• Increased rental income (+4% to €179.1m) reflects project completions in the previous years and higher rental income in the portfolio, which compensated for the decline in rental income from the sale of non-strategic properties.
• Consolidated net result of €–33.4m (30.09.2023: €61.1m), mainly driven by a lower volume sales result and a market-driven non-cash revaluation loss.
• Recurring earnings (FFO I) of €86.5m +5% yoy (30.09.2023: €82.7m).
• Solid balance sheet with an equity ratio of 44.3%, net LTV of 37.4% and a strong liquidity position (€561.0m).
• The FFO I target for the 2024 financial year of over €105m (€ 1.07 per share) is confirmed

Vienna, November 27. CA Immo, the real estate company specializing in high-quality office space, can report a stable operating development for the first three quarters of 2024. The results show, among other things, a slight increase in rental income (+4%) due to the completion of project developments in previous years and higher rental income from investment properties. Despite this increase in rental income, both the operating result (EBITDA) and the consolidated net result were down on the previous year´s figures, mainly due to the exceptionally high sales result in Q1-Q3 2023.

Keegan Viscius, CEO of CA Immo: “We again made good progress in our leasing and capital rotation programme in Q3, targeting to improve the quality, profitability and focus of our prime office portfolio. As a result – and despite the challenging market environment – we continue to deliver stable operating performance and results for the first three quarters of 2024. Looking ahead, we believe in continued bifurcation of the office markets with stronger pricing pressure on weaker assets in non-central locations. Ensuring the high quality and sustainability of our portfolio, maintaining a stable balance sheet and good liquidity position, and increasing shareholder value therefore remains a top priority. Against this background, we addressed our upcoming maturities in advance by successfully issuing a €350m green bond, and started a share buyback programme in Q4 to increase shareholder value.”

Stable, profitable investment portfolio

Despite the generally subdued landscape for global office demand, CA Immo was able to slightly increase the like-for-like occupancy rate to 89.1% (30.9.2023: 88.8%) and record a good leasing performance. The rents signed were around 5% above the budgeted rent levels. 28% of the vacant space as at the reporting date has already been leased with future start dates.

Active capital rotation 

CA Immo´s capital rotation programme continued to yield positive results in 2024. Following the closing of three disposals in Q1, we successfully closed another eight deals in Q3, as well as the sale of a 10% minority interest in the Skyline Plaza shopping center in Frankfurt (which is reflected in the financial result). A recent key highlight was the sale of the ViE office building in Vienna, which closed in September. With this sale, the company completed a successful investment and monetised a stable, fully let asset developed by CA Immo.

After the reporting date, five additional sales with a total transaction volume of approximately €50m and expected closing dates by the end of the year have been signed. All closed transactions will be reflected in the FY 2024 results and further improve CA Immo´s portfolio quality and focus. The properties sold were non-core in terms of asset class, location, building quality, age, or value creation potential. 

Development and refurbishment pipeline to strengthen prime office focus 

CA Immo´s development pipeline currently comprises one office building under construction located at Berlin’s central station, which is 100% pre-let with construction works in time and budget for completion in early 2026. After the very successful completion of the high-rise building at Europaplatz in Berlin, construction of the Anna Lindh Haus began in September. The 16,000 sqm office building, which is fully electrified and built using a timber-hybrid construction method, is located in the immediate vicinity of Berlin's main railway station and embodies CA Immo's commitment to sustainability and innovation.

In addition, the preparations for two more projects – one ground-up development at Humboldthafen as well as the refurbishment of Karlsbad 11, one of the older standing assets in Berlin, are in full swing. Once completed, these four assets will contribute up to €30m of total annual in-place GRI and will further enhance the company´s prime office footprint in central Berlin.

Results for the first nine months of the year of 2024

CA Immo recorded a 4% increase in rental income to €179.1m despite the sale of non-strategic properties. This development is primarily due to higher rental income in the portfolio and the completion of project developments in previous years, which more than compensated for the decline in rental income from the sale of non-strategic properties as part of the strategic capital rotation programme.

The result from property sales amounted to €13.7m as at 30.09.2024 after €158.0m in the prior-year period. 

Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at €131.0m, 51% below the previous year´s figure (30.09.2023: €268.4m), mainly due to the lower sales result. 

The revaluation result totaled €–119.2m (30.09.2023: €–155.7m), which corresponds to a decrease of around 2.3% of FY 2023 gross asset value. The negative revaluation result included investment properties (83%) real estate under development (16%) as well as properties and land reserves held for sale (1%). In geographical terms, the largest share was attributable to Germany with approx. 65%, followed by CEE (31%) and Austria (4%). The main driver of the negative valuation result was the decompression of yields, which could not be offset by rising rental assumptions.

At €–33.4m, consolidated net result was below the previous year's figure of €61.1m. Earnings per share amounted to €–0.34 on the balance sheet date (€0.62 per share as at 30.09.2023). 

As at 30.09.2024, FFO I of €86.5m was generated, which is 5% above the previous year's figure of €82.7m. 

Total property assets of around €5.0bn

The company's core business is office properties across the gateway cities in Germany, Austria and the CEE region. The segments are divided into investment properties (€4.5bn, 89% of the total portfolio) and investment properties under development (€436m, 9% of the total portfolio). The remaining 2% (€112m) of the property assets are attributable to properties intended for trading or sale (reported under short-term property assets). As at 30.09.2024, CA Immo's total property assets amounted to around €5.0bn (31.12.2023: €5.2bn). The largest regional segment is Germany with a 63% share of the total portfolio, followed by CEE (31%) and Austria (6%). The occupancy rate of the investment portfolio stood at 88.8% (31.12.2023: 88.8%).

Robust balance sheet, strong liquidity position

Thanks to many years of positive business development and a defensive balance sheet and financing policy, CA Immo has a robust balance sheet with a solid equity ratio of 44.3% (31.12.2023: 43.8%), a net LTV of 37.4% (31.12.2023: 36.6%) and high liquidity (cash and cash equivalents incl. cash deposits: €561.0m). 

The net asset value (IFRS NAV) per share was €26.70 as at 30.09.2024, compared to €27.88 at the end of 2023 – a reduction of around 4%. EPRA NTA per share was €32.24 as at the reporting date (31.12.2023: €33.59).

Outlook 2024 and priorities 2025

The real estate market remains dynamic and to some extent unpredictable, influenced by higher interest rates (compared to pre-2022 levels), economic fluctuations, regulatory changes and evolving tenant needs. Increasing political uncertainty – exacerbated by the US elections and current political developments in Germany, among other factors – is expected to affect the economic performance in Europe, which in turn will have a direct impact on the demand for office space. 

All these factors suggest that the bifurcation of the office markets will continue, with stronger pricing pressure on weaker assets in non-central locations. With a focused prime office portfolio and an agile management approach, CA Immo remains well positioned to navigate these challenges and seize emerging opportunities as they arise.

CA Immo´s strategic priorities remain focused on (1) accelerating the sale of non-core properties, (2) simplifying our business model, (3) increasing critical mass and achieving economies of scale, (4) continued disciplined investment in profitable construction projects and income-producing properties, particularly in the core markets of Berlin and Munich, (5) selective external investment, (6) maintaining a strong balance sheet and stable financial ratios and (7) returning surplus capital to shareholders.

The FFO I target for the 2024 financial year of over €105m (€ 1.07 per share) is confirmed.

The financial report of the first three quarters of CA Immobilien Anlagen AG is available at: https://www.caimmo.com/en/investor-relations/financial-reports/