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S IMMO AG: Increased earnings and successful disposals in the first quarter
Vienna (pta008/27.05.2024/08:00 UTC+2)
"The success of our strategy can be clearly seen in the key operating figures for the first quarter of 2024", comments Radka Doehring, member of the Management Board. "We have succeeded in significantly increasing rental income and gross profit is well above the previous year's level. Our strategy of intensifying our investments in higher-yielding properties is having an extremely positive impact on our earnings power – the acquisitions made in recent quarters are already making a meaningful contribution to earnings."
Operational highlights:
- Total income increased significantly from EUR 80.0m to EUR 93.5m.
- At EUR 58.4m, rental income was up 23% on the previous year.
- Revenues from hotel operations increased to EUR 14.1m.
- Due to the increase in the result for rented properties, gross profit improved significantly from EUR 40.3m to EUR 54.2m.
- EBITDA rose by 42% to EUR 44.6m.
Financial highlights:
- Net income for the period of EUR 0.5m
- Earnings per share totalled EUR 0.09
- EPRA-NRV per share was EUR 28.15
- FFO I amounted to EUR 32.3m as of 31 March 2024
- Net loan-to-value (net LTV): 48.2%
"We began the year by optimising our portfolio strategy. The focus is on the gradual streamlining of the portfolio, above all to remove small and medium-sized office properties with limited development potential and to reinvest the proceeds in profitable office and commercial properties in the CEE region. The latest acquisitions in the Czech Republic contribute around EUR 28.3m in additional rental income per year," says Tomáš Salajka, member of the Management Board.
Events and updates after the balance sheet date
At the end of April, S IMMO signed a contract for the acquisition of a portfolio from CPI Property Group S.A. in the Czech Republic. The purchase comprises four office and four commercial properties with a total leasable area of around 136,000 m², a property value of around EUR 463m and annual rental income of around EUR 28.3m.
The result in detail
Total assets
As of 31 March 2024, S IMMO Group's total assets amounted to EUR 4,029.1m (31 December 2023: EUR 4,179.9m). Total assets decreased due to the sale of properties in Austria and Germany, negative property valuations and a reduction in cash and cash equivalents. Cash and cash equivalents amounted to EUR 349.6m as of 31 March 2024 (31 December 2023: EUR 445.1m).
Equity and EPRA NRV
Equity excluding non-controlling interests increased to EUR 1,663.4m (31 December 2023: EUR 1,648.4m). As of 31 March 2024, the book value per share was EUR 23.66 (31 December 2023: EUR 23.43). The equity ratio increased to 42.4% at the end of the first quarter of 2024 (31 December 2023: 40.7%). The EPRA NRV per share was EUR 28.15.
Total revenues
In the first quarter of 2024, total income increased from EUR 80.0m in the same period of the previous year to EUR 93.5m. This improvement was mainly due to acquisitions of higher-yielding rented properties in the Czech Republic and Austria in the previous year.
Property operating expenses
Expenses from property management remained largely unchanged at EUR 29.4m (Q1 2023: EUR 29.5m), which is due to higher operating expenses as a result of the acquisitions on the one hand and lower other expenses from property management due to non-recurring effects on the other hand.
Result from hotel operations
Revenues from hotel operations increased to EUR 14.1m (Q1 2023: EUR 13.4m). However, the result from hotel operations decreased slightly to EUR 2.1m (Q1 2023: EUR 2.5m) as a result of higher expenses from hotel operations.
Management expenses
Administrative expenses for the first quarter of 2024 amounted to EUR 9.7m (Q1 2023: EUR 8.9m).
Property valuation
The result from property valuation, which is mainly attributable to market-related valuations in Germany, totalled EUR -22.6m (Q1 2023: EUR -10.0m).
Financial result and taxes on income
The financial result changed only slightly compared to the previous year, from EUR -13.2m to EUR -13.5m. Tax expenses decreased from EUR -7.0m to EUR -6.1m.
CONSOLIDATED INCOME STATEMENT
Consolidated income statement for the period 01 January 2024 - 31 March 2024
in EUR m / fair value method
| 01–03/2024 | 01–03/2023 | |
| Revenues | 93.5 | 80.0 |
| Rental income | 58.4 | 47.6 |
| Revenues from operating costs | 20.9 | 19.1 |
| Revenues from hotel operations | 14.1 | 13.4 |
| Other operating income | 2.2 | 0.7 |
| Property operating expenses | -29.4 | -29.5 |
| Hotel operating expenses | -12.0 | -10.8 |
| Gross profit | 54.2 | 40.3 |
| Income from property disposals | 28.3 | 424.6 |
| Book value of property disposals | -28.3 | -424.6 |
| Result from property disposals | 0 | 0 |
| Management expenses | -9.7 | -8.9 |
| EBITDA | 44.6 | 31.4 |
| Depreciation and amortisation | -2.0 | -2.4 |
| Results from property valuation | -22.6 | -10.0 |
| Operating income (EBIT) | 20.0 | 19.0 |
| Financial result | -13.5 | -13.2 |
| Earnings before tax (EBT) | 6.5 | 5.8 |
| Taxes on income | -6.1 | -7.0 |
| Consolidated net income for the period | 0.5 | -1.2 |
| of which attributable to shareholders in the parent company | 6.4 | 0.4 |
| of which attributable to non-controlling interests | -5.9 | -1.6 |
| Earnings per share (in EUR) | 0.09 | 0.01 |
For further details on the Q1 result please refer to the Q1 report on the company's website: www.simmoag.at/financial-reports
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| Emitter: |
S IMMO AG Wienerbergstraße 9 / 7. Stock 1100 Wien Austria |
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|---|---|---|
| Contact Person: | Elisabeth Wagerer | |
| Phone: | +43 1 22795-1120 | |
| E-Mail: | elisabeth.wagerer@simmoag.at | |
| Website: | www.simmoag.at | |
| ISIN(s): | AT0000652250 (Share) | |
| Stock Exchange(s): | Vienna Stock Exchange (Official Trade) |