S Immo : Interim Report Q2 2021 (.pdf)

S IMMO

Interim Report

as of 30 June 2021

Q2 2021

S IMMO - Interim Report as of 30 June 2021

KEY FIGURES

				01.01.-30.06.2021	01.01.-30.06.2020
Revenues		EUR m	91.1		87.8
EBITDA		EUR m	39.6		36.1
EBIT		EUR m	166.3		41.8
EBT		EUR m	164.1		20.0
Net income for the period		EUR m	137.3		16.1
NOI ratio		in %	56.2		50.9
FFO I		EUR m	25.6		17.4
FFO II		EUR m	25.0		51.6
Earnings per share		EUR	1.93		0.22
Operating cash flow		EUR m	36.5		34.3
Operating cash flow per share		EUR	0.51		0.48
Cash flow from investing activities		EUR m	-93.6		-16.8
Cash flow from financing activities	EUR m	124.1		108.4

				30 June 2021		31 December 2020
Total assets	EUR m	3,486.8	3,122.6
Equity	EUR m	1,558.6	1,383.8
Equity ratio	in %	44.7	44.3
Liabilities	EUR m	1,928.1	1,738.8
Cash and cash equivalents as of 30 June	EUR m	127.8	64.5
Closing price as of 30 June	EUR	20.20	16.96
EPRA NAV per share	EUR	27.51	24.32
EPRA NTA per share	EUR	27.21	24.06
Book value per share	EUR	21.92	19.34
Share price discount on book value per share	in %	-8	-12
Property assets	EUR m	2,709.5	2,476.9
whereof properties under construction and undeveloped land	EUR m	43.5	38.2

Key figures // Contents

1

CONTENTS

p. 2  - Letter from the management

p. 3  - S IMMO in the capital market

Interim management report

p. 8  - Economic report

p. 12  - Risk management report

p. 13  - Outlook

Consolidated interim financial statements­

p. 14  - Consolidated statement of financial position

as of 30 June 2021

p. 16  - Consolidated income statement

for the six months ended on 30 June 2021

p. 17  - Consolidated statement of comprehensive income

for the six months ended on 30 June 2021

p. 18  - Consolidated income statement

for the three months ended on 30 June 2021

p. 19  - Consolidated statement of comprehensive income

for the three months ended on 30 June 2021

p. 20  - Consolidated cash flow statement

for the six months ended on 30 June 2021

p. 22  - Changes in consolidated equity

p. 23  - Notes to the consolidated interim financial statements

p. 30  - Declaration of the Management Board

pursuant­ to section 125 (1) item (3) Austrian Stock Exchange Act (Börsegesetz)

p. 31  - Financial calendar 2021

p. 32  -  Contact / Publication details

2

We have an eventful first half of the year behind­ us. The COVID-19 pandemic is still severly impacting the global econo- my, although increasing vaccination progress has initiated a recovery and forecasts are gradually becoming more optimistic. For S IMMO, the first half of the year was undoubtedly dominated by the takeover offer by IMMOFINANZ AG, which was withdrawn at the end of June after the extraordinary shareholders' meeting decided against removing the voting rights cap. We would like to use these introductory words to express our great thanks to our shareholders for following our recommendation and placing their trust in S IMMO's continued successful path. The figures in this report provide impressive confirmation of our company's growth potential.

Strong operating result, valuation result at pre-crisis level

While hotel earnings still clearly show the impact of the pan­ demic, rental income posted an increase of more than 5% year- on-year. This improvement was achieved despite the continued challenging pandemic and was attributable firstly to acquisitions and secondly to careful management of the existing portfolio. At EUR 131.5m, the result from property valuation was not only up significantly on the previous year, but was also very pleasing when compared with the multi-year trend. Despite COVID-19, we thus managed to increase net income for the period to EUR 137.3m - this corresponds approximately to an eightfold increase of the previous year's value.

Capital market

The rise in the S IMMO share price in the first half of the year and the associated greater investor interest was partly a ­response to the company's very successful operating activities and of course partly a consequence of the takeover offer by IMMO­ FINANZ AG. The closing price as af 30 June 2021 was EUR 20.20 - corresponding to a year-to-date performance of 19.1%. It is also pleasing to note that a number of new analyses and price targets have been published - as of 23 August 2021, the analyst firms' average price target is EUR 24.08.

S IMMO - Interim Report as of 30 June 2021

From left: Friedrich Wachernig, Bruno Ettenauer, Herwig Teufelsdorfer

Outlook

In July 2021, we submitted the shares in CA Immobilien Anla- gen AG to Starwood Capital Group's takeover offer and thus sold them at a price of EUR 37.00 per share. This generated approximately EUR 230m before taxes - a figure that is considerably higher than the share package's acquisition cost. These funds are now to be used for direct property investments. For this purpose, we are currently examining acquisition options

very intensively - particularly in Budapest­ and Bucharest, there are a number of exciting investment opportunities for which we

are holding specific­ discussions. The goal is to acquire properties that will immediately generate cash flow and make a valuable contribution to earnings. This will ensure our company's ability to pay dividends and form the basis for further growth.

As of the end of August, it is still difficult to judge what the ­second half of the year will bring - the race between vaccination progress and virus mutations seems pivotal. However, it is clear that we will continue to work intensively on our portfolio, our projects and the profitability of S IMMO. No matter how eventful the coming months may be, our stable business model and comfortable liquidity situation provide an ideal starting point for our future plans.

As always, we would like to take this opportunity to thank you, our esteemed shareholders, for the trust you have placed in us. Stay healthy!

The Management Board

Bruno Ettenauer    Herwig Teufelsdorfer    Friedrich Wachernig   

Letter from the management // S IMMO in the capital market

3

S IMMO IN THE

CAPITAL MARKET

International capital market environment

The second quarter of 2021 was dominated by governments' health policy efforts to restore a large degree of normality for the population by the summer. All around the world, vaccination programmes were launched and vaccination coverage rates started to rise. In line with this, an economic recovery also be- gan. This positive development was reflected on the international stock markets: Both US and European stock markets saw increases in the first half of the year. For example, the Dow ­Jones index closed the first half of the year with a year-to-date performance of 12.7% and the German benchmark index DAX with 13.2%. The Austrian benchmark index ATX also benefited from the economic momentum and was at the head of its international peers with a performance of 22.4% so far this year.

The S IMMO share

The price increase of the S IMMO share in the first half of 2021 and the associated greater investor interest were partly due to the company's very good operating activities and partly to the voluntary takeover offer by IMMOFINANZ AG as described in the following. The share closed the first half of the year with a strong performance at a price of EUR 20.20. With a price increase of 19.1%, it outperformed the sector index for property shares on the Vienna Stock Exchange, the IATX, as well as some international indices relevant to the company (see table below).

Share price development 

indexed 01 January 2021 to 30 June 2021     S IMMO share      ATX      IATX

130

125

120

115

110

105

100

95

90

01/21 02/21 03/21 04/21 05/21 06/21

Takeover offer by IMMOFINANZ AG and extraordinary shareholders' meeting of

S IMMO AG

On 14 March 2021, IMMOFINANZ AG announced its intention to submit a voluntary public takeover offer to the shareholders of S IMMO AG. The implementation of the offer was subject to the condition that the shareholders' meeting of S IMMO AG pass a resolution to remove the voting rights cap stipulated in the com- pany's articles of incorporation since 2006. In another statement

Overview of S IMMO share and indices

			S IMMO share		ATX		IATX	DAX		DJIA		S&P 500
31	December 2020	16.96	2,780.44	329.19		13,718.78	30,606.48	3,756.07
30	June 2021	20.20	3,402.02	375.87		15,531.04	34,502.51	4,303.25
Year-to-date performance	19.10%	22.36%	14.18%		13.21%	12.73%	14.57%