S IMMO share closes lighter: S IMMO increases net profit | 05/30/22

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 figure 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.

Overall, S IMMO increased its revenue from January to March to EUR 57.0 (43.0) million, of which EUR 9.2 (1.9) million was attributable to revenue from hotel management. On the other hand, the expenses for hotel management also increased, from EUR 3.2 million to EUR 8.0 million. Nevertheless, the 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 EUR 2.4 million, the result from real estate valuation was negative this time at EUR -0.7 million, after positive EUR 2.5 million in the previous year. After an improved financial result, there were EUR 22.1 (12.8) million before taxes (EBT).

The war in Ukraine and the turnaround in interest rates that have been looming since the first quarter “in many ways 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 EUR 400 million – over the entire investment period, the commitment including dividends brought a return of EUR 81 million.

The real estate portfolio of S IMMO existed as of 31.3. from 375 properties with a book value of EUR 2.833 billion and around 1.4 million m2 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.

As reported, the new S IMMO main shareholder CPI Property wants to have the maximum voting right of 15 percent at the ordinary general meeting on Wednesday deleted from the S IMMO statutes. The chances of this are good, because now the s-Immo board of directors supports 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.

At the end of the day, the shares of S IMMO on the Vienna Stock Exchange were down 0.21 percent at EUR 23.25.




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