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 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 the company’s business activities.
Financial liabilities (excluding lease liabilities of EUR 61.3 million in accordance with the application of IFRS 16; including IFRS 5) totalled EUR 2.8 billion as of 30 June 2020 (31 December 2019: EUR 2.8 billion). Cash and cash equivalents, including cash and cash equivalents held for sale, amounted to EUR 342.2 million (31 December 2019: EUR 345.1 million) and net debt, i.e. debt after the deduction of cash and cash equivalents held by the Group, equalled EUR 2.5 billion (31 December 2019: EUR 2.5 billion).
IMMOFINANZ AG concluded an unsecured, revolving credit line of EUR 100.0 million at the end of March 2020. It can be used at the company’s discretion up to 31 March 2022 and gives IMMOFINANZ added financial flexibility. This credit line was unused at the end of the reporting period and is therefore available in full.
Shortly after the end of the reporting period, in July 2020, IMMOFINANZ completed a successful share placement and the issuance of a mandatory convertible bond. The gross issue proceeds amounted to EUR 356.1 million.
A total number of 15,418,824 shares were placed through an accelerated book-building procedure with institutional investors under the exclusion of subscription rights. Share capital was increased by 11,208,526 to 123,293,795 shares, and 4,210,298 treasury shares were sold. The placement was made at EUR 15.31 per share and led, in total, to gross issue proceeds of EUR 236.1 million.
IMMOFINANZ also placed a subordinated mandatory convertible bond with a total nominal value of EUR 120.0 million through an accelerated book-building procedure with institutional investors under the exclusion of subscription rights. The initial conversion price was set at EUR 17.1472, which represents a 12.0% premium above the issue price of the shares in the current share placement. The three-year bond carries a coupon of 4.0% per annum, payable semi-annually in arrears on 23 January and 23 July of each year. The subordinated mandatory convertible bond is convertible into a total of 6,998,228 IMMOFINANZ shares and is classified as equity under IFRS and by the rating agency S&P (exception: future coupon payments).
IMMOFINANZ has a robust balance sheet structure with an equity ratio of 45.0% (31 December 2019: 46.0%) and a net loan-to-value ratio (net LTV) of 44.7% (31 December 2019: 43.0%).
The average financing costs for IMMOFINANZ, including derivatives, equalled 1.89% per year as of 30 June 2020 (31 December 2019: 1.91% per year). The hedging quota was stable at 90.7% (31 December 2019: 90.7%).
In addition to properties which carry external financing and are encumbered through standard market collateral (e.g. mortgages, pledge of company shares), EUR 1,381.1 million, or 27.1% of the total property carrying amount, were not externally financed and therefore unencumbered as of 30 June 2020 (31 December 2019: EUR 1,434.0 million or 27.3%). Including the S IMMO shares (valued at the EPRA NAV), which are not encumbered by any financing, this value increases to EUR 1,844.8 million or 33.2%.