Immofinanz posted a consolidated net loss of EUR 165.88mn from continuing operations in 2020 vs. EUR 347.52mn profit a year earlier, the company reported. The operating loss was EUR 12.65 mn vs. EUR 345.58 mn profit a year earlier. Consolidated rental income amounted to EUR 288.62 million in 2020 compared with EUR 279.88 million a year earlier.
Leasing revenues increased by 3.1% to EUR 288.6 million thanks to the strong portfolio expansion in H2 2019, but the crisis-related increase in impairment losses on asset management receivables led to significantly higher property costs. Asset management results were EUR 206,4 million in 2020 and reflect the previous year despite these write-offs. The pandemic also had a negative impact on the valuation of investment properties: revaluations totaled -166.5 million euros, compared with clearly positive results in the previous year (2019: 193.3 This reduction represents around 3.2% of the total real estate portfolio In addition, the continued decline in the S IMMO share price in 2020 led to a write-off of this investment of EUR 88.6 million to EUR 363.6 million. for the financial year 2020 it amounted to -165.9 million euros.
In Poland, Immofinanz holds 19.7% of the company’s total real estate portfolio. It consists of 27 facilities, and their total book value is EUR 978.4 million. The portfolio of existing investments is divided into 10 office buildings (25.2% of the company’s total office buildings portfolio) and 14 commercial facilities (17% of the total retail portfolio).
“The pandemic and the related support for our tenants plus the crisis-related negative effects from the valuation are, unquestionably, reflected in our group result – but our occupancy rate remained unchanged at very high 96% and FFO 1, as the indicator for our operational earning power, even increased slightly. At the end of the year, we had more than a billion euros of liquid funds. That is a very strong foundation – to manage the ongoing crisis environment as well as the post-crisis recovery and growth phase. In this respect, we successfully closed the 2020 financial year from a position of strength“, commented Ronny Pecik, CEO of IMMOFINANZ, on the company’s performance.
The lease level for the entire portfolio as at December 31, 2020 remains high at 96.4%. Rental income in Poland increased by 14% to EUR 69.3 million, which is approximately 24% of the group’s total rental income, the company also report.
Source: ISBnews and IMMOFINANZ
