The 2021 financial year brought a massive increase in the earning power of IMMOFINANZ: operating results increased by around 46% to EUR 210.1 million and clearly exceeded the previous year as well as the period pre-crisis in 2019. Net profit improved significantly to 345.8 euros. million euros, compared to a crisis-related loss of -165.9 million euros the previous year.

IMMOFINANZ successfully implemented its value-creating growth strategy in 2021, although the markets were still negatively influenced by the Covid-19 pandemic. the operating results increased by 45.9% to 210.1 million euros. The company achieved an increase in asset management results and a significant improvement in real estate sales and development revenues as well as cost savings. Pandemic-related revaluation losses recognized on property in the previous year have been partially recovered. The revaluation results of the ongoing investment portfolio amounted to EUR 85.9 million, compared to EUR -156.6 million the previous year. The financial results improved to EUR 90.4 million due to a substantial increase in the investment result. In total, IMMOFINANZ has generated net profit of 345.8 million euros, compared to -€165.9 million the previous year. This represents a diluted earnings per share of EUR 2.6 (2020: EUR -1.5).

“2021 has been an eventful and, at the same time, very successful year. Our portfolio is optimally positioned: with our mix of low-cost commercial solutions for consumers and high-quality, innovative and flexible office products, we meet the demands of our tenants as well as their customers and employees.. We intend to extend our strong market position in 2022 and grow with our STOP SHOP and myhive brands – and drive portfolio expansion into sustainable and affordable housing with our new On Top Living brand,” Explain Dietmar Reindl, member of the board of IMMOFINANZ. “Improving our sustainability performance is also a key priority. With our ESG strategy, we have set ambitious targets along the value chain to make IMMOFINANZ emission-free by 2040. This illustrates and underlines our responsibility towards people and the environment, and we want to actively support the fight against climate change in our industry. . In this respect, we are particularly pleased that IMMOFINANZ has been chosen as one of the 45 companies worldwide to participate in the United Nations Global Climate Summit in Sharm el-Sheikh in November 2022, where we can share our innovations and our sustainable activities and inspire other businesses around the world. world.”

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Stefan Schönauer, member of the board of IMMOFINANZ: “A solid balance sheet, a solid financing structure and a stable Investment Grade rating are the foundation of our sustainable and value-creating growth. Our equity ratio improved to around 48% during the year and the debt ratio – based on the net loan to value ratio – is conservative at 36.7%. Beyond that, we have almost a billion euros in cash. In other words, we have a solid base to continue our growth and the necessary flexibility for a possible repayment of the debt. Nearly 90% of our financial liabilities are hedged against rising interest rates, an important point in today’s highly volatile environment.

FFO 1 before tax, which does not include any valuation effect, is slightly lower than the previous year at €120.1 million in 2021 (2020: €126.1 million). This decrease reflects the increase in financing costs resulting from a higher volume of financing as well as a lower dividend payment from the investment in S IMMO. 1 FFO per share was EUR 0.97 compared to EUR 1.13 the previous year, based on a higher number of shares.

A high and stable occupancy rate

At 95.1% (31 December 2020: 96.0%), the occupancy rate remains at a high level. The commercial buildings are almost entirely let at 98.4%. Take-up amounted to approximately 427,500 m², or 22% of the total leasable area, despite a still difficult market environment. Take-up in 2021 includes 83,200 m² of new rentals and 344,300 m² of contract extensions. The gross yield of the existing investment portfolio is 5.9% based on IFRS rental income and 6.3% based on invoiced rents.

More than 1 billion euros of available liquidity

IMMOFINANZ has a solid balance sheet structure with a strengthened equity ratio of 48.1% (31 December 2020: 45.1%) and cash and cash equivalents of EUR 987.1 million. In addition, a revolving line of credit of €100.0 million is also available. The net loan to value ratio stood at 36.7% at the end of 2021 (31 December 2020: 37.8%). The average remaining term of financial liabilities was 3.8 years and average funding costs (including derivatives) decreased to 1.9% (31 December 2020: 2.0%). The share of interest rate risk hedging is high at 88.8% and the unencumbered pool of assets (investment properties and S IMMO units at EPRA NAV as of September 30, 2021) amounts to EUR 2, 0 billion or 35.5%.

Improved EPRA metrics and book value per share

The EPRA NTA per share increased by 4.9% to EUR 29.2 in 2021 (31 December 2020: EUR 27.8). This increase is mainly explained by the positive evolution of the results. The book value per share increased by 8.9% to EUR 27.4 (31 December 2020: EUR 25.2).

Outlook and dividend

The war against Ukraine unleashed by Russia at the end of February 2022 represents a factor of heightened uncertainty for the entire global economy, the impact of which cannot be conclusively assessed at this time. IMMOFINANZ believes that its flexible and crisis-resistant real estate products create a strong position – also for an environment with greater uncertainty. From the current perspective and assuming moderate Covid-19 influences, no further escalation of the war in Ukraine and no significant effect on the company’s liquidity situation of the change of control clauses triggered by the takeover of majority control by the CPI Property Group, IMMOFINANZ confirms its forecast for the financial year 2022. The plans envisage the expansion of the portfolio towards the 6 billion euro mark in 2022, with a focus on the sustainable properties of the brands myhive and STOP SHOP. Pre-tax FFO 1 should exceed 135 million euros. The financial policy will remain unchanged: the gearing, based on the net LTV, should remain below 45% in the medium term and the investment grade rating will be maintained.

“IMMOFINANZ pursues an attractive dividend policy and we want our shareholders to also participate in the success of the company in the extremely productive financial year 2021. Since the current outlook is still strongly influenced by many external factors and assumptions, we will await a detailed recommendation for the dividend for the year 2021 – but will announce it in due course before the annual general meeting.“, has explained Member of the Executive Board Stefan Schönauer. The annual general meeting for the 2021 financial year will be held on July 12, 2022. The dividend guidance for the 2022 financial year remains unchanged at around 70% of the FFO 1 generated in 2022.

2021 results in detail

the asset management results increased by 2.2% to €211.0 million (2020: €206.4 million). This improvement was mainly supported by a reduction in real estate expenses, which decreased by 14.5% to -61.4 million euros (2020: -71.9 million euros). These costs are still higher than the pre-crisis level due to the pandemic, but the included rental cancellations receivable, which reflected IMMOFINANZ’s support to its tenants during the lockdown periods, have been significantly reduced to -11 €.9 million (2020: -€29.2 million). Rental income totaled 284.7 million euros (2020: 289.5 million euros) and almost equaled the previous year, the slight difference being mainly due to property sales in the office sector.

the property results Sales more than tripled to 25.7 million euros (2020: 7.9 million euros), the most important positive effect being the sale of the office building Cluster Produktionstechnik in Aachen for €124.0 million. Overall, properties with a volume of 328.4 million euros were sold in 2021 in line with the company’s strategy. Apart from the building in Aachen, these were mainly former non-strategic office buildings in Warsaw and Budapest. A substantial improvement was also recorded in the property results development, which turned positive at €18.9 million (2020: -€24.2 million). This increase is primarily due to the positive valuation effects of the office development project in Düsseldorf.

Other operating expenses decreased by 2.6% to EUR -47.7 million (2020: EUR -48.9 million). the results of operations therefore increased by 45.9% to €210.1 million (2020: €143.9 million). Results of the reassessment of permanent investments totaled EUR 85.9 million, after crisis-related impairments of EUR -156.6 million the previous year due to the COVID-19 pandemic. Of the total revaluations, EUR 65.7 million mainly concern office buildings in Düsseldorf, Vienna and Warsaw. Revaluations of permanent investments in retail amounted to 21.0 million euros and were supported by the positive effects of VIVO! shopping centers in Romania and the Czech Republic following an improved operating environment. These factors have led to a significant improvement in operating result (EBIT)which reached EUR 296.0 million (2020: EUR -12.7 million).

Funding costs amounted to -€81.1m (2020: -€64.0m) and also reflected the year-on-year increase in funding volume in 2021 – mainly due to the issuance of a EUR 500 million corporate bond in October 2020. Average funding costs, including hedging, decreased to 1.92% pa (December 31, 2020: 1 .99% per year). The other financial results of 29.3 million EUR (2020: -14.6 million EUR) mainly result from the positive valuation of interest rate derivatives (2021: 25.2 million EUR) due to the rise in long-term interest rates. The share of profit from equity affiliates increased significantly to €139.8 million (2020: -€69.5 million). Of this total, 134.0 million euros are attributable to S IMMO (revaluation of 85.3 million euros to the investment based on the increase in the share price and the share of profits of 48.8 million euros)^*. Financial results amounted to €90.4 million (2020: -€147.8 million).

Profit before tax improved significantly to EUR 386.3 million (2020: EUR -160.4 million). After deduction of -40.5 million EUR (2020: -5.5 million EUR) of income taxes, net profit totaled EUR 345.8 million (2020: EUR -165.9 million; 2019: EUR 352.1 million). This represents earnings per share^** EUR 2.8 (basic), respectively EUR 2.6 (diluted), compared to EUR -1.50 in 2020.

The financial report of IMMOFINANZ AG for the financial year 2021 to 31 December 2021 is available at https://immofinanz.com/en/investor-relations/financial-reports