ON THE BASIS OF INTERIM FIGURES FOR 2021, INCITY ACHIEVES A CONSOLIDATED NET INCOME OF APPROX. EUR 1.0 M AND A NET INCOME OF APPROX. EUR 2.1 M IN THE SINGLE-ENTITY COMPANY

Frankfurt am Main, 6 April 2022: In the past fiscal year 2021, InCity Immobilien AG ("InCity") generated a consolidated net income for the year (according to the German Commercial Code, HGB) of approximately EUR 1.0 m, based on unaudited interim figures, thus slightly exceeding the earnings forecast adjusted at the end of June 2021, which posited a consolidated net income for the year between EUR 0.1 m and EUR 0.6 m. By contrast, the net income for the year (according to HGB) in the company's single-entity annual financial statements, which amounts to approximately EUR 2.1 m, is slightly below the adjusted forecast as of the end of June 2021 (between EUR 2.3 m and EUR 2.8 m).

At the level of the consolidated financial statements, and taking into account mutually offsetting one-off effects, the deviations from the adjusted forecast are primarily due to the fact that, compared to the adjusted forecast, additional expenses in the area of risk provisions for companies associated with the former business model ('Altgesellschaften') and project companies were more than offset by lower non-allocable operating costs in individual portfolio companies than were originally planned (EUR +0.5 m in total).

At the level of the company's single-entity annual financial statements, the deviations from the upper range of the forecast as of the end of June 2021 are primarily due to one-off effects in the investment result not included in the adjusted forecast that relate to the amortisation of financial assets outside the reporting period (EUR -0.6 m) and loss absorption from a subsidiary (EUR -0.3 m). These were only partially offset by lower other operating expenses than planned (EUR +0.2 m).

In addition, it should be noted in light of the value development of the property portfolio held by InCity that the result of the consolidated financial statements under commercial law does not reflect the positive portfolio performance, as the substantial increases in the value of the property portfolio are not reflected in HGB accounting, while at the same time the scheduled depreciation of the property portfolio in the amount of around EUR 1.9 m (prior year: EUR 1.9 m) has a negative effect on the result in the reporting year.


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]