EANS-News: S IMMO AG plans to raise dividend to EUR 0.24

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annual result

S IMMO AG plans to raise dividend to EUR 0.24

· EBIT increases by 45% to EUR 138.7m
· Net income up more than 20%
· EPRA NAV advances to EUR 10.63
· Capital market measures secure strategic possibilities
· Consolidated earnings to be boosted in 2015 again

The stock exchange listed S IMMO AG (Bloomberg: SPI:AV, Reuters:
SIAG.VI) has confirmed the preliminary figures released on 25 March
2015. In the 2014 financial year, S IMMO was able to once again
significantly improve its net income, and the year marks a turning
point for the company. Ernst Vejdovszky, CEO of S IMMO AG, comments:
"After doing our homework in the field of efficiency in recent years
and laying the groundwork for future growth, we are now profiting
from the low interest rate conditions and good economic performance
in our markets. The outstanding results for 2014 thus justify a
dividend increase. Consequently, we will propose a dividend
distribution of EUR 0.24 to the Annual General Meeting."

Friedrich Wachernig, Member of S IMMO AG's Management Board, adds:
"It is our stated goal to continue on a course of profitable growth
and increase the company's value for our shareholders over the long
run. We are planning on investments of around EUR 180m this year,
with about two thirds of this focused in Germany. But beyond that, we
are also looking at interesting opportunities in our markets in
Austria, Central and Southeastern Europe."

EBIT increases by 45%, driven by upswing in core markets Rental
income amounted to EUR 111.8m in 2014 (2013: EUR 116.7m), reflecting
the property sales as expected. Revenues from hotel operations
increased to EUR 10.8m (2013: EUR 10.5m). Gross profit for the
reporting period was EUR 105.7m (2013: EUR 109.6m). During the 2014
financial year, a total of six properties were sold, with gains from
these sales amounting to EUR 51.6m (2013: EUR 128.1m).

In the past financial year, property valuations were supported by the
positive market development in the regions where S IMMO operates and
amounted to EUR 56.6m (2013: EUR 6.9m). Valuations developed very
well across all segments. Especially the positive trend on the German
property market continued, as reflected by the valuation result for
properties in Germany, which accounts for EUR 33.4m (2013: EUR
23.8m).

Due to this positive development of the markets, S IMMO was able to
boost EBIT to EUR 138.7m (2013: EUR 95.8m), marking an increase of
44.8% on the previous year.

Net income rises again The 2014 financing result (excluding the
participating certificate result) was EUR -71.7m (2013: EUR -53.9m),
which also includes effects from the valuation of derivative
financial instruments and expenses from currency translation. Due to
the exchange of participating certificates into a seven-year-bond,
which was issued in June 2014, the expenses for participating
certificates decreased to EUR 7.5m (2013: EUR 9.3m). Overall, S IMMO
ended the 2014 financial year with a net income of EUR 33.8m (2013:
EUR 28.1m), marking an increase of 20.6% compared to the previous
year.

Capital market: good performance and a higher dividend S IMMO also
made important progress on the capital market last year. In autumn,
for example, the company had great success in placing a EUR 100m
bond. In order to optimise and streamline the company's capital
structure, the amount of participating certificate capital was
reduced significantly. These measures give S IMMO additional
strategic possibilities.

The S IMMO share ended 2014 with a gain of 16.64%, thus beating the
ATX and the IATX. For the first time in five years, the share price
edged over six euros. EPRA-NAV per share rose to EUR 10.63 as at 31
December 2014 (31 December 2013: EUR 9.73). The performance during
the current financial year has also been particularly positive. The S
IMMO share closed the first quarter of 2015 at a price of EUR 8.45,
recording an increase of 36.95% since the beginning of the year.

The Management Board feels that the further improvement in the
business results justifies an increase in the dividend. Consequently,
a proposal to raise the dividend to EUR 0.24 per share will be
submitted to the Annual General Meeting on 03 June 2015. The
positioning of the S IMMO share as a sustainable dividend- paying
stock is in line with the company's long-term strategy.

Outlook for 2015: investments and a further increase in consolidated
net income S IMMO is benefiting from the current low-interest
environment and the positive economic developments in its markets.
The company is taking advantage of these factors to make investments
in the countries in which it operates. Roughly two thirds of the
planned investments involve acquisitions in Germany. The remaining
funds are earmarked for opportunistic purchases and development
projects in Austria as well as in Central and Southeastern Europe. In
Germany, S IMMO will focus more on the commercial segment, placing
emphasis on properties in Berlin and the area surrounding the German
capital. Existing plots will be used for developments, and standing
properties and land plots will also be purchased. Further investments
are also planned in residential properties.

Ernst Vejdovszky summarises: "Our strategy remains unchanged: We will
continue to concentrate on commercial and residential properties in
our regions. This gives us the perfect basis to grow profitably in
the future."

In the current financial year, S IMMO intends to improve its
consolidated net income yet again.

S IMMO AG As Austria's first stock exchange listed real estate
investment company, S IMMO AG has stood for expertise, a strong
portfolio and profitable growth since 1987. The company invests in
commercial property (office, retail and hotel) as well as residential
property in four regions (Austria, Germany and Central and
Southeastern Europe). S IMMO AG's strategic core shareholders are
Erste Group and Vienna Insurance Group.

Consolidated income statement for the period 01 January 2014 - 31
December 2014 in EUR m/ fair value method

01-12/2014 01-12/2013
Revenues 188.5 193.7
thereof rental income 111.8 116.7
thereof revenues from operating costs 34.5 36.8
thereof revenues from hotel operations 42.1 40.2
Other operating income 4.7 6.2
Expenses directly attributable to properties -56.2 -60.6
Hotel operating expenses -31.3 -29.7
Gross profit 105.7 109.6
Income from property disposals 51.6 128.1
Book value of disposed properties -51.4 -121.7
Gains on property disposals 0.2 6.4
Management expenses -16.1 -15.1
Earnings before interest,tax, depreciation
and amortisation (EBITDA) 89.8 100.9
Depreciation and amortisation -7.6 -12.0
Results on property valuation 56.6 6.9
Operating result (EBIT) 138.7 95.8
Financing costs -73.1 -53.9
Financing income 0.4 1.6
Results from companies measured at equity 0.9 -1.5
Participating certificates result -7.5 -9.3
Net income before tax (EBT) 59.5 32.6
Taxes on income -25.7 -4.6
Consolidated net income 33.8 28.1
thereof attributable to shareholders
in parent company 31.0 27.3
thereof attributable to non-
controlling interests 2.8 0.7

Earnings per share (in EUR) 0.46 0.41

Property key figures 31 December 2014
Properties Number 203
Total useable space million m2 1.2
Gross rental yield % 6.9
Occupancy rate % 91.1

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