Business news for the stock market
S IMMO AG: Q3 continues strong operating performance
Vienna (pta008/28.11.2024/08:45 UTC+1)
"These results for the first three quarters of 2024 clearly show that we continue our strong operating performance and benefit from our prudent investment strategy of recent months. We have once again succeeded in significantly increasing our total revenues and rental income. Gross profit is well above the previous year's level", comments Radka Doehring, member of the Management Board.
Operational highlights:
- Total revenues increased by 36% to EUR 280.3m (excl. discontinued segment1)).
- Rental income increased by 46% to EUR 167.7m (excl. discontinued segment1)).
- Gross profit improved by 48% to EUR 162.6m (excl. discontinued segment1)).
- EBITDA rose by 57% to EUR 134.6m (excl. discontinued segment1)).
- Net income for the period of EUR 29.8m (incl. discontinued segment1))
Financial highlights:
- Earnings per share totalled EUR 0.40 (incl. discontinued segment1)).
- EPRA-NRV per share was EUR 28.08.
- FFO I amounted to EUR 98.0m as of 30 September 2024 (incl. discontinued segment1)).
- Net loan-to-value (net LTV) was 49.6%.
"These figures are the result of our ongoing portfolio optimisation and proof of the effectiveness of our strategy. Our active asset rotation strategy creates the basis for our future earnings", says Tomáš Salajka, member of the Management Board.
Events and updates after the balance sheet date
S IMMO successfully completed the sale of Hotel Juliš in Prague on 31 October 2024. The property has a gross leasable area of around 6,700 m².
Besides this sale, sales activities also continued in Germany, Austria, Czech Republic, Hungary and Slovakia.
On 14 October 2024, the Shareholders' Meeting of S IMMO AG resolved upon the squeeze-out of the minority shareholders of S IMMO AG in accordance with the Austrian Squeeze-out Act (Gesellschafterausschlussgesetz). Subject to the decision of the Commercial Court of Vienna, the squeeze-out is currently expected to be registered with the commercial register in December 2024.
The result in detail
Total assets
As of 30 September 2024, S IMMO Group's total assets amounted to EUR 4,034.2m (31 December 2023: EUR 4,179.9m). Cash and cash equivalents amounted to EUR 273.2m as of 30 September 2024 (31 December 2023: EUR 445.1m).
Equity and EPRA NRV
Equity, not including non-controlling interests, increased slightly to EUR 1,649.6m (31 December 2023: EUR 1,648.4m). As of 30 September 2024, the book value per share reached to EUR 23.47 (31 December 2023: EUR 23.43). The equity ratio rose to 41.8% at the end of the third quarter of 2024 (31 December 2023: 40.7%). EPRA NRV per share was EUR 28.08.
Discontinued segment in Germany
In connection with the gradual withdrawal from Germany, those properties that meet the criteria of IFRS 5 will be reported as assets held for sale as of 30 September 2024 and presented as discontinued operations together with the German assets and liabilities already sold.
The following explanations to the consolidated income statement, therefore, do not include any contribution from the discontinued operation in Germany. A detailed explanation can be found in the further information to the interim financial statement, which is available on the company's website.
Significant improvement in operating result – increase in rental income and gross profit
In the third quarter of 2024, revenues increased significantly from EUR 206.8m in the same period of the previous year to EUR 280.3m. This improvement was primarily due to acquisitions of high-income-generating rented properties in the Czech Republic and Austria in 2023 and 2024, as well as to a good like-for-like performance. Rental income amounted to EUR 167.7m (Q3 2023: EUR 115.0m), which was 46% higher than in the previous year. Revenues from operating costs increased to EUR 59.3m (Q3 2023: EUR 41.9m).
Like rental income and revenues from operating costs, property expenses were influenced by transactions and increased from EUR 61.7m in Q3 2023 to EUR 80.5m, mainly due to higher expenses for operating and maintenance expenses.
Thanks to the rise in rental income, gross profit improved from EUR 110.2m in Q3 2023 to EUR 162.6m – up more than 48%.
Result from hotel operations
The result from hotel operations totalled EUR 13.1m (Q3 2023: EUR 13.5m), income was again at a high level.
EBITDA
The pleasing operating performance was also reflected in EBITDA, which rose by 57% to EUR 134.6m (Q3 2023: EUR 86.0m).
Management expenses
Administrative expenses increased to EUR 28.0m (Q3 2023 EUR 24.2m), mainly due to higher administrative fees as a result of acquisitions.
Property valuation
The result from property valuation amounted to EUR 2.1m (Q3 2023: EUR -17.7m).
EBIT
Due to the very good operational development and due to an improved property valuation, EBIT amounted to a total of EUR 130.6m (Q3 2023: EUR 61.2m).
Financial result and taxes on income
The financial result changed from EUR -23.8m in the previous year to EUR -58.4m, mainly due to negative non-cash effects from derivative valuations on the one hand and non-cash negative exchange rate differences. Tax expenses amounted to EUR -17.8m (Q3 2023: EUR 1.5m).
Net result for the period and earnings per share
Overall, the net result for the period (incl. discontinued segment1)) improved to EUR 29.8m (Q3 2023: EUR -19.6m). Earnings per share amounted to EUR 0.40 (Q3 2023: EUR -0.18).
CONSOLIDATED INCOME STATEMENT
Consolidated income statement for the period 01 January 2024 – 30 September 2024
in EUR m / fair value method1
| 01–09/2024 | 01–09/2023 (adjusted) | |
| Revenues | 280.3 | 206.8 |
| Rental income | 167.7 | 115.0 |
| Revenues from operating costs | 59.3 | 41.9 |
| Revenues from hotel operations | 53.3 | 49.8 |
| Other operating income | 3.0 | 1.5 |
| Property operating expenses | -80.5 | -61.7 |
| Hotel operating expenses | -40.2 | -36.4 |
| Gross profit | 162.6 | 110.2 |
| Income from property disposals | 127.6 | 8.5 |
| Book value of property disposals | -127.6 | -8.5 |
| Result from property disposals | 0 | 0 |
| Management expenses | -28.0 | -24.2 |
| EBITDA | 134.6 | 86.0 |
| Depreciation and amortisation | -6.0 | -7.0 |
| Results from property valuation | 2.1 | -17.7 |
| Operating income (EBIT) | 130.6 | 61.2 |
| Financial result | -58.4 | -23.8 |
| Earnings before tax (EBT) | 72.2 | 37.5 |
| Taxes on income | -17.8 | 1.5 |
| Consolidated net income for the period from continuing operations | 54.4 | 38.9 |
| Consolidated net income for the period from discontinued operations | -24.6 | -58.6 |
| Consolidated net income for the period | 29.8 | -19.6 |
| of which attributable to shareholders in the parent company | 28.2 | -13.0 |
| of which attributable to non-controlling interests | 1.6 | -6.6 |
For further details on the Q3 result please refer to the interim financial statement on the company's website: www.simmoag.at/financial-reports
1) As of 30 September 2024, those properties that meet the criteria of IFRS 5 are reported as assets held for sale and shown as discontinued operations together with the German assets and liabilities already sold. The earnings contributions of this discontinued operation are included in the consolidated net profit, but not in the income statement figures. The comparative figures 01 - 09/2023 have also been adjusted accordingly.
(end)
| Emitter: |
S IMMO AG Wienerbergstraße 9 / 7. Stock 1100 Wien Austria |
|
|---|---|---|
| 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) |