The Hungarian S IMMO group closed the books
Highest EBIT in the Group’s history
- Highest EBIT in the Group’s history -net income for the year increased by 22.5% to EUR 26.0m
- S IMMO Hungary’s profit from hotel operations is higher than in 2011 - 38 times higher EBIT
Regardless the stagnation prevailing on the property market for years now, the financial year of 2011 proved to be highly successful for S IMMO AG (Bloomberg: SPI:AV, Reuters: SIAG.VI) and its Hungarian affiliate, S IMMO Hungary. Due to the company’s ability to constantly adjust to market conditions and its deliberate strategic decision-making, S IMMO now successfully accomplished its financial goals in 2012.
The results of S IMMO for the financial year as a whole were more than satisfactory, with consolidated net income of EUR 26.0m. This was a substantial increase of 22.5% compared with the EUR 21.2m achieved in 2011. S IMMO reached the highest EBIT in the Group’s history in 2012. The overall gains contributed to increases in operating profits (EBIT) of EUR 14.5m, to EUR 106.8m in 2012 as opposed to EUR 92.3m in 2011. In the Management Board’s opinion the marked improvement in S IMMO’s results justifies a significant increase in dividend: In the Annual General Meeting on 12 June 2013 a 50% increase in the dividend to EUR 0.15 per share will be proposed. The distribution will take the form of a tax-free capital repayment.
“The excellent results validate our strategic approach: Our deliberate property investment allows us to take full advantage of the property cycles. This makes us profitable and the number one in efficiency. Our shareholders will also benefit from this success, in the form of a higher dividend.” said Ernst Vejdovszky, Chairman of S IMMO AG’s Management Board.
S IMMO Hungary – Another successful financial year on the Hungarian market
For the Hungarian group which has been present on the Hungarian market for over 10 years 2012 was yet another successful year. EBITDA increased up to EUR 11.79 million from last year’s EUR 11.16 million and revenues reached EUR 27.92 million. Although rental income shows a slight decrease – from EUR 8.1 million to EUR 7.9 million - S IMMO maintained its positive occupancy rate.
Numerous existing tenants extended contracts and several new partners chose S IMMO as well, which reflects both appreciation and satisfaction with services. Operating profit (EBIT) of S IMMO Hungary improved by EUR 6.08 million which is 38 times better than results reported in 2011. The positive tendency in the hotel industry in Budapest was also presented in the performance of S IMMO’s hotel, the Budapest Marriott Hotel. Income from hotel operations improved by 3% and totalled at EUR 17.30 million in 2012. The property revaluation reflects improvement compared to 2011.
The group achieved cost reduction as S IMMO further enhanced cost efficiency in 2012. NOI has rallied by 7% compared to 2011, it has improved in both total sum (from EUR 11.58 million to EUR 12.40 million)and proportion to the amount of revenue (from 42.36% to 44.41%).
„We are proud of our success achieved in 2012, this is a valuable feedback for us that shows that we are on the right path. We do not intend to rest on our laurels however, in 2013 we shall continue to work hard and do everything possible to provide excellent international level services and meet the requirements of our tenants”, said Katalin Sermer, Managing Director of S IMMO Hungary.
S IMMO puts a great emphasis on meeting environmental requirements modernizations and energysaving transformations of its portfolio. Investments continue to take place in 2013 as well, among others; replacement of boilers, chillers and fine control of technical equipments will be done, to further modernize its properties.