Ladies and gentlemen, thank you for standing by. Welcome, thank you for joining the Immofinanz conference call on the results on the first three quarters of 2022. 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'd like to ask a question, you can do so by pressing star followed by one on your telephone keypad. 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.
Yes. Hello. Good afternoon from Vienna. Bettina Schargl. Thanks for joining us today. With me are our Executive Director, Reka Juhasz, as well as Jason Schönauer and Dietmar Reinl, who is advising to the executives to provide the report. As mentioned, we have prepared a presentation which is available on our website. Reka will guide you through this presentation, and the whole team is available for questions afterwards. Now I hand over to Reka.
Thank you, Bettina. Good afternoon, ladies and gentlemen. Welcome to our conference call on results for the first three quarters of 2022. The operating environment was challenging, Immofinanz again, generated very solid results, and we have taken important steps in implementing our value-oriented portfolio strategy. Let's start with an overview of important key figures. On page three of the presentation, you can see an overview of our portfolio highlights. Rental income was stable at high level of roughly EUR 217 million. After an adjustment for a positive one-off effect in the previous year increased by more than 3%. This effect will be explained later in more detail. We also recorded strong growth in like-for-like rental income during the third quarter, with a plus of nearly 8%.
Cost savings supported an increase of 3% in the results of asset management to EUR 168 million. Our properties had a high occupancy rate of 94%, and in the retail segment, we are fully rented at 98.3%. The value of our portfolio has grown to roughly EUR 5.5 billion, and the gross return equals 6.4%. A look at our financial KPIs underscore our good performance. EBITDA improved by more than 15% to roughly EUR 160 million. Net profit was lower year-on-year, above all, due to non-recurrent effects and lower contribution for our equity accounting investment, but still high at EUR 248.6 million. The EPS/TA per share rose by 2.5% to EUR 29.9. We also strengthened our financial base during the last quarters.
This is illustrated by a strong increase in the equity ratio to 58% and as a very conservative Net Loan-to-Value ratio, 33.7%. Let's now take a detailed look at the P&L starting on page 6. Rental income was stable year-on-year at roughly EUR 216.9 million. However, the previous year was positively influenced by compensation payment of EUR 6.7 million for the reduction of space by a tenant. After this adjustment, we can see a very good growth of 3.4%. The result of asset management also improved by 3.2% to EUR 168.4 million due to cost savings. The result of property sales totaled EUR 5 million, including the very successful sale of this building in Prague.
Nevertheless, as we reported in the last quarter, the results were negatively affected by write-off of purchase price receivable from Russia. This EUR 12.9 million receivable originated from the sale of Russian portfolio in 2017 and was scheduled for the final settlement in the H1 of this year. Due to the general environment and the payment restriction in Russia, made the collection of this receivable unlikely and therefore we decided in favor of a write-off. Immofinanz has no other receivables or obligations from the sale of our Russian portfolio, and it is currently evaluating all its legal options. The results of property development amounted to minus EUR 7.8 million and reflect an increase in the construction cost of individual projects.
The results of operation amounted to EUR 117.8 million and were negatively influenced by one-off costs that occurred because of the change of control in Immofinanz. The results on profit evaluation on the next page do not show any major deviation from the first half of the year. The total we recognize a valuation of EUR 68.8 million on our spending investment, which represent roughly 1.4% of the profit value. The majority of this increase were related to retail properties. Here we have positive effects from the STOP SHOPs and bigger shopping centers, above all, due to an after pandemic related improvement in the retail environment. In the office business, positive revaluations related primarily to the offices in Warsaw, Vienna, and Prague.
Financial results on the next slide were positive at EUR 932.4 million, thereby exceeding previous years figured by one side. As to the main drivers, we saved nearly 9% in the net financial costs, which in the end amounted to -EUR 55 million. Other financial results were positively influenced at EUR 139.7 million, above all, due to the positive valuation of our interest rate derivatives. This demonstrates the effectiveness of our entry strategy. At equity earnings of EUR 37 million were below the previous year's well, whereby EUR 33.1 million came from S IMMO. The comparable amount from the three quarters of 2021 equals EUR 128 million. Above all reflected the substantial positive revaluation of our investment in S IMMO shares in 2021 due to increase of the share price.
Earnings before tax amounted to roughly EUR 3 or 9 million or 5% less than in the first three quarters of 2021. Net profit reached a very good level of EUR 248.6 million. This represents earnings per share of EUR 1.8 compared with EUR 2.2 in the previous year. A look at our sustainable FFO1 from standing investment business showed a sound increase of more than 15% to EUR 115.9 million. This amount includes a dividend of EUR 12.7 million from Extrema. To improve comparability, we adjusted the FFO from the first three quarters of 2021 and included the dividend, which was originally paid in the fourth quarter 2021, to show the comparative value for the first three quarters.
As already mentioned in the P&L analysis, we had some bio effects in the first three quarters, mainly due to take lower spec CPIG. We have adjusted these effects in the calculation. FFO1 per share equals EUR 0.85, which represents an increase of 4% based on increased number of shares outstanding. Our next focal point is the Immofinanz global financial structure and liquidity profile. The credit was lower in comparison to the year-end 2021 due to the repayment of corporate bonds following the change of control, remained at a solid level of EUR 141.7 million at the end of September. Considering a new financing arranged shortly after the reporting period, we reached around EUR 350 million.
We also have a credit line of EUR 100 million at our disposal, which has not been used today and is therefore available in full. With a Net Loan-to-Value ratio of 33.7%, our debt level is very conservative and even declines in comparison with year end 2021. Financing costs increased slightly to 2.1%, the remaining terms of the finance is four years. Immofinanz has a high hedging ratio. More than 84% of all financing are hedged against interest rate fluctuations. That creates an important advantage in the current environment. I would now like to take a look and walk through the output. Our long-term objective is to drive growth through our successful retail and office brands and safeguard our robust financing base. With the resilient STOP SHOP retail parks, we want to grow to around 140 locations.
The latest acquisitions of retail properties from CPI already increased this number to 122. Our VIVO! shopping center brand could be strengthened by acquisitions in regional shopping centers, depending on the market environment. In the office sector, we will continue our proven course with myhive office solution. All in all, this is a portfolio first class and innovative brands which places us very close to our customers. Current environment is characterized by rising interest rates and heightened function, we plan to focus on high-end building, retail and office properties. A part of our active portfolio management, we announced in June this year, our plan to sell properties with a value of approximately EUR 100 million. We intend to reinvest proceeds from these disposals in properties that further strengthen our brands or use them to repay debt.
We are making very good progress with the implementation of this strategy, as can be seen in the transactions covered in the current month. I will come to that in a moment. Sustainable and affordable housing remains an important topic for Immofinanz, in the current challenging market environment, the major focus has to be on existing retail and office portfolios. As mentioned, we are making good progress in our portfolio strategy. On slide 14, you have an overview of our latest transaction. With the purchase of 53 retail properties from CPI, we are strengthening our resilient and profitable retail portfolio and expanding our leading position in the retail bar market. In total, we expect the acquisitions will generate rental income of roughly EUR 25 million per year.
The closing for 36 of the properties took place at the end of September and for the two Hungarian properties in the mid of October. Together with closing for remaining 15 properties, our retail portfolio will count 166 properties in 10 countries and 1.3 million square meters of rentable space. On the sale side, we sold an office building in Prague above the book value, and shortly after the end of the third quarter, we also sold two office properties in Vienna. All in all, we are very pleased with these proceeds of roughly EUR 150 million. These transactions underscore the interest of investors in high quality office properties. We also signed a letter of intent with SML for the sale of our six office properties in Hungary.
SML has already taken over the Hungarian office properties owned by CPI, and this fact intends with this fact, we intend to realize synergy in the bigger group. Let's now take a closer look at the cooperation with our majority shareholder. The CPI Property Group, which holds an investment of roughly 77% at Immofinanz, is an active and long-term partner. As previously mentioned, we are working together on a number of projects to further strengthen our position and to benefit from synergies. In this connection, we optimized our organizational structure in the recent months and integrated the local teams in several core countries into the center service companies of the CPI Property Group. The individual teams have been working since August or respectively September as CPI employees in the new structure. We expect a reduced overhead cost up to EUR 5 million per year, beginning 2023.
Let me now briefly talk about guidance and FFO1 for 2022. Based on our nine-month numbers and the recently completed transactions, we now expect FFO1 before tax of EUR 135 million, including the dividend previously received from sIMMO. In conclusion, I would like to address our latest announcement. As announced, we have decided to enter into negotiations with our majority shareholder, CPIG, for the acquisition of sIMMO shares. The potential transaction would involve at least 70.3 million shares of sIMMO, or approximately 23.5% to form a controlling stake in sIMMO with Immofinanz. It would take place as a fair market price to be negotiated based on
Hi. Good afternoon, everybody. This is Jakub from WOOD & Company. Thanks all for the presentation. Three questions from my side. Could you share more details about the s IMMO transaction, in particular the targeted stake that you're looking to purchase and some details about the volume and the cost of financing that you plan to draw from CPIG?
The targeted stake at the moment is 50% plus 1 share to allow for the consolidation, as I described, and everything else is under discussions.
I see. Okay. I think in the press release, Immofinanz also mentioned synergies. You mentioned the taxes. Could you talk about how does the fact that so far sIMMO remains as a sort of separate listed entity affect the synergy potential between Immofinanz and sIMMO, and what kind of synergies could be potentially executed as long as the two are still separate businesses?
Hi, Jakub, this is Stefan speaking. I understood your question in the sense you asked for synergies or stuff like that other than taxes, yeah. Let's maybe start anyhow with taxes. We have in Immofinanz EUR 2.7 billion tax loss carryforward that can be also utilized if we consolidate sIMMO. Future taxable profit in sIMMO can then be sort of taxed with a much more effective tax rate. This is a huge synergy potential. Now coming to other synergy potentials. We are in the same markets, in the same areas, same countries, same asset classes to a great extent. The more efficient management of our properties in these markets, these asset classes will bring, so to say, all the further synergies.
Like we have seen already now in the first steps where Immofinanz and CPI joined forces and where we combined workforces in the various countries to more efficiently, so to say, manage our property portfolio. However, it is too early to give any guidance on synergy volumes.
Understood. Thanks. Thanks, Stefan. On last question on the valuations of the portfolio and sort of the feedback that you're taking away from the transaction market, is there any guidance that the appraisers may have been discussing? How do you see in particular the yields on the office portfolio in the context of the current market levels?
On the overall basis, of course, the rising interest rates are a negative factor for the valuation, but indexation on the other side of rents, and the potential of the growth is a supporting factor. In general, we will be relying on external valuation, and therefore we give no internal guidance at this moment, as we never did in the previous times.
Right. Fair enough. Thanks very much. Sorry, just a quick one. Did I understood correctly that the initiative to build this more affordable residential over STOP SHOP, that this is now being put on hold?
Yes.
Yes, it's, it has been put on hold. We still, we did not go away from the idea, but now we will concentrate on our retail and office portfolio.
Understood. Thank you very much.
There are no further questions registered at this time. I will hand back to Immofinanz for closing comments.
Yeah. Thank you very much for joining us. If you have additional questions, please don't hesitate to reach out to us. Wish you a nice evening and hope to hear you soon again. Goodbye.
Ladies and gentlemen, the conference is now concluded. You may disconnect your telephones. Thank you very much for joining, and have a pleasant day. Goodbye.