The 2021 financial year brought a massive increase in Immofinanz’s earning power. The results of operations rose by roughly 46% to €210.1 million and clearly topped the previous year as well as the pre-crisis period in 2019. Net profit improved significantly to €345.8 million, compared with the crisis-related loss of €-165.9 million in the previous year.
Key details
- Strong Group results with a profit of €345.8 million
- Sound performance in all income streams leads to a 46% increase in results of operations to €210.1 million
- The occupancy rate remains high at 95.1%
- A strong balance sheet with an equity ratio of 48.1% and liquid funds of €987.1 million
- Value-creating growth strategy with a steady focus on ESG along the entire value chain and expansion into sustainable and affordable housing
- Selected by the UN to participate in the World Climate Summit 2022 as one of 45 companies worldwide
Immofinanz’s results of operations rose by 45.9% to €210.1 million. The company realised an increase in the results of asset management and a significant improvement in the earnings from property sales and property development as well as cost savings. The pandemic-related revaluation losses recognised to property in the previous year were in part recovered. Revaluation results from the standing investment portfolio totalled €85.9 million, compared with €-156.6 million in the previous year. Financial results improved to €90.4 million due to a substantial increase in the profit from investments. In total, Immofinanz generated a net profit of €345.8 million, compared with €-165.9 million in the previous year. That represents diluted earnings per share of €2.6 (2020: €-1.5).
“2021 was an eventful and, at the same time, a very successful financial year. Our portfolio is optimally positioned: With our mix of low-cost retail solutions for consumers and high-quality, innovative and flexible office products, we meet the demands of our tenants as well as their customers and employees. We intend to extend our strong market position in 2022 and grow with our Stop Shop and myhive brands – and drive the portfolio expansion towards sustainable and affordable housing with our new brand On Top Living“, explained Dietmar Reindl, member of the Executive Board of Immofinanz. “The improvement of our sustainability performance is also a key priority. With our ESG strategy, we have set ambitious goals along the entire value chain to make Immofinanz emission-free by 2040. This illustrates and underscores our responsibility for people and the environment, and we want to actively support the fight against climate change in our industry. In this connection, we are especially pleased that Immofinanz was chosen as one of 45 companies worldwide to participate in the United Nation‘s World Climate Summit at Sharm El-Sheikh in November 2022 where we can share our innovations and sustainable activities and inspire other companies throughout the world.“
Stefan Schönauer, Member of the Executive Board of Immofinanz said: “A strong balance sheet, solid financing structure and stable investment grade rating are the foundation for our value-creating, sustainable growth. Our equity ratio improved to roughly 48% during the course of the year and gearing – based on the net loan-to-value – is conservative at 36.7%. Over and above that, we have nearly one billion euros of liquid funds. In other words, we have a sound foundation for further growth and the flexibility for possible debt repayment. Almost 90% of our financial liabilities are hedged against rising interest rates – an important point in today’s very volatile environment.”
FFO 1 before tax, which does not include any valuation effects, was slightly lower than the previous year at €120.1 million in 2021 (2020: €126.1 million). This decline reflects the increased financing costs which resulted from a higher volume of financing as well as a lower dividend payment from the investment in S IMMO. FFO 1 per share equalled €0.97 compared with €1.13 in the previous year, based on a higher number of shares.
Steady high occupancy rate
At 95.1% (31 December 2020: 96.0%), the occupancy rate remained at a high level. The retail properties were practically fully rented at 98.4%. Take-up amounted to roughly 427,500 sqm, or 22% of the total rentable space, despite a still challenging market environment. The take-up in 2021 includes 83,200 sqm of new rentals and 344,300 sqm of contract extensions. The gross return on the standing investment portfolio equalled 5.9% based on IFRS rental income and 6.3% based on invoiced rents.
Outlook
The war against Ukraine which was started by Russia at the end of February 2022 represents an increased uncertainty factor for the entire global economy whose impact cannot be conclusively evaluated at the present time. Immofinanz believes its flexible and crisis-resilient real estate products create a sound position – also for an environment with greater uncertainty. From the current point of view and under the assumption of moderate Covid-19 influences, no further escalation of the war in Ukraine and no significant effects on the company‘s liquidity situation from the change-of-control clauses triggered by the majority takeover by the CPI Property Group, Immofinanz confirms its guidance for the 2022 financial year. Plans call for the expansion of the portfolio towards the €6 billion mark in 2022, whereby the focus will be placed on sustainable properties in the myhive and Stop Shop brands. FFO 1 before tax is expected to exceed €135 million. The financial policy will remain unchanged: gearing, based on the net LTV, is planned to remain below 45% over the medium term and the investment-grade rating will be retained.
