* Rental income up 3.7% versus prior year at EUR 91.5m
* Result from hotel operations nearly even despite COVID-19
* Dividend paid out in full in October
* Positive consolidated net income of EUR 22.3m
The listed real estate investment company S IMMO AG is publishing its figures as of 30 September 2020, has an optimistic outlook despite COVID-19, and is once again presenting positive net income for the period. Ernst Vejdovszky, CEO of S IMMO AG, commented: "2020 is a challenge in many respects. So we are all the more pleased that there were several positive developments in the third quarter. Despite all the upheaval, we remained profitable. At the same time, the effects of the COVID-19 pandemic are impacting us in various areas. We are working hard to keep the impact to a minimum and return to growth in 2021."
Rental income increases, total revenues decline
Rental income increased by 3.7% to EUR 91.5m (Q3 2019: EUR 88.2m) in the third quarter of 2020. Total revenues declined by 15.9% to EUR 129.9m (Q3 2019: EUR 154.5m). This development was primarily attributable to revenues from hotel operations, which slumped to EUR 14.7m (Q3 2019: EUR 42.0m) as a result of government-mandated measures to combat the pandemic and the sharp downturn in urban tourism. However, the lost revenues were compensated to a large extent by a decrease in hotel operating expenses to EUR 14.8m (Q3 2019: EUR 28.6m).
There were also higher valuation allowances on receivables, causing expenses for valuation allowances and write-downs on trade receivables to deteriorate to EUR -3.5m (Q3 2019: EUR -0.5m). Consequently, gross profit declined to EUR 71.5m (Q3 2019: EUR 82.5m). The fact that the decrease was kept within relatively narrow limits is attributable to major operational efforts and the broad diversification of the portfolio.
Lower EBITDA and positive valuation result
There were reductions in management expenses, which came in slightly below the prior-year level at EUR 14.2m (Q3 2019: EUR 14.7m). EBITDA declined by 15.5% as against the previous year to EUR 57.3m (Q3 2019: EUR 67.8m).
The result from property valuation remained positive in year-to-date terms and amounted to EUR 3.4m (Q3 2019: EUR 137.3m). Consequently, EBIT amounted to EUR 53.9m (Q3 2019: EUR 198.8m).
Positive net income for the period
The financial result fell from EUR -15.5m to EUR -28.4m, primarily due to lower dividend income. There were positive effects with regard to income taxes, resulting in total tax expenses of EUR 3.1m (Q3 2019: EUR 24.3m).
Therefore, net income for the first three quarters of 2020 amounted to EUR 22.3m (Q3 2019: EUR 158.9m). Earnings per share came to EUR 0.31 (Q3 2019: EUR 2.40).
Dividend paid out in full
While some equity markets - primarily those with major international exchanges - recovered relatively quickly from the "coronavirus low" in spring 2020, the Vienna Stock Exchange is still lagging behind in this respect. As of 30 September 2020, the S IMMO share had an annual performance of just under -35%, while the ATX and the IATX also saw similarly substantial losses. In October, S IMMO paid out a dividend of EUR 0.70 per share for the highly successful year of 2019 corresponding to the original proposal for the appropriation of profits. The company launched another share repurchase programme for up to 1,000,000 S IMMO shares at the end of October. At the current price level, the company sees the repurchase of its own shares as a very sensible investment.
Although it is impossible to make any concrete statements for next year in light of the current situation, Friedrich Wachernig, member of S IMMO AG's Management Board, remains confident: "It was clear that the COVID-19 pandemic could lead to new, and in some cases unfortunately severe, restrictions in the autumn and winter months - we are experiencing the feared second wave. But one thing is for sure: This crisis will also pass. Until then, our motto is: We will keep working with full commitment. We will manage our properties, look into acquisition options and prepare to take advantage of the coming opportunities. With this in mind, we are highly confident in our ability to bring our company back on track for growth in 2021."
Consolidated income statement for the period 01 January 2020-30 September 2020
in EUR millions / fair value method
|thereof rental income||91.5||88.2|
|thereof revenues from operating costs||23.7||24.3|
|thereof revenues from hotel operations||14.7||42.0|
|Other operating income||1.9||1.5|
|Property operating expenses||-45.6||-44.8|
|Hotel operating expenses||-14.8||-28.6|
|Income from property disposals||45.1||52.8|
|Book value of property disposals||-45.1||-52.8|
|Results from property disposals||0||0|
|Depreciation and amortisation||-6.9||-6.3|
|Results from property valuation||3.4||137.3|
|Operating result (EBIT)||53.9||198.8|
|Earnings before tax (EBT)||25.5||183.2|
|Taxes on income||-3.1||-24.3|
|Consolidated net income for the period||22.3||158.9|
|thereof attributable to shareholders in the parent company||22.0||158.6|
|thereof attributable to non-controlling interests||0.3||0.4|
|Earnings per share (in EUR)||0.31||2.40|