* Q1 FFO up 7 pct to 16 mln euros, 2014 target at least 55
* Net rental income down 24 pct to 33 mln euros
* Net profit down 22 pct to 14 mln euros
(Adds details on outlook, net profit, background)
VIENNA, May 27 Austrian real-estate group CA
Immobilien reported a 7 percent rise in first-quarter
funds from operations on Tuesday, thanks mainly to lower
The company, which specialises in letting and managing
office properties in central Europe, has made extensive sales of
non-strategic properties, including the partial sale of Tower
185 in Frankfurt, to cut debt and boost its equity ratio.
FFO 1, a measure of cash flow from operations excluding
depreciation, amortisation and gains or losses from property
disposals, was 16 million euros ($22 million) in the quarter, CA
The company said it aimed for at least 55 million euros this
year in FFO 1, which is also a key indicator of profitability in
the property rental business, compared with 63 million euros
last year, when it had a larger asset base.
"Having successfully consolidated the balance sheet last
year, our efforts in 2014 will be focused on raising long-term
profitability still further," Chief Executive Bruno Ettenauer
said in a statement.
Income from the sale of investment properties rose 82
percent to 4.3 million euros in the quarter, while net debt fell
to 1.1 billion euros from 1.72 billion at the end of 2013.
Net rental income fell 24 percent to 33 million euros on a
comparable basis, taking account of the deconsolidation of its
income from joint ventures, which were reported separately under
new accounting rules it adopted at the start of the year.
Income from JVs more than doubled to 8 million euros.
Net profit fell 22 percent to 14 million euros despite the
strong asset disposals and the consolidation of the JV income on
the bottom line due to a negative effect of 8.3 million euros
($1 = 0.7345 Euros)
(Reporting by Georgina Prodhan, editing by David Evans)