IMMOFINANZ recorded an increase in rental income and results of property sales in 2020 despite the Covid-19 crisis, the company reveals.

Rental income rose by 3.1% to EUR 288.6 million due to the growth in the portfolio during the second half of 2019, but a crisis-related increase in receivables write-offs from asset management led to substantially higher property expenses. The results of asset management totalled EUR 206.4 million in 2020 and reflect the previous year despite these write-offs. The pandemic also had a negative influence on the valuation of investment property: revaluations totalled EUR -166.5 million, compared with clearly positive results in the previous year (2019: EUR 193.3 million). This reduction represents roughly 3.2% of the total property portfolio. In addition, the continuing decline in the price of the S IMMO share during 2020 led to a write-down of EUR -88.6 million in this investment to EUR 363.6 million. Net loss for the 2020 financial year amounted to EUR -165.9 million.

“The pandemic and the related support for our tenants plus the crisis-related negative effects from the valuation are, unquestionably, reflected in our group result – but our occupancy rate remained unchanged at very high 96% and FFO 1, as the indicator for our operational earning power, even increased slightly. At the end of the year, we had more than a billion euros of liquid funds. That is a very strong foundation – to manage the ongoing crisis environment as well as the post-crisis recovery and growth phase. In this respect, we successfully closed the 2020 financial year from a position of strength“, commented Ronny Pecik, CEO of IMMOFINANZ, on the company’s performance.