S Immo closes Q1 2020 with €31.5 million write-down

Ernst Vejdovszky, CEO of S Immo AG, commented: “The closing weeks of the first quarter were already dominated by the COVID-19 pandemic, but we still generated very solid operating results in this period. We have of course not been able to avoid the effects of this crisis, but not all regions and especially not all types of use are being impacted to the same degree. In March we were particularly affected in the second half of the month, hotels and retail were hit the hardest in April. May was by no means a pleasure, but we are seeing more positive signs, the gradual easing of lockdown measures, and a glimmer of hope on the horizon. In addition, residential properties (which make up close to 30% of our portfolio) have suffered little adverse impact and may even be able to profit from the general uncertainty in the coming months. The capital increase we conducted at the beginning of 2020 has also provided us with a very comfortable cash buffer, which makes us optimistic about 2021.”

Outlook for 2020

Forecasts are especially difficult to make under the current conditions, and the further effects that the COVID-19 pandemic will have on the results for the financial year 2020 cannot be reliably predicted at this time. Especially factors such as the duration of the restrictions, a possible second wave of infections, and the impacts on economic growth are great sources of uncertainty. S Immo feels that it is well equipped for the coming challenges.