Vienna, 22 August 2018. CA Immo presents a very positive interim balance sheet as at 30 June 2018. In the first half of the year, important operational measures were taken to ensure continued sustained, profitable growth. In the wake of dynamically implementing the development pipeline, the KPMG office building, a fully let project completion, was transferred to CA Immo's property portfolio. With Campus 6.1 in Bucharest and Visionary in Prague, CA Immo has additionally acquired two high-quality office buildings in the first half of the year, which will further strengthen rental income in the years ahead.

Andreas Quint, CEO of CA Immo: "Our operating business continues to run very successfully, as we were able to further expand our high level and increase the company value in the first half of 2018, following the 2017 record year. In addition to working off our project pipeline as scheduled, we have added two prime office buildings to our property portfolio in CEE with a total transaction volume of approx. €120 m. This helped us to successfully implement a key strategic target set for 2018 at an early stage, aiming at continuously increasing our rental income, and with it our long-term profitability." 

Results for the first half of 2018
Long-term revenue (FFO I) increased by 12.8% on the 2017 figure of €56.0 m to €63.2 m. FFO I per share totalled €0.68, up 13.2% on last year’s reference value. As in preceding quarters, this underlines operational development that was both highly robust and independent of the valuation result and which forms the basis for the long-term dividend policy of CA Immo. FFO II, which includes the sales result and applicable taxes, stood at €63.4 m (€54.8 m in 2017). FFO II per share stood at €0.68 (€0.59 per share in 2017), an increase of 16.1% year-on-year. 

Rental income for CA Immo increased by 5.9% to €93.8 m in the first half of 2018. This positive development was mainly the result of the acquisition of the Warsaw Spire Building B in the Polish capital and the associated increase in rent. Completion of the KPMG building and a new large-scale letting in Berlin delivered further growth momentum. Net rental income after the first two quarters was €86.8 m, up 8.4% on the 2017 value of €80.1 m. 

The sales result from property assets held as current assets stood at € 5.1 m (2017: €2.2 m) on the key date. The result from the sale of properties held on a long-term basis amounted to € 4.4 m as of 30 June 2018 (2017: € 4.2 m). The largest contribution to earnings included here came from the sale of a non-strategic site in Munich.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at €79.3 m, a significant 12.8% above the previous year’s level. This positive development was made possible thanks to higher long-term revenue as well as a higher sales result in yearly comparison.

The revaluation result was highly positive at €48.7 m on key date 30 June 2018, above the 2017 figure of €39.9 m. The largest contributions to the revaluation gain in terms of amount came from value adjustments to the German real estate portfolio on the basis of higher land values. The result from joint ventures was €22.9 m after the first six months (2017: €39.7 m) thanks to a positive effect linked to the sale of Tower 185. 

Earnings before interest and taxes (EBIT) were €149.8 m, 0.9% above the corresponding figure for last year of €148.5 m. The financial result stood at €-26.5 m (€–13.3 m last year). Financing costs were reduced to 1.7%, while the term was extended at the same time. In addition, the financial result contained a non-cash valuation effect in connection with the outstanding convertible bond of €–16.8 m. Earnings before taxes (EBT) of €123.3 m were 8.9% down on the 2017 value of €135.2 m. Adjusted to take account of the convertible bond valuation effect, however, there was an increase of 3.6%. The result for the period totalled €89.6 m or €0.96 per share (2017: €106.7 m or €1.14 per share). 

Robust balance sheet indicators
With an equity ratio of 50.0% and a conservative loan-to-value ratio (net debt to property as-sets) of 34.3%, the strength of CA Immo’s balance sheet provides an extremely sound basis on which to implement the Group’s growth strategy. 
Net asset value (shareholders’ equity) was €26.02 on the key date (€25.95 per share on 31.12.2017). The EPRA NAV was up 1.1% at €30.42 per share as of 30 June 2018 (€30.09 per share in 2017). Adjusted to take account of the dividend payment of 80 cents per share in May 2018, the EPRA NAV rose by 3.8%. 

As at key date 30 June 2018, CA Immo’s total property assets stood at € 4.0 bn (31.12.2017: € 3.8 bn¹⁾), including investment properties (83% of the total portfolio) and investment properties under development (16% of the total portfolio). Properties intended for trading (reported under short-term property assets) account for the remaining 1% of property assets. Of the investment property portfolio with an approximate book value of € 3.3 bn (31 December 2017: € 3.2 bn), around 49% (based on book value) is located in CEE and SEE nations, with 36% of the remaining investment properties in Germany and 15% in Austria. The portfolio produced a yield of 6.1 % ); the occupancy rate was 94.6 %²⁾ as at 30 June 2018. Of investment properties under development with a total book value of around € 645.8 m, development projects and land reserves in Germany account for 84 %, while the Eastern Europe segment represents 11% and Austria 5 %. 

Dynamic pace of growth maintained
The in-house development of high quality properties on core markets and subsequent transfer to the asset portfolio is a significant driver of organic growth for the CA Immo Group, enabling long-term earning power and thus the dividend paid to shareholders to be steadily raised. Including the KPMG building in Berlin’s Europacity, which was completed in Q1 2018, four buildings newly developed by CA Immo with a total investment volume of around € 230 m will be added to the portfolio in 2018: Office properties ViE in Vienna, Orhideea in Bucharest and the Steigenberger Hotel at Frankfurt’s main station. 
Selective acquisitions on CA Immo’s core Eastern European markets are sustaining the strong pace of organic growth. Following on from successful acquisitions in Budapest, Warsaw and Bucharest in previous quarters, another value-generating purchase was confirmed in Prague in quarter two of 2018. Acquisition of the new Visionary office building (approximate transaction volume of €65 m) with gross rentable space of 23,000 sqm will lead to an increase in annual rental revenue of around €4 m (given full occupancy).

Outlook 
General conditions are expected to remain favourable on the core markets of CA Immo in the second half of the year. The annual target for long-term revenue – an increase in FFO I on last year’s value of €106.6 m to over €115 m – is hereby confirmed.

The financial report for CA Immobilien Anlagen AG as at 30 June 2018 is published on the company’s website at http://www.caimmo.com/en/investor-relations/financial-reports/. 

^{1) Figure was adapted according to IFRS 9 and IFRS 15}

^{2) Excl. properties used for own purposes and the office building Visionary in Prague, which is still in the stabilization phase (completed in April 2018 and acquired by CA Immo in June 2018)}