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Annual Reports/FY 2011
Berlin (euro adhoc) - Press conference on financial performance:
GSW plans dividends of EUR 0.90 per share
Consolidated net income improves to EUR 105.1 million
EBIT rises to EUR 177.2 million
FFO I amounts to EUR 56.6 million (EUR 1.38 per share)
Vacancy rate decreases to 3.4 percent
Equity ratio improves to 38.4 percent
Net asset value (EPRA) rises to EUR 29.72 per share
Berlin, 30 March 2012 - GSW Immobilien AG can look back at an eventful and
successful 2011 fiscal year. Following the successful refinancing in February
and the IPO in April 2011, GSW was rapidly included in the EPRA and the SDAX.
The company has been listed in the MDAX since September 2011, and by November
2011, it had already fulfilled its promise of growth from the IPO with the
acquisition of around 4,800 apartments in Berlin.
The 2011 fiscal year was also a very successful year for GSW from an operating
perspective. For instance, the listed real estate company increased its income
from rents by EUR 4.2 million (2.3 percent as against 2010) to EUR 183.1
million in the reporting year. "This was achieved by means of a 0.3 percentage
points reduction in the vacancy rate to the current level of 3.4 percent, and
through the acquisition of a real estate portfolio with 4,857 units," said Jörg
Schwagenscheidt, COO of GSW Immobilien AG. "Overall, the average rent for
leased apartments increased by 3.7 percent from EUR 4.90/sqm to EUR 5.08/sqm,"
GSW invested around EUR 13/sqm for maintenance and modernisation in the 2011
fiscal year (approximately EUR 41.1 million in total) and predicts that this
level will continue in the medium term.
Significant rise in operating result and consolidated profit
In the past year, GSW generated net rental income of EUR 141.1 million. The
operative result (EBIT) also increased to EUR 177.2 million (2010:
EUR 101.5 million). This was mainly due to a positive valuation result of
EUR 56.2 million and non-recurring effects totalling EUR 25.4 million,
essentially resulting from the sale of BMH Berlin Mediahaus GmbH. These
extraordinary effects also led to a rise in consolidated profit to EUR 105.1
Investment in long-term stability
The key figure funds from operations (FFO I), which is important for the
dividend policy, amounted to EUR 56.6 million (EUR 1.38 per share). In
comparison to the previous year, FFO I fell by around 28 percent. This decrease
was primarily due to the increased interest expenses resulting from the
refinancing of the CMBS loan in February 2011 in the amount of EUR 890 million.
Net interest payments consequently increased by EUR 21.2 million to EUR 61.7
million in the reporting year. As of 31 December 2011, the company had loans
with a total of 14 banks with a nominal volume of EUR 1,874.8 million, of which
98.75 percent is hedged by means of fixed-interest agreements or interest rate
swaps. "We are delighted to have been able to provide GSW with a stable
financial footing," said Andreas Segal, CFO of GSW. "This investment in GSW´s
long-term stability was the key prerequisite for our successful IPO last year,"
GSW intends to pay out a dividend of EUR 0.90 per share
"We would like to thank our shareholders for the confidence they placed in us
during the past financial year, particularly in connection with our IPO. This
made an important contribution to GSW´s success. The Management Board and
Supervisory Board will propose to the General Shareholders´ Meeting on 28 June
2012 that a dividend of 90 cents per share be distributed," said Thomas
Zinnöcker, CEO of GSW. In relation to the volume-weighted average price in 2011
of EUR 21.80, this results in a dividend yield of 4.1 percent. "If the General
Shareholders´ Meeting approves our proposed dividend, we will have paid a
dividend to our shareholders in our first year as a listed company. We are
delighted to fulfil our promise from 2011 in this way," Zinnöcker said.
Further improvement in equity ratio - value of property assets rises to
approximately EUR 3 billion
The positive consolidated performance and the expansion of the portfolio meant
that the EPRA net asset value (NAV), i.e. the economic equity of the group,
increased by around 23 percent to EUR 1,219.9 million at the end of the
financial year. This corresponds to a figure of EUR 29.72 per share as of 31
December 2011. The equity ratio improved to 38.4 percent (31 December 2010:
36.4 percent). After the property acquisition and revaluation, the loan-to-
value ratio decreased year-on-year to 58.0 percent (31 December 2010: 61.1
percent). Overall, GSW´s portfolio at the end of the reporting period had a
market value of approximately EUR 2,947 million (EUR 873/sqm).
Stable financial footing
In the past year, GSW also adapted its financing structure at an early stage.
As planned, GSW successfully concluded the refinancing of a CMBS loan with a
volume of around EUR 890.0 million in February 2011. Six bilateral loan
agreements with a total volume of EUR 875.0 million were concluded with German
banks and additional cash was used for the early repayment of the loan. This
means that no further significant liabilities are scheduled for refinancing
between now and 2016.
Successful IPO and growth strategy
On 15 April 2011, GSW was successfully floated on the stock exchange. GSW´s
shares were listed in the Prime Standard of the Frankfurt Stock Exchange for
the first time. Despite the difficult conditions on the capital markets, GSW´s
IPO - which had an issue volume of around EUR 468.0 million - was the largest
on the Frankfurt Stock Exchange in 2011 and, internationally, the largest by a
real estate company in recent years.
The company also received gross proceeds of EUR 115.0 million from the capital
increase implemented at the same time. Over the remainder of the year, GSW´s
shares outperformed the market as a whole. They were included in the SDAX on 20
June 2011 and promoted to the MDAX on 19 September 2011. This means that GSW is
now one of the 80 largest listed companies in Germany. In addition, a total of
16.1 million GSW shares held by the former shareholders Cerberus and Whitehall
were successfully placed on 13 October 2011 and 12 January 2012, resulting in a
significant increase in the free float to around 94 percent.
Successful acquisitions increase profitability
With the restructuring over recent years and the two major projects of
refinancing and the IPO, the group now boasts a robust and significantly
improved financing structure. This has allowed it to expand its property
portfolio and realise new earnings potential. In November 2011, GSW added
roughly 4,800 residential and commercial units in attractive locations in
Berlin to its portfolio. "The above-average rents and relatively low vacancy
rate in this portfolio will lead to a further improvement in the company´s
profitability from the 2012 financial year onwards," said Management Board
Member Jörg Schwagenscheidt. GSW anticipates that the acquisitions will have a
positive influence on its income from management.
Outlook for 2012
External growth through additional acquisitions is also planned for the future.
In addition to the efficient business model, the positive developments on the
Berlin housing market form the basis for GSW´s success: Firstly, construction
activity is generally low, while demand for housing space is rising in Berlin,
driven by the growing number of residents in the city. At the same time, the
number of households is increasing on the back of the trend towards single-
occupant apartments. This will continue to have a positive impact on the
company´s revenues and earnings. "With a slight rise in rents and an unchanged
property portfolio, we expect FFO I to increase to between EUR 59 million and
EUR 63 million in the 2012 financial year," said CFO Andreas Segal.
GSW Immobilien AG´s full 2011 annual report can be viewed and downloaded at
Appendix: Highlights page from the 2011 annual report
GSW Immobilien AG
Charlottenstrasse 4, 10969 Berlin, Germany
Press Investor relations
Thomas Rücker Sebastian Jacob
E-mail: firstname.lastname@example.org E-mail:
Tel.: +49. (0) 30. 25 34-13 32 Tel.: +49. (0) 30. 25 34-18
Fax: +49. (0) 30. 25 34-19 34 Fax: +49. (0) 30. 25 34- 233 1960
With a portfolio of around 53,000 residential units, GSW Immobilien AG, which
was formed in 1924, is one of the leading listed residential property companies
in Berlin. A GSW subsidiary also manages around 17,500 residential units for
third parties. GSW´s corporate strategy is focused on the long-term management
of rental properties, applying a systematic approach aimed at increasing both
customer satisfaction and operating efficiency. As of 31 December 2011, the
company´s real estate portfolio was valued at around EUR 2.95 billion.
Further inquiry note:
Tel.: +49 30 2534 1362
Fax: +49 30 2534 1909
end of announcement euro adhoc
company: GSW Immobilien AG
phone: +49 30 68 99 99 0
FAX: +49 30 68 99 99 999
sector: Real Estate
stockmarkets: regulated dealing: Berlin, regulated dealing/prime standard: