EANS-News: S IMMO AG / Record half-year results

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6-month report

· Significant value increases, particularly in Germany
· Revaluation gains realised through sales
· Further investments planned in Germany
· Profit for the period increases to EUR 85.5m

The first six months of the 2016 financial year were extremely
successful for S IMMO. This was largely due to the revaluation gains,
which amounted to EUR 106.9m in the first half of 2016. The dynamic
growth on the German real estate market was the primary driver of
this development. According to Ernst Vejdovszky, CEO of S IMMO AG,
"Berlin's residential property market has enjoyed highly dynamic
development in recent months. We decided to realise a portion of the
value increases achieved in our portfolio by selling around 20% of
our space in Germany. This is in line with our cycle-oriented
strategy and creates value for our investors."

Development of earnings In the first half of 2016, S IMMO AG's total
revenues amounted to EUR 95.3m (HY 2015: EUR 92.2m), an increase over
the prior-year figure. The rental income included in this figure
reflects the property purchases completed since the beginning of 2015
and came to EUR 58.5m (HY 2015: EUR 54.6m). Gross operating profit
from hotel operations declined to EUR 3.5m (HY 2015: EUR 5.0m) due to
the overhaul of the Vienna Marriott Hotel, which resulted in a
temporary reduction in room occupancy in the first half of the year.

Property management expenses amounted to EUR 31.2m in the first half
of the year (HY 2015: EUR 27.0m). The gross profit was EUR 50.5m (HY
2015: EUR 50.7m). EBITDA came to EUR 43.0m in the first half of 2016
(HY 2015: EUR 43.1m). This slight decrease was due to the temporary
decline in the profit from hotel operations. Revaluation gains
developed very positively, amounting to EUR 106.9m as at 30 June 2016
(HY 2015: EUR 9.7m). In addition to the continued outstanding
development in Germany, both Austria and CEE (Hungarian office
properties) contributed to this positive result.

Overall, EBIT was up significantly on the previous year at EUR 145.9m
(HY 2015: EUR 48.9m). As a result, EBT amounted to EUR 107.3m (HY
2015: EUR 26.9m). The net profit for the period increased to EUR
85.5m (HY 2015: EUR 20.9m). Earnings per share improved once again
and came to EUR 1.27 (HY 2015: EUR 0.30).

Capital market S IMMO continues to benefit from the current low
interest rates. At the end of May, the share price briefly reached
EUR 9.00 for the first time since 2007. Despite the turbulent
environment on the stock markets, the S IMMO share closed the quarter
at EUR 8.40, a gain of 2.44% (ex dividend) compared with the closing
price on 31 December 2015.

S IMMO increased the dividend for its shareholders for the fourth
time in a row. The payout for the 2015 financial year was 30 cents
per share, which equates to a dividend yield of over 3.6% in relation
to the closing price on 31 December 2015. This payment was made on 10
June 2016.

Outlook for 2016 Germany remains an important market for S IMMO. The
company bought six properties there at a total price of EUR 9.2m over
the first six months of 2016. In addition, purchases amounting to EUR
54.1m for which S IMMO AG will not obtain ownership until after 30
June 2016 were contractually agreed as at the editorial deadline. The
company currently sees tremendous potential in office properties in
particular. There are also a number of development projects on the
agenda: In Bucharest, the development of a promising office property
called The Mark is starting. The refurbishment of the Sun Plaza
shopping centre is also proceeding according to plan. S IMMO is
active on its home market of Vienna as well, including at Quartier
Belvedere Central.

According to Friedrich Wachernig, member of S IMMO AG's Management
Board, "We are also extremely optimistic for the second half of the
year. We are working intensively on development projects and
value-enhancement measures across our portfolio. Several hugely busy
quarters lie ahead in which we will extend, develop, and optimise our
portfolio."

Consolidated income statement for the period 01 January 2016-30 June
2016 in EUR millions / fair value method

01-06/2016 01-06/2015
Revenues 95.3 92.2
thereof rental 58.5 54.6
income

thereof revenues from operating 18.4
16.7 costs thereof

revenues from hotel 18.3 20.9
operations
Other operating income 1.3 1.4
Expenses directly -31.2 -27.0
attributable to properties
Hotel operating expenses -14.9 -15.9
Gross profit 50.5 50.7
Income from property 3.9 15.9
disposals
Book value of property -3.1 -15.9
disposals
Gains on property 0.8 0
disposals
Management expenses -8.3 -7.7
Earnings before interest,
tax, depreciation and 43.0 43.1
amortisation
(EBITDA)
Depreciation and -4.0 -3.8
amortisation
Results from property 106.9 9.7
valuation
Operating result (EBIT) 145.9 48.9
Financing cost -36.4 -22.3
Financing income 1.1 0.7
Results from companies 0 1.0
measured at equity
Participating certificates -3.3 -1.4
result
Net income before tax 107.3 26.9
(EBT)
Taxes on income -21.7 -6.0
Consolidated net income 85.5 20.9
for the period
of which
attributable to 84.6 19.9
shareholders in parent
company
of which
attributable to non- 0.9 1.0
controlling interests

Earnings per share (in 1.27 0.30

EUR)

Key data on properties 30 June 2016
Portfolio properties number 228
Total useable space millions of m2 1.3
Gross rental yield % 6.2
Occupancy rate % 93.3

Apparent mathematical errors may be the result of rounding errors
caused by software.

Further inquiry note:
Investor Relations:
Sylwia Milke
phone: +43(0)50100-27402
fax: +43(0)05100-927402
mailto:sylwia.milke@simmoag.at
www.simmoag.at

Corporate Communications:
Elisabeth Wagerer
phone: +43(0)50100-27867
fax: +43(0)05100-927867
mailto:elisabeth.wagerer@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

Original Content von: S IMMO AG, übermittelt durch news aktuell