IMMOFINANZ Bonds

Financing strategy and solid 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 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 half of 2022 

IMMOFINANZ had a robust balance sheet structure as of 30 June 2022 with a stronger equity ratio of 57.3% (31 December 2021: 48.1%) and a further improved net loan-to-value ratio (net LTV) of 32.5% (31 December 2021: 36.7%).

Financial liabilities totalled EUR 2.3 billion as of 30 June 2022 (excluding lease liabilities of EUR 52.3 million in accordance with the application of IFRS 16; including IFRS 5; 31 December 2021: EUR 3.1 billion). At the end of April 2022, a change of control event led to the repayment of corporate bonds and to cash outflows of EUR 568.8 million. Cash and cash equivalents, including cash and cash equivalents held for sale, therefore amounted to EUR 383.5 million as of 30 June 2022 (31 December 2022: EUR 987.1 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 2021: EUR 2.1 billion).

The unsecured, revolving credit line of EUR 100.0 million concluded in March 2020 was extended prematurely during the reporting period and can be used at the company’s discretion up to 30 June 2024. It was not in use as of the balance sheet date and is therefore available in full.

The average financing costs for IMMOFINANZ, including derivatives, remained unchanged at 1.92% per year as of 30 June 2022 (31 December 2021: 1.92% per year). The hedging quota equalled 81.1% (31 December 2021: 88.8%).

Unencumbered assets

In addition to properties which carry external financing and are encumbered through standard market collateral (e.g. mortgages, pledge of company shares), EUR 1,506.9 million, or 28.1%, of the total property portfolio were not externally financed and therefore unencumbered as of 30 June 2022 (31 December 2021: EUR 1,476.8 million or 28.6%). Including the S IMMO shares (valued at the EPRA NAV), which are also unencumbered, this value increases to EUR 2,078.4 million or 35.1%.

Composition of financial liabilities

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 30 June 2022 is as follows:

Weighted average interest rate of the financial liabilities

Outstanding liability
in TEUR as of 30 06 2022

Total average interest rate incl.
expenses for derivatives in %1

Corporate bonds

424,922.1

2.56

Bank liabilities2

1,886,403.2

1.78

IMMOFINANZ

2,311,325.3

1.92

1 Based on nominal remaining debt
2 Including IFRS 5

The remaining balance of the financial liabilities held by IMMOFINANZ totalled EUR 2,311.3 million as of 30 June 2022.

Derivatives

IMMOFINANZ uses derivatives to hedge against interest rate increases. The volume of financial liabilities hedged through interest rate derivatives amounted to EUR 1,452.2 million as of 30 June 2022 (31 December 2021: EUR 1,394.0 million). In total, 81.1% of the total financial liabilities were hedged (31 December 2021: 88.8%); 62.7% via interest rate derivatives and a further 18.4% carried fixed interest rates.

Bonds

The outstanding nominal value of the bonds declined significantly to EUR 424.9 million as of 30 June 2022 due to a change of control event (31 December 2021: EUR 1,277.3 million). Included here are the two corporate bonds which were issued in January 2019 and October 2020.

Change of control event – corporate bonds

The acquisition of a controlling interest in IMMOFINANZ AG by the CPI Property Group and the subsequent mandatory offer as defined by § 22 in connection with § 27 of the Austrian Takeover Act triggered a change of control event for both corporate bonds (terms ending in 2023 and 2027) at the beginning of March 2022. It entitled the bondholders to exercise their put right at 101% of the nominal value plus accrued interest up to the sale date on 25 April 2022. A nominal value of EUR 295.7 million was tendered by the holders of the corporate bond (term ending in 2023), and a nominal value of EUR 262.2 million was tendered by the holders of the corporate bond (term ending in 2027). Repayment followed on 27 April 2022 and led to cash outflows of EUR 568.8 million.

Convertible bond 2017–2024

IMMOFINANZ was informed on 3 December 2021 through a voting rights announcement in accordance with § 130 of the Austrian Stock Exchange Act of 2018 that CPI Property Group held an investment, directly and indirectly, of approximately 21.4% in the then share capital of IMMOFINANZ AG. This investment gave CPI Property Group a controlling interest in IMMOFINANZ AG as defined in § 22 in connection with § 27 of the Austrian Takeover Act. The conversion price was therefore temporarily adjusted to EUR 18.8987 in accordance with the issue terms (before the adjustment: EUR 20.6333) up to the control record date on 19 January 2022.

Conversions totalled EUR 291.3 million in the first half of 2022 and were serviced with 15,375,916 new shares. Due to the substantial reduction in the volume, IMMOFINANZ called the convertible bond for repayment prematurely on 29 April 2022 in accordance with the issue terms. Repayment was made at the end of June 2022 at a nominal amount of EUR 3.2 million (excluding the convertible bonds held by IMMOFINANZ) plus accrued interest.

Bonds   

ISIN

Maturity

Coupon in %

Nominal
value as of
31 12 2021
in TEUR

Repurchases/
redemptions/
conversions/
new issues
2022 in TEUR

Nominal
value as of
30 06 2022
in TEU

Corporate bond

XS1935128956

27 01 2023

2.63

482,800

-295,700

187,100

Corporate bond

XS2243564478

15 10 2027

2.50

500,000

-262,200

237,800

Convertible bond

XS1551932046

n. a.

1.50

294,500

-294,500

0

IMMOFINANZ

2.561

1,277,300

-852,400

424,900

1 Weighted coupon in % based on the nominal value as of 30 June 2022