With profitable sales of non-strategic properties and good progress in the implementation of the development pipeline, CA Immo's operating performance remained stable in the first quarter, seamlessly from the previous quarters. The strong sales result combined with lower indirect costs led to an increase in operating profit of around 6%. In addition, a significant increase in revaluation results helped to more than triple consolidated net income compared with the previous year.
The path of continuous improvement in quality, profitability and sustainability through own project developments, flanked by targeted portfolio acquisitions and sales, was continued in the first quarter. In total, CA Immo sold two hotels and an older office building in the first three months of the year and at the same time acquired a high-quality office building in a prime Düsseldorf city centre location. The value of total property assets increased further from €6.3 billion to €6.4 billion, thanks in part to the positive revaluation result.
Key results
- Rental income decreased slightly by approx. 2% to €62.2 million mainly due to portfolio sales (Q1 2021: €63.6 million)
- Recurring earnings (FFO I) of €29.2 million (€0.29 per share) approx. 7% below the previous year's value
- Operating result (EBITDA) rose by approx. 6% year-on-year thanks to strong sales performance and lower indirect expenses
- High revaluation result of €98.3 million generated mainly by ongoing development of projects under construction and land reserves in Germany (Q1 2021: €63.3million)
- Consolidated net profit more than tripled to €136.9 million (Q1 2021: €41.4 million)
- Net asset value EPRA NTA per share at €41.51 after €40.05 as of 31.12.2021 (+4%)
Outlook
Value creation through the development of land and Class A buildings will continue to be a key success factor for CA Immo’s business model. Of the four projects currently under construction with a total investment volume of around €1 billion and an average pre-letting rate of around 80%, two office buildings will be completed in 2022: the ONE high-rise project in Frankfurt and the Grasblau office building near Potsdamer Platz in Berlin. After completion, both buildings will be transferred to the portfolio and will contribute positively to portfolio quality and rental income.
In addition, the successful sale of non-strategic real estate as part of the strategic capital rotation program should again lead to a strong EBITDA-generating sales result and a corresponding inflow of liquidity.
Due to the Ukraine crisis and other changing conditions such as rising inflation and interest rate reversals, general price increases and bottlenecks in global supply chains, a forecast at the present time is subject to a high degree of uncertainty. CA Immo plans to specify its annual financial target for the 2022 financial year as part of its half-year results in August 2022.
