Immofinanz Group recorded strong growth in both rental income and operating results in the first three quarters of 2023 due to acquisitions, the full consolidation of S Immo and successful asset management. Rental income rose by 79.4% year-on-year to €389.2 million; the results of asset management, at €323.7 million, were even 92.2% higher than in the previous year. The results of operations increased to €209.1 million and sustainable FFO 1 from the standing investment business more than doubled to €214.4 million.
Key figures:
- Strong growth in rental income and results of operations
- Rental income rises by 79.4% to €389.2 million
- Strong like-for-like rental growth of 9.3%
- Results of asset management increased by 92.2% to €323.7 million
- Result of operations improved by 77.6% to €209.1 million
- FFO 1 more than doubled, up 107.7% to €214.4 million
- Significant increase in cash and cash equivalents to €831.5 million
- Very solid financial base with equity ratio of 50.0% and net LTV of 37.8%
“The results show that we are in a resilient position and are operating successfully with our strategy. Despite the challenging market environment, we performed strongly with acquisitions, the full consolidation of S Immo and our asset management and recorded significant growth in all operating key figures. We also continued to improve our financial basis, which puts us in a solid position for the future,” says Radka Doehring, Member of the Immofinanz Executive Board.
At the same time, Immofinanz Group also recorded market-related property write-downs of €-219.5 million, which were primarily related to low-yielding properties. As a result, net profit fell to €-105.9 million (Q1–3 2022: €248.6 million) and earnings per share declined to €-0.48 (Q1–3 2022: €1.82).
High occupancy, high rental income
The property portfolio of Immofinanz Group included 501 properties with a combined value of €7.8 billion. Of this total, €7.3 billion represented standing investments with 3.3 million sqm of rentable space and a gross return of 7.0%. The occupancy rate remained high at 92.3% (31 December 2022: 92.9%).
Like-for-like rental income (i.e., adjusted for acquisitions, completions and sales, excluding S Immo) rose significantly by 9.3% year-on-year in the first three quarters of 2023.
The strategic sales programme to optimise the portfolio was successfully continued despite below-average transaction market activity. Property sales of approximately €649 million (incl. S Immo) were concluded during the reporting period.
Robust balance sheet
Immofinanz Group had a very robust balance sheet structure as of 30 September 2023. Cash and cash equivalents increased significantly to €831.5 million (31 December 2022: €684.7 million). The net loan-to-value ratio (net LTV) improved to 37.8% (31 December 2022: 40.7%) and the equity ratio rose to 50.0% (31 December 2022: 47.9%). Roughly 92% of financial liabilities are hedged against interest rate increases.
The IFRS book value per share amounted to €27.31 (31 December 2022: €27.47). The EPRA NTA was €28.50 (31 December 2022: €29.82).
Outlook
Based on the results for the first three quarters of 2023, Immofinanz Group expects FFO 1 from the standing investment business (before tax) to exceed €275 million for the full year 2023.
