IMMOFINANZ Bonds

Financing Strategy and Capital Structure

IMMOFINANZ’s financing strategy is designed 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 IMMOFINANZ’s business activities.

First Half-Year 2019

Financial liabilities totalled EUR 2.5 billion as of 30 June 2019 (31 December 2018: EUR 2.4 billion). Cash and cash equivalents (including the cash and cash equivalents in assets held for sale) amounted to EUR 560.4 million (31 December 2018: EUR 632.0 million). Net debt, i.e. debt after the deduction of cash and cash equivalents held by the Group, equalled EUR 1.9 billion (31 December 2018: EUR 1.8 billion).

IMMOFINANZ has a robust balance sheet structure with an equity ratio of 47.1% (31 December 2018: 48.0%) and a net loan to-value ratio (net LTV) of 38.0% (31 December 2018: 37.3%).

The average financing costs for IMMOFINANZ equalled 1.99% per year as of per 30 June 2019, including derivatives (31 December 2018: 2.14% per year), and the hedging ratio equalled 88.5% (31 December 2018: 73.7%).

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 1,428.0 million, or 31.3%, of the total property carrying amount was not externally financed and therefore unencumbered as of 30 June 2019 (31 December 2018: EUR 749.0 million or 17.0%). Including the S IMMO shares (valued at the EPRA NAV), which are also unencumbered, this amount increases to EUR 1,901.3 million or 37.7%.