In the first three quarters of 2022, Immofinanz’s rental income reached a high €216.9 million, the results of asset management improved by 3.2% to €168.4 million, and sustainable FFO 1 from the standing investment business (including the S Immo dividend) rose by more than 15% to €115.9 million. Net profit equalled €248.6 million.
“These excellent results for the first three quarters confirm the high resilience and earning power of our portfolio. In a challenging environment, we increased key indicators that included like-for-like rental income, the results of asset management and FFO 1 and also strengthened our balance sheet. We are making good progress with the optimisation of our portfolio and cost structure and have strong brands in the retail and office business which we intend to grow. The recent acquisitions and development projects have extended our leading position in the retail park market in Europe, and our portfolio now covers 122 locations. We believe Immofinanz is well positioned to successfully continue this value-creating course, also in difficult times,“ explained Radka Doehring, Executive Chairwoman of Immofinanz.
The attainment of majority control by the CPI Property Group triggered several non-recurring effects during the reporting period. These effects include, among others, higher costs in connection with the takeover offers by the CPI Property Group and S Immo, the related premature repayment of corporate bonds due to the change of control and the resignation of two Executive Board members.
Profit before tax totalled €308.9 million (Q1-Q3 2021: €326.2 million). Net profit equalled €248.6 million (Q1-Q3 2021: €295.7 million) and represents earnings per share of €1.822 (Q1-Q3 2021: €2.202).
Occupancy rate at high level
The value of the Immofinanz portfolio rose by 6.5% to €5.5 billion at the end of September 2022 and covered 260 properties. Standing investments represent the largest component at €4.9 billion and 2.1 million sqm of rentable space. The occupancy rate remained high at 94.0% (31 December 2021: 95.1%). The retail properties were practically fully rented at 98.3%. The standing investment portfolio had a gross return of 6.0% based on IFRS rental income and a return of 6.4% based on invoiced rents. The return was adjusted to reflect the acquisition of 36 retail properties in the Czech Republic and Poland in September.
Equity ratio further strengthened
Immofinanz had a robust balance sheet structure with a stronger equity ratio of 58.0% (2021: 48.1%) and an improved net loan-to-value ratio (net LTV) of 33.7% (2021: 36.7%). Cash and cash equivalents amounted to €241.7 million and the average financing costs for financial liabilities (incl. derivatives) equalled 2.1%.
Outlook
Based on the results for the first three quarters of 2022 and the retail property acquisitions made at the end of September, Immofinanz expects FFO 1 before tax (including the S Immo dividend) of approximately €135 million for the full 2022 financial year.
