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 Three Quarters 2019

Financial liabilities (excl. lease liabilities of EUR 80.0 million based on the application of IFRS 16) totalled EUR 2.7 billion as of 30 September 2019 (31 December 2018: EUR 2.4 billion). Cash and cash equivalents, including cash and cash equivalents held for sale, amounted to EUR 256.9 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 2.5 billion (31 December 2018: EUR 1.8 billion). The decline in cash and cash equivalents since the beginning of the year resulted, among others, from the share buyback programme 2018/2019 which was concluded in August 2019 and from the acquisition of several standing investments, for example the Warsaw Spire and Palmovka Open Park office buildings.

IMMOFINANZ has a robust balance sheet structure with an equity ratio of 44.9% (31 December 2018: 48.0%) and a net loan-to-value ratio (net LTV) of 44.2% (31 December 2018: 37.3%). 

The average financing costs for IMMOFINANZ equalled 1.95% per year as of 30 September 2019 (31 December 2018: 2.14% per year) including the derivatives used for interest rate hedging. The hedging quota equalled 87.5% (31 December 2018: 73.8%). 

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 1,498.3 million, or 29.3% (31 December 2018: EUR 749.0 million or 17.0%) of the total property carrying amount was not externally financed and therefore unencumbered as of 30 September 2019. The inclusion of the S IMMO shares (valued at the EPRA NAV), which are also unencumbered, increases this value to EUR 1,987.6 million or 35.5%.