EANS-News: S IMMO AG / results higher again

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9-month report

S IMMO AG: results higher again

· Net profit for period increased to EUR 22.2m
· EBIT up at EUR 74.9m
· EBT improved by 6.6%
· Successful issue of EUR 100m corporate bond
· Targets for 2014 confirmed

Stock exchange listed S IMMO AG (Bloomberg: SPI.AV, Reuters: SIAG.VI)
looks back on a highly successful third quarter of 2014. Ernst
Vejdovszky, Chairman of S IMMO AG's Management Board, comments: "We
are definitely on the way to achieving our targets for the current
financial year. Based on these impressive quarterly figures, we are
happy to confirm that for the year as a whole we shall improve upon
the Group's very good results in 2013."

Friedrich Wachernig, member of S IMMO AG's Management Board,
continues: "We sense movement and growing optimism in the countries
we are active in. Successful lettings - such as those in Budapest
recently - provide further confirmation. In addition, the
historically low level of interest rates is also having very
beneficial effects on our industry."

Gross profit In the first nine months of 2014, S IMMO's revenues
amounted to EUR 140.5m, compared with EUR 145.3m in the same period
last year. Despite property disposals, the rental income still came
out at EUR 84.5m (Q3 2013: EUR 88.3m). Revenues from hotel operations
rose to EUR 30.2m, after EUR 29.2m for the first three quarters of
2013. Gross profit from hotel operations improved from EUR 6.5m to
EUR 6.9m.

Property management expenses of EUR 41.0m in the first three quarters
of 2014 decreased by 10.6%, compared with EUR 45.9m for the same
period last year. Reductions in property related costs, combined with
a higher gross profit from hotel operations, largely made up for the
lower rental income as a result of property sales. The good operating
performance meant that the gross profit remained nearly unchanged as
against the previous year despite the reduction in rental income
resulting from property disposals.

EBITDA and EBIT EBITDA for the first three quarters was EUR 67.6m,
compared with EUR 75.4m in the same period in 2013. Total property
revaluations amounted to EUR 12.8m (Q3 2013: EUR 4.0m). EBIT came to
EUR 74.9m, being higher than the EUR 72.2m in the same period last
year.

Net profit for period higher again The financial result for the first
three quarters of 2014 including the participating certificates
results amounted to EUR -47.6m, as against EUR -46.6m for the first
nine months of 2013. This was achieved in spite of negative foreign
currency effects. EBT came out at EUR 27.3m, an increase of 6.6% on
the EUR 25.6m for the same period last year. The consolidated net
profit rose to EUR 22.2m (Q3 2013: EUR 21.4m).

Key indicators at last year's very satisfactory levels FFO I (Funds
from operations) for the first three quarters of 2014 amounted to EUR
17.9m, compared with EUR 22.5m a year earlier. FFO II, which includes
gains on property sales and valuation gains on properties sold in the
current year, was EUR 33.1m, 3.2% better than the EUR 32.1m in the
same period in 2013.

Net operating income (NOI) for the period was EUR 76.3m, compared
with EUR 76.7m a year earlier. The NOI margin improved by 1.5
percentage points to 54.3%.

As at 30 September 2014, both balance sheet NAV (book value) and EPRA
NAV per share rose: the book value per share stood at EUR 7.97 (31
December 2013: EUR 7.83), while EPRA NAV per share was EUR 9.89 (31
December 2013: EUR 9.76).

Capital markets Capital markets continue to be dynamic: The S IMMO
share closed the third quarter at EUR 6.160 for a very satisfactory
year-to-date gain of 16.5%. This means that the share significantly
outperformed the ATX and IATX.

At the end of September, S IMMO issued a EUR 100m five-year corporate
bond with a coupon of 3% p.a., thus using the favourable interest
environment to drive the growth of the Group forward. The bond was
almost three times oversubscribed when placed with institutional
investors and was a complete success.

Outlook S IMMO AG's strategy remains unchanged: the Group invests in
four property use types and in four regions, focusing on European
Union capital cities. This makes it possible to take advantage of
different real estate cycles, and recognise potential early. The
focus is primarily on the booming property market in Berlin, where
the home ownership ratio of around 15% and continuing high influx
make for a very attractive scenario. S IMMO is planning to construct
freehold apartment projects on land it already owns. At the same
time, the Group is looking into investments in commercial properties.

On the basis of the good quarterly results, the Management Board
reaffirms its goal for the financial year 2014: once again to
increase the results of the previous year. The Group also intends to
continue to pursue its steady dividend policy.

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 Group invests in
residential, office, hotel and retail property in Austria, Germany,
the Czech Republic, Slovakia, Hungary, Croatia, Romania and Bulgaria.
The Company's strategic core shareholders, Erste Group and Vienna
Insurance Group, are two of the region's largest financial services
groups.

Consolidated income statement for the three quarters ended 30
September 2014 (EUR m)

01 - 09/2014 01 - 09/2013 1
Revenues 140.5 145.3
Rental income 84.5 88.3
Revenues from operating costs 25.9 27.9
Revenues from hotel operations 30.2 29.2
Other operating income 3.5 4.6
Expenses directly attributable
to properties -41.0 -45.9
Hotel operating expenses -23.2 -22.7
Gross profit 79.7 81.4
Income from property disposals 48.4 90.9
Book value of property disposals -48.4 -85.8
Gains on property disposals 0 5.1
Management expenses -12.1 -11.0
Earnings before interest,tax,
depreciation and amortisation (EBITDA) 67.6 75.4
Depreciation and amortisation -5.5 -7.2
Gains on property valuation 12.8 4.0
Operating profit (EBIT) 74.9 72.2
Financing cost -45.6 -39.7
Financing income 1.7 1.9
Income from companies 0.4 0
measured at equity
Participating certificates results -4.1 -8.8
Net income before tax (EBT) 27.3 25.6
Taxes on income -5.1 -4.2
Consolidated net income 22.2 21.4
of which attributable to
shareholders in parent company 20.2 19.6
of which attributable to 2.0 1.8
non-controlling interests

Earnings per share (EUR) 0.30 0.29

1 Adjusted

Property information 30 September 2014
Standing properties number 203
Total usable space (million m²) 1.2
Gross rental yield (%) 7.0
Occupancy rate (%) 90.9

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