March 27, 2019 / 6:30 PM / 8 months ago

Austrian developer CA Immo reports 11 pct rise in 2018 core income

VIENNA, March 27 (Reuters) - Austria-based commercial property group CA Immo reported on Wednesday an 11 percent increase in its 2018 core income, thanks to rising rental income and the marketing of new buildings, and forecast a further rise this year.

CA Immo, which owns and manages high-quality, modern office properties mainly in Germany and central and eastern Europe, also said it plans to increase its 2018 dividend by 12.5 percent to 0.90 euros per share.

The company said it expects rental prices, especially in Germany, to rise further and that financing conditions for development projects there would “remain healthy” in 2019.

In 2018, funds from operations (FFO I) - a measure of recurring free cash flow and the company’s key indicator of operational strength - increased to 118.5 million euros ($133 million). The group forecast FFO I would rise to 125 million euros this year.

“Our active growth strategy has brought CA Immo another record result in 2018 and, at the same time, paves the way to future profitability growth,” said Chief Executive Andreas Quint in a statement.

The group expanded its property portfolio with the addition of seven high-quality properties last year, four of which it developed in-house.

“This portfolio growth will further increase our rental income and with it our long-term revenue in the years ahead,” Quint said.

The group, with a property portfolio of around 4.5 billion euros, said it had 374.3 million euros in cash per end-December, 2 percent less than the previous year. ($1 = 0.8883 euros) (Reporting by Kirsti Knolle; Editing by Susan Fenton)

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