The IMMOFINANZ properties in Hungary represent 10.2% of the company’s total portfolio, including 26 properties with a carrying amount of EUR 503.5 million. The standing investment portfolio splits into 8 office buildings (7.8% of the total standing office portfolio) and 14 retail properties (12.5% of the total standing retail portfolio). The occupancy rate remained at a high level of 96.2%.
IMMOFINANZ recorded an increase in rental income and in the results of asset management and property sales during the first three quarters of 2020 despite the Covid-19 crisis. FFO 1 (before tax) was only slightly lower than the previous year at EUR 89.2 million. After an adjustment for the straight-lining of a bond coupon payment in Q1 2020 over 12 months, FFO 1 improved by 10.1% to EUR 92.4 million. The capital measures carried out in Q3 2020 strengthened the equity ratio and reduced the net LTV to 38.4%. The strong cash position of EUR 601.9 million at the end of September was increased to approximately EUR 1.2 billion by the benchmark bond issued in October and an undrawn credit line. IMMOFINANZ is therefore very well positioned to manage the current crisis and to utilise future growth opportunities.
Rental income rose by 5.7% to EUR 215.1 million due to the expansion of the portfolio through acquisitions and completions, but a crisis-related increase in the write-off of receivables in the asset management area, primarily in the second quarter, led to substantially higher property expenses. The results of asset management still improved by 3.3% to EUR 158.9 million despite these write-offs. The pandemic had a negative influence on the valuation of investment property: revaluations totalled EUR -153.7 million, compared with clearly positive results in the first three quarters of the previous year (Q1–3 2019: EUR 116.8 million). This reduction represents roughly 3.0% of the total property portfolio. Net loss for the first three quarters of 2020 amounted to EUR -98.3 million (Q1–3 2019: EUR 202.6 million).
“IMMOFINANZ has also been faced with challenges due to the Covid-19 pandemic. We implemented a wide range of measures in recent months – on both the operating and capital sides – to minimise the negative effects and make the company even more robust. We are a strong and reliable partner for our tenants and can also conclude successful transactions in uncertain times, as we proved with the very profitable sale of a property in Germany. With a solid balance sheet and more than EUR 1 billion of liquid funds, we are optimally positioned for further growth and the opportunities that arise from the crisis,“ commented Ronny Pecik, CEO of IMMOFINANZ, on the company’s development.