"We have made good progress in our operating business in the last three quarters and significantly strengthened our balance sheet. Our real estate portfolio now stands at around €4.2 billion; a further amount of approximately €660 million is attributable to our CA Immo shareholding. In addition, our cash and cash equivalents rose to around €580 million up to the end of November due to disbursements from refinancing. At the same time, we have significantly lowered the interest burden and reduced debt levels. This enables us to target an investment grade rating as the next step", said Oliver Schumy, CEO of Immofinanz, about the developments. "We have been consistently removing risks from our portfolio: in this respect, the sale of our retail portfolio in Moscow is a milestone for the future development of Immofinanz."
The purchase contract with the FORT Group for the Moscow shopping centre was signed as announced on 13 November 2017, with closing of the transaction expected to take place in December 2017. A negative valuation effect of €-157.8 million was recognised from the sale in net profit or loss from discontinued operations in the third quarter of 2017. Immofinanz, however, has some additional earnings potential from the transaction of up to approx. €145 million, based on future revenue-dependent earn-outs and potential tax refunds-
Financing costs sank 8.2% in the first three quarters of 2017 to €-75.0 million (Q1-Q3 2016: €-81.7 million). This was primarily due to interest expense savings resulting from the incentivised conversion of 43.4% of the 2018 convertible bond at the start of the year (coupon: 4.25%) and the issuance of the new 2024 convertible bond (coupon: 2.0%). Furthermore, the €100 million corporate bond with an interest rate of 5.25% was repaid at the start of the third quarter.
Average financing costs excluding Russia and excluding derivatives were 2.25%, or 2.05% taking the second incentivised conversion of the 2018 convertible bond after the reporting period into account (31 December 2016: 2.64%). The net loan-to-value has improved significantly, to 46.3% (excl. Russia), and to 42.3% including the second incentivised conversion of the 2018 convertible bond (31 December 2016: 49.0%).
The occupancy rate of the overall portfolio (excl. Russia) rose 3.3 percentage points to 92.9% at 30 September 2017 (31 December 2016: 89.6%). In the office sector the occupancy rate increased to 90.1% (31 December 2016: 87.3%), with the occupancy rate for the office properties under the new myhive office brand standing at 92.1%. The retail properties are virtually fully let at 96.6% (31 December 2016: 93.0%). The STOP SHOP retail parks have an occupancy rate of 97.8% and the VIVO! shopping centres have a rate of 95.2%.
Plans for the 2017 financial year still include the distribution of a dividend of €0.06 per share.
