Immofinanz Group recorded strong growth in both rental income and operating results in the first half of 2023. Rental income rose by nearly 80% year-on-year to €258.9 million and, at €216.8 million, the results of asset management were 97.1% higher than the first half of the previous year. The results of operations and sustainable FFO 1 from the standing investment business more than doubled to €118 million and €140.9 million, respectively.
“Immofinanz Group’s results for the first half of 2023 reflect two important achievements. First, we benefited from acquisitions and the full consolidation of S IMMO, which drove growth and substantially strengthened our market position. Second, our superb asset management team delivered organic growth through a significant increase in like-for-like rents,” explained Radka Doehring, Member of the Immofinanz Executive Board.
Immofinanz Group also recorded market-related property write-downs of €-197.2 million, primarily relating from lower-yielding properties. As a result, net profit fell to €-144.5 million (Q1–2 2022: €162.7 million) and earnings per share declined to €-0.59 (Q1–2 2022: €1.20).
High occupancy
Immofinanz Group’s property portfolio includes 520 properties with a combined value of €7.8 billion. Of this total, €7.4 billion represents standing investments with 3.4 million sqm of rentable space and a gross return of 6.9%. The occupancy rate remained high at 92.5% (31 December 2022: 92.9%).
Like-for-like rental income (i.e. adjusted for acquisitions, completions and sales, excluding S IMMO) rose by a further 10.3% year-on-year in the second quarter of 2023.
The strategic sales programme to optimise the portfolio was successfully continued despite a more challenging transaction market. In the first half of 2023, real estate sales amounting to approximately €598 million (incl. S IMMO) were concluded.
Robust balance sheet
Immofinanz Group had a solid balance sheet structure with a net loan-to-value ratio (net LTV) of 38.7% (31 December 2022: 40.7%) and an equity ratio of 49.6% as of 30 June 2023 (31 December 2022: 47.9%).
Cash and cash equivalents totalled €729.2 million. Roughly 91% of financial liabilities are hedged against interest rate increases.
The IFRS book value per share declined slightly by 1.5% to €27.06 (31 December 2022: €27.47), and the EPRA NTA per share was 6.0% lower at €28.03 (31 December 2022: €29.82).
Outlook
Immofinanz Group’s strategy continues to focus on resilient and cost-efficient retail properties and innovative office solutions. Plans for the medium term include the expansion of the offering in the core countries as well as the optimisation of the portfolio through the strategic sales programme.
Together with S Immo and with the support of CPIPG, opportunities to realise further synergies and efficiency improvements will be identified in 2023 to improve transparency and profitability for all stakeholders.
