Austrian investor Immofinanz saw its net profit surge to €118 mln in the first quarter ended July 31, versus €10 mln in the same period a year before.
Austrian investor Immofinanz saw its net profit surge to €118 mln in the first quarter ended July 31, versus €10 mln in the same period a year before.
The strong performance was due to solid results from its operating business and positive effects from foreign currency conversion and the valuation of derivatives.
Results from operations rose by nearly 9% to €134 mln in the first quarter of 2013/14.
'The first quarter failed to bring any positive economic impulses, but we still made sound progress with the optimisation of our portfolio. All three operating areas - asset management, trade and development - contributed to the increase in results from operations,' said Eduard Zehetner, CEO of Immofinanz.
Rental income declined slightly to €161 mln from €162 mln in 2012, largely as a result of properties sold over the past year.
Looking ahead, Zehetner said that activities will also focus on the reduction of operating costs and cash flow generation. Buwog, the company's residential arm, will be strengthened through further property acquisitions in Germany, in preparation for a possible initial public offering (IPO) or spin-off during 2014.
'Our goals for separating Buwog from our commercial real estate portfolio are to allow for a market valuation that is significantly higher than its current standing as part of Immofinanz’s mixed portfolio,' commented Zehetner.
