P R E S S R E L E AS E

Warimpex in Q1 2018:

Slightly negative result due to partial portfolio sale

  • Reduced property holdings due to partial portfolio sale, associated declines in business operations, and exchange rate losses lead to result for the period of minus EUR 3.0 million

  • Growth and rebuilding property portfolio are clear objectives for 2018 and subsequent years - first steps already taken

  • New cash flows starting at mid-year due to acquisition in Budapest and completion in Łódź

  • Construction progressing according to plan in Łódź and Krakow, development potential in Białystok

Vienna, 30 May 2018 - The successful sale of eight hotel holdings last year also meant the elimination of sources of revenue for Warimpex Finanz- und Beteiligungs AG. As a result, the operating result declined slightly in the first quarter of 2018, which, along with exchange rate losses, led to a result of minus EUR 3.0 million. The company is now shifting its focus back to growing and building up the property portfolio.

"We will achieve these goals by completing our ongoing development projects and launching new projects as well as by purchasing cash flow generating assets that offer potential for the future, as defined by our strategic orientation. At the same time, by completing selective property sales at favourable terms we can secure proceeds that will enable us to rapidly execute reinvestments," explained Warimpex CEO Franz Jurkowitsch.

Warimpex's strategic purchases and sales are particularly well illustrated by its activities in Budapest, where the company concluded an agreement to purchase the B52 Office property after the reporting date. This class A office building offers over 5,200 square metres of space and is fully occupied, which will provide ongoing income once the transaction closes - presumably before the end of the second quarter. According to Franz Jurkowitsch, there is also additional potential in Budapest, as the local office market is currently in a phase of rising rents. In a separate transaction, Warimpex disposed of a development property that is also located in Budapest in May 2018, which brought in proceeds of EUR 5.4 million.

Summary of the results for the first quarter of 2018

The impact of the elimination of the eight hotel holdings on operating business was fully evident for the first time in the first quarter of 2018. Revenues in the Hotels segment fell from EUR 9.5 million to EUR 2.4 million as a result of the sale. The revenues of the hotel holdings that were sold were still included in the revenues reported in the first quarter of 2017. Revenues from the rental of office properties rose from EUR 2.5 million to EUR 3.8 million, largely due to the completion of the fully occupied Bykovskaya multi-use building at

AIRPORTCITY St. Petersburg. Overall, consolidated revenues contracted from EUR 12.4 million to EUR 6.7 million.

The reduced portfolio volume also resulted in a decline in EBITDA from EUR 2.3 million to EUR 1.3 million.

EBIT went from EUR 3.4 million to EUR 1.2 million, and the financial result dropped from EUR 2.4 million to minus EUR 4.1 million due to exchange rate losses. This led to a result of minus EUR 3.0 million for the traditionally weak first quarter (2017: EUR 4.7 million).

Developments in Łódź, Krakow, and Białystok

In terms of development projects, construction is progressing according to plan for the Ogrodowa office building in Łódź and the Mogilska office building in Krakow. Leases have already been signed for a portion of

the space at both office buildings. The Ogrodowa office building will start generating cash flows upon its completion at the end of the second quarter. Also in Krakow, Warimpex is planning the construction of an office building with around 21,000 square metres of space on a development property next to the Chopin Hotel. In Białystok, Warimpex owns a building plot that was expanded through the purchase of adjacent lots

last year. Four office properties will be built on this site in multiple phases.

Outlook

"We expect a significant reduction of interest costs in the current financial year due to the early redemption of bonds and the elimination of project loans. Along with our project pipeline and the favourable environment for real estate investments, this makes us highly optimistic for the rest of the year," said Jurkowitsch in closing.

Key financial figures for the first quarter of 2018 at a glance:

EUR '000

1-3/2018

Change

1-3/2017

Hotels revenues

2,381

-75%

9,451

Investment Properties revenues

3,803

51%

2,520

Development and Services revenues

506

17%

432

Total revenues

6,690

-46%

12,403

Expenses directly attributable to revenues

-3,236

-58%

-7,787

Gross income from revenues

3,453

-25%

4,616

Gains or losses from the disposal of properties

-

-

125

EBITDA

1,302

-43%

2,267

Depreciation, amortisation, and remeasurement

-129

-

1,154

EBIT

1,173

-66%

3,421

Earnings from joint ventures

-770

88%

-409

Profit or loss for the period

-2,975

-

4,736

Net cash flow from operating activities

184

-92%

2,237

Segment information (including joint ventures on a proportionate basis):

Hotels revenues

8,585

-46%

15,940

Hotels net operating profit (NOP)

1,108

-67%

3,388

NOP per available room

1,083

-16%

1,294

Investment Properties revenues

4,840

35%

3,574

Investment Properties EBITDA

3,813

36%

2,807

Development and Services revenues

657

- 34%

994

Gains or losses from the disposal of properties

-

-

125

Development and Services EBITDA

-1,619

-

-724

31/12/20171

Change

31/12/20161

Gross asset value (GAV) in EUR millions

202.5

-41%

343.3

NNNAV per share in EUR

2.4

26%

1.9

1As no external valuation of the portfolio was completed as at 31 March 2018 or 31 March 2017, the latest available values are shown.

Warimpex Finanz- und Beteiligungs AG at a glance

Warimpex Finanz- und Beteiligungs AG is a real estate development and investment company. The firm is headquartered in Vienna and is listed on the stock exchanges in Vienna and Warsaw. Its core focus is the construction and operation of hotels and offices in Central and Eastern Europe. Due to this combination of real estate development and asset management, Warimpex sees itself as a "hybrid" real estate company that operates properties itself until the time at which the highest added value can be realised through sale. The company has developed properties worth over one billion euros over the past 30 years and is currently active in CEE, Russia, Austria, and France. Warimpex believes in quality and sustainability as the basis for strong future growth.

Contact:

Warimpex Finanz- und Beteiligungs AG

Ecker & Partner Öffentlichkeitsarbeit

Christoph Salzer,presse@warimpex.com

und Public Affairs GmbH

Daniel Folian,investor.relations@warimpex.com

Nele Renzenbrink, Barbara Hirsch

Tel. +43 1 310 55 00

presse@warimpex.com

www.warimpex.com

Tel. +43 59932-23

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Warimpex Finanz- und Beteiligungs AG published this content on 30 May 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 30 May 2018 06:07:12 UTC