GSW Immobilien AG

Earnings Release • Aug 15, 2013

News Details

Corporate | 15 August 2013 07:19

GSW Immobilien AG: GSW Immobilien AG successfully continues expansion

GSW Immobilien AG / Key word(s): Quarter Results

15.08.2013 / 07:19

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GSW Immobilien AG successfully continues on expansion course

– Real estate group acquires around 2,800 apartments in Berlin

– Net operating profit (EBIT) improves by 14.7 percent to EUR 76.1 million

– Consolidated net income rises by 69.7 percent to EUR 42.5 million in first half of 2013

– FFO I increases by 30.4 percent year-on-year to EUR 42.5 million

– Loan-to-value ratio remains constant at 53.8 percent

– EPRA net asset value of EUR 30.03 per share after dividend payment of EUR 0.90

Berlin, 15 August 2013 – GSW Immobilien AG was once again operationally successful during the first six months of this year, further increasing its letting and management result. In addition, GSW acquired approximately 2,800 apartments in Berlin. The MDAX-listed company thereby fully and profitably invested the cash inflows from the capital measures implemented in 2012. GSW intends to continue this successful expansion course with due caution. As of today, the full interim report for the first six months of the 2013 financial year can be viewed and downloaded at www.gsw.ag .

The company’s letting and management result again developed positively. The Berlin-based real estate company acquired a total of approximately 2,800 apartments in Berlin in two transactions in late July and early August. With actual rental income of approximately EUR 5.62 per square metre per month, the vacancy rate in the purchased properties amounts to only around 0.9 percent. The total purchase price for the two portfolios is around EUR 201 million, or EUR 1,176 per square metre.

The properties are predominantly situated in attractive locations in Friedrichshain-Kreuzberg (28 percent), Pankow (26 percent) und Lichtenberg (24 percent), and the majority have been modernised. For the most part the acquisitions will not impact GSW’s overall result until next year. ‘We expect the acquisitions to have a long-term positive impact on operating margins and an additional FFO contribution of approximately between EUR 6.2 million and EUR 6.6 million,’ said Jörg Schwagenscheidt, Member of the Board of Management of GSW Immobilien AG, whose areas of responsibility include acquisitions. CFO Andreas Segal added: ‘We have thereby fully and profitably invested the cash inflows from the capital measures implemented in 2012.’

Compared to the first half of the previous year, net rental income increased by 16.3 percent to EUR 91.8 million. In-place rent climbed from EUR 5.14 to EUR 5.31 per square metre per month, an increase of 3.3 percent. In a like-for-like comparison (property portfolio not including acquisitions and disposals), in-place rent marked an increase of 2.9 percent over the past 12 months. The vacancy rate fell by 0.5 percentage points year-on-year to 2.7 percent.

EBIT and consolidated net income rise further, FFO forecast for 2013 confirmed

Net operating profit (EBIT) also increased from EUR 66.3 million in the first half of 2012 to EUR 76.1 million – a rise of 14.7 percent. Adjusted for extraordinary effects, adjusted EBITDA climbed by 15.5 percent to EUR 76.3 million. The consolidated net income of EUR 42.5 million exceeded the equivalent figure from the previous year by 69.7 percent. ‘In addition to a further improvement in operating performance, this was also attributable to the acquisitions made in the previous year,’ said Schwagenscheidt.

The key figure FFO I (funds from operations, not including sales result) , which is relevant to the dividend payment, rose by 30.4 percent in comparison to the first half of the previous year to EUR 42.5 million (EUR 0.84 per share). As such, it was in line with GSW’s expectations for this period. AFFO was up 42.6 percent to EUR 35.1 million. On the basis of Berlin’s still-thriving housing market and the strong management result, the Board of Management is maintaining its FFO I forecast: ‘Overall, we are confirming our forecast of FFO I of between EUR 73 million and EUR 78 million for the 2013 financial year,’ said Segal.

After the dividend payment, the company’s net asset value (NAV) in accordance with EPRA amounted to approximately EUR 1,517 million at the end of the first half of the year, equivalent to EUR 30.03 per share. The loan-to-value ratio remained constant at 53.8 percent.

Annex: Highlights from the 2013 half-year report

Contact

GSW Immobilien AG

Charlottenstrasse 4, 10969 Berlin, Germany

Investor Relations

René Bergmann

E-mail: rene.bergmann@gsw.de

Tel.: +49. (0) 30. 25 34-13 62

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

Press

Thomas Rücker

E-mail: thomas.ruecker@gsw.de

Tel.: +49. (0) 30. 25 34-13 32

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

About GSW

With a portfolio of around 60,000 residential and commercial units, GSW Immobilien AG, founded in 1924, is a leading market-listed real estate company in Berlin. 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 per

31 December 2012, the company’s property portfolio was valued at around EUR 3.3 billion.

End of Corporate News

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Language:	English
Company:	GSW Immobilien AG
	Charlottenstraße 4
	10969 Berlin
	Germany
Phone:	030 68 99 99 0
Fax:	030 68 99 99 999
E-mail:	kundenservice@gsw.de
Internet:	www.gsw.de
ISIN:	DE000GSW1111
WKN:	GSW111
Listed:	Regulierter Markt in Berlin, Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, Hannover, München, Stuttgart

End of News	DGAP News-Service

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