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 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.
Financing with a total volume of EUR 925.2 million was concluded in 2020. That represents approximately 29.2% of the total financial liabilities as of 31 December 2020 and involves extensions as well as new financing.
Financial liabilities (excluding lease liabilities of EUR 77.1 million in accordance with the application of IFRS 16; including IFRS 5) amounted to EUR 3.2 billion as of 31 December 2020 (31 December 2019: EUR 2.8 billion). Cash and cash equivalents, including cash held for sale, rose to EUR 1,051.4 million (31 December 2019: EUR 345.1 million), due to the capital measures carried out in July and the issuance of a benchmark bond. 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 corporate credit line of EUR 100.0 million at the end of March 2020. It can be used at the company’s discretion until 31 March 2022 and gives IMMOFINANZ additional financial flexibility. This credit line was unused as of 31 December 2020 and is therefore available in full.
In order to strengthen the company’s equity and the indicators relevant for the current investment grade rating, IMMOFINANZ successfully carried out a share placement and issued 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 resulted in 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. The initial conversion price was set at EUR 17.1472, which represents a 12.0% premium above the subscription price for the shares in the current share placement. The 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 currently convertible into a total of 6,998,228 IMMOFINANZ shares and is classified as equity under IFRS and by the rating agency Standard & Poor’s.
In October 2020, IMMOFINANZ issued a fixed-interest, 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.
As of 31 December 2020, IMMOFINANZ had a robust balance sheet structure with an equity ratio of 45.1% (31 December 2019: 46.0%) and a net loan-to-value ratio (net LTV) of 37.8% (31 December 2019: 43.0%).
The indicator net LTV compares the carrying amount of financing, less cash and cash equivalents, with the total carrying amount of the properties and the EPRA NAV for the roughly 19.5 million shares held in S IMMO AG (S IMMO).
The average financing costs for IMMOFINANZ, including derivatives, equalled 1.99% per year as of 31 December 2020 (31 December 2019: 1.91% per year). The hedging quota remained stable at 88.6% (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 1,482.8 million, or 28.9% of the total property portfolio, were not externally financed and therefore unencumbered as of 31 December 2020 (31 December 2019: EUR 1,434.0 million or 27.3%). Including the S IMMO shares (valued at the EPRA NAV), which are also unencumbered, this value increases to EUR 1,957.1 million or 34.9%.
The financial liabilities held by IMMOFINANZ are denominated entirely in euros and consist of amounts due to financial institutions as well as liabilities from bonds. The composition of these liabilities as of 31 December 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 3,170.9 million as of 31 December 2020.
The outstanding nominal value of the bonds totalled EUR 1,397.3 million as of 31 December 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 (current conversion price: EUR 21.3772), the subordinated mandatory convertible bond issued in July 2020 with a term ending in 2023 (current conversion price: EUR 17.1472) and the two benchmark corporate bonds which were issued in January 2019 and October 2020.
Coupon in %
27 01 2023
15 10 2027
24 01 20241
23 07 2023
1 The term of the bond ends in 2024; the bondholders have a put option on 24 January 2022