INCITY CLOSES FISCAL YEAR 2023 WITH A CONSOLIDATED LOSS OF EUR 6.0 M ACC. TO
HGB - CONTINUED STABLE FINANCIAL SITUATION AND SIGNIFICANT HIDDEN RESERVES

EQS-News: InCity Immobilien AG / Key word(s): Annual Report
INCITY CLOSES FISCAL YEAR 2023 WITH A CONSOLIDATED LOSS OF EUR 6.0 M ACC. TO
HGB - CONTINUED STABLE FINANCIAL SITUATION AND SIGNIFICANT HIDDEN RESERVES

25.04.2024 / 08:31 CET/CEST
The issuer is solely responsible for the content of this announcement.

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INCITY CLOSES FISCAL YEAR 2023 WITH A CONSOLIDATED LOSS OF EUR 6.0 M ACC. TO
HGB - CONTINUED STABLE FINANCIAL SITUATION AND SIGNIFICANT HIDDEN RESERVES

  * Net loss for the year of EUR -6.0 m for the Group and of EUR -9.7 m for
    the single-entity financial statements

  * Development of results characterised by decrease in EBITDA and two
    extraordinary depreciations

* High equity ratio documents stable financial situation

  * Net asset value was EUR 1.30 per share as of the balance sheet date (31
    December 2022: EUR 1.66 per share)

* Very good letting situation in property portfolio continues

  * Property portfolio continues to feature high hidden reserves despite
    decrease in market values

  * Positive overall assessment of group economic situation and cautiously
    optimistic outlook for 2024

Schönefeld, 25 April 2024 - The annual report of InCity Immobilien AG
("InCity AG") published today reports a net loss (acc. to HGB) of EUR 6.0 m
at Group level and a net loss of EUR 9.7 m at single-entity annual financial
statement level for fiscal year 2023. This means that the final results are
below the forecast revised in December 2023. In this respect, the Management
Board's expectations and plans for the InCity Group and at the level of
InCity Immobilien AG were not met in the course of 2023. The significantly
lower result compared to the prior fiscal year (2022: EUR -2.9 m at Group
level and EUR -1.9 m at single-entity annual financial statement level) is
primarily due to a decrease in EBITDA as well as two extraordinary
depreciations on portfolio properties.

As of the balance sheet date on 31 December 2023, the InCity Group's
property portfolio comprised seven properties in total, five residential and
commercial buildings and two office properties in Berlin and Frankfurt am
Main. The number of portfolio properties held by InCity thus continued to
remain constant in fiscal year 2023. As at the balance sheet date of the
prior year, we again subjected our portfolio properties to a market
valuation by a third party as of 31 December 2023. Based on this market
valuation amounting to EUR 177.5 m (31 December 2022: EUR 207.0 m)for the
seven portfolio properties held by the Group as of the balance sheet date,
and taking into account the other Group balance sheet items, a net asset
value of EUR 1.30 per share results (31 December 2022: EUR 1.66 per share).

The year-on-year decrease in the seven portfolio properties' market values
assessed by a third party is mainly attributable to an increase in the
capitalisation rates used. For "Stiftstrasse 18/20" in Frankfurt am Main and
for "Oranienburger Strasse 39" in Berlin, extraordinary and
non-liquidity-related depreciations - as described above - became necessary
for HGB accounting, as the currently determined market value is below the
HGB carrying amount in this case (at amortised cost: acquisition costs
reduced by the standard amortisation according to the expected useful life).
The difference between the market value and the carrying amount of all seven
portfolio properties - known as hidden reserves - amounts to approximately
EUR 33.9 m as at 31 December 2023 (31 December 2022: approx. EUR 58.3 m).
Despite the decrease in market values as of the balance sheet date, the
market values are therefore about 24% higher than the HGB carrying amounts
overall.

The InCity's Group EBITDA was approximately EUR 0.7 m in the reporting year
(prior year: EUR 2.6 m). The decrease in EBITDA by approximately EUR 1.9 m
is primarily due to non-capitalised investments into portfolio properties
incurred in the reporting year that amounted to about EUR 1.2 m and mainly
related to the property located at Jägerstrasse 34/35 in Berlin. In
addition, revenue fell by approximately EUR 0.4 m while personnel and
material costs rose by about EUR 0.3 m.

At single-entity annual financial statement level, the decreased result is
primarily due to non-liquidity-related extraordinary depreciation amounting
to about EUR 7.1 m on InCity AG's equity-replacing loans to three of the
total seven portfolio-managing property companies, which in turn are
exclusively due to the decrease in the externally assessed market values of
the respective three portfolio properties. The fact that the internal
corporate operating asset management fees were restructured also had a
negative impact on the result. These will no longer be collected by InCity
AG from fiscal year 2023 onwards, but instead by IC Immobilien
Betriebsgesellschaft mbH, and will therefore flow indirectly to InCity via
profit distributions in future.

High equity ratio documents stable financial situation

The Group's equity ratio was approximately 50% as of the balance sheet date
(31 December 2022: 46%) and documents its stable financial situation. In
spite of the consolidated net loss for the year, the equity ratio increased
on the previous year. This was mainly due to the balance sheet being
contracted as a result of the partial handover of the office property in
Schönefeld, which was built as a general contractor for a third party, and
the HGB depreciations on the portfolio properties.

Cautiously optimistic outlook for fiscal year 2024

Fiscal year 2024 will be characterised by a clearly negative net income for
the year, particularly in InCity's consolidated financial statements.
However, it must be taken into account that ordinary HGB depreciation of
around EUR 2.0 m on property, plant and equipment (of which around EUR 1.8 m
is attributable to the portfolio properties) will particularly reduce the
planned Group results. Furthermore, the forecast for the consolidated
financial statements in fiscal year 2024 includes portfolio investments
between EUR 3.1 m and EUR 3.6 m that are not capitalised on the balance
sheet but instead reduce the Group results. The vast majority of all the
planned investments are value-enhancing measures. The realisation of profits
from the general contractor agreement for the construction of a new building
in Schönefeld is an integral part of the Group forecast for 2024 and will
have a positive effect on results. The Company currently projects a total
net loss for the year of between EUR -3.5 m and EUR -4.0 m for the InCity
Group, without considering positive earnings contributions from potential
future acquisitions or sales of portfolio properties in 2023.

Even though the upturn in prices has slowed noticeably since the fourth
quarter of 2023 and the European Central Bank (ECB) has refrained from
further interest rate hikes since September 2023, interest rates and prices
are likely to continue to have a significant impact on economic development
in Germany in 2024. Although several experts expect economic growth to
recover in the course of 2024, it is likely to gain momentum later than
initially assumed. Despite the fact that the growth forecasts for 2024 were
most recently downgraded multiple times, stronger growth is considered
likely for 2025. "InCity is countering the scenario of subdued short-term
economic development that is expected to improve more significantly only
towards the end of 2024 with a low LTV ratio compared to the sector as a
whole and a solid equity ratio", says Michael Freund, CEO of InCity
Immobilien AG. "We continue to regard the general conditions for InCity's
business model as largely stable, and, in our opinion, the most significant
potential impact of inflation and globally disrupted supply chains on
InCity's business development continues to be possible increases in energy,
building material and construction service prices in connection with
InCity's own project developments. However, at this juncture, we do not
expect the relevant costs to rise significantly above the level assumed in
the current plans, especially as the construction project in Schönefeld,
which is currently being realised, has already been largely handed over to
the client."
Contacts for enquiries:

InCity Immobilien AG
Lilienthalstraße 2
12529 Schönefeld, Germany
www.incity.ag

Press contact
Peter Dietze-Felberg
Phone: +49 (0)30 2844987-62
presse@incity.ag

Investor relations
Michael Freund, CEO
Phone: +49 (0) 30 403 64 77-0
ir@incity.ag

About InCity Immobilien AG As a multi-disciplinary real estate company,
InCity Immobilien AG (referred to in the following as InCity AG) is
dedicated to creating and increasing the value of property portfolios and
operates in the fields of asset management and project development. For its
property portfolio, InCity AG focuses on the real estate markets of the two
major cities Berlin and Frankfurt am Main and pursues a sustainable
investment strategy. The decisive factors here are location, property
quality and long-term value stability. Accordingly, the portfolio consists
of high quality core properties with value stability in Berlin as well as
properties in locations in Frankfurt that are attractive in the long term
with investment volumes between EUR 5 m and EUR 50 m. In addition, InCity AG
assumes comprehensive and individually developed asset management contracts
for third parties. InCity AG significantly strengthened its project
development business unit in July 2021 by undertaking a contract, as a
general contractor, for the construction of a new office property in the
immediate vicinity of the Berlin-Brandenburg (BER) airport, as well as
adding its own project development activities.
Visit the website for further information about the company: www.incity.ag


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   Language:       English
   Company:        InCity Immobilien AG
                   Lilienthalstraße 2
                   12529 Schönefeld
                   Germany
   Phone:          IR: +49 (0) 30 4036477 0 PR: +49 (0) 30 2844987 62
   Fax:            +49 (0) 30 403 647 790
   E-mail:         ir@incity.ag
   Internet:       www.incity.ag
   ISIN:           DE000A0HNF96
   WKN:            A0HNF9
   Listed:         Regulated Unofficial Market in Berlin, Dusseldorf,
                   Frankfurt (Basic Board), Hamburg, Stuttgart, Tradegate
                   Exchange
   EQS News ID:    1888547

End of News EQS News Service
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1888547 25.04.2024 CET/CEST