IMMOFINANZ Group recorded strong growth in both rental income and operating results in the first three quarters of 2023 due to acquisitions, the full consolidation of S IMMO and successful asset management. Rental income rose by 79.4% year-on-year to EUR 389.2 million; the results of asset management, at EUR 323.7 million, were even 92.2% higher than in the previous year. The results of operations increased to EUR 209.1 million and sustainable FFO 1 from the standing investment business more than doubled to EUR 214.4 million.
โThe results show that we are in a resilient position and are operating successfully with our strategy. Despite the challenging market environment, we performed strongly with acquisitions, the full consolidation of S IMMO and our asset management and recorded significant growth in all operating key figures. We also continued to improve our financial basis, which puts us in a solid position for the future,โ says Radka Doehring, member of the IMMOFINANZ Executive Board
At the same time, IMMOFINANZ Group also recorded market-related property write-downs of EUR -219.5 million, which were primarily related to low-yielding properties. As a result, net profit fell to EUR -105.9 million (Q1โ3 2022: EUR 248.6 million) and earnings per share declined to EUR -0.48 (Q1โ3 2022: EUR 1.82).
High occupancy, high rental income
The property portfolio of IMMOFINANZ Group included 501 properties with a combined value of EUR 7.8 billion. Of this total, EUR 7.3 billion represented standing investments with 3.3 million sqm of rentable space and a gross return of 7.0%. The occupancy rate remained high at 92.3% (31 December 2022: 92.9%).
Like-for-like rental income (i.e., adjusted for acquisitions, completions and sales, excluding S IMMO) rose significantly by 9.3% year-on-year in the first three quarters of 2023.
The strategic sales programme to optimise the portfolio was successfully continued despite below-average transaction market activity. Property sales of approximately EUR 649 million (incl. S IMMO) were concluded during the reporting period.
Robust balance sheet
IMMOFINANZ Group had a very robust balance sheet structure as of 30 September 2023. Cash and cash equivalents increased significantly to EUR 831.5 million (31 December 2022: EUR 684.7 million). The net loan-to-value ratio (net LTV) improved to 37.8% (31 December 2022: 40.7%) and the equity ratio rose to 50.0% (31 December 2022: 47.9%). Roughly 92% of financial liabilities are hedged against interest rate increases.
The IFRS book value per share amounted to EUR 27.31 (31 December 2022: EUR 27.47). The EPRA NTA was EUR 28.50 (31 December 2022: EUR 29.82).
Outlook
Based on the results for the first three quarters of 2023, IMMOFINANZ Group expects FFO 1 from the standing investment business (before tax) to exceed EUR 275 million for the full year 2023.
