INCITY IMMOBILIEN AG
DGAP-News: InCity Immobilien AG / Key word(s): Annual Results INCITY PUBLISHES ANNUAL REPORT FOR 2018 AND FORECAST FOR 2019
Frankfurt am Main, 30 April 2019. Today, InCity Immobilien AG ("InCity") published its annual report for fiscal year 2018. The final results align with the preliminary figures communicated on 27 March 2019. The results were significantly better than originally expected, both at the consolidated and single-entity financial statement level: The consolidated result amounted to EUR -446 k after EUR -2.3 m in 2017, and the single-entity financial statement result was EUR 707 k after EUR -168 k in the prior year. One reason for the improved results was the book profit of EUR 910 k generated by the opportunistic sale of the portfolio property Schäfergasse 38/40 in Frankfurt am Main. "Our strategic goal continues to be the further expansion of our property portfolio," says Michael Freund, CEO of InCity. "We made good progress towards this goal in the past fiscal year 2018. Nevertheless, we will continue to take advantage of sales opportunities if they are in the best interest of our company." For the current fiscal year 2019, InCity forecasts a loss of EUR -2.1 m to EUR -2.4 m at consolidated financial statement level and expects a result between EUR -300 k and EUR 100 k at single-entity financial statement level.
In 2018, InCity acquired three properties with a total rentable area of approximately 8,720 square metres with notarial deeds of sale. These were two residential and commercial buildings in Berlin and a high-quality core property located at the Leipziger Platz, also in Berlin. After the sale of the property located at Schäfergasse in Frankfurt am Main, InCity AG's property portfolio consisted of ten properties in total as of the cut-off date on 31 March 2019. The project participations "Rhein VII - bildschön leben" and "Elbquartier Blankenese" progressed consistently according to plan in the past fiscal year.
At EUR -446 k, the consolidated net loss for fiscal year 2018 is still negative, but significantly better than in the same period of the prior year (EUR -2,300 k) and better than originally forecast. The Group's EBITDA (earnings before interest, taxes, depreciation and amortisation), at EUR 3,208 k, was also significantly higher compared to the prior year (EUR 1,247 k). In addition to the above-mentioned book profit from the sale of a portfolio property, the operating results from the growing property portfolio increased significantly compared to the prior year. As planned, the result at single-entity annual financial statement level in fiscal year 2018 is positive (EUR 707 k; prior year: EUR -168 k) and has also improved significantly on the originally forecast result. The Group's equity ratio was approximately 51% as of the balance sheet date (31 December 2017: 60%). The bond 2018/2023 issued in 2018 in the amount of EUR 20.0 m is significantly involved in the decline of the equity ratio. The capital base continues to be characterised by great strength and forms a secure and stable foundation for the future of the Group.
For the current year, the company projects a net loss between EUR -2.1 m and EUR -2.4 m at Group level, although this does not take book profit from the sale of portfolio properties into account. There are several reasons for this again poorer result. The portfolio property located at "Jägerstrasse 54/55" in Berlin is not expected to have an effect until autumn of the current year, when it is expected to have a positive impact on net income with (annualised) rental income of about EUR 1 m. In addition, expenses originally planned for 2018, such as broker commissions for portfolio properties (EUR 0.2 m), were postponed until 2019, which improved the 2018 consolidated results but conversely has an adverse effect on the planned consolidated results for 2019. "When evaluating the figures, you should also not forget that the substantial value appreciation of the existing property portfolio is not recognised under HGB," says Helge H. Hehl, CFO of InCity. "At the same time, annual scheduled depreciation has a negative effect on the property portfolio's results. However, this depreciation (approximately EUR 1.5 m in fiscal year 2018) generates hidden reserves, and in 2018 alone, the Group effected repayments of approximately EUR 1.2 m on existing bank liabilities, which contribute to an increase of the net asset value."
"In the past year, we were again able to increase the enterprise value of InCity," says CEO Michael Freund. "The properties we hold are in excellent locations and have high value stability. Our goal is to continue to expand the property portfolio in the current year, but we will only make further acquisitions if the properties meet our clearly defined requirements."
The annual report is available on the company's homepage (www.incity.ag) and printed versions can be sent upon request.
Contacts for enquiries:
30.04.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
| Language: | English |
| Company: | InCity Immobilien AG |
| Beethovenstraße 71 | |
| 60325 Frankfurt am Main | |
| Germany | |
| Phone: | IR: +49 (0)69 7191889 55 PR: +49 (0)69 7191889 66 |
| Fax: | +49 (0) 69 719 18 89 790 |
| E-mail: | ir@incity.ag |
| Internet: | www.incity.ag |
| ISIN: | DE000A0HNF96 |
| WKN: | A0HNF9 |
| Listed: | Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Basic Board), Hamburg, Stuttgart, Tradegate Exchange |
| EQS News ID: | 805127 |
| End of News | DGAP News Service |
805127 30.04.2019
