Immofinanz increases rental income by 79.4 percent - experts warn of property devaluation

Immofinanz increases rental income by 79.4 percent - experts warn of property devaluation

According to a report by www.kleinezeitung.at, Immofinanz increased rental income by 79.4 percent in the first three quarters of 2023. At the same time, the bottom line was deep red. The operating result rose by 77.6 percent, and the important earnings indicator FFO I climbed by 107.7 percent.

Immofinanz attributes the operational growth to acquisitions, the full consolidation of S Immo and successful asset management. The result from asset management is 92.2 percent higher than the previous year.

However, Immofinanz also had to devalue properties, mainly low-yield properties. This led to a collapse in consolidated earnings into the deep red zone.

Real estate sales amounting to around 649 million euros were completed in the first three quarters. The real estate portfolio includes 501 properties with a portfolio value of 7.8 billion euros. The occupancy rate was 92.3 percent.

The increasing rental income and the operating result show that Immofinanz is operationally strong despite the property devaluations and the deep red result. The acquisitions and consolidation of S Immo have a positive impact on the company. However, real estate devaluation can have a negative impact on earnings in the short term. It remains to be seen how Immofinanz will develop in the long term and whether the investments in acquisitions and asset management will pay off in the long term.