Supported by sustained portfolio growth in 2020 and the completion of profitable property sales and project pre-letting in Q1 2021, CA Immo is starting 2021 with a positive first quarterly result. All key financial figures were increased compared to the previous year, and the value of property assets rose to €5.7 billion. A sustainable result (FFO I) of at least €128 million is expected for 2021, and FFO I of at least €140 million for the post-pandemic financial year 2022.
Key results for Q1 2021
- Recurring earnings (FFO I) of €31.4 million 5% above the previous year's value
- Net rental income increased by 2% to €50.5 million (Q1 2020: €49.6 million)
- Operating result (EBITDA) of €43.8 million up 13% on the previous year's figure
- Positive revaluation result of €63.3 million reflects, among other things, the profitable development activities in Germany
- Strong consolidated net profit of €41.4 million, up 24% year-on-year (Q1 2020: €33.5 million)
Andreas Quint, CEO of CA Immo says: "Despite the ongoing COVID-19 pandemic, we were able to continue on our path of consistent value creation and increase in the first quarter of 2021. This continued solid and successful operational performance confirms the strategic path we have taken so far of organic growth through our own project developments, flanked by targeted portfolio acquisitions and disposals. This dynamic portfolio management will ensure and further increase the attractiveness and profitability of our real estate portfolio while maintaining a high standard of sustainability.”
Continued portfolio growth
CA Immo continued its strategic capital rotation programme in the first quarter of 2021. A number of property sales were successfully concluded – for example, the company withdrew from the small secondary market of Slovakia with the sale of the BBC 1 office building in Bratislava and sold a number of non-strategic properties in Germany at attractive conditions. At the same time, CA Immo was able to take over another self-developed office building into its own portfolio with the completion of the ZigZag office project in Mainz. Compared to the end of 2020, the value of total property assets increased slightly to €5.7 billion as at 31 March 2021, of which around 55% is attributable to Germany, the largest single market.
Outlook and earnings target
CA Immo expects a sustainable result of at least €128 million or €1.27 per share for the business year 2021 (annual target 2020 > €126 m). This target reflects, on the one hand, currently expected effects on earnings and continuing uncertainties in connection with the COVID-19 pandemic and, on the other hand, effects from property sales as part of the strategic capital rotation programme. As in the previous year, dynamic portfolio management should ensure or further increase the attractiveness of the property portfolio. The associated sales contribution from non-strategic properties should lead to a positive development of the overall operating result and an EBITDA above the previous year's value.
CA Immo is investing sales proceeds generated as part of this strategic capital rotation in the value-enhancing continuation of its first-class German development pipeline and in attractive portfolio acquisitions. Based on this sustainable organic portfolio growth, FFO I of more than €140 million is expected for the 2022 business year.
