In the outlook, CEO Friedrich Wachernig warns of a significantly more uncertain environment than at the end of 2021 as a result of the Ukraine war and the imminent turnaround in interest rates.
After the record year 2021 with the highest profit to date, s Immo also got off to a good start in the new year. In the first quarter, the result for the period increased from EUR 9.9 million to EUR 24.1 million, with the result from real estate valuation having practically no influence on this. The cash generation variable FFO I increased from EUR 9.5 million to EUR 14.6 million, rental income increased to EUR 35.8 (32.0) million, s Immo announced on Monday.
The strong increase in the result for the period of 140 percent is due not only to a good operating performance but also to valuation and one-off effects, explained CEO Bruno Ettenauer in a press release.
s Immo increased total revenue from January to March to EUR 57.0 (43.0) million, of which EUR 9.2 (1.9) million was revenue from hotel management. On the other hand, the expenses for hotel management also increased, from 3.2 million to 8.0 million euros. Nevertheless, gross profit grew to EUR 29.8 (23.2) million.
There was no income from real estate sales, so that earnings before interest, taxes, depreciation and amortization (EBITDA) came to EUR 23.5 (18.1) million after slightly more administrative expenses. Depreciation was again at 2.4 million euros, the result from the real estate valuation was negative this time at -0.7 million euros, after positive 2.5 million euros in the previous year. After an improved financial result, there were EUR 22.1 (12.8) million before taxes (EBT).
Uncertainty due to the Ukraine war and a turnaround in interest rates
The war in Ukraine and the turnaround in interest rates that have been apparent since the first quarter “in many respects mean a much more uncertain environment than at the end of 2021,” said CEO Friedrich Wachernig in the outlook. On the financing side, however, the company is very stable. The liquid funds generated by the profitable sale of the Immofinanz shares at the beginning of the year would ensure that s Immo could “wait for favorable market phases and leverage potential at the right time”. With the sale of the Immofinanz package to CPI, s Immo achieved sales proceeds and cash inflow of over 400 million euros – over the entire investment period, the commitment including dividends brought a return of 81 million euros.
The real estate portfolio of s Immo existed as of March 31. 375 properties with a book value of EUR 2.833 billion and around 1.4 million square meters of total floor space. The occupancy rate was 93.6 percent, the overall rental return was 5.3 percent.
In terms of book value, 17.3 percent of the properties were in Austria, 48.2 percent in Germany and 34.5 percent in CEE. Broken down by main types of use, office buildings accounted for 45.5 percent, commercial properties 14.6 percent, residential properties 32.7 percent and hotels 7.2 percent.
New main shareholder wants to remove maximum voting rights
As reported, the new s-Immo main shareholder CPI Property wants to have the 15 percent maximum voting right at the ordinary general meeting on Wednesday deleted from the s-Immo statutes. The chances of this are good, because the s-Immo board of directors is now supporting this, since CPI Property in return promised an improvement in the offer price by EUR 1.50 per share from EUR 22.00 to EUR 23.50 per share (cum dividend).
At the beginning of May, s Immo announced that the board of directors would recommend that the shareholders vote to abolish the maximum voting right. CPI Property, which belongs to Czech billionaire Radovan Vitek, holds 42.55 percent of s Immo and also owns the majority of Immofinanz. CPI Property indirectly holds 26.49 percent of the 42.55 percent in s Immo via Immofinanz AG.