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DGAP-News: IFM Immobilien AG: IFM Concludes Q1 at a Loss while Outlook for 2014 Remains Bright

May 22, 2014

DGAP-News: IFM Immobilien AG / Key word(s): Quarter Results/Interim Report IFM Immobilien AG: IFM Concludes Q1 at a Loss while Outlook for 2014 Remains Bright 22.05.2014 / 17:08 --------------------------------------------------------------------- - Negative effect on earnings through follow-up costs for the sold "Zeilgalerie" asset - Operating profit at EUR -1.5 million (previous year: EUR 0.5 million) - Consolidated profit at EUR -1.2 million (previous year: EUR 0.2 million) - Earnings per share at EUR -0.12 (previous year: EUR 0.02) - Equity ratio climbs to 50.2 % Frankfurt am Main, 22 May 2014 - German group IFM Immobilien AG concluded the first quarter of its 2014 financial year at a loss, but continues to predict a positive year-end result. The decline in operating profit is essentially explained, aside from the decrease in rent revenues and in earnings from market valuations of investment properties, by the subsequent costs of fireproofing the "Zeilgalerie" property in Frankfurt am Main that IFM disposed of. As a result, the operating profit (earnings before taxes) dropped to EUR -1.5 million (previous year: EUR 0.5 million). The consolidated income equalled EUR -1.2 million (Q1 2013: EUR 0.2 million). The consolidated revenues of the three opening months of 2014 came to EUR 2.7 million, suffering a one-year drop by 38.3 % (Q1 2013: EUR 4.4 million). The quarterly report including the full-length consolidated financial statements of IFM Immobilien AG for Q1 2014 was published online today (go to www.ifm.ag). Volker de Boer, Member of the Board of IFM Immobilien AG: "While this latest quarter-end result may not reflect the fact, IFM has continued to perform quite handsomely in recent weeks. We have completed another two property sales, and implemented value-add restructuring and refurbishment measures for the properties in our portfolio, which will pave the way for profitable sales in the future. The market environment remains favourable, especially with a view to the lively demand among domestic and foreign investors for German real estate. We at IFM feel that the situation finds us well prepared. On the one hand, our portfolio includes attractive, marketable assets, and on the other hand, we are in a great starting position for the acquisition of new projects because our equity capitalization is ample, and because we have excellent access to the market both on the buyer and on the seller side. In the coming months, we intend to exploit these sound baseline conditions in order to keep selling assets, continue to upgrade our portfolio assets, and to tackle new projects." Group Revenue and Earnings Performance The decline in consolidated revenues is essentially explained by the cessation of rental income streams due to the disposal of the properties "Romeo & Julia," "Zeilgalerie" in Frankfurt am Main and "Office Tower" in Darmstadt, and by the associable reduction in revenues due to change of incidental expenses. With a total of EUR 2.0 million, the rental income of the first quarter of 2014 declined by around 38.8 % year on year (EUR 3.3 million). The earnings from market valuations of investment properties totalled EUR 0.1 million by the end of the reporting period (Q1 2013: EUR 1.0 million). IFM achieved a consolidated profit after taxes in the amount of EUR -1.2 million during Q1 2014 (Q1 2013: EUR 4.6 million). This translates into EUR -0.12 in basic earnings per share earnings per share (Q1 2013: EUR 0.02). Consolidated Balance Sheet Performance IFM Group's total assets dropped from EUR 272.8 million to EUR 235.7 million by 31 March 2014. The 13.6 % one-year dip since the reporting date of the previous financial year ending 31 December 2013 is essentially attributable to the fact that the disposal of the "Zeilgalerie" property was recognised in the meantime, and to a corresponding reduction of the loan debt as a result of the transaction. The value of the investment property rose by 9.7 % to EUR 165.3 million, reflecting mainly the acquisition of the Ulmenstrasse 22 property in Frankfurt am Main, and the value-add restructuring work undertaken for the properties "Maxxon" in Eschborn, "Das CarrÉ" in Heidelberg, and "GutenbergPark" in Mainz. The equity ratio, which stood at 43.8 % by the reporting date 2013, rose to 50.2 % by the end of the first quarter of 2014. For inquiries, please contact: Peter Dietze-Felberg Dr. ZitelmannPB. GmbH Rankestrasse 17 D-10789 Berlin Tel.: +49 (0) 30 72 62 76-165 Fax: +49 (0) 30 72 62 76-162 E-mail: dietze@zitelmann.com Corporate contact: IFM Immobilien AG Karlo SchwÖbel Frankfurt office: Heidelberg office: Ulmenstrasse 23-25 Karl-Ludwig-Strasse 2 D-60325 Frankfurt D-69117 Heidelberg T. +49 (0) 69 9686700-42 T. +49 (0) 6221 434 06-22 F. +49 (0) 69 9686700-25 F. +49 (0) 6221 434 06-66 E-mail: welcome@ifm.ag, www.ifm.ag About IFM Immobilien AG: IFM Immobilien AG is an investor and project developer specifically of commercial real estate, with an emphasis on office and downtown retail use types. In addition to conventional project development, its business operations include the redeveloping, restructuring and repositioning of commercial properties. The properties that IFM acquires are generally distinguished by what IFM deems an attractive risk / reward profile, great potential for development and appreciation, and preferred locations. Using this strategy and the group's core competencies in the areas of redevelopment, restructuring and repositioning, IFM Immobilien AG revitalises properties and thereby creates what it believes will be sustainable property values. Key Ratios of IFM Group (IAS/IFRS) Key performance in MM euros 01/01 - 31/ 01/01 - 31/ 03/2014 03/2013 Revenue (rental income and revenues due to change 2.7 4.4 of incidental expenses) Gain or loss on fair valuation of investment 0.1 1.0 properties Operating profit -1.5 0.5 Profit after taxes and minority interests -1.2 0.2 Earnings per share (undiluted, in euros) -0.12 0.02 Balance sheet ratios in MM euros 31 March 2014 31 December 2013 Total assets 235.7 272.8 Non-current assets 170.7 158.1 - including: Investment property 165.3 150.7 Equity: 118.3 119.4 - including: Subscribed capital 9.5 9.5 Equity ratio (in percent): 50.2 43.8 Debt capital 117.4 153.2 - including: Liabilities to banks 89.4 126.3 End of Corporate News --------------------------------------------------------------------- 22.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: IFM Immobilien AG Karl-Ludwig-Straße 2 69117 Heidelberg Germany Phone: +49 (0)6221-434 098 0 Fax: +49 (0)6221-434 098 66 E-mail: welcome@ifm.ag Internet: www.ifm.ag ISIN: DE000A0JDU97 WKN: A0JDU9 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, DÜsseldorf, Hamburg, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 270126 22.05.2014


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Source: DGAP Corporate News


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