Corporate News
Business Figures for 2015
ISARIA Wohnbau AG achieved the positive high single-digit million euro result forecast for 2015
– EBIT of EUR 27.8 million (2014: EUR 21.6 million) and consolidated earnings after taxes of EUR 8.1 million (2014: EUR 9.2 million)
– Equity up significantly again at EUR 31.0 million (2014: EUR 23.3 million); additional EUR 90 million in hidden reserves in current projects
– Residential planning permission secure for all Munich project developments since end of 2015
– Hamburg location to be expanded further under new branch management
– Company examining various options to accelerate growth
8 March 2016 – ISARIA Wohnbau AG, one of the leading project developers for residential construction in Munich, has today released first key figures from its IFRS consolidated financial statements for the 2015 financial year.
Operating forecasts confirmed
186 residential units, mainly part of the major nido project in Karlsfeld on the city limits of Munich, were completed and handed over to individual buyers in 2015. This resulted in total revenue in 2015 of EUR 92.2 million (2014: EUR 160.2 million), thus almost entirely achieving the forecast for revenue of around EUR 100 million. The forecast figure for 2015 included EUR 7 million from the sale of a project development. This and one other project development were not sold as there are now better alternative concepts in place, and were instead reclassified to investment property in order to safeguard future income opportunities.
Both the gross profit margin of 36% (2014: 27%) and the EBIT margin of 30% (2014: 13%) were up significantly over the previous year. As a result of the further reduction in interest rates, financing expenses remained virtually constant at EUR 15.9 million (previous year: EUR 15.6 million) despite the average increase over the year of almost 22% year-on-year in interest-bearing liabilities. “The higher interest-bearing liabilities result directly from the correspondingly higher project volumes being financed. The disproportionately low rise in financing expenses reflects our significantly improved financing structure,” said Michael Haupt, spokes man of the Executive Board of ISARIA Wohnbau AG. The average interest rate of all interest-bearing liabilities was reduced further in 2015 to currently 7.9% (previous year: 9.5%).
Overall, with consolidated earnings after taxes of EUR 8.1 million (previous year: EUR 9.2 million), the company again achieved a high single-digit million euro result and therefore met its forecast made at the beginning of the year 2015.
Further improvement in equity
The good result greatly contributed to the further enhancement of equity (now EUR 31.0 million after EUR 23.3 million in the previous year). “At 11.1% the equity ratio was above 10% for the first time,” stated Michael Haupt, adding: “Furthermore the market value of our projects is around EUR 90 million higher than their recognised cost.”
More than 1,500 units in development in Munich
Significant progress was made in project developments in 2015. Thanks to city council resolutions, competition results and preliminary decisions on construction, planning permission for more than 1,500 more units to be built in the next five years has been secured. “The two major projects Diamalt-Quartier (Munich-Allach) and the conversion of the former Siemens skyscraper in Munich-Obersendling alone will create nearly a thousand homes,” said Board member Jan von Lewinski.
Hamburg under new branch management
Following the acquisition of the first two projects in Hamburg in 2014, the branch has now been headed by Ulrike Wessel since autumn 2015. Ms Wessel previously worked for ten years for NCC Germany, most recently as project manager and deputy regional head for the north region. “With the profound understanding of the market of Ms Wessel and her team, we have finally arrived in Hamburg and would like to work our way up to a similar position here as in Munich in the next few years,” said Jan von Lewinski happily.
Operational and strategic outlook for 2016
2016 will be a year of transition in terms of operations. After much progress was made in the completion of the current major nido project in Karlsfeld as a whole in 2015, the remaining sales volume for this construction project of around EUR 70 million will be distributed over 2016 and 2017. The completion of work on further project developments that is scheduled to begin in 2016 will then only be added from 2017.
With the forthcoming major projects and a further targeted expansion of the project portfolio, the company is seeking to increase its annual revenue to around EUR 300 million per year over the next five years.
As was announced in mid-November 2015, the company is currently looking at various strategic options with external consultants to optimally leverage its excellent market position in the unchanged good market environment. It is not clear at this time whether this will lead to a specific transaction.
The 2015 annual report will be published on 15 March 2016 at www.isaria.ag.
About ISARIA Wohnbau AG
ISARIA Wohnbau is a leading project developer for residential real estate construction projects in Munich. Since 2014, the company also develops residential projects in Hamburg. The company, which was founded in 1994, is listed on the prime standard of the Deutsche Börse. The projects realised by the company range from multi-storey apartments to terraced houses as well as the revitalisation of existing buildings. ISARIA Wohnbau is therefore capable of offering residential properties that meet the demands of a wide variety of customer groups as both owner-occupied or for investment. Since the end of 2013, Hamburg-based One Group GmbH has been part of the ISARIA Group. The business activities of One Group GmbH and its subsidiaries primarily comprise the issue of project development funds for residential real estate construction projects. For more information, please visit www.ISARIA.ag and www.onegroup.ag
IR Contact
ISARIA Wohnbau AG
Leopoldstraße 8 | 80802 Munich
Phone: +49 (0)89 38 99 84-0 | Fax: +49 (0)89 38 99 84-760
E-mail: v.gerber@ISARIA.ag | Web: www.ISARIA.ag
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