Based on independent external appraisals, CA Immo expects a property valuation effect of approx. €205 million (€2.07 per share) for the fourth quarter. The increase in value will more than compensate for the valuation loss of €21.5 million (€0.22 per share) booked in the first three quarters of 2020.
Overall, a positive result from property valuation of around €180 million (€1.82 per share) is expected for the 2020 financial year, although this will be significantly weaker compared with the previous year's reference figure of €463 million.
The result reflects the still attractive market environment in Germany (and especially in Berlin, which is the largest portfolio segment of CA Immo) despite the COVID-19 pandemic. In addition, the company's profitable real estate development activities, both in terms of the progress of ongoing projects under construction and the development of land reserves, generated positive value adjustments. In contrast, also negative effects were recognized, which are primarily related to properties directly affected by the consequences of the pandemic with the main use types of hotel and retail as well as investment properties in CEE.
The value of the real estate portfolio will amount to around €5.6 billion as of December 31, 2020.
The annual target for 2020 recurring earnings (FFO I) of €126 million will be significantly outperformed reaching the prior year’s level of around €133 million.
The final full-year results will be published on 24 March 2021.
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