Ladies and gentlemen, thank you for standing by. Welcome, and thank you for joining the IMMOFINANZ webcast on the half year results, 2023. Throughout today's recorded conference, all participants will be in a listen-only mode. The presentation will be followed by a question and answer session. If you would like to ask a question, you may submit your question in writing into the text box on the webcast. Please press the star key followed by zero for operator assistance. I would now like to turn the conference over to IMMOFINANZ. Please go ahead.
Good afternoon, here from Vienna. This is Mathias Bartak. I'm responsible for M&A and Capital Markets at Immofinanz, and have recently also taken over investor relations agendas for group. We thank you for your interest in our earnings presentation. With me today are our executive board members, Radka Doehring and Pavel Měchura, as well as our internal team of financial experts. At the beginning, Radka will lead you through our earnings presentation. Afterwards, we will then be happy to answer all of your questions. Please submit the questions this time in writing by the text field of our webcast. This will enable us to structure the Q&A part as effectively as possible. Thank you very much for your participation, and I will now hand over to Radka Doehring.
Thank you, Mathias. Good afternoon, ladies and gentlemen. Welcome to our webcast this Thursday afternoon on the results for the first half year, 2023. We are very proud that Immofinanz again delivered strong operating performance despite the challenging environment. Moreover, we took further important steps to grow our portfolio and strengthen our position. Before we go into detail, one important note: since our 2022 year-end financial statements, we are reporting the full consolidation of S IMMO. Since the increase of our investment in S IMMO to 50% plus one share, which took place at year-end 2022, the assets and liabilities of S IMMO represents an integral part of our balance sheet and the income statement items since first quarter, 2023.
In reading our half year report and the presentation, we are referring to the IMMOFINANZ Group for the fully consolidated figures and only to IMMOFINANZ when speaking to our companies on a standalone basis. Let's start with the overview of the key figures on page 3 of the presentation. In the past six months, we saw strong performance by our properties, which are managed by excellent teams. Like for like, meaning adjusted for acquisition, disposals, and completions, our rental income increased by 10.3% in the second quarter and by 10% over the first half year. The occupancy rate of our properties remains high at 92.5%.
Compared to the first half year, 2022, our income from asset management increased by 97.1% and is at EUR 216.8 million, and sustainable FFO more than doubled to EUR 140.9 million. We can also point out the unchanged robust financial base with an equity ratio of roughly 15% and Net Loan-to-Value ratio of 38.7%. Our liquidity stood at almost EUR 730 million, plus an additional unused credit line of EUR 100 million, which was again extended until 2025 and it was unused at half year.
However, our net profit declined to -EUR 144.5 million due to market-related property write-downs, the recognition of the historical foreign exchange effects following the sale of the land plot in Turkey, and also the financial results. Furthermore, now on page five. Furthermore, sustainability represents a growing, growing focal point for investors, tenants, and the general public. In order to increase the transparency for our stakeholders, we again took part in several ESG rating and ratings during the last months. This included, among others, an update of, on our sustainability ratings, when our overall ESG risk assessment was classified as low and has improved to 12.5 for 2022 on a scale from 0 to 100.
During the first half of 2023, IMMOFINANZ aligned its ESG goals with CPI Property Group and S IMMO, and we will come back to this at the end of the presentation. Let us now take a look at the P&L on page seven. Our rental income rose by almost 80% to EUR 258.9 million. This increase is mainly attributable to the full consolidation of S IMMO, a substantial improvement in like-for-like rental income of 10.3%, and acquisitions of retail properties in previous years. As a result, we also recorded a strong increase in the result of asset management with a plus of 97.1% to EUR 216.8 million. Also, in the past six months, we continued our strategic property sales with a volume of roughly EUR 598 million.
These sales considered primarily of transactions by S IMMO in Germany and the sale of an office property by IMMOFINANZ in Vienna. After the inclusion of the one-off effect, the results of property sales totaled -EUR 53 million... These results were negatively influenced, above all, by a negative earning contribution from the deconsolidation of a subsidiary in Turkey, which resulted entirely from the reclassification of a historical foreign exchange effect to the income statement. The negative results of property development are clearly reflected the overall market trend. On page eight, we see the detail of the negative revaluation of EUR 190.9 million. You see also the detail. This devaluation equals to -2.5%.
At the office segment, the largest individual effects resulted from the revaluation of Immofinanz office building, office building in Düsseldorf and Vienna, while the decline of retail is primarily attributable to a negative effect from Immofinanz property in Romania. The S IMMO portfolio contributed -3.1% to the valuation result. The valuation result of investment properties, including the standing investment land banks. Despite the substantial improvement in our results of operation, the negative revaluation results led to a decline of -EUR 73 million. Our financial results amounted to -EUR 72.8 million, due to the rise of financial costs of -EUR 104.3 million, mainly driven by the full consolidation of S IMMO and higher financing expenses.
Positive impact on our financial results has the settlement payment from derivatives, which were at EUR 42.3 million, making an important contribution to our financing income. However, net profit declined to -EUR 144.5 million. As already mentioned, this was mainly due to market-related property write-downs, foreign exchange rate effects, following the sale of the land plot in Turkey, and subsequent reconciliation of a subsidiary in Turkey, and also the negative financial result. A look at our sustainable FFO 1 on page 10 shows a sustainable FFO from a standing investment business and shows a strong increase of roughly 114% to EUR 140.9 million. It exceeds the increase in both rental income and the results of asset management.
The FFO 1 calculation no longer includes dividend payments from S IMMO, because this investment now is fully consolidated. On the next page, our focal point is the group financial structure and liquidity profile. Once again, we can point to a robust equity ratio of 49.6% on our while our net loan-to-value ratio slightly fell to 38.7%, and thus is still at a conservative level. An unencumbered asset pool of EUR 2 billion underlines the solid financial position of IMMOFINANZ Group. Our financing costs increased to 2.75% due to overall market trends, and the remaining terms of the financing is at 4.25 years. IMMOFINANZ Group also had a high hedging quota. 90.6% of all financing are hedged against interest rate fluctuations. That creates an important advantage in the current environment.
This brings us to a portfolio overview on page 13 of the presentation. As mentioned at the beginning, mainly due to the full consolidation of S IMMO, we have significantly expanded our portfolio volume to 7.8 billion EUR. Around 94% of this, or EUR 7.4 billion, are standing investment, with an occupancy rate of 92.5%. Immofinanz and S IMMO have complementary portfolios with a clear focus on office and retail. These two asset classes account for 99% of Immofinanz's portfolio, as well as nearly 78% of S IMMO's portfolio. S IMMO is also involved in the residential and hotel sector, although the residential segment will be reduced as a result of planned sales in Germany. On the next page, we have an overview of rental growth Immofinanz achieved in the second quarter of this year, excluding S IMMO.
A like-for-like analysis showed an improvement of 10.3%, or EUR 6.9 million in rental income to EUR 74.3 million. This positive development was reported nearly in core markets, led by Austria. Especially the indexation of rents and higher turnover based rents in the retail properties served as a driving factor for this rise. The development projects on the following page of IMMOFINANZ have a carrying amount of EUR 223.1 million, which represents 2.9% of the total property portfolio. This amount includes 163 million euros of active development projects, all of which are attributed to IMMOFINANZ. Excuse me. At EUR 61 million, the open construction costs are moderate.
Roughly EUR 47 million are attributable to projects in a preparation or a conception phase, for which outstanding construction costs are not yet available. I would like to now take you through our outlook. Our long-term objective remains unchanged. We want to drive the growth with a successful retail and office brand, as well as complementary products, and to safeguard our robust financial base. With the resilient STOP SHOP retail parks, we want to grow to more than 140 locations. Our VIVO! shopping centers brand could be strengthened in the medium term by acquisition or regional shopping centers, depending on the market environment. In the office sector, we will continue with our proven strategy of the highest. All in all, this is a portfolio of first class and innovative brands, which places us very close to our customers.
As the current environment is characterized by rising interest rates and high inflation, we are focusing on higher yielding retail and office properties. As part of our active portfolio management, we announced our plans in June last year to sell properties with a value of approximately EUR 1 billion, and we have already made good progress, as I mentioned before. The remaining sales pipeline amounts to approximately EUR 745 million, and we are confident that we will be able to complete further closings in the coming months. Additionally, S IMMO currently has German assets of roughly EUR 340 million under consideration for disposal. On the next slide, we show an overview of an increase in our stake in S IMMO.
We currently acquired 17.3 million shares for approximately EUR 337 million, or 19.5 euros per share from our core shareholder at the end of 2022. The transaction was financed by a long-term credit facility provided by CPI PG, with a term until 2028. The increase in our S IMMO investment represents the fulfillment of a long-term strategic goal. Immofinanz and S IMMO have outstanding and complementary portfolios, as I mentioned before. The consolidation of these two companies is value-driven and creates a stronger market position. We are currently working with S IMMO to identify further synergies and closer integration of the two companies.
As already mentioned, at the beginning of the presentation, we have aligned our ESG goals with the CPI Property Group and S IMMO, and set ourselves concrete goals in the field of ESG for the coming years. In the environmental field, we aim to reduce GHG emissions by more than a third by 2030. Already by 2024, we will purchase electricity from renewable sources for our portfolio. We will also significantly reduce our water and energy consumption. In the field of social, we want to further increase the share of certified buildings in our portfolio and already are offering green leases to our tenants. In addition, we will secure the high proportion of female employees in the management and regularly survey the satisfaction of our employees.
In the area of governance, we will strengthen the awareness on our code of conduct, both among our workers and suppliers. Furthermore, ESG criteria will be taken in account in our board remuneration. This will be all from my side, and now we are happy to answer your questions.
Ladies and gentlemen, we will now begin our question and answer session. If you would like to ask a question, you may send your question in writing into the text box on the webcast. One moment for the first question, please. Ladies and gentlemen, as a final reminder, if there are any questions, please submit your question in writing into the text box on the webcast at this time. I see there are no questions at this time, and I hand back to IMMOFINANZ for closing comments.
Ladies and gentlemen, as we have not received any further questions, we can end this presentation for today. We would like to thank you for your participation in this earnings call, and we are indeed looking forward to hearing you next time. Thank you. Goodbye.
Ladies and gentlemen, the conference is now concluded and you may disconnect. Thank you very much for joining and have a pleasant day. Goodbye.