Total revenues were €161.4 million, up from €119.6 million in the prior year. Rental income was €93.9 million (HY 2022: €73.0 million). This increase reflects the positive impact of acquisitions of higher-yielding properties. Revenues from hotel operations rose to €31.4 million (HY 2022: €23.7 million), and the result from hotel operations rose to €8.0 million (HY 2022: €5.2 million) as travel across Europe recovered strongly. Gross profit improved by more than 35 percent to €86.0 million, while EBITDA rose by almost 40 percent to €68.1 million.
Radka Doehring, Member of the Management Board, comments: “We are particularly proud of S IMMO’s improved key figures such as the significant increases in rental income and gross profit. The whole team at S IMMO also continues to make excellent progress on our efforts to achieve synergies through our framework agreement with IMMOFINANZ and CPIPG.”
Valuations and net result
S IMMO recorded a negative valuation result of €-80.8 million for HY 2023, especially in Germany where the company’s properties are lower-yielding. Primarily as a result of these non-cash effects, the consolidated net result for the period was €-40.2 million.
Acquisitions and sales
Strategic sales of German residential and commercial properties continued in the first half of 2023. Since the strategy update in the fall of the previous year, sales contracts have been signed in Germany for 167 properties with a total value of €617 million. Some of the transactions are still in the process of closing. Additional disposals of properties in Germany with a total value of over €340 million are also currently being explored, along with other opportunities.
Proceeds from sales have been reinvested into higher-yielding properties. For example, the Twin Towers in the Wienerberg area of Vienna were acquired in July 2023. The two office towers comprise a gross lettable area of around 66,000 sqm and generate an annual rental income of €12.6 million.
Herwig Teufelsdorfer, Member of the Management Board, comments: “Our strategic approach of selling residential and commercial properties in Germany and reinvesting the liquidity gained in high-yield properties is paying off. The operational successes prove that S IMMO is on the right track. In particular, the acquisitions made in recent months are making a strong contribution to earnings while at the same time securing our future earnings strength.”
Capital market
As of 30 June 2023, the S IMMO share was trading at €12.20, translating into a year-to-date performance of -2.24 percent. In July 2023, S IMMO issued a €75 million 5-year green bond with a coupon of 5.5 percent p.a. The bond was primarily sold to local investors. S IMMO continues to enjoy strong banking and bond investor relationships.
Outlook 2023
Over the last few months, a uniform ESG strategy was developed within CPI Property Group and adopted by the end of August. The common ESG goals include, for example, the reduction of energy, water and greenhouse gas intensities by 2030, the purchase of electricity from 100 percent renewable energy sources and an increase in the proportion of certified buildings. The introduction of green lease contracts, mandatory compliance training and a training quota for all employees are now also being jointly promoted.
S IMMO’s key factors are continuity and its core business: purchasing, letting and managing high-yield properties to boost cash flow on a lasting basis. Against this backdrop, S IMMO intends to continue pursuing strategies to optimise the portfolio through smart asset management and investment in higher-yielding properties, all while maintaining a conservative capital structure.
