Immofinanz sees 7% profit increase

Listed property company Immofinanz reported a 7.1% increase in net profit to €225.8 mln over the first three quarters of 2013/14, despite a drop in rental income.

The Vienna-listed company, whose financial year runs to April, saw rental income drop 5% year-on-year as it sold a number of assets and the completion of the Goodzone mall in Moscow was delayed.

‘We sold properties with a value of €863.1 mln during the first three quarters of 2013/14,’ said Eduard Zehetner, the group’s CEO. ‘With these results, we met the target for the five-year, €2.5 bn sales programme that was launched in 2010/11 - as expected - earlier than planned.'

Cash from sales has been reinvested, partly in the 56,000 m2 Goodzone mall in Moscow, which was due to open in Q4 2013.

The rise in profits was driven by ‘sound operating development, positive effects from foreign currency translation and the valuation of derivatives,’ the company said.