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HomeReal Estate NewsIMMOFINANZ Delivers Strong H1 2023 Results

IMMOFINANZ Delivers Strong H1 2023 Results

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IMMOFINANZ Group reports extraordinary growth in the first half of 2023, marked by a substantial surge in both rental income and operating results.

The company’s strategic initiatives, including acquisitions and the consolidation of S IMMO, have played a pivotal role in achieving these impressive results.

Record-Breaking Growth

IMMOFINANZ Group’s H1 2023 results underscore its impressive growth trajectory. Key highlights include:

  • Results of Operations Soar: IMMOFINANZ reported results of operations exceeding EUR 118.0 million, more than double compared to previous periods. This surge can be attributed to acquisitions and the full consolidation of S IMMO into the company’s financial statements.
  • Rental Income Skyrockets: Rental income surged by a remarkable 79.6%, reaching EUR 258.9 million in H1 2023. This growth is a testament to IMMOFINANZ’s successful strategies in property management.
  • Outstanding Like-for-Like Rental Growth: IMMOFINANZ achieved an impressive like-for-like rental growth rate of 10.3%, reflecting the company’s ability to enhance organic growth.

Strong Financial Foundation

IMMOFINANZ’s financial stability and strength were evident throughout H1 2023:

  • Equity Ratio: The company maintains a solid equity ratio of 49.6%, providing a strong foundation for future growth and stability.
  • Net LTV: The net loan-to-value ratio (net LTV) stands at 38.7%, demonstrating prudent financial management.

Strategic Investments

The decision to increase investment in S IMMO to 50% plus one share at the end of 2022 has proven instrumental in the company’s growth. This move led to the full consolidation of S IMMO’s assets and liabilities into IMMOFINANZ’s financial statements since December 31, 2022.

Market-Related Property Write-Downs

IMMOFINANZ Group faced market-related property write-downs totaling EUR -197.2 million, primarily due to lower-yielding properties. As a result, net profit for H1 2023 declined to EUR -144.5 million, compared to EUR 162.7 million for the same period in 2022. Earnings per share also decreased to EUR -0.59 (Q1–2 2022: EUR 1.20).

Portfolio Strength

IMMOFINANZ Group’s property portfolio includes 520 properties valued at EUR 7.8 billion. Among these, EUR 7.4 billion represent standing investments, comprising 3.4 million sqm of rentable space with a gross return of 6.9%. The portfolio’s high occupancy rate remained stable at 92.5%.

Optimizing the Portfolio

Despite challenging market conditions, IMMOFINANZ Group successfully continued its strategic sales program, concluding real estate sales totaling approximately EUR 598 million in H1 2023, including those related to S IMMO.

Robust Balance Sheet

The company maintains a robust balance sheet structure, with net loan-to-value (net LTV) at 38.7% and an equity ratio of 49.6% as of June 30, 2023. Cash and cash equivalents amounted to EUR 729.2 million, with 91% of financial liabilities hedged against interest rate increases.

Future Outlook

IMMOFINANZ Group’s strategic focus remains centered on resilient and cost-efficient retail properties and innovative office solutions. Medium-term plans include expanding offerings in core countries and optimizing the portfolio through the strategic sales program.

Collaboration with S IMMO and support from CPIPG will continue to identify opportunities for further synergies and efficiency improvements in 2023.

For more information about IMMOFINANZ Group, visit their official website.

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