Net income came in at EUR 10.2m for 1Q07, up 45.7% y/y mainly due to increase of renting income and revaluation of CEE properties. Revenues increased by 37.3% y/y to EUR 22.1m for 1Q07 and revaluation of properties increased by 300% y/y to EUR 15.6m as the company switched to fair value accounting at the end of 2006. Operating profit including revaluation gains came in at EUR 26.2m for 1Q07, up 66.9% y/y.
The value of the properties increased to 1.3bn in 1Q07, up 61.4% y/y. Total
lettable space of 107 properties as at 31 March stood at 1,052,300 sqm up 7.8% q/q with regional split: Austria (32.6%), Germany (22.5%) and CEE (44.9%) and occupancy rate of 94%. Company’s NAV increased by 11.0% y/y to EUR 9.1/share, implying P/NAV 1.28x, which is in-line with usual premiums for real estate companies, however currently closest peer Immoeast trades at P/NAV of 1.17x and Orco
trades at P/NAV of 1.24x.
Note however that SparkassenImmo will revaluate the rest of its portfolio in Austria and Germany in the course of 2Q07 and 3Q07, which account for over 50% of the total portfolio, therefore larger premium than its peers over historic NAV is justifiable. SparkassenImmo is planning to invest around EUR 500-800m by the end of 2007 mainly to German residential properties and commercial properties in Romania, Bulgaria and Ukraine.