Results Q1 2019: Warimpex starts off new financial year with a profit

P R E S S R E L E A S E

Results for the first quarter of 2019:

Warimpex starts off new financial year with a profit

• Profit for the period of EUR 11.8 million compared to loss of EUR 3.0 million in prior year due to property sales and exchange rate gains
• Focus on building up property portfolio: Acquisition of hotel property in Darmstadt, opening of Mogilska office building in Krakow, and expansion of involvement in St. Petersburg after reporting period
• Successful sales in Karlovy Vary and Budapest

Vienna/Warsaw, 28 May 2019 - Warimpex Finanz- und Beteiligungs AG is starting off the 2019 financial year with a positive result for the first quarter. The profit of EUR 11.8 million is primarily the result of higher gains on property sales and a positive financial result due to exchange rate gains. The focus for the real estate development and investment company this year is on building up its property portfolio and strengthening its earning potential.

"We are concentrating on completing ongoing developments and working to quickly get new projects up and running. At the same time, the acquisition of cash-flow generating assets with potential for the future will help us achieve our goals for the current financial year. The first successes can already be seen," commented Warimpex CEO Franz Jurkowitsch.

A detailed look at the results for the first quarter of 2019

In the first quarter of 2019, revenues in the Hotels segment fell to EUR 1.8 million, which represents a decline of 24 per cent compared with the first quarter of 2018. This can be attributed primarily to the sale of the operating company for the Dvořák hotel in Karlovy Vary at the end of February. The company reported an increase in revenues from the rental of office properties: This figure rose by 7 per cent to EUR 4.1 million due to the purchase of the B52 office building in Budapest in May 2018 and the completion of the Ogrodowa office building in Łódź in October 2018. Total revenues fell by 6 per cent to EUR 6.3 million.

EBITDA saw a significant increase from EUR 1.3 million to EUR 7.6 million, primarily due to gains on property sales. EBIT also rose from EUR 1.2 million to EUR 7.5 million. The financial result (including earnings from joint ventures) improved from minus EUR 4.1 million to EUR 5.7 million. This includes changes in foreign exchange rates in the amount of EUR 6.4 million (Q1 2018: minus EUR 2.1 million). This resulted in a profit of EUR 11.8 million for the first quarter of 2019 (Q1 2018: loss of EUR 3.0 million).

Acquisition in Darmstadt, opening of office building in Krakow, and increased involvement in St. Petersburg

Warimpex's strategy is underlined by a few current examples. After the reporting period - at the end of April - the company secured the purchase of a hotel property in the German city of Darmstadt. It plans to reopen the three-star conference hotel, which is currently closed, before the end of the year and reposition it under a new brand following a refurbishment and renovation phase that will be completed without disrupting ongoing operations. The hotel property also offers property reserves for the development of additional premium office and commercial space.

There is also good news to report from other markets. In May, Warimpex officially opened the Mogilska office project in the Polish city of Krakow. The ultra-modern, class A office building was completed on schedule after a construction period of 21 months and offers a total of 12,000 square metres over eight storeys. Rental agreements have been signed for the majority of the office space, and the first tenants have already moved in. Also in May, Warimpex announced the acquisition of a 35 per cent stake in the project company AO AVIELEN A.G. Following this acquisition, Warimpex will hold a total stake of 90 per cent in AVIELEN, which is responsible for the development and operation of AIRPORTCITY St. Petersburg. The closing of the transaction is still subject to the standard closing prerequisites for transactions of this type, in particular the approval of the Russian antitrust authority.

Disposals in Karlovy Vary and Budapest

In accordance with its corporate strategy, Warimpex also completed two successful sales in the first quarter of 2019. On the one hand, the company sold the Dvořák hotel in the Czech city of Karlovy Vary to an international private investor in February. On the other, it disposed of the Sajka office building with its roughly 600 square metres of lettable space in Budapest at the start of the year.

Outlook

"We expect to see a significant increase in revenues in the Investment Properties segment and an improvement in gross income this year thanks to rental revenue from new assets - first and foremost from the two office buildings in Poland. I am also very excited that we are once again active on the German market thanks to our acquisition in Darmstadt," said Jurkowitsch in closing.

Key financial figures for the first quarter of 2019 at a glance (as at 31 March 2019):

in EUR '000	1-3/2019	Change	1-3/2018
Hotels revenues	1,821	-24%	2,381
Investment Properties revenues	4,065	7%	3,803
Development and Services revenues	379	-25%	506
Total revenues	6,265	-6%	6,690
Expenses directly attributable to revenues	-2,906	-10%	-3,236
Gross income from revenues	3,360	-3%	3,453
Gains or losses from the disposal of properties	7,285	-	-
EBITDA	7,602	484%	1,302
Depreciation, amortisation, and	-152	-18%	-129
remeasurement
EBIT	7,450	535%	1,173
Earnings from joint ventures	474	-	-770
Profit or loss for the period	11,799	-	-2,975
Profit or loss for the period (shareholders of	8,838	-	-2,017
the parent)
Net cash flow from operating activities	-329	-	184
Segment information
(including joint ventures on a proportionate
basis):
Hotels revenues	7,814	-9%	8,585
Hotels net operating profit (NOP)	859	-22%	1,108
NOP per available room in EUR	866	-20%	1,083
Investment Properties revenues	5,068	5%	4,840
Investment Properties EBITDA	3,731	-1%	3,813
Development and Services revenues	544	-26%	657
Gains or losses from the disposal of properties	7,285	-	-
Development and Services EBITDA	5,112	-	-1,618
	31/12/20181	Change	31/12/20171
Gross asset value (GAV) in EUR millions	269.9	33%	202.5
NNNAV per share in EUR	2.56	5%	2.44

1As no external valuation of the portfolio was completed as at 31 March 2019 or 31 March 2018, the latest available values are shown.

Warimpex Finanz- und Beteiligungs AG at a glance

Warimpex Finanz- und Beteiligungs AG is a real estate development and investment company. The firm is headquartered in Vienna and is listed on the stock exchanges in Vienna and Warsaw. Its core focus is the construction and operation of hotels and offices in Central and Eastern Europe. Due to this combination of real estate development and asset management, Warimpex sees itself as a "hybrid" real estate company that operates properties itself until the time at which the highest added value can be realised through sale. The company has developed properties worth over one billion euros over the past 30 years and is currently active in CEE, Russia, Austria, Germany, and France. Warimpex believes in quality and sustainability as the basis for strong future growth.

Contact:
Warimpex Finanz- und Beteiligungs AG	Ecker & Partner Öffentlichkeitsarbeit
Christoph Salzer, [e-mail]	und Public Affairs GmbH
Daniel Folian, [e-mail]	Nele Renzenbrink, Michael Moser
Tel. [phone]	[e-mail]
www.warimpex.com	Tel. [phone]