GIEAG Immobilien AG remains solidly positioned despite challenging 2022 financial year

• Closing of the 2022 financial year with consolidated sales of 83.9 million euro.
• Challenging market environment results in consolidated net loss of Euro 2.6 million.
• Further purchases for forward-looking project developments.

The turnaround in interest rates on the capital markets has not left GIEAG Immobilien AG (GIEAG) unscathed. The project developer, which operates nationwide, closed the 2022 financial year with consolidated sales of 83.9 million euros. Thus, due to market-related declines in sales revenues, sales revenues were around 40 percent below those of the record result of 2021. The consolidated net loss amounted to 2.6 million euros. Despite the company’s solid balance sheet position, it was decided at the Annual General Meeting to cancel dividends in order to preserve the substance in the company and to ensure future-oriented investment capability.

“The 2022 financial year was undoubtedly one of the most challenging in GIEAG’s recent history due to the turnaround in interest rates on the capital markets,” explains Philipp Pferschy, CEO of GIEAG Immobilien AG. Nevertheless, the company was able to record some successes at the operational level. In Heidenheim, for example, a residential portfolio property was sold at a profit in the second half of 2022. At the same time, there were further leasing successes at the multi-tenant office building “Gerlingen Work” near Stuttgart. In the meantime, the occupancy rate is more than 90 percent.

“As GIEAG, we continue to focus on the development of modern, sustainable and high-quality real estate for tomorrow’s living and working. The current market environment holds numerous opportunities for us due to the restraint of some market participants and fallen purchase prices,” explains Pferschy. With “Oha Works” in Oberhaching near Munich, another forward-looking office project development was secured, and in Kümmersbruck, near Nuremberg, a promising site was acquired for the development of a modern and sustainable logistics property.

The strategic further development of the company was also driven forward in 2022, among other things with the new establishment of P2G as a shared service center of GIEAG and its sister company ATMIRA, which is also active in the real estate sector. P2G now takes over essential back-office cross-sectional tasks of both companies, including accounting, human resources, financing consulting, fleet and IT management. “In the future, we will position ourselves even more professionally as well as cost-efficiently, and focus even more on our core competencies in project development and portfolio management,” says Pferschy.

“On behalf of the entire supervisory board, I would like to thank the management board and all employees for their successful work in these not entirely easy times. Their tireless efforts are the basis for the fact that GIEAG is in such a solid position despite the difficult framework conditions and can look to the future with confidence,” says Prof. Christoph Ehrhardt, Chairman of the Supervisory Board of GIEAG.

GIEAG’s annual report for 2022 can be found here.