During the reporting period, the real estate development and investment company generated a profit of EUR 57.5 million – in comparison, a loss of EUR 6.5 million was reported for the third quarter of the prior year. These results were largely driven by gains on the disposal of properties, an accounting gain on the purchase of shares and loans of former minority shareholders of a Russian group company, and exchange rate gains. Following the sale of numerous assets in 2017, Warimpex used the subsequent years to set its strategic course.
Revenues in the Hotels segment fell to EUR 7.4 million, which represents a decline of 23 per cent compared with last year’s third quarter. This can be attributed to the sale of the operating company for the Dvořák Hotel at the end of February 2019. Our new Hotel in Darmstadt was reopened at the beginning of September, and thus has not yet made a significant contribution to revenues in the third quarter of 2019. Revenues from the rental of office properties increased from EUR 11.3 million to EUR 14.3 million. This was largely due to the purchase of the B52 office building in Budapest in 2018, the completion of Ogrodowa Office in Łódź in October 2018, and the completion and opening of Mogilska Office 43 in Krakow in May 2019. Total revenues rose to EUR 23.3 million during the first three quarters of 2019, while expenses directly attributable to revenues remained constant at EUR 9.2 million. Gross income from revenues came to EUR 14.1 million, compared to EUR 12.4 million in the first nine months of the prior year.
During the first three quarters of 2019, Warimpex sold the Vienna House Dream Castle and Vienna House Magic Circus Hotels in Paris, the operating company for the Dvořák spa hotel in Karlovy Vary, and an office property in Budapest. This brought the disposal result to EUR 27.9 million. Last year, Warimpex sold a reserve property located in Budapest for EUR 5.4 million. The property had already been valued at the sale price, so no sale proceeds were recognised during the same period of 2018.
Earnings before interest, taxes, depreciation, amortisation, and gains/losses on remeasurement (EBITDA) rose from EUR 4.4 million in the comparison reporting period to EUR 53.4 million. This can be attributed primarily to property sales and an accounting gain of EUR 20.4 million on the purchase of shares and loans of former minority shareholders of a Russian group company. EBIT improved from EUR 4.2 million to EUR 56.6 million. Depreciation, amortisation, and remeasurement went from minus EUR 0.2 million to EUR 3.1 million. The remeasurement result from the office assets came to roughly EUR 3.4 million, versus EUR 0.1 million in the third quarter of the prior year. The financial result (including earnings from joint ventures) rose from minus EUR 10.6 million to EUR 4.5 million. This includes changes in foreign exchange rates in the amount of EUR 7.8 million following exchange rate losses of EUR 8.6 million in the comparison reporting period.
The current financial year is shaping up to be one of the most successful years in the history of Warimpex. Warimpex will continue on this successful course, which is shaped by the focus on building up the property portfolio, creating new offerings, and strengthening the earnings potential. Warimpex has a number of exciting activities on the agenda, including development projects in the Polish cities of Krakow and Białystok, the refurbishment of the hotel in Darmstadt without disrupting ongoing operations, and the continued development of AIRPORTCITY St. Petersburg in Russia. All of this makes Warimpex excited and optimistic for the future. You can find the full Report on the Q3-Results of 2019 here.