Rental income increased by 3.1%, or EUR 8.7 million, to EUR 288.6 million, above all due to acquisitions and property completions in the second half of the previous year. The Covid-19 pandemic led to a substantial rise in the write-off of receivables from asset management to EUR -29.2 million (2019: EUR -2.2 million). In contrast, maintenance and real estate marketing costs declined to EUR -14.4 million (2019: EUR -21.6 million), respectively EUR -5.4 million (2019: EUR -8.3 million) and reflect the liquidity protection measures that were implemented immediately at the start of the crisis to cut costs and protect liquidity. Property expenses were 25.1% higher than the previous year at EUR -71.9 million (2019: EUR -57.4 million). However, an adjustment for the effects on receivables write-offs shows a year-on-year reduction of 22.8% in property expenses to EUR -42.7 million.

The results of asset management reflected the previous year at EUR 206.4 million in 2020 (2019: EUR 207.3 million). The results of property sales rose to EUR 7.9 million (2019: EUR -5.1 million), supported, above all, by the profitable sale of an office property in Düsseldorf and the related revaluation. Properties with a volume of EUR 109.8 million were sold during 2020 (asset and share deals), whereby the largest transactions involved one office property each in Düsseldorf and Warsaw as well as land in Romania.

The results of property development totalled EUR -24.2 million (2019: EUR -12.4 million). This decline resulted from the revaluation of properties under construction, which amounted to EUR -21.2 million (2019: EUR 1.5 million) and also reflected a Covid-19-related increase in market yields as well as costs increases on individual projects.

Other operating expenses rose by 6.0% to EUR -48.9 million (2019: EUR -46.1 million). The increase in personnel expenses included under this position is primarily attributable to a non-recurring payment related to the resignation of Oliver Schumy from the Executive Board. The results of operations equalled EUR 143.9 million and were only slightly lower than the previous year (2019: EUR 149.9 million).

Results from the revaluation of standing investments turned negative - due to the adverse effects of the Covid-19 pandemic - at EUR -156.6 million (2019: EUR 195.7 million). This value decline represents roughly 3.5% of the carrying amount of the standing investments as of 31 December 2020. Retail properties were written down by EUR -71.0 million (4.3% of the carrying amount) and office buildings by EUR -89.1 million (3.2% of the carrying amount). These crisis-related, negative valuation results were responsible for a decline in operating profit (EBIT) - despite the strong operating performance - from EUR 345.6 million in 2019 to EUR -12.7 million.

Financing costs declined slightly to EUR -64.0 million (2019: EUR -64.6 million) despite a year-on-year increase of roughly 12% in the financing volume. Average financing costs, including hedging, equalled 1.99% per year (31 December 2019: 1.91%). Other financial results amounted to EUR -14.6 million (2019: EUR -9.0 million) and resulted chiefly from the valuation of interest rate derivatives in the current low-interest environment.

The steady decline in the price of the S IMMO share during 2020 represented an objective indication of impairment to this investment as of 31 December 2020. Consequently, the S IMMO investment was tested for impairment and the carrying amount was written down to EUR 363.6 million (i.e. to a carrying amount of EUR 18.65 per S IMMO share). Net profit for the 2020 financial year therefore includes an impairment loss of EUR -88.6 million. The share of profit/loss from equity-accounted investments amounted to EUR -69.5 million in 2020 (2019: EUR 78.4 million), whereby EUR 15.0 million (2019: EUR 62.0 million) are attributable to the share of earnings from S IMMO. Of this total, EUR -73.1 million are attributable to S IMMO (including the carryforward of EUR 0.6 million in undisclosed reserves from the initial consolidation). Financial results totalled EUR -147.8 million (2019: EUR 4.5 million).

Profit before tax equalled EUR -160.4 million (2019: EUR 350.1 million). After the deduction of EUR -5.5 million (2019: EUR -2.5 million) in income taxes, net loss amounted to EUR -165.9 million (2019: EUR 352.1 million). That represents earnings per share[1] (basic) of EUR -1.50 (2019: EUR 3.37).

The financial report by IMMOFINANZ AG for the 2020 financial year as of 31 December 2020 will be available on the company's website under http://www.immofinanz.com/en/investor-relations/financial-reports starting on 22 April 2021. ^[1] Number of shares included (basic): 111,595,279 for 2020 and 106,567,143 for 2019

On IMMOFINANZ IMMOFINANZ is a commercial real estate group whose activities are focused on the office and retail segments of seven core markets in Europe: Austria, Germany, Poland, Czech Republic, Slovakia, Hungary and Romania. The core business covers the management and development of properties, whereby the STOP SHOP (retail), VIVO! (retail) and myhive (office) brands represent strong focal points that stand for quality and service. The real estate portfolio has a value of approx. EUR 5.0 billion and covers roughly 210 properties. IMMOFINANZ is listed on the stock exchanges in Vienna (leading ATX index) and Warsaw. Further information under: http://www.immofinanz.com

For additional information contact: Bettina Schragl Head of Corporate Communications and Investor Relations T +43 (0)1 88 090 2290 M +43 (0)699 1685 7290 communications@immofinanz.com investor@immofinanz.com 1100 Vienna, Wienerbergstraße 9, Austria www.immofinanz.com -----------------------------------------------------------------------------------------------------------------------

2021-04-21 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de ----------------------------------------------------------------------------------------------------------------------- 


Language:     English 
Company:      IMMOFINANZ AG 
              Wienerbergstraße 9 
              1100 Vienna 
              Austria 
Phone:        +43 (0) 1 88090 - 2290 
Fax:          +43 (0) 1 88090 - 8290 
E-mail:       investor@immofinanz.com 
Internet:     http://www.immofinanz.com 
ISIN:         AT0000A21KS2 
WKN:          A2JN9W 
Listed:       Regulated Unofficial Market in Berlin, Frankfurt, Munich, Stuttgart; Warschau, Vienna Stock Exchange 
              (Official Market) 
EQS News ID:  1187322 
 
End of News   DGAP News Service 
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1187322 2021-04-21


 
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April 21, 2021 11:51 ET (15:51 GMT)