• Recurring earnings (FFO I) up 11% on last year to € 118.5 m (€ 1.27 per share); annual target of at least € 115 m solidly exceeded

• Rental income increased by 7% to € 192.4 m (2017: € 180.3 m)

• High revaluation result of € 276.5 m reflects profitable development activity (four project completions in 2018) and excellent market environment, especially in Germany

• Highest consolidated net profit in the company's history at € 305.3 m (+28%)

• Property assets increased by 17% to € 4.5 bn mainly driven by in-house project completions and property acquisitions

• Return on equity up 18% to 12.1% (2017: 10.3%)

• EPRA NAV per share at € 33.30 (+11%)

• Dividend increase to 90 cents per share (+12.5%) planned

CA Immo looks back on an extremely successful year of growth. The defined financial target for 2018 to increase the long-term earning power (FFO I) was surpassed, all profitability indicators were increased and another record consolidated net profit was generated. Successful development activities in Germany, a profitable and efficiently managed asset portfolio and the continued dynamic market development were the main drivers of this positive development.

Andreas Quint, CEO of CA Immo: "Our active growth strategy has brought CA Immo another record result in 2018 and, at the same time, paves the way to future profitability growth. We were able to expand our property portfolio by seven high-quality properties. Four of those buildings were in-house developments. This portfolio growth will further increase our rental income and with it our long-term revenue in the years ahead. Our shareholders also benefit from this sound development. Based on our strong operating result, we can propose to the Annual General Meeting a substantial increase of the dividend for another year in a row."

Results of the business year 2018
FFO I, a key indicator of the Group’s long-term earning power, is reported before taxes and adjusted for the sales result and other non-recurring effects. In 2018, an FFO I of € 118.5 m (€ 1.27 per share) was generated, 11.3% above the previous years’ value of € 106.4 m. FFO I per share stood at € 1.27 at the reporting date, an increase of 11.7% in year-on-year comparison (2017: € 1.14 per share). The FY 2018 guidance of > € 115 m was therefore solidly exceeded. Analog to the previous quarters this underlines the robust and very strong operative performance independent from the revaluation result, which is also the basis for CA Immo’s sustainable dividend policy. FFO II, which includes the sales result and applicable taxes and indicates the Group's overall profitability, was € 111.3 m (€ 173.1 m in 2017, which was predominantly driven by the highly profitable sale of Tower 185). FFO II per share stood at € 1.20 (2017: € 1.86).

Rental income increased by 6.7% to € 192.4 m in 2018. This positive development was essentially achieved through the acquisition of the Warsaw Spire B office building in the Polish capital in Q3 2017 and the associated increase in rent. In addition, completion of the KPMG office building in Q1 2018 and a large-scale reletting in Berlin provided impetus for growth. The net result from renting attributable to leasing activities rose by 7.2% (from € 163.4 m to € 175.2 m) after the deduction of direct management costs. The operating margin on letting activities (net rental income relative in relation to rental income) – an indicator of the efficiency of the rental business – increased from 90.6% to 91.0%.

The earnings contribution from the trading portfolio totalled € 7.4 m (2017: € 16.0 m). At € 8.2 m, profit from the sale of investment properties was significantly below the previous year's value of
€ 28.8 m. The biggest contribution came from the sale of a non-strategic property in Munich. Earnings before interest, taxes, depreciation and amortization (EBITDA) of € 145.1 m were down
–16.1% on the previous year's level of € 172.8 m. This decline was predominantly driven by a lower property sales result compared to prior year.

The revaluation result of € 276.5 m as at 31 December 2018 was highly positive and significantly above the previous years’ level (2017: € 103.9 m). This result was driven by the company's successful property development activity covering four project completions in 2018 (for the own portfolio) as well as the extremely positive market environment specifically in Germany, CA Immo's most important core market. In the German real estate market, as in the previous year, the booming investment activity and further yield compression continued in 2018 – in combination with strong fundamental data of the letting markets. This was reflected accordingly in CA Immo’s valuation result and the figures for business year 2018.

Current results of joint ventures consolidated at equity are reported under “Result from joint ventures” in the consolidated income statement. In 2018 this contribution totalled € 23.4 m
(2017: € 71.6 m). The result contains a positive effect in connection with the sale of the Tower 185 in Frankfurt (closing in the first quarter of 2018) totalling € 10.2 m (of which € 8.5 m relate to the reversal of deferred taxes). Earnings before interest and taxes (EBIT) stood at € 442.3 m, 28.4% up from the corresponding figure for last year of € 344.4 m – in particular due to the high revaluation result.

The financial result for 2018 was € –46.1 m, compared to € –41.5 m last year. The Group´s financing costs, a key element in recurring earnings, were reduced significantly to € –37.0 m (2017: € –42.0 m) despite a higher financing volume. The continual optimisation of the financing structure thus had therefore positive effects also in 2018.

Earnings before taxes (EBT) of € 396.2 m increased by 30.8% year-on-year (2017: € 302.9 m). The result for the period reached € 305.3 m, 28.2% above the previous year´s value of € 238.1 m and the highest level in the company's history.

Substantial increase in shareholder value
The net asset value (NAV = IFRS equity) per share stood at € 28.37 on 31 December 2018 against
€ 25.95 at the end of 2017, an increase of 9.3%. The EPRA NAV was € 33.30 per share as at the key date (2017: € 30.09 per share), an increase of 10.7%. The EPRA NNNAV – after adjustments for financial instruments, liabilities and deferred taxes – stood at € 30.08 per share as at 31 December 2018 (€ 27.29 per share in 2017). Despite the increase in assets, the equity ratio of 49.3% as at the key date remained stable (31.12.2017: 50.9%).

As at the key date, interest-bearing liabilities amounted to € 1,943.4 m (2017: € 1,749.3 m). Cash and cash equivalents stood at € 374.3 m on the balance sheet date (2017: € 383.3 m). Net debt (interest-bearing liabilities less cash and cash equivalents) increased from € 1,365.1 m in the previous year to € 1,566.9 m. Gearing (ratio of net debt to shareholders’ equity) was 59.4% at year end (2017: 56.4%). The loan-to-value ratio (financial liabilities less liquid assets to real estate assets) stood at 35.0%, down from 35.8% in 2017. The Group's average financing costs (incl. hedging costs) fell during 2018 and stood at 1.7% as of the key date (2017: 1.9%).

Mainly as a result of property acquisitions and project completions for the own portfolio, the book value of property assets increased by 17% over the course of the year to € 4.5 bn as at reporting date (2017: € 3.8 bn). Property assets include investment properties (€ 3.8 bn or 84% of the total portfolio) and investment properties under development (€ 652 m or 15%), the remaining 1% of the total property assets is intended for trading or sale (short-term property assets). Of the investment portfolio with a value of approx. € 3.8 bn (31.12.2017: € 3.2 bn), 50% account for CEE, 35% for Germany and 15% for Austria. The portfolio yield was 5.8% ¹⁾ (2017: 6.2%); the occupancy rate stood at 94.4%1) (2017: 95.2%). Properties under development in-clude projects under development and land reserves with a total book value of around € 696.0 m (incl. short-term property assets), of which Germany accounts for 98% and CEE for 2%.

Up 7% in the course of the year, the CA Immo share price significantly outperformed both the ATX (–20%) and the European Index for Real Estate EPRA (excluding UK, –9%). With a market capitalisation of around € 2.7 bn, at 31 December 2018 CA Immo was one of the top 10 companies in terms of market value on the leading Austrian index ATX.

Outlook: continued growth of property assets, earnings and dividend
The in-house development of high-quality office properties in the core markets and subsequent transfer to the investment portfolio continues to be a significant driver of organic growth for the CA Immo Group, enabling recurring earning power and thus the dividend paid to shareholders to be steadily raised. In total, CA Immo has acquired three high-quality office buildings in 2018 and, at the same time, has transferred four in-house developed buildings to its investment portfolio. Assuming full occupancy, these new additions to the portfolio will increase rental income in the coming years by a total of around € 28 m per year. In the second half of 2019, CA Immo will complete three office buildings in Berlin, all of which were showing high pre-letting rates of between 70% and 100% by the end of 2018. The recurring earnings target (FFO I) for business year 2019 is at least € 125 m.

Dividend increase to 90 cents per share
The dividend payout ratio of 70% of FFO I is confirmed. The Management and Supervisory Board of CA Immobilien Anlagen AG have therefore decided to propose a dividend of 90 cents per share – a considerable increase of 12.5% per share – to the Ordinary General Meeting for 2018.

Figures for 2017 restated in accordance with changes arising from the implementation of IFRS 9 and IFRS 15

The Annual Report 2018 of CA Immobilien Anlagen AG is available at:
www.caimmo.com/en/investor-relations/financial-reports/

1)  Excl. the office buildings Orhideea Towers, Campus 6.1 (Bucharest), ViE (Vienna) and Visionary (Prague), which have been recently completed and are still in the stabilisation Phase

Presentation annual results 2018