S IMMO Records Growth in Revenue and Profitability

“S IMMO Achieves Growth in Revenues and Profitability”

S IMMO has reported impressive financial results, showcasing a notable increase in total revenues, which surged from €119.6 million in the previous year to €161.4 million.

The surge in rental income to €93.9 million, compared to €73.0 million in HY 2022, is attributed to the positive impact of acquiring properties with higher yields.

Furthermore, revenues from hotel operations saw a substantial uptick, reaching €31.4 million compared to €23.7 million in HY 2022. This increase aligns with the robust recovery of travel across Europe. The result from hotel operations also experienced a significant rise, reaching €8.0 million, up from €5.2 million in HY 2022.

The company’s gross profit witnessed an impressive improvement of over 35 percent, soaring to €86.0 million, while EBITDA surged by almost 40 percent to €68.1 million.

Radka Doehring, Member of the Management Board, expressed pride in S IMMO’s enhanced key figures, particularly highlighting the substantial increases in rental income and gross profit. Doehring also commended the entire team at S IMMO for their exceptional progress in achieving synergies through the company’s framework agreement with IMMOFINANZ and CPIPG.

“S IMMO Reports Valuation Challenges and Net Loss”

During the first half of 2023, S IMMO encountered valuation challenges, particularly evident in Germany, where the company’s properties demonstrated lower yields. This resulted in a negative valuation outcome of €-80.8 million for the specified period. As a consequence of these non-cash effects, the consolidated net result for the period reflected a loss amounting to €-40.2 million.

“Strategic Acquisitions and Sales Drive S IMMO’s Growth”

In the initial half of 2023, S IMMO persisted with its strategic plan of divesting German residential and commercial properties. Since the strategy was updated in the previous autumn, the company has inked sales agreements for 167 properties in Germany, totaling a value of €617 million. While some transactions are still undergoing finalization, S IMMO is actively exploring additional sales opportunities, targeting properties in Germany valued at over €340 million.

Proceeds from these strategic sales have been reinvested into acquiring higher-yielding properties. Notably, in July 2023, S IMMO acquired the Twin Towers situated in Vienna’s Wienerberg area. These twin office towers boast a combined gross lettable area of approximately 66,000 sqm, generating an annual rental income of €12.6 million.

Herwig Teufelsdorfer, Member of the Management Board, remarked, “Our strategic approach of divesting residential and commercial properties in Germany and channeling the liquidity gained into high-yield assets is proving successful. Operational achievements underscore that S IMMO is on a trajectory of growth.

The recent acquisitions made in the past months are bolstering earnings significantly, while also fortifying our future revenue potential.”

“Market Performance and Green Bond Issuance Boost S IMMO’s Financial Standing”

By the end of June 2023, the S IMMO share was valued at €12.20, reflecting a year-to-date performance of -2.24 percent. Despite this marginal decrease, S IMMO remained resilient in the market.

In July 2023, the company took a significant step by issuing a €75 million 5-year green bond, featuring a competitive coupon rate of 5.5 percent per annum. This green bond, aimed at financing environmentally sustainable projects, garnered substantial interest primarily from local investors.

S IMMO’s ability to successfully launch the green bond underscores its strong relationships with banking institutions and bond investors, further solidifying its position in the capital market. This move not only diversifies S IMMO’s funding sources but also aligns with its commitment to sustainability and responsible investing practices.

“ESG Strategy and Strategic Focus Propel CPI Property Group and S IMMO Forward in 2023”

In a concerted effort to enhance environmental, social, and governance (ESG) practices, CPI Property Group and S IMMO have jointly developed and adopted a comprehensive ESG strategy by the end of August.

This unified strategy encompasses ambitious goals aimed at reducing energy, water, and greenhouse gas intensities by 2030, transitioning to 100 percent renewable energy sources for electricity procurement, and increasing the proportion of certified buildings within their portfolios.

Moreover, initiatives such as the implementation of green lease contracts, mandatory compliance training, and a training quota for all employees are underway, underscoring their commitment to sustainability across all facets of their operations.

For S IMMO, steadfast continuity and a focus on core business activities remain pivotal. The company remains dedicated to acquiring, leasing, and effectively managing high-yield properties to bolster long-term cash flow.

Against this backdrop, S IMMO is steadfast in its commitment to optimizing its portfolio through strategic asset management and prudent investments in properties with higher yield potential. Furthermore, the company remains committed to maintaining a conservative capital structure to ensure financial stability amidst evolving market conditions.

Jann Confield
Jann Confield
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