IMMOFINANZ: Strong operating performance in challenging times drives portfolio growth and robust balance sheet structure.
IMMOFINANZ has achieved a strong operating performance in 2022 despite the challenging environment, according to a recent press release. Like-for-like rental income rose by 8%, while FFO 1 improved by 22% to EUR 146 million. The company’s portfolio grew by 62% to EUR 8.4 billion, thanks to the full consolidation of S IMMO and the acquisition of retail properties. Despite the negative results from property valuation, the company generated a net profit of EUR 142 million. IMMOFINANZ has a solid capital base with an equity ratio of 47.9% and conservative debt with a net LTV of 40.7%. Based on the company’s strategy and the continuing market uncertainty, the annual general meeting will be asked to waive the dividend for the 2022 financial year.
The Pillars to Success
Radka Doehring, Executive Chairwoman of IMMOFINANZ, said that the quality of the company’s properties and steady rental income proved to be stable pillars in a volatile environment. The company’s like-for-like rental income improved by more than 8%, and sustainable FFO 1 by roughly 22%. The company has taken further important steps to grow its business and substantially strengthen its position as an international provider of resilient retail properties and innovative office solutions.
IMMOFINANZ has made very good progress on its program to sell properties with a total value of approximately one billion euros and closed profitable sales of nearly 166 million euros during the past year. Further transactions are also in preparation. Like-for-like rental income (adjusted for acquisitions, sales, and completions) rose by a sound 12.9% in the fourth quarter of 2022 (versus Q4 2021) and by 8.1% in year-on-year comparison.
Portfolio Growth
The IMMOFINANZ portfolio grew by 61.8% to EUR 8.4 billion and to 627 properties in 2022. This growth was supported, above all, by the full consolidation of S IMMO and by the acquisition and completion of retail properties. Of this total, EUR 7.9 billion represents standing investments with 3.5 million sqm of rentable space. The overall occupancy rate for the portfolio (including S IMMO) equaled 92.9%. The gross return on the IMMOFINANZ standing investment portfolio (excluding S IMMO) equaled 6.5% based on IFRS rental income and 6.7% based on invoiced rents.
IMMOFINANZ has a robust balance sheet structure with an equity ratio of 47.9% as of 31 December 2022 and a solid net loan-to-value ratio (net LTV) of 40.7%. The company’s plans include the expansion of its offering in the core countries over the medium term. The sale pipeline, which is an integral part of the company’s active portfolio management, includes successful transactions.
Resilient and Cost-Efficient Properties
IMMOFINANZ’s outlook for the future remains focused on resilient and cost-efficient retail properties and innovative office solutions. Despite the continuing market uncertainty, the company’s strong operating performance in 2022 indicates that it is well-positioned to navigate the challenges of the future.
Learn more about IMMOFINANZ: immofinanz.com
