Public disclosure of inside information according to article 17 MAR

Warimpex Finanz- und Beteiligungs AG: Warimpex posts plus again after three quarters of 2016

Vienna/Warsaw (pta011/30.11.2016/08:00 UTC+1) * Result for the period turns to a positive EUR 6.6 million (1-9 2015: EUR -31.6 million)
* Increase in revenues from the letting of office properties due to completions in St. Petersburg and Budapest, slight decrease in hotel revenues due to disposals
* Financial result improves from EUR -18.7 million to EUR -6.3 million
* Developments in Lodz, Krakow, St. Petersburg, and Budapest proceeding as planned

With the conclusion of the third quarter of 2016, Warimpex Finanz- und Beteiligungs AG can look back on nine encouraging and eventful months. Business operations developed well, as is reflected in the profit for the reporting period. There are also a number of development projects in the pipeline that are proceeding as expected, and Warimpex completed multiple successful transactions.

Hotel operations were stable in the first three quarters of 2016, and the establishments delivered satisfactory performance. Revenues from hotels contracted by 5 per cent to EUR 39.6 million in the first nine months of the year due to a decline in the number of rooms following the sale of hotels in Ekaterinburg in the prior year. By contrast, revenues from the rental of office properties increased from EUR 2.9 million to EUR 6.2 million due to the completion and letting of the Zeppelin office tower in St. Petersburg and of the Erzsebet office building in Budapest. Total revenues grew by 1 per cent to EUR 46.8 million. The gross income from revenues also improved by 14 per cent to EUR 20.5 million.

EBITDA retreated from EUR 16.3 million to EUR 11.1 million. This can be attributed to the fact that gains from the disposal of properties were recognised in the prior-year period. EBIT improved from EUR -13.0 million to EUR 14.6 million. The financial result went from EUR -18.7 million to EUR -6.3 million. All in all, this led to a profit of EUR 6.6 million for the period, a marked improvement over the comparison period (1-9 2015: loss of EUR 31.6 million).

Developments in Lodz, Krakow, St. Petersburg, and Budapest proceeding as planned
A construction permit was issued in April for Warimpex's office project near the andel's hotel in Lodz with roughly 26,000 square metres of space. In July, the construction permit was issued for the project in Krakow, where an office building owned by Warimpex will be demolished to make way for a new building with around 12,000 square metres of space. Warimpex is working on a second project in Krakow, as well, where plans are currently being drawn up for an office building with around 26,000 square metres of space next to the Chopin Hotel. Construction of a multifunctional building with around 450 parking spaces and roughly 6,000 square metres of office and archive space is progressing at AIRPORTCITY St. Petersburg. A pre-lease was already signed in May, and the building is expected to be completed in the middle of 2017. A hotel with around 170 rooms and 60 apartments is being developed in Budapest.

Transactions closed successfully
In terms of transactions, Warimpex sold its 50% stake in the Parkur Tower office building in Warsaw to its joint venture partner in June. After the reporting period, Warimpex also announced the sale of the Diozegi office building and the four-star angelo by Vienna House hotel in Prague. Warimpex is still active on the Prague hotel property market with the Diplomat Hotel. A bond maturing in March 2017 was redeemed early after the reporting date with the liquidity generated by this transaction.

The trend seen to date this year will likely continue in the fourth quarter, enabling Warimpex to close the current financial year positively. The declared goal for the coming months is to move forward with the ongoing development projects in Poland, Russia, and Hungary. Warimpex will also continue to focus on improving the earnings of its hotels and on improving its financing conditions and repaying or refinancing expensive lines of credit.

The numbers for the first three quarters of 2016 at a glance (as at 30 September 2016)

in EUR '0001-9/2016Change1-9/2015
Hotels revenues39,550-5%41,627
Investment Properties revenues6,224117%2,863
Development and Services revenues984-39%1,616
Total revenues46,7581%46,105
Expenses directly attributable to revenues-26,233-7%-28,145
Gross income from revenues20,52514%17,960
Gains or losses from the disposal of properties147-94%2,551
Depreciation, amortisation, and remeasurement3,465--29,287
Earnings from joint ventures1,064-91%11,586
Profit or loss for the period6,603--31,626
Net cash flow from operating activities11,82425%9,436
Segment information
(including joint ventures on a proportionate basis):
Hotels revenues61,698-18%75,170
Hotels net operating profit (NOP)19,956-15%23,522
NOP per hotel room7,1612%7,035
Investment Properties revenues6,59193%3,417
Investment Properties EBITDA4,976110%2,372
Development and Services revenues1,403-28%1,949
Gains or losses from the disposal of properties523-96%12,825
Development and Services EBITDA-4,049-13,421
Gross asset value (GAV) in EUR millions344,41%340,8
NNNAV per share in EUR1,9-1,8


Emitter: Warimpex Finanz- und Beteiligungs AG
Floridsdorfer Hauptstrasse 1
1210 Wien
Contact Person: Daniel Folian
Phone: +43 1 310 55 00
ISIN(s): AT0000827209 (Share)
Stock Exchange(s): Vienna Stock Exchange (Official Trade)
Other Stock Exchanges: Warsaw