The objectives of IMMOFINANZ’s financing strategy are to ensure sufficient liquidity at all times, to achieve and maintain a balanced capital structure and maturity profile and to also optimise financing costs. The best possible structuring of debt financing is an important priority and, in addition to successful property management, represents a decisive factor for the results generated by the company’s business activities.
Financial liabilities (excluding lease liabilities of EUR 78.5 million in accordance with the application of IFRS 16; including IFRS 5) totalled EUR 2.7 billion as of 30 September 2020 (31 December 2019: EUR 2.8 billion). Cash and cash equivalents, including cash and cash equivalents held for sale, rose to EUR 601.9 million (31 December 2019: EUR 345.1 million), above all due to the capital measures carried out in July. Net debt, i.e. debt after the deduction of cash and cash equivalents held by the Group, equalled EUR 2.1 billion (31 December 2019: EUR 2.5 billion).
IMMOFINANZ AG concluded an unsecured, revolving credit line of EUR 100.0 million at the end of March 2020. It can be used at the company’s discretion up to 31 March 2022 and gives IMMOFINANZ added financial flexibility. This credit line was unused at the end of the reporting period and is therefore available in full.
In order to strengthen the company’s equity and the indicators relevant for the investment grade rating, IMMOFINANZ successfully completed a share placement and the issue of a mandatory convertible bond in July 2020. The gross issue proceeds totalled EUR 356.1 million.
A total of 15,418,824 shares were placed with institutional investors through an accelerated bookbuilding process under the exclusion of subscription rights. Share capital was increased by 11,208,526 to 123,293,795 shares, and 4,210,298 treasury shares were sold. The placement was completed at EUR 15.31 per share and led to gross issue proceeds of EUR 236.1 million.
IMMOFINANZ also issued a subordinated mandatory convertible bond with a total nominal value of EUR 120.0 million through an accelerated bookbuilding process with institutional investors under the exclusion of subscription rights. The initial conversion price was set at EUR 17.1472, which represents a 12.0% premium above the issue price of the shares in the current share placement. The three-year bond carries a coupon of 4.0% per year, payable semi-annually in arrears on 23 January and 23 July of each year. The subordinated mandatory convertible bond is therefore initially convertible into a total of 6,998,228 IMMOFINANZ shares and is classified as equity under IFRS and by the rating agency S&P (exception: future coupon payments).
In October 2020 and shortly after the end of the reporting period, IMMOFINANZ issued a senior unsecured bond with institutional investors. The bond has a benchmark volume of EUR 500 million, a seven-year term and a fixed coupon of 2.5% per year. The net proceeds from the issue will be used to refinance existing liabilities, to utilise value-creating opportunities for growth and for general corporate purposes.
IMMOFINANZ has a robust balance sheet structure with an equity ratio of 48.6% (31 December 2019: 46.0%) and a net loan-to-value ratio (net LTV) of 38.4% (31 December 2019: 43.0%).
The average financing costs for IMMOFINANZ, including derivatives, equalled 1.88% per year as of 30 September 2020 (31 December 2019: 1.91% per year). The hedging quota was stable at 90.3% (31 December 2019: 90.7%).
In addition to properties which carry external financing and are encumbered through standard market collateral (e.g. mortgages, pledge of company shares), EUR 1,381.1 million, or 27.1% of the total property carrying amount, were not externally financed and therefore unencumbered as of 30 June 2020 (31 December 2019: EUR 1,434.0 million or 27.3%). Including the S IMMO shares (valued at the EPRA NAV), which are not encumbered by any financing, this value increases to EUR 1,844.8 million or 33.2%.
The financial liabilities held by IMMOFINANZ consist of amounts due to financial institutions as well as liabilities from bonds. The composition of these liabilities as of 30 September 2020 is as follows:
Weighted average interest rate of the financial liabilities
Total average interest rate incl.
1 Calculation basis: actual remaining debt (nominal amount), excluding the
The remaining balance of the financial liabilities held by IMMOFINANZ totalled EUR 2,742.4 million as of 30 September 2020. As of that date, all financing was denominated in euros.
The outstanding nominal value of the bonds totalled EUR 902.3 million as of 30 September 2020 (31 December 2019: EUR 797.2 million). It is attributable to the convertible bond issued in January 2017 with a term ending in 2024 and a put option for the investors at the nominal amount in 2022, the subordinated mandatory convertible bond issued in July 2020 with a term ending in 2023 and the corporate bond issued in January 2019 with a term ending on 27 January 2023.
27 01 2023
24 01 20241
23 07 2023
1 End of the bond term in 2024; put option for bondholders