EQS-News

INCITY CLOSES FISCAL YEAR 2023 WITH A CONSOLIDATED LOSS OF EUR 6.0 M ACC. TO HGB – CONTINUED STABLE FINANCIAL SITUATION AND SIGNIFICANT HIDDEN RESERVES - Seite 2

As of the balance sheet date on 31 December 2023, the InCity Group’s property portfolio comprised seven properties in total, five residential and commercial buildings and two office properties in Berlin and Frankfurt am Main. The number of portfolio properties held by InCity thus continued to remain constant in fiscal year 2023. As at the balance sheet date of the prior year, we again subjected our portfolio properties to a market valuation by a third party as of 31 December 2023. Based on this market valuation amounting to EUR 177.5 m (31 December 2022: EUR 207.0 m)for the seven portfolio properties held by the Group as of the balance sheet date, and taking into account the other Group balance sheet items, a net asset value of EUR 1.30 per share results (31 December 2022: EUR 1.66 per share).

The year-on-year decrease in the seven portfolio properties’ market values assessed by a third party is mainly attributable to an increase in the capitalisation rates used. For “Stiftstrasse 18/20” in Frankfurt am Main and for “Oranienburger Strasse 39” in Berlin, extraordinary and non-liquidity-related depreciations – as described above – became necessary for HGB accounting, as the currently determined market value is below the HGB carrying amount in this case (at amortised cost: acquisition costs reduced by the standard amortisation according to the expected useful life). The difference between the market value and the carrying amount of all seven portfolio properties – known as hidden reserves – amounts to approximately EUR 33.9 m as at 31 December 2023 (31 December 2022: approx. EUR 58.3 m). Despite the decrease in market values as of the balance sheet date, the market values are therefore about 24% higher than the HGB carrying amounts overall.

The InCity’s Group EBITDA was approximately EUR 0.7 m in the reporting year (prior year: EUR 2.6 m). The decrease in EBITDA by approximately EUR 1.9 m is primarily due to non-capitalised investments into portfolio properties incurred in the reporting year that amounted to about EUR 1.2 m and mainly related to the property located at Jägerstrasse 34/35 in Berlin. In addition, revenue fell by approximately EUR 0.4 m while personnel and material costs rose by about EUR 0.3 m.