Immofinanz's profit falls 52% in Q1

Listed Austrian property company Immofinanz posted a 52% drop in first-quarter profit to EUR 28 mln year-on-year, due to a combination of volatile financial markets, changes in currency values and losses from interest-rate swaps.

However, rental income rose 2.5% to EUR 142 mln in the three months to end-July thanks mainly to growth in the retail segment, where income surged by 15.1% or EUR 6.6 mln over the quarter. Residential and logistics also turned in a solid improvement, while rental income in the office segment fell by 12.2%, primarily due to asset sales.

'We are still in the optimisation phase,' commented CEO Eduard Zehetner. 'That is illustrated by higher maintenance and renovation costs, rising rental income and declining administrative costs.'

Immofinanz sold EUR 371 mln of assets over the quarter. The divestments were part of an ambitious five-year, EUR 2.5 bn sale programme aimed at divesting minority stakes in a number of projects across Central and Eastern Europe.

Proceeds will be used to finance development activities in its core markets, the Vienna-based developer said.

The October edition of PropertyEU Magazine features a profile of Immofinanz CEO Eduard Zehetner and Immofinanz. Click on the link below to subscribe