successful reorientation.

The results of asset management increased by 15.4 percent to EUR 174 million due to a substantial reduction in property expenses. The results of property sales climbed to EUR 27.2 million (2017: EUR 26 million), and the results of property development were clearly higher than the previous year at EUR -4.3 million (2017: EUR -28.8 million).

Financial results benefited from a sizeable reduction in financing costs (27.9 percent decrease to EUR -68.4 million). The share of profit/loss from equity-accounted investments amounted to EUR 108.2 million (2017: EUR 200 million) and included EUR 90.1 million from the former investment in CA Immo (book gain on the sale of the share package and proportional share of earnings) as well as EUR 11.2 million from the investment in S IMMO (proportional share of earnings for Q4 2018 and an impairment loss as of 30 September 2018).

Financial results totalled EUR 45.3 million in 2018 (2017: EUR 88.8 million). Total net profit improved significantly to EUR 217.5 million, following the negative effects from the sale of the retail portfolio in Russia in the previous year (2017: EUR -537.1 million).

The real estate portfolio covered 226 properties with a carrying amount of EUR 4.3 billion as of 31 December 2018. Most of these properties – roughly 86 percent or EUR 3.7 billion – are standing investments. The occupancy rate rose to a record level of 95.8 percent at the end of December (31 December 2017: 94.2 percent). Based on IFRS rental income, that represents a gross return of 6.3 percent (31 December 2017: 6.4 percent). Robust balance sheet indicators IMMOFINANZ has a robust balance sheet structure with an equity ratio of 48 percent (31 December 2017: 46.3 percent).

Cash and cash equivalents rose to EUR 631.8 million (31 December 2017: EUR 477.9 million). Consequently, the net loan-to-value ratio equalled only 37.3 percent (31 December 2017: 40.8 percent). Average financing costs declined further and, at the end of December, equalled 1.78 percent excluding derivatives (31 December 2017: 1.97 percent) and 2.14 percent including derivatives (31 December 2017: 2.31 percent).

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