UPDATE 1-CA Immo raises dividend as core profit jumps

Tue Mar 18, 2014 2:49pm EDT

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* 2013 EBITDA rises by a fifth to 296 million euros

* Net profit falls 13.5 percent to 48.3 million

* Proposes raising dividend to 0.40 euros per share (Adds details and background)

VIENNA, March 18 (Reuters) - Austrian real estate group CA Immobilien reported record 2013 net rental income and core profit that rose by a fifth, proposing on Tuesday to raise its dividend by two cents to 0.40 euros per share.

Net rental income rose 2 percent to 251 million euros ($349 million), while income from the sale of properties nearly doubled to 75.5 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) advanced to 296 million euros and EBIT rose nearly 10 percent to 255 million, in line with the average estimate in a Reuters survey of analysts.

The company's net asset value was 1.80 billion euros as of the end of 2013, up 6.2 percent year on year.

CA Immo is disposing of major assets to boost its equity and reduce its loan-to-value ratio.

Last year it agreed to sell two-thirds of its Tower 185 project in Frankfurt to German pension funds for about 330 million euros.

It also agreed to sell 36 office buildings in the German state of Hesse, in which Frankfurt is the biggest city, to Patrizia Immobilien for 800 million euros.

Net profit after minorities fell 13.5 percent to 48.3 million as higher taxes and a one-off charge linked to the Hesse deal hit the bottom line.

"Top priority will be the continued optimisation of the real estate portfolio, the main tool for raising operational profitability. The incremental sale of real estate in non-strategic geographical and sectoral areas should improve our key portfolio indicators and enable us to manage the asset portfolio more efficiently," it said in its 2014 outlook. ($1 = 0.7188 Euros) (Reporting by Michael Shields, editing by David Evans)

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