S Immo : Interim Financial Statements Q1 2022

Q1

2022

S IMMO

Interim financial statements as of 31 March 2022

S IMMO - Interim financial statements as of 31 March 2022

KEY FIGURES

				01.01.-31.03.2022	01.01.-31.03.2021
Revenues		EUR m	57.0		43.0
EBITDA		EUR m	23.5		18.1
EBIT		EUR m	20.4		18.2
EBT		EUR m	22.1		12.8
Net income for the period		EUR m	24.1		9.9
NOI ratio		in %	51.5		50.1
FFO I		EUR m	14.6		9.5
FFO II		EUR m	10.3		9.0
Earnings per share		EUR	0.34		0.14
Operating cash flow		EUR m	18.2		15.5
Operating cash flow per share		EUR	0.26		0.22
Cash flow from investing activities		EUR m	402.5		-4.8
Cash flow from financing activities		EUR m	-18.3		143.4

				31 March 2022	31 December 2021
Total assets		EUR m	3,708.7		3,688.1
Equity		EUR m	1,713.7		1,666.3
Equity ratio		in %	46.2		45.2
Liabilities		EUR m	1,995.0		2,021.8
Cash and cash equivalents as of 31 March		EUR m	778.0		375.8
Closing price as of 31 March		EUR	22.15		21.75
EPRA NAV per share		EUR	29.31		29.29
EPRA NTA per share		EUR	29.11		29.09
Book value per share		EUR	24.24		23.57
Share price discount on book value per share		in %	-9		-8
Property assets		EUR m	2,832.6		2,830.8
of which properties under construction and undeveloped land		EUR m	77.7		77.0

Key figures // Contents

1

CONTENTS

p. 2  - Letter from the management p. 4  - S IMMO in the capital market

p. 10  - Business development and performance

p. 12  - Condensed consolidated interim financial

statements as of 31 March 2022

p. 22  - Financial calendar 2022 p. 23  - Contact/publication details

2

S IMMO - Interim financial statements as of 31 March 2022

We all would have wished for a better start to 2022. After two years dominated by a global pandemic, no sooner was a cautious economic upswing noticeable than an explosive geopolitical conflict escalated with Russia's invasion of Ukraine at the end of February. In addition to the humanitarian catastrophe, the war has had far-reaching economic consequences - not least on the property sector. Rising energy and thus operating and construction costs are already being observed, and there are increasing shortages of building materials. At the same time, the interest rate turnaround is also putting pressure on the ­property markets. This environment also poses challenges for

S IMMO, but we believe that we are very well equipped thanks to our high-quality and diversified portfolio and our extremely stable financial structure. Our high level of cash and cash ­equivalents in particular also opens up opportunities in such a situation.

In the first quarter - which was relatively unaffected by the ­effects of the war in Ukraine and the interest rate turnaround - we again succeeded in delivering a strong operating per­ formance. Revenues rose by around 32.5%, due not only to an increase in rental income and revenues from operating costs,

From left to right: Friedrich Wachernig, Herwig Teufelsdorfer, Bruno Ettenauer

Letter from the management

but also the contribution to earnings was also significantly increased in the hotels. Together with the positive financial result, net income for the period rose to EUR 24.1m - an increase of more than 140% compared with the previous year.

Takeover offer

In the first quarter of this year, our shareholder structure was further concentrated. On 04 March 2022, CPI Property Group S.A. indicated that it now held 42.55% of S IMMO shares (of which 26.49% via IMMOFINANZ AG). On 14 April 2022, CPI ­requested the convening of an Extraordinary General Meeting to vote on the cancellation of the maximum voting rights. Further- more, CPI indicated its intention to announce a mandatory offer for all shares in S IMMO AG not held by CPI and parties acting with it in the amount of at least EUR 22.00 per share after registration of the amendment to the Articles of Association in the Austrian Business Register. We then entered into discussions with CPI and on 02 May 2022 agreed that CPI would increase the offer price to EUR 23.50 in return for our support in removing the voting right cap at the Annual General Meeting. We see the granting of a withdrawal right at EUR 23.50 as fair compensation for the abolition of the maximum voting right. CPI's proposed resolution will be voted on under agenda item 1 of the Annual General Meeting on 01 June 2022.

Capital market

The S IMMO share closed the first quarter at a price of EUR 22.15 despite some fluctuations. This corresponds to a year-to-date performance of 1.84%, while international indices were almost­ continuously in the red. The Annual General Meeting on 01 June 2022 will vote on the dividend for 2021, which was the most successful financial year in the company's history to date. The Management Board is proposing a distribution of EUR 0.65 per share.

3

Outlook

At the beginning of the year, we sold our 12.69% stake in IMMO- FINANZ AG at a price of EUR 23.00 per share, generating sales proceeds and a liquidity inflow of over EUR 400m. It is our declared aim to concentrate fully on our core business of letting and managing profitable properties in Germany, Austria and Central and Eastern Europe, as well as acquiring properties with a strong contribution to earnings, thus strengthening our cash flow in the long term. With the acquisition of BudaPart Gate in Budapest in the fourth quarter of the previous year, we added another top property to our portfolio. At the beginning of the second quarter of 2022, we signed the contracts for the purchase of the EXPO Business Park in Bucharest, which we also expect to be closed in the second quarter of 2022. This purchase will also generate significant rental income. At the same time, it is our intention to keep the ratio between properties in Germany and Austria and those in the CEE region stable, as this combination has proven to be very resilient to crises, especially in recent years. Based on the recent strong valuation result in the German portfolio, we are examining the possibility of

recognising­a portion of the revaluations here. From 2019 to 2021 these revaluations totalled approximately EUR 330.9m. At the same time, the Austrian real estate market is currently proving to be very stable, and we will increasingly consider ­potential investment opportunities here.

The goal behind all our considerations and strategic decisions is to create added value for you - our shareholders. We would like to take this opportunity to thank you for the trust you have placed in us!

The Management Board team

Bruno Ettenauer    Herwig Teufelsdorfer    Friedrich Wachernig