In the first half of this financial year, the rental income of Immofinanz in Hungary increased by 5% and now totals EUR 13.2 million, which accounts for 8.6% of the group’s total rental income, according to an earnings report issued by the real estate firm today.
The Immofinanz’ properties in Hungary (23 standing investments and seven pipeline projects) with a carrying amount of EUR 469.1 mln represent 8.9% of its total portfolio. The existing investment portfolio splits into 11 office buildings (12.8% of the total office portfolio) and 12 retail properties (7% of the total retail portfolio).
Globally, Immofinanz generated results totaling EUR 87.6 mln in the first two quarters of the abbreviated 2016 financial year, for an increase of 28.2% over the comparable period in the previous year. This growth was supported, above all, by an improvement in the results of asset management (plus 5.1% to EUR 107.3 mln) following a substantial decline in the write-off of receivables in Russia and lower vacancy-related and operating costs charged to building owners, as well as a reduction in other operating expenses (from EUR -53.5 mln to EUR -26.1 mln), the press statement on the results says.
In the previous year, these expenses were influenced by non-recurring costs for the settlement of legal proceedings with investors. Net profit for the reporting period amounted to EUR -154.4 mln (H1 2015/16: EUR 133.2 mln). This decline resulted, above all, from foreign exchange-adjusted revaluations of EUR -95.1 mln to the Moscow shopping centers and a market-related (IFRS) valuation of EUR -105.7 mln on the CA Immo shares.
“Our activities in recent quarters included the successful continuation of our focus on the office and retail core businesses, an increase in the efficiency of our portfolio and a further improvement in the occupancy rate. We also completed and opened three retail parks under our STOP SHOP brand and started a number of development projects in the retail sector. However, results for the first half-year were again influenced by the difficult market in Russia and the resulting extensions of the rent reductions granted to tenants,” explained CEO Oliver Schumy.