EANS-News: GSW Immobilien AG raises annual forecast for FFO I
20.08.2012 – 07:27
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- 6-month report Berlin (euro adhoc) - GSW Immobilien AG raises annual forecast for FFO I * Net rental income climbs to E78.9million * Vacancy rate down to 3.2 percent * Average rent increases to E5.14/sqm * Adjusted EBITDA rises to E66million * Consolidated net income of E25million * FFO I of E32.6million Berlin, 20 August 2012 - This first six months of this year have again been highly eventful for GSW Immobilien AG. The MDAX-listed property portfolio holding company successfully concluded a capital increase at the start of May 2012. At the end of June 2012, GSW held its first Annual General Meeting as a listed company, at which its shareholders approved all items on the agenda. These two events, a tenable and stable business model and a positive development in operating activities again contributed to a healthy performance in the first half of 2012. The full interim report for the first six months of the 2012 financial year can be viewed and downloaded from today at www.gsw.de. In the first six months, GSW continued to benefit from the positive development in its operating activities. Net rental income rose by around 13.3 percent year-on-year to E78.9million. At the same time, the vacancy rate declined to around 3.2 percent while in-place rents increased by 4 percent to E5.14 per square metre per month in the same period. Strong rental and property disposal income drives up earnings EBIT for the first half of the year declined slightly as against the same period of 2011 to E66.3million. However, the previous year's EBIT was influenced considerably by the extraordinary effects from events such as the sale of BMH Berlin Mediahaus GmbH and the expenses for the IPO. Adjusted for these effects, EBIT rose significantly by E10million. "This increase is primarily due to improved net rental income as a result of higher rents, a lower vacancy rate and good results from disposals," said Jörg Schwagenscheidt, Member of the Board of Management of GSW Immobilien AG. EBITDA declined to a similar degree as EBIT in the reporting period. As against the first half of 2011, however, adjusted EBITDA was up 11.6 percent at E66million and therefore in line with forecasts. Overall, GSW concluded the first six months of 2012 with consolidated net income of E25million (2011: E28.8million), a year-on-year slide of E3.8million. However, the consolidated net income in 2011 was largely influenced by the disposal of BMH in January 2011 in the amount of E25.4million as well as expenses for the IPO. By contrast, the figure relevant to the dividend, FFO I (funds from operations, not including the result of disposals) rose by 12.4 percent as against the previous year to E32.6million due to operating performance and increased portfolio size. Successful capital increase influences net asset value Net asset value (EPRA NAV), the Group's economic capital, increased to E1,394.3million as per the end of the first half of the year. The loan-to-value ratio declined to a current 51.5 percent. In particular, this was due to the proceeds from the capital increase. Compared to 31 December 2011, net asset value (EPRA NAV) per share dipped from E29.72 to E27.59 owing to the higher number of shares following the capital increase and the distribution of the dividend of E0.90 per share. GSW successfully carried out a capital increase at the start of May 2012. More than 90 percent of the new shares offered were subscribed to by existing shareholders at a price of E21.30 each, thereby generating net issue proceeds of E191.2million. "Our business model combines sustainable growth with an attractive dividend policy. The additional capital will enable us to continue pushing ahead with this strategy and allow our shareholders to participate in the company's success," said Thomas Zinnöcker, Chairman of the Board of Management at GSW. First Annual General Meeting paves the way for future growth GSW also held its first Annual General Meeting as a listed company at the end of June 2012. All items on the agenda were approved with a majority by the Annual General Meeting. At the proposal of the Management Board and the Supervisory Board, 99.99 percent of shareholders at the Annual General Meeting voted in favour of the distribution of a dividend for the 2011 financial year of E0.90 per entitled share. This corresponds to a total amount of around E45.5million. The GSW Annual General Meeting also resolved new authorised and contingent capital with a large majority. "This will secure the company's future growth and financial flexibility," said Andreas Segal, GSW'S CFO. GSW Management Board raises annual forecast for FFO I to approximately E61 to E64 million The successful capital increase, the favourable general conditions on the Berlin residential market and a positive development in operating activities have prompted the Management Board of GSW to adjust its forecast for FFO. "We are projecting FFO I of approximately E61 to E64million for the 2012 financial year," said Segal. 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 52,300 residential units, GSW Immobilien AG is one of the leading private residential property companies in Berlin. In addition, a subsidiary of GSW manages around 17,700 residential and commercial units for third parties. GSW's corporate strategy is geared towards the long-term management of rented apartments, using a systematic approach intended to enhance customer satisfaction and operational efficiency. The company's property portfolio as of 31 December 2011 was valued at around E2.9billion. Further inquiry note: René Bergmann Tel.: +49 30 2534 1362 Fax: +49 30 2534 233 1960 E-Mail: rene.bergmann@gsw.de end of announcement euro adhoc -------------------------------------------------------------------------------- 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