EANS-News: S IMMO AG / half-year results highlight positive trend

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6-month report

S IMMO AG: Half-year results highlight positive trend

· Profit for the period increases to EUR 20.9m
· Considerable improvement in financing costs
· Rental income, EBITDA and EBIT down due to property sales
· Goal: doubling FFO

With the publication of the results for the first half of 2015, stock exchange

listed real estate company S IMMO AG (Bloomberg: SPI:AV, Reuters:
SIAG.VI) is confirming its positive trend and its goals for the
current financial year. Ernst Vejdovszky, CEO of S IMMO AG, has the
following comment: "We are on track with our ambitious plans, and the
operating figures are completely in line with our expectations. Our
stated goal is to nearly double our FFO by 2018, raising it from EUR
21.3m for the whole financial year 2014 to over EUR 40m."

Overall, the profit for the period increased by more than 27% to EUR
20.9m. Earnings per share climbed to EUR 0.30 - a gain of roughly
36%. This positive development is largely due to the financing
result. The company already started readjusting its financial
structure in 2014. As part of this process, several bonds were
successfully issued, and participating certificates were bought back
and cancelled. Interest rate hedging instruments that were concluded
in a higher interest rate environment and were set to expire in the
coming years were also bought back. At the same time, S IMMO secured
the current historically low interest rate level for an average of
roughly ten years for around two thirds of its financing with
variable interest rates.

Development of earnings During the first six months of 2015, S IMMO
AG's total revenues amounted to EUR 92.2m (HY 2014: EUR 93.2m). The
rental income included in this figure reflects the property sales
completed since the beginning of 2014 and came to EUR 54.6m (HY 2014:
EUR 56.8m). The gross profit was EUR 50.7m (HY 2014: EUR 54.6m).

Six properties with a total book value of EUR 45.9m (HY 2014: EUR
39.6m) were sold during the first half of 2015. EBITDA amounted to
EUR 43.1m in the first half of 2015 (HY 2014: EUR 47.0m).

The valuation result increased to EUR 9.7m (HY 2014: EUR 8.9m) during
the reporting period. This was largely due to the asset management
activities aimed at raising the value of the properties along with
the steadily improving sentiment in S IMMO's markets. EBIT totalled
EUR 48.9m (HY 2014: EUR 52.2m).

The financing result including the participating certificate result
came to EUR -22.0m (HY 2014: EUR -31.6m) for the reporting period.
This significant improvement can be attributed to lower interest
payments and a better foreign currency result compared to the prior
year. As a result, EBT amounted to EUR 26.9m (HY 2014: EUR 20.6m),
which is 30.5% higher than the prior-year figure.

Due to the effects described above, the net income for the period
edged up by 27.3% to EUR 20.9m (HY 2014: EUR 16.4m). Earnings per
share increased by roughly 36% to EUR 0.30 (HY 2014: EUR 0.22).

FFO I, which does not include sales effects and represents the key
indicator for the operating performance of a real estate company,
rose by 17.8% in the first half of 2015, totalling EUR 17.9m (HY
2014: EUR 15.2m).

Capital market The S IMMO share significantly outperformed the ATX
and the IATX during the reporting period, with a gain of more than
20%. The share price at the end of the quarter was EUR 7.45.

In the first half of 2015, both book value per share and EPRA NAV per
share increased compared with the first half of 2014, with the book
value of equity per share improving to EUR 8.44 as at 30 June 2015
(30 June 2014: EUR 7.87) and EPRA NAV per share advancing to EUR
10.26 (30 June 2014: EUR 9.80).

Outlook for 2015: Investments and a further increase in consolidated
net income S IMMO is confirming its goal to once again increase its
consolidated net income in the current financial year. In addition,
it aims to nearly double FFO by 2018, raising it from EUR 21.3m to
over EUR 40m. The company's stated goal is and will continue to be to
position the S IMMO share as a reliable dividend- paying share. In
the medium term, the company aims to grow its property portfolio.
Roughly two thirds of the planned volume under the current investment
programme is earmarked for the acquisition of properties and land in
Germany. The management sees tremendous potential in Berlin's
commercial real estate market.

As in the past, hedging interest rate risk is an important part of
the company's strategy. The current historically low interest rate
level offers a favourable environment for real estate companies in
general. Therefore, interest rate hedging instruments that were
concluded in a higher interest rate environment and were set to
expire in the coming years were bought back. At the same time, S IMMO
is securing the current interest rate level by concluding new,
long-term hedging arrangements at the current conditions. The very
positive effects of these measures will start to be reflected in
operating figures such as cash flow, FFO I and FFO II in the second
half of 2015 and then to their full extent in the 2016 financial
year.

S IMMO Management Board member Friedrich Wachernig sums up the
company's outlook as follows: "Our current investment programme, the
hedging measures taken to secure the current very favourable interest
rate level, and the potential for value increases offered by our
portfolio provide ideal conditions for the coming quarters and for
our long-term dividend policy."

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 2015 - 30
June 2015 in EUR m / fair value method

01-06/2015 01-06/2014
Revenues 92.2 93.2
whereof rental income 54.6 56.8
whereof revenues from operating costs 16.7 17.3

whereof revenues from hotel operations 20.9 19.1

Other operating income 1.4 2.3
Expenses directly attributable to properties -27.0 -26.2
Hotel operating expenses -15.9 -14.6
Gross profit 50.7 54.6
Income from property disposals 15.9 39.6
Book value of property disposals -15.9 -39.6
Gains on property disposals 0 0
Management expenses -7.7 -7.6
Earnings before interest,tax, depreciation,
and amortisation (EBITDA) 43.1 47.0
Depreciation and amortisation -3.8 -3.7
Results from property valuation 9.7 8.9
Operating result (EBIT) 48.9 52.2
Financing cost -22.3 -29.8
Financing income 0.7 0.8
Results from companies measured at equity 1.0 0.3
Participating certificates result -1.4 -2.9
Net income before tax (EBT) 26.9 20.6
Taxes on income -6.0 -4.2
Consolidated net income for the period 20.9 16.4
of which attributable to shareholders
in parent company 19.9 14.8

of which attributable to non-
controlling interests 1.0 1.6

Earnings per share (in 0.30 0.22
EUR)

Key data on properties 30 June 2015
Portfolio properties Number 201
Total useable space million m2 1.2
Gross rental yield % 7.0
Occupancy rate % 91.6

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