Vienna-based central and eastern European property specialist Immofinanz Group reported record property sales in 2012/13 although a higher tax rate and decline in positive valuation effects took net profit lower to €110.8m.
The group reported higher rental income (+12%), revenue (+11.2%) and results from asset management (+15.1%), while the results from property sales rose by 108.3%.
Property development’s contribution was negative (-€18.4m) primarily due to delays at the Goodzone project in Russia. Net profit of €110.8m was down 59.1% on 2012 due in part to a material increase in the tax rate to 43.2% (14.9%) owing to “unusually high, non-recurring non-cash effects related to deferred taxes”.
Net asset value grew by 4.9% and, on outlook, the group said the most important goals were to “significantly increase development activities and generate sound contributions to earnings, but to also create the requirements to raise the real estate machine to a new activity level”.
The group continues to plan separating the residential business (BUWOG) and said: “This will take place through an IPO or spin-off, depending on the relevant market environment at that time.”
