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.
Financial liabilities totalled EUR 3.1 billion as of 30 September 2021 (31 December 2020: EUR 3.2 billion). Cash and cash equivalents, including cash and cash equivalents held for sale, amounted to EUR 1,016.9 million (31 December 2020: EUR 1,051.4 million). Net debt, i.e. debt after the deduction of cash and cash equivalents held by the Group, equalled EUR 2.1 billion (31 December 2020: 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 to 30 June 2023. It can be used at the company’s discretion and gives IMMOFINANZ added financial flexibility. This credit line was not in use as of the balance sheet date and is therefore available in full.
IMMOFINANZ has a robust balance sheet structure with an equity ratio of 48.5% (31 December 2020: 45.1%) and a net loan-to-value ratio (net LTV) of 36.6% (31 December 2020: 37.8%).
The average financing costs for IMMOFINANZ, including derivatives, equalled 1.92% per year as of 30 September 2021 (31 December 2020: 1.99% per year). The hedging quota was stable at 87.9% (31 December 2020: 88.6%).
In addition to properties which carry external financing and are encumbered through standard market collateral (e.g. mortgages, pledge of company shares), EUR 1,518.5 million, or 29.8% of the total property carrying amount, were not externally financed and therefore unencumbered as of 30 September 2021 (31 December 2020: EUR 1,482.8 million or 28.9%). Including the S IMMO shares (valued at the EPRA NAV), which are not encumbered by any financing, this value increases to EUR 2,069.9 million or 36.7%.
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 September 2021 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 mandatory convertible bond
2 Convertible bond 2017–2024 (coupon reduced to 1.50% after receipt of an investment grade rating) and last coupon payments for the mandatory convertible bond 2020–2023 which is classified as debt. This bond underwent mandatory premature conversion at the beginning of October 2021.
3 Including IFRS 5
The remaining balance of the financial liabilities held by IMMOFINANZ totalled EUR 3,083.4 million as of 30 September 2021.
The outstanding nominal value of the bonds remained unchanged at EUR 1,397.3 million as of 30 September 2021 (31 December 2020: EUR 1,397.3 million) and includes the following: 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 (conversion price as of 30 September 2021: EUR 21.3772; current conversion price after the dividend payment in October 2021: EUR 20.6333), the subordinated mandatory convertible bond issued in July 2020 which underwent mandatory conversion at the beginning of October 2021, and the two benchmark bonds 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; put option for bondholders on 24 January 2022.
2 Coupon reduced by 50 basis points to 1.50% as of 24 January 2019 following the receipt of an investment grade rating.
3 EUR 2.7 million volume are held by the issuer and therefore excluded
4 The mandatory convertible bond represents a hybrid financial instrument which must be separated into equity and debt components on initial recognition. The regular interest payments are classified as a financial liability, while the mandatory conversion is considered an equity component. This bond underwent mandatory conversion at the beginning of October 2021.
On 26 August 2021, IMMOFINANZ AG announced its intention to exercise its premature mandatory conversion right in accordance with the issue terms of the mandatory convertible bond. The conversion took place at the applicable conversion price of EUR 17.1472. The shares were delivered from IMMOFINANZ’s stock of treasury shares on 5 October 2021. This premature conversion results in future coupon savings of approximately EUR 8.6 million for the company (up to the original end of the bond term in 2023).