- Pressemitteilung BoxID 153812
Warimpex' business results for 2009: Signs of changing trends in Q3 and Q4 after challenging first half-year
- revenues of EUR 21.5 million in Q4/2009
- EBITDA of EUR 5.6 million in Q4/2009
- profit before tax of EUR 9.5 million in Q4/2009
- Major development projects in Berlin, ?ód? and Ekaterinburg completed 2009 - angelo hotel Katowice opened in March 2010 - andel's hotel ?ód? wins multiple awards
- Despite difficult conditions on the transaction markets, Warimpex was able to sell two properties
- Results for 2009 significantly impacted by impairments in the first half of 2009 and significant decline in revenues, in particular in the luxury segment in Prague
- Full-year 2009 EBIT of minus EUR 71.8 million and loss for the period of EUR 92.7 million
The financial year 2009 was highly challenging for Warimpex Finanz- und Beteiligungs AG, the real estate industry and the entire global economy. After a difficult first half of the year, confidence in a global recovery steadily gained momentum in the second half of 2009, generating growth on global equity markets, which also had a positive effect upon the prices of real estate shares. Warimpex' business figures clearly reflect this development with impairments heavily influencing the results of the first half of the year (already published in August 2009 already) and results for the third and fourth quarter slightly positive.
"In summary, one could say that the market bottomed out in mid-2009 and began a slow upward movement in the second half of the year. This trend reflects the tendency of the hotel industry in particular to develop ahead of the business cycle," said Franz Jurkowitsch, Chairman of the Management Board of Warimpex. "For us today, it seems that the worst is now behind us and we can start rebuilding again, assuming of course that current economic forecasts prevail. In recent months, occupancy figures have increased and conference business has risen. An upward trend has materialized especially on the markets in Poland and Germany. City tourism in Central and Eastern European countries will take some time, however, before prices recover from their now low levels to the record highs achieved in the boom years 2006 and 2007."
Highlights of 2009
The year 2009 saw the opening of three new hotels, totalling over 1,000 rooms, as well as the re-opening of an existing hotel:
- In March, Warimpex opened the andel's hotel in Berlin, one of the largest conference hotels in the German capital.
- In June, Warimpex opened the andel's hotel in ?ód?, Poland - a project that deserves special mention. A 19th century textile factory preserved as a historical site was converted into a modern designer hotel that combines the new with the old in a unique manner. This hotel has won multiple awards, is extremely popular with guests and conferences and has already exceeded business expectations.
- In September, Warimpex opened the angelo airport hotel in Ekaterinburg, the first project Warimpex has completed in the Russian market.
- In November, Warimpex reopened the Magic Circus Hotel at Disneyland Paris after extensive renovation.
Warimpex' latest development, the angelo hotel in Katowice, welcomed its first guests already in early March 2010.
Despite difficult conditions on the transaction markets, Warimpex managed to sell two properties in 2009: the Csalogány office building in Budapest and the andel's hotel in Krakow.
In September 2009, the shareholders of Warimpex passed a resolution that allows the Company to increase the share capital by up to 18 million shares within the next five years. On the basis of this authorization the Company successfully increased its capital by 3,599,999 shares or 10 per cent in October 2009, generating proceeds of EUR 8.1 million. Provided that sentiment on the financial markets is positive, Warimpex will consider a further capital measure.
Group sales fell by 10 per cent from EUR 94.4 million in 2008 to EUR 85.3 million in 2009. This drop was primarily caused by the conditions in the Prague market, where revenues in the five-star segment were down by 35 per cent compared to 2008 in addition to a significant slide in the four-star segment. Revenue decreases, in some cases significant, were also encountered in other markets.
Earnings before interest, tax, depreciation and amortization (EBITDA) fell by 73 per cent, from EUR 29.4 million in 2008 to EUR 8.1 million in the year under review. This decrease of EUR 21.3 million is attributable mostly to lower proceeds from the sale of project companies and real estate and lower income in the Hotels & Resorts segment.Non-scheduled write-downs had to be made on real estate (and on goodwill in properties) in the reporting period.Impairments in the amount of EUR 62.5 million (2008: EUR 19.8 million) were recognized based upon the halfyearly valuation by CB Richard Ellis. Because of these effects and the factors discussed above, EBIT fell from EUR -3.4 million to EUR -71.8 million year-on-year.
The financial result was EUR -20.6 million (compared to EUR -26.0 million in 2008). Interest on current account loans, long-term project financing and other loans decreased by only two per cent in the financial year 2009 compared to 2008, despite the fact that the loan and credit portfolio grew significantly. This effect is primarily attributable to the fact that the strong decline in the EURIBOR had a significant positive effect on finance expenses.
The Warimpex Group's result for the year fell from EUR -29.4 million in 2008 to EUR -92.7 million in the reporting period. This decline is primarily attributable to non-scheduled write-downs, which were already reported in August 2009, as well as to a significant decline in revenues.
Real estate assets
As of 31 December 2009, the real estate portfolio of the Warimpex Group comprised 20 hotels with a total of over 4,800 rooms (3,322 rooms when adjusted for the proportionate share of ownership), plus five office properties with a total lettable floor area of some 32,000 square meters (23,000 square meters when adjusted for the proportionate share of ownership).
Pursuant to the international accounting standard pertaining to owner-operated hotels (IAS 40.12), Warimpex recognizes its properties at cost less depreciation and amortization. Any increases in the value of other properties are not recognized in profit in the respective reporting period unless they represent reversals of impairments of the respective property. To ensure transparency and to allow comparison with other real estate companies that report unrealized profits, Warimpex reports the triple net asset value (NNNAV) in its annual report.
As of 31 December 2009, the NNNAV per share was EUR 3.8, and therefore roughly 54 per cent lower than at the end of 2008. However, a comparison with the latest appraisal as of 30 June 2009 - EUR 3.3 per share - shows that the current trend is positive and signals that the decline in real estate values in the region has passed its lowest point.
"We are planning to advance our current development projects, including the Airport City St. Petersburg project, which is already under construction with the structural work substantially completed, as well as other development projects in more preliminary stages, such as the Warsaw Le Palais office development. Several budget hotels are planned under the Campanile and Premiere Classe brands in cooperation with Louvre Hotels, for which we have already secured five plots of land in Central and Eastern Europe for a total of seven hotels. In parallel, we will strive to increase our cash flows by selling properties where opportunities arise, as well as renegotiate certain of our short-term financing arrangements and improve our capital and financing structure. As a period of transition from crisis to normality, 2010 will not be an easy year either. Our goal is to build upon the tentative upturn that we have observed since the last two quarters of 2009 in order to participate actively in a gradual but sustained recovery. I am confident that we will master this challenge as well," concluded Jurkowitsch.
Warimpex Finanz- und Beteiligungs AG
Warimpex is a property development and investment company with its headquarters in Vienna and offices in Budapest, Prague, St. Petersburg and Warsaw. Over the past twenty-five years, Warimpex has developed properties worth over one billion euros in Central and Eastern Europe. Warimpex currently owns or jointly owns 21 business and luxury hotels with over 5,000 rooms in total and five commercial and office buildings with a total usable area of roughly 33,000 square metres. The properties are located primarily in Central and Eastern Europe. A large number of properties are currently under development. Over the medium term, the Group has its sights set on becoming the market leader in the hotel property segment in the "New Europe".
The Warimpex share is listed on the Vienna and Warsaw (WXF) stock exchanges.
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