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GSW Immobilien AG

EANS-News: GSW Immobilien AG plans dividends of EUR 0.90 per share

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  Corporate news transmitted by euro adhoc. The issuer/originator is solely
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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,"
he said.

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
million.

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,"
he said.

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
www.gsw.de.



Appendix: Highlights page from the 2011 annual report





Contact
GSW Immobilien AG
Charlottenstrasse 4, 10969 Berlin, Germany


Press                                  Investor relations
Thomas Rücker                          Sebastian Jacob
E-mail:       thomas.ruecker@gsw.de                E-mail: 
sebastian.jacob@gsw.de
Tel.: +49. (0) 30. 25 34-13 32               Tel.:      +49. (0) 30. 25 34-18
82

Fax:  +49. (0) 30. 25 34-19 34               Fax: +49. (0) 30. 25 34- 233 1960





About GSW
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:
René Bergmann
Tel.: +49 30 2534 1362
Fax: +49 30 2534 1909
E-Mail:  rene.bergmann@gsw.de

end of announcement                               euro adhoc 
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company:     GSW Immobilien AG
             Charlottenstr. 4
             D-10969 Berlin
phone:       +49 30 68 99 99 0
FAX:         +49 30 68 99 99 999
mail:         kundenservice@gsw.de
WWW:         http://www.gsw.de
sector:      Real Estate
ISIN:        DE000GSW1111
indexes:     MDAX
stockmarkets: regulated dealing: Berlin, regulated dealing/prime standard:
             Frankfurt 
language:   English

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