Sparkassen Immobilien AG Report on the first half of 2004

Transcription

1 Sparkassen Immobilien AG Report on the first half of 2004 Dear Ladies and Gentlemen, Shareholders and Investors, Will we have to work longer in the future? Are our pensions secure, and how long will they actually last? Everyone is concerned with these questions at present, and now that both employees and laborers know that they will not be eligible for pension benefits until later, they can only hope that at least the 38.5 hour workweek will be upheld. Given these types of uncertainties on the topic of working lifetime, the stability of capital investments is becoming more and more important. After all, no one wants to worry about all aspects of life indefinitely. Private portfolios to secure retirement benefits or to supplement income are increasing in significance. These portfolios should be as safe as possible while also bringing high yields. Demand for a stabilizing element in investment portfolios is growing, given the high volatility of stock and bond markets in recent years. The advantages of alternative investments are often mentioned. Such investments provide sound earnings regardless of the current market situation, leaving investors free of worries. But does this really work? It does, as long as you have the right product. But what is the right product? The current investment fad, or the product with the highest offering premium since of course only this will be the best? An investment in real estate securities is one alternative investment that can benefit investors greatly. Our real estate securities are deliberately designed to be conservative and safe, and our investors have been enjoying steady increases in value for years. However, since a security is only as good as the underlying property portfolio, we are always on the lookout for suitable investment opportunities. We were again successful in this in the period under review, acquiring new properties both in Austria and abroad. A property acquired in Vienna gave Sparkassen Immobilien AG its first logistics complex. In addition, the property in Vienna s 14 th district has high added value potential since construction is only 60% completed. Our second new acquisition is located in Budapest on the west bank of the Danube. This adds another office property to our Hungarian portfolio. The property has a high occupancy level and is in excellent condition. These two properties will not be added to the relevant accounting group until the third quarter of 2004, however. Bolstered by high demand for our securities and supported by the confidence of our investors, we are putting a great deal of energy into our work for Sparkassen Immobilien AG. Your Management Board team Mag. Ernst Vejdovszky eh. Mag. Heinrich Reimitz eh.

2 Consolidated balance sheet as of June 30, 2004 (in EUR 000s) ASSETS Change in % A. Non-current assets I. Intangible assets II. Property, plant and equipment 388, , % III. Financial assets 5,206 1,303 IV. Non-current receivables 338 1, , , % B. Current assets I. Receivables and other assets 15,505 19,293 II. Securities and shares 0 4,180 III. Cash and cash equivalents 3,800 50,437 19,305 73,910 C. Prepaid expenses 1, , , % EQUITY AND LIABILITIES A. Equity 199, , % B. Minority interests C. Non-current liabilities 1. Debenture-like profit participation rights 134, , % 2. Non-current liabilities to banks 32,473 41,374-22% 3. Provisions 7,122 2, Other liabilities 21,278 20, , ,191 D. Current liabilities 18,373 29,944 E. Deferred income 2,030 3, , , % Consolidated income statement for the period from January 1, 2004 June 30, 2004 In EUR 000s Change in % Revenue 17,124 14, % thereof rental income 14,156 11, % Other operating income Income from the disposal of property Aggregate operating performance 17,734 15, % Depreciation/amortization -4,699-4,160 Other operating expenses -6,282-5,517 Earnings before interest and tax 6,753 6, % Net financial income/expense -3,106-2,321 Earnings before tax 3,647 3,819-5% Income taxes Net income for the period 3,009 2,877 Minority interests 0-16 Net profit for the period 3,009 2, %

3 Segment reporting as of June 30, 2004 (in EUR 000s) AUSTRIA HUNGARY CZECH REPUBLIC Total Revenue 8,964 52% 3,827 22% 4,333 25% 17,124 Earnings before interest and tax 2,641 39% 1,857 27% 2,255 33% 6,753 Condensed consolidated cash flow statement for the period from January 1, 2004 June 30, 2004 In EUR 000s Change in % Earnings before tax 3,647 3,819 Depreciation/amortization 4,699 4,160 Income from the disposal of property Income taxes paid Net interest income 3,106 2,321 Group cash flow 11,379 9, % PRODUCTS OF s IMMOBILIEN AG s IMMOBILIEN AG offers two attractive real estate products from a single source: s IMMO Aktie dividend reinvestment stock s IMMO INVEST dividend-paying participatory certificates The proprietary structure at s IMMOBILIEN AG is characterized by a strict separation of our products s IMMO Aktie and s IMMO INVEST. The assets and returns of the two investment groups are accounted for separately. s IMMO Aktie Stock exchange data ISIN No. AT Profit appropriation reinvestment Admitted to the stock exchange for official trading Trading segment auction market Reuters SIAG.VI Performance data as of June 30, 2004 Initial listing on June 28, Share price as of June 30, Performance for one year 5.5% Performance since initial listing 4.9%

4 Performance s IMMO Aktie 8,00 7,80 7,60 7,40 7,20 7,00 6,80 Jun.02 Jul.02 Aug.02 Sep.02 Okt.02 Nov.02 Dez.02 Feb.03 Apr.03 Mai.03 Jun.03 Jul.03 Aug.03 Sep.03 Okt.03 Nov.03 Dez.03 Feb.04 Apr.04 Mai.04 Jun.04 Key figures for s IMMO Aktie Share price as of June 30, Number of shares issued 30,375,000 30,375,000 Market capitalization (in EUR million) Cash flow per share (in EUR) Price/cash flow ratio Assets of s IMMO Aktie in EUR million (carrying amounts) Change Property portfolio % Equity investments Receivables Securities Cash and cash equivalents Prepaid expenses Total assets % Liabilities to banks Other liabilities Subsidies/tenant contributions to financing costs Total liabilities % Equity % Key earnings figures for s IMMO Aktie in EUR million Change Revenue % thereof Rental income % Earnings before interest and tax % Earnings before tax % Earnings after tax %

5 Property assets increased significantly (17%) in the reporting period in line with the expansion plan. Revenue also rose substantially, as clearly reflected in the growth of EBIT and EAT (55%). s IMMO INVEST Stock exchange data ISIN No. AT Profit appropriation annual dividend payments debenture-like participation right in accordance with 174 of the Austrian Stock Corporation Act Legal form (AktG) Admitted to the stock exchange for official trading Trading segment other listings Reuters SIMIg.VI Performance data Initial listing on December 29,1996 Share price as of June 30, year 4.7% 3 years 5.1% Performance since date of issue 6.7%

6 Key figures for s IMMO INVEST participation certificate Share price as of June 30, Number of certificates issued 2,040,000 1,700,000 Market capitalization (in EUR million) Cash flow per certificate Price/cash flow ratio Assets of s IMMO INVEST (participation certificate capital) in EUR million (carrying amounts) Change Property portfolio % Equity investments Receivables Securities Cash and cash equivalents Prepaid expenses Total assets % Liabilities to banks Other liabilities Subsidies/tenant contributions to financing costs 0 0 Total liabilities % Participation certificate capital % Key earnings figures for s IMMO INVEST (participation certificate capital) in EUR million Change Revenues % thereof Rental income % Earnings before interest and tax % Not only did the property portfolio of s IMMO INVEST increase during the reporting period (22%); revenue also increased markedly (14%). Rental income from the s IMMO INVEST accounting group increased a pleasing 14%. Property portfolio transactions OMV Building 1 Otto Wagner Platz, 1090 Vienna The centrally located, historically significant building on Otto Wagner Platz offers very wellequipped total floor space of over 10,000 m². This property is distinguished by its excellent location in the immediate vicinity of the city center with links to the public transportation network.

7 OMV Building 2 Gerasdorfer Strasse, 1220 Vienna The property on Gerasdorfer Strasse in the north of Vienna offers around 11,300 m² of modern office infrastructure on grounds totaling 40,000 m². The property is located in a rapidly growing area. Both properties are leased long term to OMV, the former owner, and represent an ideal addition to the property portfolio based on Sparkassen Immobilien AG s long-term investment strategy. HOTEL JULIUS Wenzelsplatz 22, Prague The hotel s total of eleven floors and 7,754 m2 contain the World Class Fitness Center belonging to the Swedish World Class Group, the Sport Town sports fashion store, and City Appartements, which manages 72 modernly equipped apartments at this exclusive address. Hotel Julius is ideally located, directly on Wenceslas Square. Tenants benefit from the high passenger traffic in this area. The traffic links are also ideal. The building is only a few meters away from the metro station and other major public transportation. In purchasing this building, which is fully leased, Sparkassen Immobilien AG again complied fully with its strict investment guidelines. The property generates a return on investment of over 9% and is regarded as an extremely safe investment due to the tenant structure and the long-term leases. With the addition of Hotel Julius, Sparkassen Immobilien AG now has over six income-generating properties in Prague, four of which are in the city s most central location, the first district. Occupancy levels In the period under review, new long-term leases were entered into for a total floor space of approx. 9,300m². The occupancy levels are excellent for both accounting groups. For instance, the occupancy levels for s IMMO INVEST have increased once again and are currently nearly 98%. Occupancy levels for s IMMO Aktie reached a level of 95%. MARKET REPORT Domestic report AUSTRIA - VIENNA Vienna continues to dominate the Austrian market for office property. At present, Vienna has approximately 9.2 million m² of office space. New office space amounts to between 2.5 and 3.5 percent of the total available space each year. A total of approx. 1.7 million m² of office space was constructed from 1993 to 2003, including complete rehabilitations of old buildings.

8 Experts estimate the vacancy level on Vienna s office market at around 6%. Despite the increase in vacancies, the Austrian capital is doing extremely well in comparison with other international countries. A slight increase is expected for the coming year. Rent prices are stagnating with a slightly declining tendency where traffic links are less than ideal. Vienna is at the lower end of the European scale with top rents of approx. EUR 22 per m² per month. Stable returns are assured due to a traditionally low rate of fluctuation on Vienna s real estate market. Investors appreciate this low risk, and are continuing to invest in the Austrian market. According to information from various experts, rent yields are at a safe 5%. Foreign report HUNGARY BUDAPEST Not only since the decision to admit Hungary to the EU has the Hungarian real estate market been of interest to investors. Despite continuing high vacancy rates, rents for modern office space appear to be stabilizing at the current level. Tenants are particularly interested in locations in and near the city center. Vacancy rates were still at approx. 20% in Budapest s office market in This year, this figure fell below the 19% level and is expected to continue declining in the coming year. Top rents are between EUR and 18.00/m² per month (source: DTZ Commercial Property Markets Overview 2004). A return on investment of approx. 8% has been estimated by international investment brokers, which is still quite respectable in comparison with other European cities. CZECH REPUBLIC PRAGUE Along with Poland and Hungary, the Czech Republic is one of Central Europe s most interesting countries for real estate investors. The country is currently experiencing a second investment boom following the high investment levels particularly in Prague of the mid- 90s, after which the market consolidated. Now, however, investment activity has picked up to nearly the level of eight years ago. This has led to a slight increase in vacancy rates in comparison with the previous year: No tenants were found for approximately 12.5% of the units. The real estate market in Prague is increasingly approaching the European level. While yields in 1997 were still nearly 12%, they have steadily declined to today s level of almost 8% due to the corresponding decrease in investment risk. In the Prague market for office space, top rents of EUR 19.00/m² per month can be attained in prime locations (source: DTZ Commercial Property Markets Overview 2004). Sparkassen Immobilien Aktiengesellschaft A-1060 Vienna Windmühlgasse Phone: +43 (0) Fax: +43 (0) Investor Relations: Andreas Feuerstein Mag. Monika Stabla office.s-immobilien@immorent.at We have prepared this interim report with the greatest possible care and checked all data. It is nevertheless not possible to rule out errors in rounding, transmission, typesetting or printing. The automated calculation of figures may result in what appear to be errors due to the rounding off of numbers.