CA Immo: Significant decline in earnings in the first half of the year

2023-08-23 16:57:00

The consolidated result melted from 220.1 to 13.5 million euros. The company announced on Wednesday evening that the key earnings figure FFO 1, which is important in the real estate industry, has dropped significantly from 73.9 to 54 million euros. The rental income rose accordingly by 12 percent to 118 million euros. The occupancy rate is 90 percent.

In total, the group completed six sales transactions with a total value of EUR 381 million in the first six months of the year, including the sale of three non-strategic existing buildings and three German properties that are not primarily suitable for office use. According to the announcement, the gross sales prices achieved were on average around 50 percent above the most recently reported book values of the properties.

The quality of the portfolio has increased significantly over the past few years, primarily due to an increasing focus on modern, large “Class A” office buildings. In addition, there is reinvestment and the development of new, high-quality office buildings in Germany for the company’s own portfolio.

“The strong operational performance we have achieved in a challenging market environment shows the good positioning and resilience of our business model and supports the positive outlook and annual target for the full year 2023,” said CEO Keegan Viscius according to the announcement. The equity ratio is a good 46 percent.

In the outlook for the full year 2023, the board of directors – in addition to Viscius CFO Andreas Schillhofer – write that “despite the successful first half of the year, we are aware of the challenges our business is facing”. Non-strategic land and existing buildings will continue to be sold, which is also related to the possible exit from the Hungarian market.

In terms of earnings, the managers of the ATX company expect recurring income (FFO I) of more than EUR 100 million or EUR 1.02 per share. The predicted significant decline compared to 2022 at a good 125 million euros “reflects in particular the sale of the Romanian platform and other non-strategic assets that will significantly improve the portfolio and earnings quality of CA Immo in the future”.

With profitable sales, an EBITDA of more than 250 million euros is now expected. That in turn would be a significant increase compared to the previous year, when this amounted to 149.5 million euros. The clear increase is already evident here at the half-year point: Plus 121 percent to 184.6 million euros.