For 2020, CA Immo reported increased operating profit and a positive consolidated net profit. Portfolio growth through own project completions and portfolio acquisitions in combination with the continued high occupancy rate of the investment portfolio (occupancy rate: 95%) led to a further increase in net rental income (+8% compared to the previous year) and the operating result (+14%).
Key figures
- Net rental income increased by 8% to €209.7 million (2019: €194.7 million)
- Operating result (EBITDA) of €195.6 million 14% above the previous year's value of €171.7 million. Adjusted for a one-off effect (provision for possible court fees), the EBITDA is €221.1 million (+29% compared to the previous year)
- Positive revaluation result of €183.5 million reflects, among other things, the profitable development activities and the persistently attractive market environment, especially in Germany (2019: €462.8 million)
- Strong consolidated net profit of €254.0 million significantly below the previous year´s figure (2019: €393.3 million), mainly due to the lower revaluation result year-on-year
- Property assets increased by 8% to €5.6 billion driven by strong organic growth
Andreas Quint, CEO of CA Immo said: "We met the exceptional year 2020 with continuity by consistently pursuing the strategic path we have taken to date: continued organic growth through our own project developments and targeted portfolio acquisitions of high-quality office properties in central locations in our core cities. At the same time, we pressed ahead with various strategic projects – such as the successful issue of bonds with a total volume of €850 million and our integrated sustainability initiative – in order to make CA Immo even more stable and secure for the future. The result is sustainable growth and a resilience that has enabled us to navigate confidently through the crisis year 2020. This rock-solid and at the same time highly dynamic operating performance allows us to look forward with great optimism to another year of strong growth in 2021 from a position of strength."
Results of the business year 2020
FFO I, a key indicator of the Group’s long-term earning power, is reported before taxes and adjusted for the sales result and other non-recurring effects. In 2020, an FFO I of €133.8 million was generated, 0.4% above the previous years’ value of €133.3 million. The FY 2020 guidance of €126+ million was therefore exceeded. FFO II, which includes the sales result and applicable taxes and indicates the Group's overall profitability, was €141.1 million compared to €122.3 million in 2019 (+15.4% compared to the previous year).
Rental income increased by 6.7% to €235.6 million in 2020. In addition to the successful management of the investment portfolio with a high occupancy rate, this positive development is related to the organic portfolio growth of the past months. The net rental income attributable to leasing activities after the deduction of direct management costs rose by 7.7% from €194.7 million to €209.7 million. The COVID-19 pandemic had a negative impact of €7.8 million on the net rental income as of the balance sheet date. This mainly relates to individual value adjustments and, to a lesser extent, rent reductions, which, however, are offset by countervailing effects from incentive agreements (rent-free periods).
Earnings before interest, taxes, depreciation and amortization (EBITDA) of €195.6 million were up 13.9% on the previous year's level of €171.7 million. This growth is mainly based on the higher rental income and the significantly increased sales result compared to 2019. EBITDA adjusted for the BUWOG one-off effect amounted to €221.1 million, a significant increase of 28.7% compared to the previous year's value, which reflects the company's robust operating business development.
Earnings before taxes (EBT) of €348.3 million (2019: €539.3 million) recorded a significant year-on-year decline of 35.4% based on the earnings developments described above.
At €253.9 million, net profit for the period was 35.4% below the previous year's figure of €393.3 million. Earnings per share (undiluted) amounted to €2.73 (2019: €4.23 per share).
Property assets further increased to €5.6 billion
Due to the transfer of own project completions to the portfolio, portfolio acquisitions and a positive valuation result, the book value of the property assets increased further by 8% during the year to €5.6 billion (2019: €5.2 billion). Property assets include investment properties (85% of the total portfolio) and investment properties under development (14%), the remaining 1% is accounted for by short-term property assets (intended for trading and sale). Of the investment portfolio with a value of approx. €4.7 billion (2019: €4.3 billion), 47% account for Germany, 42% for CEE and 11% for Austria. The portfolio yield was 5.2% (2019: 5.5%), the occupancy rate stood at 94.8% (2019: 96.1%). Properties under development include projects under development and land reserves with a total book value of around €826 million (incl. projects and land reserves intended for trading and sale), of which Germany accounts for 95% and CEE for 5%.
Outlook for 2021
The main challenge for the current year remains the fight against the COVID-19 pandemic. Possible improvements in the pandemic situation, accompanied by a recovery in economic growth across the board, are heavily dependent on the progress of vaccinations. Although the ultimate effects of the pandemic and the economic consequences cannot be conclusively assessed because of the speed of developments, CA Immo continues to monitor the situation and deploys a wide range of measures to minimise the impact on the Group. Despite the continuing uncertain environment, CA Immo continues to expect only minor or short-term effects of the COVID-19 pandemic on its operating business.
