Immofinanz Hungary represents 8.7% of total portfolio
Properties of Immofinanz in Hungary had a carrying amount of €476.1 million in the past financial year, representing 8.7% of the company’s total portfolio, including 32 properties – 25 standing investments and 7 pipeline projects – according to a financial report issued today.
The standing investment portfolio splits into 12 office buildings, 12% of the total office portfolio, and 13 retail properties, 7.1% of the total retail portfolio, the report added.
At the end of the 2015/16 financial year, rental income in Hungary appeared stable, totaling €25.5 million, accounting for 8.1% of the group’s total rental income, according to the report.
Globally, Immofinanz recorded a net loss of €390.4 million for the 2015/16 financial year, while in 2014/15 it recorded a net loss of €376.6 million. The year-on-year decline resulted primarily from the negative effects of the foreign exchange-adjusted valuation of the Russian portfolio and from a decrease in rental income to EUR 314.5 million (2014/15: EUR 385.6 million) which was caused by temporary rent reductions in Moscow and the planned sale of properties, the company said.
“The past financial year was influenced by numerous events and decisions to set the course for Immofinanz’s transformation into a leading European real estate company, but also reflected the tense political and economic situation in Russia," explained Oliver Schumy, CEO of Immofinanz. "After the very successful spin-off of BUWOG and the sale of our logistics portfolio, our concentration on the office and retail segments was the next step required for future growth. This growth will be organic, for example through recently started development projects in Germany’s office sector, or take place through acquisitions. We were also able to close a negative chapter from the past by reaching out-of-court settlements in lawsuits by investors which originated prior to 2009."
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