Immofinanz net profit reached 346 million Euro in 2021

Immofinanz announced its financial results for the 2021 financial year. The results of operations rose by roughly 46 percent to 210.1 million Euro. Net profit improved significantly to 345.8 million Euro, compared with the crisis-related loss of 165.9 million Euro in the previous year.

“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: “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 percent during the course of the year and gearing – based on the net loan-to-value – is conservative at 36.7 percent. 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 percent of our financial liabilities are hedged against rising interest rates – an important point in today’s very volatile environment.”

The results of asset management rose by 2.2 percent to EUR 211.0 million (2020: EUR 206.4 million). This improvement was supported primarily by a reduction in real estate expenses, which fell by 14.5 percent to EUR -61.4 million (2020: EUR -71.9 million). These costs are still higher than the pre-crisis level due to the pandemic, but the included write-offs of rents receivable, which reflected support by IMMOFINANZ for its tenants during the lockdown periods, were substantially reduced to EUR -11.9 million (2020: EUR -29.2 million). Rental income totalled EUR 284.7 million (2020: EUR 289.5 million) and nearly matched the previous year, whereby the slight difference is chiefly attributable to property sales in the office business.

The results of property sales more than tripled to EUR 25.7 million (2020: EUR 7.9 million), whereby the largest positive effect was the sale of the Cluster Produktionstechnik office building in Aachen for EUR 124.0 million. Overall, properties with a volume of EUR 328.4 million were sold during 2021 in line with the corporate strategy. In addition to the building in Aachen, this mainly involved older non-core office properties in Warsaw and Budapest. A substantial improvement was also recorded in the results of property development, which turned positive to EUR 18.9 million (2020: EUR -24.2 million). This increase was based, above all, on positive valuation effects from the office development project in Düsseldorf.

Other operating expenses declined by 2.6 percent to EUR -47.7 million (2020: EUR -48.9 million). The results of operations therefore rose by a strong 45.9 percent to EUR 210.1 million (2020: EUR 143.9 million). Results from the revaluation of standing investments totalled EUR 85.9 million, following crisis-related write-downs of EUR -156.6 million in the previous year due to the COVID-19 pandemic. Of the total revaluations, EUR 65.7 million are related primarily to office properties in Düsseldorf, Vienna and Warsaw. The revaluations to standing investments in the retail business amounted to EUR 21.0 million and were supported by positive effects from individual VIVO! shopping centers in Romania and the Czech Republic following an improvement in the operating environment. These factors were responsible for a significant improvement in operating profit (EBIT), which rose to EUR 296.0 million (2020: EUR -12.7 million).

Financing costs amounted to EUR -81.1 million (2020: EUR -64.0 million) and also reflected the year-on-year increase in the financing volume during 2021 – above all due to the issue of a EUR 500 million corporate bond in October 2020. Average financing costs, including hedging, declined to 1.92 percent per year (31 December 2020: 1.99 percent per year). Other financial results of EUR 29.3 million (2020: EUR -14.6 million) resulted mainly from the positive valuation of interest rate derivatives (2021: EUR 25.2 million) based on the increase in long-term interest rates. The share of profit/loss from equity-accounted investments increased substantially to EUR 139.8 million (2020: EUR -69.5 million). Of this total, EUR 134.0 million are attributable to S IMMO (revaluation of EUR 85.3 million to the investment based on the higher share price and the EUR 48.8 million share of earnings). Financial results amounted to EUR 90.4 million (2020: EUR -147.8 million).

Profit before tax improved significantly to EUR 386.3 million (2020: EUR -160.4 million). After the deduction of EUR -40.5 million (2020: EUR -5.5 million) in income taxes, net profit totalled EUR 345.8 million (2020: EUR -165.9 million; 2019: EUR 352.1 million). That represents earnings per share of EUR 2.8 (basic), respectively EUR 2.6 (diluted), compared with EUR -1.50 in 2020.