Immofinanz returned to profit in the first half of the year

The publicly traded company Immofinanz reported a consolidated profit of EUR 43 million, a significant turnaround from a loss of EUR 144.5 million during the same period last year.

The listed Immofinanz has returned to profitability in the first half of the year. The group reported a total of 43 million euros, a recovery from the minus of 144.5 million euros in the corresponding period last year. The company’s rental income increased by 13 percent, reaching 292.5 million euros, as announced by the Vienna-based commercial real estate group on Wednesday evening.

The FFO 1 earnings indicator, significant in the real estate sector, rose by 46.6 percent to 149.9 million euros. “As part of our portfolio strategy, we are concentrating on further growth in selected sectors while also focusing on a targeted reorganization of our portfolio,” stated Immofinanz board member Pavel Mechura in a press release.

Total revaluations (including real estate developments and property sales) were recorded at minus 81.6 million, compared to minus 197.2 million in the same timeframe last year. The decline in valuations was described as “limited due to a more stable interest rate environment,” as explained by the retail and office real estate group. Immofinanz is active in primary markets including Austria, Germany, Poland, the Czech Republic, Slovakia, Hungary, and Romania, as well as in the Adriatic region, and the Immofinanz Group claims to own 490 properties valued at 8.2 billion euros.

The focus of Immofinanz’s growth strategy lies in the further expansion of its retail portfolio and the planned acquisition of s Immo AG, which is currently being prepared. Immofinanz holds over 50 percent of s Immo’s shares. The commercial real estate group intends to open three new “STOP SHOPs” in Croatia in the latter half of the year, with a long-term goal of establishing four new “STOP SHOP” locations annually, according to the outlook published today. Additionally, “the strategic sales and acquisition program for portfolio optimization will also proceed in other segments.” (APA)

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The listed company Immofinanz achieved a consolidated result of EUR 43 million, after a loss of EUR 144.5 million in the same period last year.

Immofinanz Returns to Profit in First Half of Fiscal Year

The listed Immofinanz has successfully returned to profitability during the first half of the fiscal year, marking a significant turnaround from a loss last year. The group’s consolidated result reached 43 million euros, a notable improvement from the previous year’s loss of 144.5 million euros.

Strong Financial Performance

Immofinanz’s rental income saw a robust increase of 13 percent, totaling 292.5 million euros. This increase demonstrates the company’s effective strategies in optimizing its real estate portfolio and adapting to market demands.

Key Financial Metrics

Metric	Current Period (EUR million)	Previous Period (EUR million)	Change (%)
Group Result	43	-144.5	–
Rental Income	292.5	–	+13%
FFO 1 Earnings	149.9	102.2	+46.6%
Total Revaluations	-81.6	-197.2	–

Focus on Growth and Portfolio Optimization

Pavel Mechura, board member of Immofinanz, emphasized the company’s dual focus on growth and portfolio reorganization. This strategy not only seeks to bolster revenues but also to ensure long-term sustainability in challenging markets.

Market Position and Strategies

Immofinanz has a strong foothold in several European markets, including:

• Austria
• Germany
• Poland
• Czech Republic
• Slovakia
• Hungary
• Romania
• Adriatic region

The group currently manages 490 properties valued at approximately 8.2 billion euros, reinforcing its status as a key player in the commercial real estate sector.

Future Outlook and Strategic Developments

Immofinanz is poised for further growth, particularly in expanding its retail portfolio. The company’s plans include:

Expansion Plans

• Opening three new “STOP SHOPs” in Croatia during the second half of the year.
• Long-term goal of launching four new “STOP SHOP” locations annually.
• Continued strategic sales and acquisitions to optimize the portfolio across different segments.

Squeeze-Out Strategy of s IMMO AG

Immofinanz is also in the process of preparing to squeeze out s IMMO AG, in which it holds a majority stake of over 50%. This move is expected to provide further consolidation benefits, improving operational efficiencies and enhancing shareholder value.

Valuation Insights

In terms of asset valuation, the total revaluations (including developments and sales) showed a decrease of 81.6 million euros for the current period compared to 197.2 million euros in the previous period. This more stable value decline can be attributed to improvements in the interest rate environment, showcasing the agility of Immofinanz’s operations against macroeconomic challenges.

Market Opportunities and Risks

Opportunities

• Expanding retail and commercial properties in prime locations.
• Diversifying asset types to mitigate risks.
• Leveraging technology for enhanced property management and customer engagement.

Risks

• Market volatility affecting property valuation.
• Economic downturns impacting rental income.
• Changes in interest rates influencing financing costs.

Conclusion

With its strategic focus on growth and a robust performance in the first half of the year, Immofinanz is well-positioned to navigate the complexities of the commercial real estate market. The combination of strong financial results, strategic expansion plans, and a focus on portfolio optimization indicates a promising trajectory for future success.