CA Immo: Stable operating Q1 2024 result in a market environment that remains challenging

• Increased rental income (+4% to €64.0m) reflects project completions in 2023 and higher rental income in the portfolio.
• The operating result (EBITDA) totaled €37.0m, -35% yoy (31.3.2023: €56.5m), mainly driven by a lower sales result.
• Consolidated net income of €16.1m (€0.16 per share), -48% yoy (31.3.2023: €30.8m).
• Recurring earnings (FFO I) of €26.7m, +12% yoy (31.3.2023: €23.9m)

Vienna, May 21. CA Immo, the real estate company specializing in high-quality office space, can report a stable operating development for Q1 2024. The results show, among other things, a slight increase in rental income (+4%) due to the completion of project developments in previous years and higher rental income from investment properties. Despite this increase in rental income, both the operating result (EBITDA) and the consolidated net income were down on the previous year´s figures, mainly due to the exceptionally high sales result in Q1 2023.

Keegan Viscius, CEO of CA Immo: "In recent years, we have intensified the focus on our core business through disposals, thereby simplifying our business model, increasing economies of scale and reinvesting to increase value. At the same time, we have paid particular attention to maintaining a strong balance sheet. Thanks to this forward-looking, early approach, we are able to operate from a position of strength and remain competitive in what remains a challenging market environment. First-class office properties in central metropolitan locations have performed comparatively stably in recent months and we see good opportunities to further increase rent levels despite our tenant´s longer decision-making periods."

Stable, profitable investment portfolio
Despite the generally subdued landscape for global office demand, CA Immo was able to maintain a stable like-for-like occupancy rate at around 89% and record a good leasing performance. The rents signed were around 5% above the budgeted rent levels. The weighted average lease term (WAULT) of 4.5 years shows an unchanged willingness on the part of tenants to sign long office leases.

Lean development pipeline
The development pipeline currently comprises one office building under construction located at Berlin's central station and a residential project in Mainz (CA Immo JV share 50%). The Berlin office project Upbeat, which is still under construction, is 100% pre-let and on track to complete in early 2026.

Results for Q1 2024
CA Immo recorded a 4% increase in rental income to €64.0m despite the sale of non-strategic properties. This development is primarily due to higher rental income in the portfolio and the completion of project developments in previous years, which more than compensated for the decline in rental income from the sale of non-strategic properties as part of the strategic capital rotation program.

The result from property sales amounted to €-0.3m after €22.3m as at 31.3.2023.

Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at €37.0m, 35% below the previous year´s figure of €56.5m, mainly due to the lower sales result.

The revaluation result totaled €-8.2m (31.3.2023: €-2.4m).

At €16.1m, consolidated net income was below the previous year's figure of €30.8m. Earnings per share amounted to €0.16 on the balance sheet date (€0.31 per share as at 31.3.2023).

As at 31.3.2024, FFO I of €26.7m was generated, which is 12% above the previous year's figure of €23.9m.

Total property assets of around €5.2bn
The company's core business is office properties across the gateway cities in Germany, Austria and the CEE region. The segments are divided into investment properties (€4.7bn, 91% of the total portfolio) and investment properties under development (€409.5m, 8% of the total portfolio). The remaining 1% (€29.8m) of the property assets are attributable to properties intended for trading or sale (reported under short-term property assets). As at 31.3.2024, CA Immo's total property assets amounted to around €5.2bn (31.12.2023: €5.2bn). The largest regional segment is Germany with a 66% share of the total portfolio, followed by CEE (28%) and Austria (6%). The occupancy rate of the investment portfolio stood at 88%.

Robust balance sheet, strong liquidity position
Thanks to many years of positive business development and a defensive balance sheet and financing policy, CA Immo has a robust balance sheet with a solid equity ratio of 45.3% (31.12.2023: 43.8%), a net LTV of 36.3% (31.12.2023: 36.6%) and robust liquidity (cash and cash equivalents incl. cash deposits: €574.9m).

The net asset value (IFRS NAV) per share was €28.06 as at 31.3.2024, compared to €27.88 at the end of 2023 - an increase of 0.6%. EPRA NTA per share was €33.71 as at the reporting date (31.12.2023: €33.78).

Outlook and priorities 2024
The weakening of the real estate investment markets and the decline in property values as a result of high inflation and the rapid rise in interest rates pose challenges for the entire sector. We are preparing for a sustained period of higher interest rates in an uncertain geopolitical and weak macroeconomic environment. Illiquid transaction markets and changing preferences of users, investors and lenders will continue to influence the real estate business.

Our strategic priorities remain focused on (1) accelerating the sale of non-core properties, (2) simplifying our business model, (3) increasing critical mass and achieving economies of scale, (4) continued disciplined investment in profitable construction projects and income-producing properties, particularly in the core markets of Berlin and Munich, (5) selective external investment, (6) maintaining a strong balance sheet and stable financial ratios and (7) returning surplus capital to shareholders.

The Q1 2024 financial report of CA Immobilien Anlagen AG is available at: https://www.caimmo.com/en/investor-relations/financial-reports/