Frankfurt am Main, 20 November 2014 – The German group IFM Immobilien AG concluded the first nine months of its 2014 financial year with a negative result, but still expects to end the year as a whole with a positive result. On the one hand, the sale of properties as planned caused the rent revenues to decline while also reducing the mark-to-market valuation gain for the investment properties. On the other hand, the subsequent costs for the fire prevention and protection systems of the “Zeilgalerie” property in Frankfurt am Main that was sold by IFM negatively impacted the net income.
The operating profit (earnings before taxes) amounted to EUR -5.1 million (previous year: EUR 2.3 million). The consolidated income amounted to EUR -3.9 million (previous year: EUR 0.5 million). The consolidated revenues for the first nine months of 2014 dropped by 34 % down to EUR 8.1 million year on year (previous year: EUR 12.2 million). The quarterly report including the full-length consolidated financial statements of IFM Immobilien AG for the first nine months of 2014 was published online today (go to www.ifm.ag).
Volker de Boer, Member of the Board of IFM Immobilien AG: “During the first nine months of the 2014 financial year, the operative activities of IFM Immobilien AG continued to show a stable performance, even though the nine-month revenue was negative at EUR -3.9 million. The reason for this continues to be the subsequent costs of the fire-proofing measures undertaken at the sold property “Zeilgalerie.” The extensive, contractually agreed works are ongoing but expected to be completed by the end of the year.
Meanwhile, the optimisation of our portfolio continues. We are currently in the process of negotiating additional property sales. Accordingly, we have reason to believe that we will be able to realise the next transactions in the coming months. We also continued our efforts to let available space in our properties. At “GutenbergPark” in Mainz, we signed new leases, pushing the occupancy up to around 79 %. At our property “MAXXON” in Frankfurt, just 5 % of the floor area are still to let. In the area of property developments, we currently focus our activities on the capital works project “Kureck” in Wiesbaden. Working in close coordination with the municipal authorities, we intend to create the preconditions for a speedy start of construction. In a parallel development, we are in the process of negotiating with potential occupiers of the commercial floor area and buyers of the residential units.
The group’s net asset position and financial position remain very robust, and we assume that the results of our work during the first three quarters of the ongoing year will provide a sound starting basis for the year as a whole, as well as for the development during the final quarter and the coming year 2015. Accordingly, we wish to reaffirm our assessment that the successful development of IFM between now and the end of the year will make a stronger contribution to the earnings performance again.”
Group Revenue and Earnings Performance
The decline in consolidated revenues is essentially explained by the cessation of rental income streams after selling the properties “Romeo & Julia” and “Zeilgalerie” in Frankfurt am Main and “Office Tower” in Darmstadt, and by the associable reduction in revenue from the recovery of incidental expenses. The rent revenues added up to EUR 6.1 million during the reporting period, which implies a 35.1 % drop year on year. Revenue from the recovery of incidental expenses declined by 28.6 % to EUR 2.0 million in 2013 (previous year: EUR 2.8 million). The earnings from market valuations of investment properties totalled EUR 0.2 million by the end of the first nine months of 2014 (previous year: EUR 8.6 million). IFM achieved a consolidated income after taxes in the amount of EUR -3.9 million during the first three quarters (prior-year period: EUR 0.5 million). This translates into a basic net income of EUR -0.41 (prior-year period: EUR 0.06).
Consolidated Balance Sheet Performance
IFM Group’s total assets dropped to EUR 226.7 million by 30 September 2014. The 16.9 % one-year dip since the reporting date of the previous financial year (31 December 2013: EUR 272.8 million) is explained by the fact that the sale of the “Zeilgalerie” property was recognised in the time since, by the reduction of the loan debt as a result of the transaction, and by the deconsolidation of the “Zimmerstrasse / Mauerstrasse” property in Berlin. The value of the investment property increased by 10.7 % to EUR 175.1 million by 30 September 2014 (up from EUR 158.2 million by 31 December 2013). The increase is essentially explained by the acquisition of the “Ulmenstrasse 22” property in Frankfurt that was concluded during the reporting period. This acquisition was also the main reason for the growth in the value of investment property, which rose by 12.5 % to EUR 169.6 million by the reporting data (31 December 2013: EUR 150.7 million). Other factors included the value-add restructuring work on the properties “MAXXON” in Eschborn, “Das Carré” in Heidelberg, and “GutenbergPark” in Mainz, as well as additional investments for the purpose of obtaining new or changed zoning, and investments in the planning efforts for the project sites of the “Kureck” property in Wiesbaden. The equity ratio, which stood at 43.8 % by the reporting date 2013, rose to 51 % by the end of the third quarter of 2014.
For inquiries, please contact:
Sebastian Schmidt
Dr. ZitelmannPB. GmbH
Rankestrasse 17
D-10789 Berlin
Tel.: +49 (0) 30 72 62 76-1782
Fax: +49 (0) 30 72 62 76-162
E-mail: sschmidt@zitelmann.com
Corporate contact:
IFM Immobilien AG
Karlo Schwöbel
Frankfurt office: Heidelberg office:
Ulmenstrasse 23-25 Karl-Ludwig-Strasse 2
D-60325 Frankfurt D-69117 Heidelberg
T. +49 (0) 69 9686700-42 T. +49 (0) 6221 434 06-22
F. +49 (0) 69 9686700-25 F. +49 (0) 6221 434 06-66
E-mail: welcome@ifm.ag, www.ifm.ag
About IFM Immobilien AG:
IFM Immobilien AG is an investor and project developer specifically of commercial real estate, with an emphasis on office and downtown retail use types. In addition to conventional project development, its business operations include the redeveloping, restructuring and repositioning of commercial properties. The properties that IFM acquires are generally distinguished by what IFM deems an attractive risk / reward profile, great potential for development and appreciation, and preferred locations. Using this strategy and the group’s core competencies in the areas of redevelopment, restructuring and repositioning, IFM Immobilien AG revitalises properties and thereby creates what it believes will be sustainable property values.
Key Ratios of IFM Group (IAS/IFRS)
Key performance ratios
in MM euros |
01/01/2014 – 30/09/2014 |
01/01/2014 – 30/09/2013 |
Revenue (rental income and revenues due to change of incidental expenses) |
8.1 |
12.2 |
Gain or loss on fair valuation of investment properties |
0.2 |
5.4 |
Operating profit |
-5.1 |
2.4 |
Earnings after taxes and minority interests |
-3.9 |
0.5 |
Earnings per share (undiluted, in EUR) |
-0.41 |
0.06 |
Balance sheet ratios
in MM euros |
30 September 2014 |
31 December 2013 |
Total assets |
226.7 |
272.8 |
Non-current assets |
175.1 |
158.2 |
– including:
Investment property |
169.6 |
150.7 |
|
|
|
Equity: |
115.6 |
119.4 |
– including: Subscribed capital |
38.0 |
9.5 |
Equity ratio (in percent): |
51 |
43.8 |
Debt capital |
111.1 |
153.2 |
– including: Liabilities to banks |
72.7 |
126.3 |