Earnings Release • Feb 23, 2011
Earnings Release
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MAGNAT Real Estate AG is the first publicly traded real estate company in Frankfurt to focus on real estate development in east European, Austrian and German metropolitan areas. MAGNAT has evolved into an integrated real estate group. The company covers the entire value chain – from acquisition across development through to the sale of projects and land. In addition, the Group provides real estate asset management for third parties in particular via its subsidiaries MAGNAT Asset Management GmbH and MAGNAT Asset Management Deutschland GmbH.
The strategy of MAGNAT is designed to exploit inefficiencies in real estate markets. Unlike the traditional 'Buy & Hold' approach, MAGNAT takes a 'Develop & Sell' or 'Buy & Sell' approach, which focuses on real estate development supplemented by portfolio trading. MAGNAT investors participate in development returns in eastern Europe, southeastern Europe, the Commonwealth of Independent States (CIS) as well as in Germany and Austria.
| In EUR '000 | Q3 2010/11 |
Q3 2009/10 |
Q1-3 2010/11 |
Q1-3 2009/10 |
|---|---|---|---|---|
| Gains/losses relating to letting | 455 | 925 | 2,096 | 2,011 |
| Gains/losses relating to the sale of real estate companies |
0 | 0 | 0 | 0 |
| Gains/losses relating to the sale of real estate |
56 | 0 | 1,412 | 0 |
| Gains/losses relating to asset management |
78 | 98 | 290 | 98 |
| Gains/losses relating to compa nies valued at equity |
–613 | 1,854 | –5,643 | 542 |
| Operating result (EBIT) | –936 | 3,089 | –3,690 | 397 |
| Income before taxes (EBT) | –1,075 | 1,684 | –1,806 | –2,771 |
| Net result after minority interests | -989 | 1,736 | –2,032 | –2,484 |
| Basic earnings per share | –0.07 | 0.27 | –0.15 | –0.38 |
| Diluted earnings per share | –0.07 | 0.27 | –0.15 | –0.38 |
| In EUR '000 | 31/12/2010 31/03/2010 | |
|---|---|---|
| Shareholders' equity | 109,023 | 111,567 |
| Liabilities | 56,342 | 65,135 |
| Total assets | 165,365 | 176,702 |
| Equity ratio | 65.9% | 63.1% |
| Cash and cash equivalents | 6,838 | 8,822 |
*unaudited
Frankfurt/Main, 11 February 2011 – MAGNAT Real Estate AG ('MAGNAT', ISIN DE000A0XFSF0) has reduced the loss in the first nine months of the 2010/2011 fiscal year (1 April 2010 to 31 March 2011) further. The net loss amounted to EUR 2.0 million after minority interests. At the same time, debt in the amount of EUR 9.3 million was reduced, due to which the Group's equity ratio rose from 62.9 per cent at 30 September 2010 to 65.9 per cent at 31 December 2010.
Gains/losses relating to the letting ofreal estate stood at EUR 0.5 million for the quarter. In the nine-month comparison, it thus rose slightly from EUR 2.0 million to EUR 2.1 million. Only a small profit was accrued from the sale of real estate in the third quarter;
| Q1-3 | FY | FY | |
|---|---|---|---|
| 2010/11 | 2009/2010 | 2008/2009 | |
| Number of shares | 13,894,651 | 13,894,651 | 52,900,000 |
| Market capitalisation in EUR million | 32,221,696 | 50,020,744 | 17,986,000 |
| Profit per share | –0.15 | –1.35 | –0.12 |
| P/E ratio | negative | negative | negative |
| Intrinsic value (NAV) per share in EUR | 7.09 | 7.63 | 1.63* |
| Free float (shareholders < 3%) in per cent | 39.53% | 34.36% | 74.68% |
| Share capital (in EUR) | 13,894,651 | 13,894,651 | 52,900,000 |
*Before capital reduction in the ratio 10:1
| NAV | No. of shares |
NAV per share |
|
|---|---|---|---|
| NAV as of the financial statements at 31 December 2010 |
98.37 | 13.89 | 7.08 |
| Effect of exercise of options, convertibles and other equity interests |
– | – | – |
| Diluted NAV after exercise of options, convertibles and other equity interests |
98.37 | 13.89 | 7.08 |
| Revaluations | 0.00 | 0.00 | |
| Development of properties held for investment | – | – | |
| Revaluation of other non-current investments | – | – | |
| Fair value of tenant leases held as finance leases | – | – | |
| Fair value of trading properties | – | – | |
| Fair value of financial instruments | 0.00 | 0.00 | |
| Deferred tax | 0.12 | 0.01 | |
| Goodwill as a result of deferred tax | – | – | |
| Diluted EPRA NAV | 98.48 | 7.09 |
therefore, as was the case at the end of the first half, gains during the nine-month period stood at EUR 1.4 million. Asset Management once again generated a result of EUR 0.1 million for the quarter, and for the nine months EUR 0.3 million.
While these areas thus continue to generate a positive result, net income is weighed down by losses from the companies valued at equity. The negative result of EUR –5.6 million includes losses from YKB amounting to EUR 1.7 million as well as losses in the second quarter from the project in Poland of EUR 2.5 million. This is offset by a positive change in the measurement of the loan to Poland amounting to EUR 2.9 million, which is recognised as financial income.
Income before taxes in the Group of EUR –2.8 million in the first nine months of last year was thus improved to EUR –1.8 million. Earnings per share amounts to EUR –0.15.
In the third quarter, MAGNAT succeeded in reducing long-term debt by more than EUR 8.4 million and short-term by just over EUR 0.8 million. This essentially concerns the reduction of financial debt, which was partially offset by corresponding receivables, contributing to the reduction of the balance sheet. In the third quarter, trade receivables of EUR 15.8 million was thus reduced to EUR 7.8 million and financial receivables also dropped.
At 31 December 2010, shares in companies valued at equity were measured at EUR 36.8 million. The value of real estate inventory rose to EUR 69.5 million at 31December 2010.
Net asset value (NAV) according to EPRA's recommendations amounted to EUR 98.5 million after this change. Based on the number of shares issued (13.89 million), this represents a NAV of EUR 7.09 per share.
Cash and cash equivalents stood at EUR 6.8 million at 31December 2010 and are thus at the anticipated, sufficient level. The sale of two properties from the YKB portfolio was successfully completed in the current Q4. This gives rise to further already budgeted cash inflows before the end of the year, which will be used for operating the company and investing in the realignment of the portfolio.
| Name | MAGNAT Real Estate AG |
|---|---|
| ISIN | DE000A0XFSF0 |
| WKN | A0XFSF |
| Code/Ticker | M5R (Bloomberg: M5R RK, Reuters: M5RGK.DE) |
| Number of shares | 13,894,651 |
| Free float (shareholders < 3%) | 39.53% |
| Analyst price target | EUR 3.60 resp. EUR 8.00 |
| Coverage | Close Brothers Seydler, Silvia Quandt & Cie. AG |
| General Standard | Frankfurt Stock Exchange (Frankfurt and Xetra) |
| Open Market | Berlin, Dusseldorf and Stuttgart |
| Index | C-DAX, DIMAX |
| [email protected] | |
| Web site | www.magnat.ag |
| Publication | Date |
|---|---|
| Regular General Meeting of Shareholders, Frankfurt/Main |
2 November 2010 |
| 2010/2011 Half-yearly Report | 30 November 2010 |
| Q3 Interim Report at 31 December 2010 | 11 February 2011 |
| Publication of the 2010/2011 Financial Statements | 29 July 2011 |
| Q1 Interim Report at 30 June 2011 | 11 August 2011 |
| MAGNAT fiscal year: 1 April to 31 March respectively |
On 10 December 2010, Dr. Marc-Milo Lube was appointed the position of Chairman of the Board of Management by the Supervisory Board. Since then, the new Board of Management, in which Jürgen Georg Faè remains responsible for the company's finances, has continued to press forward with the strategic focus of MAGNAT. In essence, the new strategy aims at focusing on a small number of promising core markets, which exhibit above-average potential and where the company has already firmly established itself.
The trimming of the portfolio by the activities that will no longer be the focus of the company should provide the financial flexibility necessary to grow the business selectively in the core markets. This strategic focus will be implemented judiciously and still with the aim of not being pressured into selling interests, but achieving the best possible conditions and making investments in new projects after careful analysis and examination of the particular challenges and opportunities. Details of the new strategy will be announced in the coming weeks.
Frankfurt/Main, 11 February 2011
CEO CFO
Dr. Marc-Milo Lube Jürgen Georg Faè
MAGNAT Real Estate AG Investor Relations Dr. Joachim Fleing/Charlotte Frenzel Lyoner Strasse 32 D-60528 Frankfurt/Main Telephone: +49 (0) 69-719 189 79 36 Fax: +49 (0) 69-719 189 79 11 E-mail: [email protected] Web: www.magnat.ag
Remarks: This interim report is also available in English. The German version of this report is authoritative. More information about the company and the online interim report is available on the Internet at www.magnat.ag. We will be pleased to send you information in printed form on request: [email protected]
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