EANS-News: S IMMO AG / goals for 2014 confirmed by good start to year

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3-month report

S IMMO AG: goals for 2014 confirmed by good start to year

- Net income for the period up again to EUR 6.7m
- NOI margin increased by 2.4 percentage points
- Management costs reduced again

After highly successful annual results for 2013, stock exchange
listed S IMMO AG (Bloomberg: SPI:AV, Reuters: SIAG.VI) made a good
start to the first quarter of 2014. Ernst Vejdovszky, Chairman of
S IMMO AG's Management Board, comments: "The operative success of our
business is demonstrated by the net operating income margin, which we
have further increased. Our net profit for the period was also
slightly higher. With these results, we are pleased to reaffirm our
goal for 2014: for the year as a whole, we want to achieve another
increase in consolidated net income."

The four regions in which the Group operates make differing
contributions to its performance. Friedrich Wachernig, Member of
S IMMO AG's Management Board, explains: "We can feel the markets'
growing optimism - particularly in Bucharest and Sofia, the news is
getting more and more encouraging. What continues to be a challenge
is the market for office properties in Budapest. But with the
wholehearted commitment of our local team, even there we have letting
successes to report time and again."

Gross profit S IMMO AG's revenues in the first quarter of 2014
totalled EUR 44.8m, compared with EUR 46.7m in the same period last
year. As expected, the rental income of EUR 28.2m was lower than the
EUR 29.4m achieved in the first quarter of 2013, as a result of the
property disposals. While the property portfolio was reduced by more
than 7% since the start of 2013, rental income decreased by less
than 4%. Revenues from hotel operations (revenues from the Vienna and
Budapest Marriott Hotels, both operated under management agreements)
came to EUR 7.9m (Q1 2013: EUR 8.0m). The gross profit from hotel
operations nonetheless improved to EUR 1.2m (Q1 2013: EUR 0.9m).

Expenses of property management in the first quarter of 2014 of
EUR 12.9m were down by another 11.0% compared with EUR 14.5m for the
same period last year. The higher gross profit from hotel operations
combined with the lower property management expenses made up for the
reduction in rental income. Since however other operating income of
EUR 0.4m was significantly lower (Q1 2013: EUR 2.3m), the gross
profit came out at EUR 25.6m (Q1 2013: EUR 27.5m).

Successful property sales For the year 2014 S IMMO is planning on
property disposals amounting to about 5% of the portfolio. In the
first quarter of the year three properties were sold for a total of
EUR 21.6m (Q1 2013: EUR 32.6m). In the income statement for the first
quarter of 2014 there were no gains to be recognised on these sales,
because the properties in question had already been revalued in 2013
to reflect the final selling prices. Without the revaluations, the
gains on sale would have amounted to EUR 5.1m, more than 20%.

EBITDA and EBIT As with the property management expenses, general
management expenses were reduced once again, and for the first
quarter came to EUR 3.2m (Q1 2013: EUR 3.6m) - savings of more than
11%. EBITDA was EUR 22.4m (Q1 2013: EUR 25.3m). Overall valuation
gains amounted to EUR 5.9m (Q1 2013: EUR 4.1m), and EBIT came out at
EUR 26.5m (Q1 2013: EUR 27.0m).

Net profit for period up slightly Financing costs including the
participating certificates result amounted to EUR 17.8m, more or less
the same as the EUR 17.6m in the first quarter of 2013. Foreign
currency effects, principally the result of changes in the exchange
rate of the Hungarian forint, were also at the same level as in the
first quarter of last year. The resulting EBT came to EUR 8.7m
(Q1 2013: EUR 9.4m). The lower costs and higher valuation gains meant
that the net profit for the period of EUR 6.7m (Q1 2013: EUR 6.6m)
was slightly up despite lower other operating income.

Operative efficiency In spite of the reduced size of the property
portfolio, the cost savings detailed above resulted in a slight
increase in net operating income (NOI), which for the first quarter
came to EUR 25.20m (Q1 2013: EUR 25.16m). The NOI margin increased by
an impressive 2.4 percentage points, highlighting S IMMO's operative
efficiency.

In the first quarter of 2014 both the book value per share and EPRA
NAV rose again: the book value at 31 March 2014 stood at EUR 7.95
(31 December 2013: EUR 7.83) per share, while EPRA NAV was EUR 9.87
(31 December 2013: EUR 9.76) per share.

Capital markets The mood in the capital markets is noticeably more
optimistic, and the interest of international investors in S IMMO has
increased significantly. On the basis of the very satisfactory
results for 2013, at the Annual General Meeting on 11 June 2014 the
Management Board will propose a dividend of EUR 0.20 per share. The S
IMMO share has performed extremely satisfactorily over the past
weeks, and on 26 May 2014 stood at EUR 5.890.

An offer that opened on 21 May 2014 allows holders of participating
certificates to exchange their certificates for a 7-year fixed term
bond with a fixed coupon of 4.5% at the rate of EUR 79.11 per
certificate. The offer closes on 06 June 2014.

Outlook Over the coming months S IMMO AG's main focus will be on the
booming residential property market in Germany. In the light of
current developments, the Management Board continues to see the
greatest potential in the residential property market in Berlin,
where there is still a pressing need for more homes. S IMMO is
exploiting this potential by beginning the planning and development
of freehold apartments on land the Group already owns.

S IMMO AG As Austria's first stock exchange listed real estate
investment company, S IMMO AG has stood for experience, a balanced
portfolio and sustainable growth since 1987. The Company's strategic
core shareholders, Erste Group and Vienna Insurance Group, are two of
the largest financial services groups in CEE and SEE. S IMMO AG is
invested in residential, office, hotel and retail property in
Austria, Germany, the Czech Republic, Slovakia, Hungary, Croatia,
Romania and Bulgaria. Consolidated income statement for the three
months ended 31 March 2014 (EUR m)

| |01 - 03/2014 |01 - 03/2013
|
| | |1
|
|Revenues |44.8 |46.7
|
| Rental income |28.2 |29.4
|
| Revenues from operating costs |8.7 |9.3
|
| Revenues from hotel operations |7.9 |8.0
|
|Other operating income |0.4 |2.3
|
|Expenses directly attributable to properties |-12.9 |-14.5
|
|Hotel operating expenses |-6.7 |-7.1
|
|Gross profit |25.6 |27.5
|
|Proceeds of property disposals |21.6 |32.6
|
|Carrying value of property disposals |-21.6 |-31.2
|
|Gains on property disposals |0 |1.4
|
|Management expenses |-3.2 |-3.6
|
|Earnings before interest, tax, depreciation and |22.4 |25.3
|
|amortisation (EBITDA) | |
|
|Depreciation and amortisation |-1.9 |-2.4
|
|Gains on property valuation |5.9 |4.1
|
|Operating profit (EBIT) |26.5 |27.0
|
|Financing expense |-15.5 |-14.7
|
|Financing income |0.4 |0.3
|
|Income from companies measured at equity |0.03 |0
|
|Participating certificates result |-2.7 |-3.2
|
|Net income before tax (EBT) |8.7 |9.4
|
|Taxes on income |-2.0 |-2.8
|
|Consolidated net income |6.7 |6.6
|
| of which attributable to shareholders in parent |5.7 |5.9
|
|company | |
|
| of which attributable to non-controlling |1.0 |0.7
|
| interests | |
|
|Earnings per share (EUR) |0.08 |0.09
|

1 Adjusted

|Property information | |31 March 2014|
|Standing properties |number |205 |
|Total usable space |m² |1,235,587 |
|Gross rental yield |% |6.9 |
|Occupancy rate |% |90.4 |

Further inquiry note:
Investor Relations:
Andreas J. Feuerstein
Phone: +43(0)50100-27556
Fax: +43(0)05100-927556
E-mail: andreas.feuerstein@simmoag.at
www.simmoag.at

Corporate Communications:
Bosko Skoko
Phone: +43(0)50100-27522
Fax: +43(0)05100-927522
E-mail: bosko.skoko@simmoag.at
www.simmoag.at

end of announcement euro adhoc
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company: S IMMO AG
Friedrichstraße 10
A-1010 Wien
phone: +43(0)50100-27550
FAX: +43(0)050100-927559
mail: office@simmoag.at
WWW: www.simmoag.at
sector: Real Estate
ISIN: AT0000652250
indexes: ATX Prime, IATX
stockmarkets: official market: Wien
language: English