“The annual results confirm S IMMO’s operational strength and our strategic approach. In 2023, we continually disposed of properties in Germany and instead set a clear investment focus on Austria and the CEE region. This has had a significant impact on our earning power. We have succeeded in significantly increasing rental income by more than 30 percent and raising EBITDA to a record level,” comments Radka Doehring, a member of the Management Board.
Operational highlights:
- Rental income increased by more than 30%, mainly due to the acquisition of high-yielding properties
- Income from hotel operations improved year-on-year to EUR 70.0m (2022: EUR 56.4m)
- The sales volume totalled EUR 682.4m (2022: EUR 49.2m) and mainly related to Germany, but also Austria and Croatia
- Acquisition of several office properties and a hotel on Wienerberg in Vienna with a total gross leasable area of around 147,000 m² and annual rental income of around EUR 21.0m
- Acquisition of three office buildings and a hotel in the Czech Republic with an annual rental income of around EUR 8.4m
- Acquisition of a portfolio in the Czech Republic consisting of seven office properties, three commercial properties and a plot of land with a total leasable area of around 138,000 m² and annual rental income of around EUR 29m
Financial highlights:
- EPRA NRV per share came to EUR 28.01 as of 31 December 2023
- Rental income increased to EUR 202.6m
- Revenues increased to EUR 336.5m
- Gross profit increased significantly to EUR 179.3m
- EBITDA reached EUR 142.6m, the highest figure in the company’s history
- FFO I amounted to EUR 99.6m as of 31 December 2023
- In July 2023, S IMMO successfully issued another green bond with a volume of EUR 75m, a term of five years and a coupon of 5.5% p.a.
“In the third quarter of 2023, we established the Czech Republic as another core market for S IMMO and have already acquired a large, profitable portfolio in this context. We are also working intensively on the acquisition of a further portfolio of office and retail properties with a total leasable area of around 134,600 sqm, a total asset value of EUR 494.5m and annual rental income of around EUR 28m and have already signed a non-binding letter of intent” says Tomáš Salajka, member of the Management Board. “All of these acquisitions will help us to further improve and increase the strong operating result of 2023.”
Events and updates after the balance sheet date
At the beginning of March, the Management Board and Supervisory Board further adjusted the portfolio strategy. The focus is on the gradual streamlining of the portfolio, particularly disposing of small and medium-sized office properties with limited development potential. Depending on market developments and only if appropriate prices can be realised, this strategic course will primarily involve substantial disposals in Croatia, Slovakia and Austria and could lead to a complete market exit in Croatia and Slovakia. In any case, a relevant portfolio is to be retained in Austria. Sales activities in Germany are to continue and the sales programme was expanded to the entire German portfolio. The proceeds from the disposals are to be reinvested in profitable office and commercial properties in the CEE region in line with the current strategy. In this context, a letter of intent was signed in February 2024 for the possible purchase of a property portfolio in the Czech Republic from CPI Property Group S.A.
