IMMOFINANZ announces preliminary results for 2014/15: improvement in results of operations, but net profit negatively influenced by valuation effects
Preliminary figures indicate that IMMOFINANZ generated results of operations totalling approx. EUR 316.5 million in the 2014/15 financial year – for a year-on-year increase of 17% (2013/14: EUR 270.5 Mio.). Higher results from property sales and property development more than offset the expected decline in asset management results, which reflected the temporary reduction in rental income from Russia and the sale of properties during the year.
In spite of this positive development, net profit is expected to be negative at EUR -361.4 million for 2014/15 (2013/14: EUR 72.0 million, resp. EUR 176.9 million incl. 100% of BUWOG). This development is attributable above all to the current economic conditions in Russia, which were reflected in the valuation of the Moscow shopping centers, and to the write-down of a number of office properties in Eastern Europe because of the competitive market environment or pending modernisation projects. Financial results were also substantially lower than in the previous year, primarily due to negative non-cash foreign exchange effects from the valuation of the USD financing for the Moscow shopping centers and a negative non-cash effect from the valuation of the exchangeable bond for BUWOG shares.
Based on the earnings situation in 2014/15 and the uncertainty connected with future forecasts for Russia, the Executive Board of IMMOFINANZ will not recommend the payment of a dividend for the 2014/15 financial year to the annual general meeting.
IMMOFINANZ will announce final results for the 2014/15 financial year as planned on 6 August 2015 after the close of trading on the Vienna Stock Exchange. On 7 August 2015, the Executive Board will furthermore issue a statement on the property group’s future orientation.