INCITY PUBLISHES INTERIM FIGURES FOR FISCAL YEAR 2018
 

• Today, InCity will publish its interim, unaudited net results for the fiscal year 2018
• The consolidated net loss for the year is approximately EUR 0.45 m
• At the single entity level, net income for the year is approximately EUR 0.7 m

Frankfurt am Main/Germany, 27 March 2019: According to its interim results, InCity Immobilien AG realised a consolidated net loss of around EUR 0.45 m for 2018, ending the fiscal year 2018 (acc. to HGB) with significantly better results than originally forecast (EUR -1.9 m to EUR -2.3 m) and than the prior year's result (EUR -2.3 m). At approximately EUR 0.7 m, the net income for the year at single-entity annual financial statement level (acc. to HGB) was also above the earnings forecast (EUR 0 to EUR 0.4 m) and above the prior-year result (EUR -0.2 m).
 

At around EUR -0.4 m, the consolidated result according to HGB for the 2018 fiscal year is still negative, but significantly better than in the same period of the previous year and than originally forecast for 2018. In addition to a book profit (around EUR 0.9 m) from the sale of a portfolio property, Schäfergasse 38/40 in Frankfurt am Main, the operating results from the growing property portfolio increased significantly compared to the previous year. In addition, higher remuneration for asset management services for third parties (EUR +0.3 m) and postponements of expense items to 2019, such as broker commissions for portfolio properties (EUR +0.2 m), contributed especially to an improvement in earnings compared with the original budgeted figures.
 

With regard to the negative consolidated results, it is still the case that the success of this business model is not apparent in the annual financial figures alone because portfolio properties are to be reported at amortised cost according to HGB accounting principles. The substantial appreciation of the existing property portfolio as a result of the positive market development was not recognised under HGB accounting, although it does result in hidden reserves. In the 2018 fiscal year, annual scheduled depreciation in the amount of EUR 1.5 m had a negative effect on the property portfolio's results on the one hand, and value appreciation was not taken into account on the other. Based on interim figures, EBITDA for the 2018 fiscal year amounts to around EUR 3.2 m (2017: EUR 1.2 m).
 

As planned, the result at single-entity annual financial statement level in the 2018 fiscal year according to HGB is positive on the basis of interim figures (EUR 0.7 m; prior year: EUR - 0.2 m) and has also improved significantly on the originally forecast result (EUR 0 to EUR 0.4 m). The sale of the existing property "Schäfergasse 38/40" in Frankfurt am Main also had a significant impact on the originally forecast result for the 2018 fiscal year at single-entity level due to the income from the associated profit and loss transfer agreements (EUR +0.5 m).
 

All the figures published here are provisional and have not been audited. The InCity Immobilien AG annual report for 2018, with the final figures, will be published according to schedule on 30 April 2019.
 

Reporting and contact person:

Helge H. Hehl, CFA
CFO
InCity Immobilien AG
Beethovenstrasse 71
60325 Frankfurt am Main, Germany
Phone: +49 (0)69 7191889 55
E-mail: [email protected]