Vienna, 23 May 2018. CA Immo remains on course for profitable growth thanks to an operationally strong first quarter. The on-schedule progress of the real estate development pipeline and the continuation of portfolio acquisitions in Eastern Europe have laid the foundations for further growth in earnings.

According to Andreas Quint, CEO of CA Immo, “Due to our highly successful operating business we were able to increase all key performance indicators in the first quarter of 2018 and, as a result, the company value as well. With the KPMG building in Berlin, we completed the first of three projects for 2018 on time, transferring the fully let structure to our portfolio in the process. At the same time, we have successfully realised one of our main strategic objectives for this year ahead of time with the acquisition of an office building in Bucharest that is still under construction. Modern office properties in prime locations with a strong cash flow will thereby be added to our international asset portfolio, which is nearing full utilisation with an occupancy rate of currently over 94%.”

Results for quarter one 2018
In the first three months of 2018, rental income for CA Immo rose by a solid 5.5% to €46.2 m. The acquisition of the fully let Warsaw Spire Building B office structure, completed in quarter three of 2017, played a particularly positive part in this. The net result from renting after the first quarter was €42.7 m, up 11.7% on the 2017 value of €38.2 m. The sales result (including the result from property trading and construction services) also increased significantly to €8.1 m (2017: €–0.8 m). As a result of these positive operational developments, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by a significant 40.6% to €40.8 m (€29.0 m in 2017).

The revaluation result as at the key date amounted to €–0.6 m (2017: €9.4 m). The result from joint ventures of €17.0 m (€5.2 m in 2017) reflects a positive effect on earnings linked to the sale of Tower 185 in Frankfurt, closing for which was confirmed in quarter one of 2018. Earnings before interest and taxes (EBIT) were €56.6 m, 32.3% above the 2017 result of €42.8 m.

The financial result for the first three months was €–18.0 m in total, below last year’s value of €–12.2 m owing to a non-cash valuation effect linked to the convertible bond. Thanks to continual optimisation of the financing structure, the Group’s financing costs fell by –7.1% on the 2017 figure to stand at €–9.6 m. 

Earnings before taxes (EBT) stood at €38.6 m on the key date, 26.5% above the previous year’s value of €30.5 m. The result for the period was €28.8 m, 24.5% above the 2017 value of €23.2 m. Earnings per share amounted to €0.31 on the balance sheet date (€0.25 per share in 2017).

FFO I, a key indicator of the Group’s long-term earning power, reported before taxes and adjusted for the sales result and other non-permanent effects, totalled €27.7 m after three months, up a considerable 17.8% on the 2017 figure of €23.5 m. FFO I per share was €0.30 on the key date, 18.1% up on the 2017 figure of €0.25 per share. As in preceding quarters, this underlines operational development that was both robust and independent of the valuation result and which forms the basis for the long-term dividend policy of CA Immo. FFO II, which includes the sales result and applicable taxes, stood at €26.0 m on the key date (€19.8 m in 2017). FFO II per share stood at €0.28 (2017: €0.21 per share), an increase of 31.5% year-on-year. 

CA Immo has upheld a robust balance sheet with an equity ratio of 49.6% and a conservative loan-to-value ratio (net debt to property assets) of 31.0%. On the key date, NAV (shareholders’ equity) per share was €26.25 (against €25.95 per share on 31.12.2017). The EPRA NAV per share stood at €30.03 (€30.02 per share on 31.12.2017).

As at 31 March 2018, CA Immo’s total property assets (excluding minority holdings with a pro-rata portfolio value of approximately €132.5 m stated at equity and shown in the result from joint ventures) stood at €3.8 bn (31.12.2017: €3.8 bn) and include investment properties (85%) and investment properties under development (14%); properties intended for trading account for the remaining 1% of the total portfolio. In terms of location, the investment property portfolio with a market value of €3.2 bn is in the CEE/SEE region (49%), Germany (36%) and Austria (15%). The portfolio produced a yield of 6.1% and the occupancy rate stood at 94.4% as at 31 March 2018. Of investment properties under development with a total book value of around €539.7 m, Germany accounts for 84%, Eastern Europe represents 11% and Austria 5%.

Consistently strong pace of growth
Key growth-promoting measures were taken as early as quarter one of 2018, which will further boost the Group’s steady levels of profitability (FFO I). The acquisition of the Campus 6.1 office building from Skanska in Bucharest with an investment volume of approximately €53 m takes account of the dynamic development of the Romanian economy while upholding the expansion strategy of CA Immo on its core markets of Eastern Europe. The core office structure with gross floor space of roughly 22,000 sqm is currently under construction; completion is scheduled for the third quarter of 2018 and closing as well as full occupancy is expected by the end of the year. 

The building constructed for KPMG in Berlin’s Europacity district, which has an approximate project volume of €57 m, was successfully handed over to the tenant in March 2018. In the second half of the year, the ViE project in Vienna and the Orhideea Towers project in Bucharest will also be completed and transferred to the company’s portfolio along with the KPMG building in Berlin. In Prague, CA Immo is planning to construct an office building (approximate project volume of €54 m) comprising two separate structures at River City, a development in which the company already has three prime, fully occupied office buildings. Construction of the 20,000-square-metre property is expected to start before the end of 2018.

Outlook
The annual target for long-term revenue – an increase in FFO I to over €115 m in business year 2018 and over €125 m in business year 2019 – is hereby confirmed.

The financial report for CA Immobilien Anlagen AG as at 31 March 2018 is published on the company’s web site at http://www.caimmo.com/en/investor-relations/financial-reports/.