The year-on-year decline resulted primarily from EUR -469.8 million of negative effects from the foreign exchange-adjusted valuation of the Russian portfolio and from a decrease in rental income to EUR 314.5 million (2014/15: EUR 385.6 million) which was caused by temporary rent reductions in Moscow and the planned sale of properties. Earnings were also influenced by two negative non-recurring effects: cost overruns on the Gerling Quartier had a negative impact of EUR -48.0 million on the results of property development and the settlement of legal proceedings with investors resulted in costs of EUR -29.4 million. The results of operations amounted to EUR 118.2 million (2014/15: EUR 289.1 million).
“The past financial year was influenced by numerous events and decisions to set the course for IMMOFINANZ’s transformation into a leading European real estate company, but also reflected the tense political and economic situation in Russia. After the very successful spin-off of BUWOG and the sale of our logistics portfolio, our concentration on the office and retail segments was the next step required for future growth. This growth will be organic, for example through the recently started development projects in Germany’s office sector, or take place through acquisitions. We were also able to close a negative chapter from the past by reaching out-of-court settlements in lawsuits by investors which originated prior to 2009“, explained Oliver Schumy, CEO of IMMOFINANZ.
“The capital measures implemented during the previous financial year now form the basis for a sustainable distribution policy and will essentially allow IMMOFINANZ to resume dividend payments independent of exceptional political or economic situations – as is currently the case in Russia. We will therefore make a recommendation to the annual general meeting for the 2015/16 financial year, requesting the approval of a dividend of 6 cents per share“, added CEO Schumy. This distribution qualifies as a capital repayment under Austrian tax law and is therefore tax-free for private persons resident in Austria who hold IMMOFINANZ shares in their personal portfolios.*
*Subject to certain assumptions, e.g. when the capital repayment exceeds the tax-base of the shares
The press release, further figures and details on the portfolio are provided under the following link:
Net profit for 2015/16 negatively influenced by Russia and non-recurring effects, dividend of 6 cents per share planned
The report by IMMOFINANZ AG on the 2015/16 financial year as of 30 April 2016 will be available on our website under http://www.immofinanz.com/en/investor-relations/financial-reports starting on 11 August 2016.