EANS-News: S IMMO AG / results for the first half year right on target

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6-month report

S IMMO AG: results for the first half year right on target

· Net profit for period increased to EUR 16.4m
· EBIT up by 9%
· Net operating income higher again
· Successful exchange of participating certificates for corporate bonds

Halfway through 2014, stock exchange listed S IMMO AG (Bloomberg:
SPI:AV, Reuters: SIAG.VI) can look back on two very successful
quarters. Ernst Vejdovszky, Chairman of S IMMO AG's Management Board,
comments: "The results for the first half make us feel very
optimistic about the rest of the year. We have been successful in
improving our key indicators, and we are happy to reaffirm our goal
of doing even better in 2014 than the excellent results we achieved
in 2013."

Friedrich Wachernig adds: "Even from those of our markets that have
been more than challenging in the past, the news we are now hearing
is increasingly positive - they have left their troughs behind them.
Exchanging our participating certificates in the capital markets has
also sent a strong signal, and encourages us to view the future with
confidence."

Gross profit S IMMO AG's total income for the first half of 2014 came
to EUR 93.2m, compared with EUR 97.0m in the same period last year.
The rental income of EUR 56.8m was lower than the EUR 59.0m achieved
a year earlier, as an expected result of the property disposals.
Revenues for the half year from hotel operations (revenues from the
Vienna and Budapest Marriott Hotels, both operated under management
agreements) were EUR 19.1m, after EUR 19.2m in the first half of
2013. The gross profit from hotel operations improved from EUR 3.9m
to EUR 4.5m.

Property management expenses in the first half of 2014 of EUR 26.2m
were reduced by 12.8% compared with the same period last year.
Improvements in the cost structure together with a higher gross
profit from hotel operations substantially made up for the reduction
in rental income as a result of property sales. Despite lower other
operating income (EUR 2.3m), the overall gross profit of EUR 54.6m
held up more or less at last year's level (HY 2013: EUR 55.1m). This
was attributable to the excellent operating performance.

Successful property sales For the financial year 2014 S IMMO is
planning on property disposals of up to 5% of the portfolio. In the
first half of the year four properties were sold for a total of EUR
39.6m, compared with EUR 83.8m in the first six months of 2013. There
were no gains to be recognised on these sales in the income statement
for the first half of 2014, because the properties in question had
already been revalued in 2013 to reflect the final selling prices.

EBITDA and EBIT EBITDA came to EUR 47.0m, compared with EUR 49.9m in
the same period last year. At 30 June 2014, properties with a total
fair value of EUR 8.8m were classified as held for sale and the value
was increased correspondingly. Total property revaluations amounted
to EUR 8.9m (HY 2013: EUR 2.8m). EBIT for the period was also
significantly higher than last year: at EUR 52.2m, it was up EUR 4.2m
- nearly 9% - on the EUR 48.0m reported for the first half of 2013.

Net profit for period higher again The financial results for the
first half of 2014 including the participating certificate results
amounted to EUR -31.6m, as against EUR -30.4m for the first half of
2013. In spite of negative foreign currency effects, this was
essentially at the same level as last year. EBT came out at EUR
20.6m, an increase of 17% on the result for the same period last
year. The consolidated net profit was once again higher at EUR 16.4m
(HY 2013: EUR 16.0m).

Key indicators at very satisfactory levels The lower rental income
resulting from property sales had only minor effects on Funds from
Operations not including the effects of property sales (FFO I),
because operating performance was very good, and the negative effects
of lower rents and other operating income were largely balanced out
by cost savings. FFO I for the first half of 2014 came to EUR 15.2m,
compared with EUR 16.0m in the same period last year. FFO II, which
includes gains on property sales in the year to date and valuation
gains on properties still forming part of the portfolio, was EUR
29.1m, markedly better than the EUR 23.0m achieved in the first half
of 2013.

The cost savings discussed above also resulted in a further
improvement in Net Operating Income (NOI) for the period, which
totalled EUR 52.4m, compared with EUR 51.6m for the first six months
last year. The NOI margin also improved by 3.0 percentage points
despite the reduced property portfolio.

In the first half of 2014 both book value (balance sheet NAV) and
EPRA NAV per share rose: the book value at 30 June 2014 stood at EUR
7.87 (31 December 2013: EUR 7.83) per share, while EPRA NAV was EUR
9.80 (31 December 2013: EUR 9.76) per share.

Capital markets During the most recent quarter, the exchange offer to
the holders of participating certificates was a further important and
successful step towards simplifying S IMMO AG's capital structure.
The dividend policy now consistently pursued is also having an
effect: S IMMO share put on more than 12% in the first half year.

Ernst Vejdovszky explains: "We are registering increasing investor
interest - also on the part of international investors - and are very
pleased with the improvement. We still see significant upside
potential for our share, and will continue to work hard to bring the
stock market price closer to the share's inner value."

Outlook As in earlier years, the Management continues to vet
promising property purchases and examine sales opportunities. Sales
during the year of roughly 5% of the property portfolio are planned,
concentrating on Austria and Germany. S IMMO AG still sees attractive
investment opportunities in Berlin, and predominantly in residential
property. The lively demand for apartments means that S IMMO's focus
is on development of freehold apartment blocks on land already owned
by the Group. The start of some projects is scheduled for this year.

S IMMO AG As Austria's first stock exchange listed real estate
investment company, S IMMO AG has stood for experience, a balanced
portfolio and sustainable growth since 1987. The Group invests in
residential, office, hotel and retail property in Austria, Germany,
the Czech Republic, Slovakia, Hungary, Croatia, Romania and Bulgaria.
The Company's strategic core shareholders, Erste Group and Vienna
Insurance Group, are two of the region's largest financial services
groups.

Consolidated income statement for the six months ended 30 June 2014
(EUR m)

01 - 06/2014 01 - 06/20131
Revenues 93.2 97.0
Rental income 56.8 59.0
Revenues from operating costs 17.3 18.8
Revenues from hotel operations 19.1 19.2
Other operating income 2.3 3.5
Expenses directly -26.2 -30.1
attributable to properties
Hotel operating expenses -14.6 -15.3
Gross profit 54.6 55.1
Income from property disposals 39.6 83.8
Book value of property disposals -39.6 -81.4
Gains on property disposals 0 2.4
Management expenses -7.6 -7.6
Earnings before interest,tax, 47.0 49.9
depreciation and amortisation (EBITDA)
Depreciation and amortisation -3.7 -4.7
Results from property valuation 8.9 2.8
Operating profit (EBIT) 52.2 48.0
Financing cost -29.8 -25.8
Financing income 0.8 1.4
Income from companies 0.3 0
measured at equity
Participating certificates result -2.9 -5.9
Net income before tax(EBT) 20.6 17.6
Taxes on income -4.2 -1.6
Consolidated net income 16.4 16.0
for the period
of which attributable to 14.8 14.5
shareholders in parent company
of which attributable to non- 1.6 1.5
controlling interests

Earnings per share (EUR) 0.22 0.22

1 Adjusted

Property key figures 30 June 2014
Standing properties number 204
Total usable space m² 1,222,379
Gross rental yield % 6.9
Occupancy rate % 89.9

Further inquiry note:
Investor Relations:
Andreas J. Feuerstein
Phone: +43(0)50100-27556
Fax: +43(0)05100-927556
E-mail: andreas.feuerstein@simmoag.at
www.simmoag.at

Corporate Communications:
Bosko Skoko
Phone: +43(0)50100-27522
Fax: +43(0)05100-927522
E-mail: bosko.skoko@simmoag.at
www.simmoag.at

end of announcement euro adhoc
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company: S IMMO AG
Friedrichstraße 10
A-1010 Wien
phone: +43(0)50100-27550
FAX: +43(0)050100-927559
mail: office@simmoag.at
WWW: www.simmoag.at
sector: Real Estate
ISIN: AT0000652250
indexes: ATX Prime, IATX
stockmarkets: official market: Wien
language: English