At €479.8 million, CA Immo reached its highest consolidated net income in the company's history, up 89% on the previous year (2020: €254.0 million), mainly due to a high revaluation result. The company published its latest financial results.
Key results
- Recurring earnings (FFO I) of €128.3 million (€1.31 per share). Annual target of at least €128 million achieved, but 4% below the previous year's value.
- Rental income slightly lower at €229.1 million, in particular, due to capital rotation (2020: €235.6 million)
- Operating result (EBITDA) of € 210.1 million 7% above the previous year's value of €195.6 million
- Positive revaluation result of €541.1 million reflects the profitable development activities and the persistently attractive market environment, especially in Germany (2020: € 183.5 million)
- Highest consolidated net income in the company's history at €479.8 million, up 89% on the previous year (2020: €254.0 million), mainly due to the high revaluation result
- Property assets increased by 12% to €6.3 billion
Silvia Schmitten-Walgenbach, CEO of CA Immo says: "Our high-quality inner-city office portfolio and the high profitability of the development business generated good earnings and further value enhancement for our shareholders in the 2021 business year. Through targeted portfolio management, we increased the quality, sustainability and value of our property assets and generated a total return on equity of 14.9%. The year 2022 will also be characterised by a focus on Class A office buildings, environmental and climate protection and intensive tenant retention. Against the backdrop of the current changes in working life, we want to support our tenants with the best product and the best service in shaping their working environments."
Results of the business year 2021
Recurring earnings (FFO I) totalled €128.3 million and was thus 4% below the previous year's value (2020: €133.8 million). FFO I per share amounted to €1.31 as at the reporting date (2020: €1.44 per share). The annual target of >€128 million was thus achieved. FFO II, including the sales result and after-tax an indicator of the Group's overall profitability, totalled €143.1 million compared to €141.1 million in 2020 (+1.4% on the previous year's figure). FFO II per share stood at € 1.46 per share (2020: € 1.52 per share).
CA Immo recorded a slight decline in rental income of 2.8% to € 229.1 million in 2021, partly due to portfolio sales and temporarily higher vacancy rates in CEE. Net rental income after deduction of direct management costs attributable to letting activities decreased by 4.9% from € 209.7 million to €199.5 million. The Covid 19 pandemic had a negative impact of €3.1 million on net rental income as at the balance sheet date.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed to € 210.1 million and were thus 7.4% above the previous year's level of € 195.6 million.
Earnings before interest and taxes (EBIT) totalled €749.6 million and thus doubled compared to the previous year's value (€375.4 million, +99.6%) – in particular, due to the increased revaluation result.
The financial result totalled €–74.4 million in 2021 compared to €–27.2 million in the previous year. This increase is primarily due to a negative derivative valuation of the convertible bond issued in October 2017, which has since been fully converted, in the amount of €–46.2 million (2020: €32.2 million).
The Group's financing expenses of €–47.6 million were also higher than in the previous year (31 December 2020: €–42.3 million). In contrast, the interest rate development over 2021 led to a positive valuation effect of the company's interest rate derivatives in the amount of €20.3 million (2020: €–10.8 million). The Group's average financing costs (incl. interest rate hedges) remained unchanged at 1.5% at the end of the year.
Earnings before taxes (EBT) of €675.2 million (2020: €348.3 million) recorded a significant year-on-year increase of 93.9% based on the earnings developments described above. At €479.8 million, the net profit for the period is the highest in the company's history (88.9% above the previous year's figure of €253.9 million). Earnings per share (undiluted) amounted to €4.89 (2020: €2.73 per share).
Property assets further increased to €6.3 billion
Due to the transfer of own project completions to the portfolio and a positive valuation result, the book value of the property assets increased further by 12% during the year to €6.3 billion (2020: €5.6 billion). Property assets include investment properties (80% of the total portfolio) and investment properties under development (17%), the remaining 3% is accounted for by short-term property assets (intended for trading and sale). Around 60% of total property assets are located in Germany. Of the investment portfolio with a value of approx. €5.0 billion (2020: €4.7 billion), 50% account for Germany, 40% for CEE and 10% for Austria. The portfolio yield was 4.6% (2020: 5.2%); the occupancy rate stood at 88.9% (2020: 94.8%). Properties under development include projects under development and land reserves with a total book value of around €1.1 billion (incl. projects and land reserves intended for trading and sale), of which Germany accounts for 100%.
Portfolio management: Increase in portfolio quality, profitable sales above book value
Numerous property sales that were already successfully concluded in the first half of the year (including the exit from Slovakia with the sale of an office complex in Bratislava as well as several sales of non-strategic properties in Germany) were followed by further sales of non-strategic properties in Warsaw, Budapest and Vienna in the second half of the year. The sales transactions in 2021 were concluded at prices above the last book value.
On the investment side, three more own project completions in Prague and Mainz were added to the investment portfolio as planned. In addition, CA Immo acquired a high-quality office building with around 10,400 sqm in a prime city-centre location at the beginning of 2022 to strengthen the fourth German core market, Düsseldorf.
Outlook for 2022
Russia's invasion of Ukraine has shaken the global economy. Despite the uncertainty and possible direct and indirect effects, the CA Immo Group currently assumes that the Russia-Ukraine war will not affect the company's ability to operate successfully in the long term.
