ISARIA Wohnbau AG: Business Figures for the 1st Quarter 2016

2016-05-10 / 09:12
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Corporate News
Business Figures for the 1st Quarter 2016

- No construction stage handovers scheduled in the first three months of the current fiscal year

- Gross profit however positive with EUR 1.3 million (Q1 2015: EUR 6.1 million), EBIT slightly negative with EUR -1.2 million (Q1 2015: EUR 4.2 million)

- Return of the two most expensive financing funds initiated

- At least three large projects enter construction phase in 2016

10 May 2016 - ISARIA Wohnbau AG, Munich, released figures from its IFRS interim consolidated financial statements for the first quarter of 2016 today.

In the first three months of the current fiscal year 2016, only remainders from a 2015 construction stage of the large-scale project in Karlsfeld were scheduled for handover to the new owners. The reporting quarter sales revenues correspondingly amount to a total of EUR 4.8 million (Q1 2015: EUR 14.5 million). Gross profit comes to EUR 1.3 million in comparison to EUR 6.1 million in Q1 2015. Cost savings from overhead in EUR 0.7 million could be realised in contrast to the previous year, however, earnings before interest and taxes (EBIT) for the same period is slightly negative at EUR -1.2 million, in contrast to the previous year's EUR 4.2 million.
The financial result in the amount of EUR -5.2 million (Q1 2015: EUR -4.0 million) in the first quarter is impacted by the decision to repay One Group's 2012-issued ProReal Deutschland Fonds 2 by 30 June 2016. 'In January, we removed the last outside mezzanine finance in the amount of EUR 10 million, and in mid-year we will repay EUR 25 million to Fonds 2 investors,' said Michael Haupt, spokesman of the Executive Board of ISARIA Wohnbau AG, on the successful removal of the company's two costliest financing funds. Haupt further said, 'The current distributions of 8.4% per annum are very attractive for fund investors, and we have successfully developed our projects with the capital. But the financing terms from 2012 are no longer current.' Due to a longer maturity having been originally planned, a non-cash-relevant present value adjustment of the fund liabilities of EUR 1.7 million was incurred. This expense will be off-set, however, by future financial expenses saved in the amount of EUR 2.1 million.
In total, negative group earnings after taxes resulted for the reporting period in the amount of EUR -6.4 million (Q1 2015: EUR 0.2 million).

Starting preparations for at least three large-scale projects begun
The Tower project development in Munich started at the beginning of March 2016 with the gutting of the building. The required dismantling measures, which expose the support structure, will be carried out within one year. Construction is also set to begin for additional projects in Hamburg and Munich.

Outlook for 2016
The next major construction phases will be handed over in the second half of 2016. Revenues of around EUR 100 million are expected for the whole year with results in the mid-single-digit million euro range. With the coming large-scale projects and through a further expansion of its existing project stock, the company seeks to increase its annual revenue to around EUR 300 million within the next five years. The Board expects the successful completion of several property acquisitions in Munich and Hamburg in 2016.

The report on Q1 2016 will be released on 13 May 2016 at www.isaria.ag.

About ISARIA Wohnbau AG
ISARIA Wohnbau is a leading project developer for residential real estate construction projects in Munich. Since 2014, the company also develops residential projects in Hamburg. The company, which was founded in 1994, is listed on the prime standard of the Deutsche Börse. The projects realised by the company range from multi-storey apartments to terraced houses as well as the revitalisation of existing buildings. ISARIA Wohnbau is therefore capable of offering residential properties that meet the demands of a wide variety of customer groups as both owner-occupied or for investment. The business activities of One Group, Hamburg, which belongs to the Group, largely comprise the issuing of project development funds for residential construction projects. For more information, please visit www.isaria.ag and www.onegroup.ag

IR Contact
ISARIA Wohnbau AG
Leopoldstraße 8 | 80802 Munich
Phone: [phone] | Fax: [phone]
E-mail: [e-mail] | Web: www.isaria.ag

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