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 June 2021 (31 December 2020: EUR 3.2 billion). Cash and cash equivalents, including cash and cash equivalents held for sale, amounted to EUR 966.9 million (31 December 2020: EUR 1,051.4 million), and net debt, i.e. debt after the deduction of cash and cash equivalents held by the Group, equalled EUR 2.2 billion (31 December 2020: EUR 2.1 billion).
The unsecured, revolving credit line of EUR 100.0 million concluded in March 2020 was not in use as of the balance sheet date and is therefore available in full. It was extended prematurely during the reporting period to 30 June 2023. This credit line can be used at the company’s discretion and gives IMMOFINANZ added financial flexibility.
IMMOFINANZ has a robust balance sheet structure with an equity ratio of 47.4% (31 December 2020: 45.1%) and a net loan-to-value ratio (net LTV) of 38.1% (31 December 2020: 37.8%).
The average financing costs for IMMOFINANZ, including derivatives, equalled 1.91% per year as of 30 June 2021 (31 December 2020: 1.99% per year). The hedging quota was stable at 88.6% (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 1,486.4 million, or 28.8% of the total property carrying amount, were not externally financed and therefore unencumbered as of 30 June 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 2,022.8 million or 35.6%.
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 2021 is as follows:
Weighted average interest rate of the financial liabilities
Total average interest rate incl.
1 Based on nominal remaining debt, excluding mandatory convertible bond
2 Convertible bond 2017–2024 (coupon reduced to 1.50% following the receipt of an investment grade rating) as well as future coupon payments for the mandatory convertible bond 2020–2023 which are classified as liabilities.
3 Including IFRS 5
The remaining balance of the financial liabilities held by IMMOFINANZ totalled EUR 3,137.2 million as of 30 June 2021.
The outstanding nominal value of the bonds totalled EUR 1,397.3 million as of 30 June 2021 (31 December 2020: EUR 1,397.3 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.
2 Coupon reduced by 50 basis points to 1.50% as of 24 January 2019 following the receipt of an investment grade rating.
3 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.
IMMOFINANZ AG announced on 27 August 2021, pursuant to the Terms and Conditions of the Notes, the Early Mandatory Conversion at the option of the Issuer of the Notes in the aggregate principal amount of EUR 120 million, in accordance with § 7(c) of the Terms and Conditions of the Notes. For further details please see section Mandatory Convertible Bond 2020–2023.