IMMOFINANZ Bonds

Financing Strategy and 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 quarter of 2021

Financial liabilities (excluding lease liabilities of EUR 78.9 million in accordance with the application of IFRS 16; including IFRS 5) totalled EUR 3.1 billion as of 31 March 2021 (31 December 2020: EUR 3.2 billion). Cash and cash equivalents, including cash and cash equivalents held for sale, amounted to EUR 900.0 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 at the end of March 2020 was not in use as of the balance sheet date and is therefore available in full. This credit line can be used at the company’s discretion up to 31 March 2022 and gives IMMOFINANZ added financial flexibility.

IMMOFINANZ has a robust balance sheet structure with an equity ratio of 46.3% (31 December 2020: 45.1%) and a net loan-to-value ratio (net LTV) of 39.5% (31 December 2020: 37.8%).

Net LTV Q1 2021

The average financing costs for IMMOFINANZ, including derivatives, equalled 1.98% per year as of 31 March 2021 (31 December 2020: 1.99% per year). The hedging quota was stable at 87.3% (31 December 2020: 88.6%).

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 1,551.7 million, or 29.9% of the total property carrying amount, were not externally financed and therefore unencumbered as of 31 March 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 2,040.2 million or 35.9%.

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 31 March 2021 is as follows:

Weighted average interest rate of the financial liabilities	Outstanding liability in TEUR as of 31 03 2021	Total average interest rate incl. expenses for derivatives in %1
Convertible bonds²	289,009.2	1.50
Corporate bonds	972,550.4	2.56
Bank liabilities³	1,885,064.5	1.75
IMMOFINANZ	3,146,624.2	1.98
^{1 Calculation basis: actual remaining debt}^{(nominal amount), excluding the mandatory convertible bond}^{2 Convertible bond 2017–2024 (coupon reduced to 1.5% after receipt of an}^{investment grade rating) as well as future coupon}^{payments for the mandatory convertible bond 2020–2023 which are}^{classified as debt.}^{3 Including IFRS 5}

The remaining balance of the financial liabilities held by IMMOFINANZ totalled EUR 3,146.6 million as of 31 March 2021.

Bonds

The outstanding nominal value of the bonds totalled EUR 1,397.3 million as of 31 March 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 (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 bonds issued in January 2019 and October 2020.

	ISIN	Maturity	Coupon in %	Nominal value as of 31 12 2020 in TEUR	Repurchases/ redemptions/ conversions/ new issues 2021 in TEUR	Nominal value as of 31 03 2021 in TEU
Corporate bond	XS1935128956	27 01 2023	2.63	482,800	0	482,800
Corporate bond	XS2243564478	15 10 2027	2.50	500,000	0	500,000
Convertible bond	XS1551932046	24 01 2024¹	1.50²	294,500	0	294,500
IMMOFINANZ			2.32	1,277,300	0	1,277,300
Mandatory convertible bond³	AT0000A2HPN2	23 07 2023	4.00	120,000	0	120,000
IMMOFINANZ			n. a.	1,397,300	0	1,397,300
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.