IMMOFINANZ Bonds

Financing Strategy and Capital Structure

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.

The First Quarter 2020

Conservative financing structure

Financial liabilities (excluding lease liabilities of EUR 78.1 million based on the application of IFRS 16; including IFRS 5) totalled EUR 2.8 billion as of 31 March 2020 (31 December 2019: EUR 2.8 billion). Cash and cash equivalents, including cash and cash equivalents held for sale, amounted to EUR 312.5 million (31 December 2019: EUR 345.1 million) and net debt, i.e. debt after the deduction of cash and cash equivalents held by the Group, equalled EUR 2.5 billion (31 December 2019: EUR 2.5 billion). The decline in ash and cash equivalents resulted, among others, from the coupon payments for the corporate bond 2023 and the convertible bond 2024 which were made in in the first quarter (in total: EUR 15.3 million).

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 during a two-year timeframe and gives IMMOFINANZ added financial flexibility. This credit line was unused at the end of the reporting period and is therefore available in full.

IMMOFINANZ has a robust balance sheet structure with an equity ratio of 45.9% (31 December 2019: 46.0%) and a net loan-to-value ratio (net LTV) of 43.8% (31 December 2019: 43.0%).

Net LTV

Net LTV

The average financing costs for IMMOFINANZ equalled 1.90% per year as of 31 March 2020 including the derivatives (31 December 2019: 1.91% per year). The hedging quota was stable at 90.8% (31 December 2019: 90.7%).

Financing cost (including hedging)

Financing costs (including hedging)

Unencumbered property

In addition to properties which carry external financing and are encumbered through standard market collateral (e.g. mortgages, pledge of company shares), EUR 1,427.6 million, or 27.5%, of the total property carrying amount was not externally financed and therefore unencumbered as of 31 March 2020 (31 December 2019: EUR 1,434.0 million or 27.3%). The inclusion of the S IMMO shares (valued at the EPRA NAV), which are also unencumbered, increases this value to EUR 1,882.1 million or 33.4%.