Earnings Release • May 15, 2013
Earnings Release
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Corporate | 15 May 2013 07:19
GSW Immobilien AG significantly increases FFO I and consolidated net income
GSW Immobilien AG / Key word(s): Quarter Results/Interim Report
15.05.2013 / 07:19
GSW Immobilien AG significantly increases FFO I and consolidated net income
– Net operating profit (EBIT) up by 24.3 percent to EUR 39.4 million
– Consolidated net income improves by 126.4 percent to EUR 19.8 million
– FFO I rises by 32.2 percent to EUR 19.8 million
– In-place rents increased and vacancy rate reduced further
– Loan-to-value decreases to 53.2 percent
– Net asset value (EPRA) rises to EUR 30.6 per share
Berlin, 15 May 2013 – GSW has had a good start to 2013. One contributing factor was that the approximately 7,000 residential units acquired in 2012 have been generating rental income since the beginning of the year. A large portion of the cash inflows from the capital measures in 2012 has thus already been invested in a way that generates profits and increases value. GSW intends to prudently continue this course over the rest of the year.
Compared to the first quarter of 2012, net rental income rose by around 15 percent to EUR 45.6 million. ‘This increase in earnings was attributable firstly to the acquisition of approximately 7,000 residential units, the economic ownership of which was transferred at the beginning of 2013. Since then, they have been generating income from rents. Secondly, higher average rents and lower vacancy compared with the same period of the previous year also made a significant contribution to the improvement in earnings,’ explained Jörg Schwagenscheidt, COO of GSW Immobilien AG. Overall, the vacancy rate for residential units decreased by around 0.6 percentage points to 2.7 percent as per 31 March 2013 (31 March 2012: 3.3 percent). The in-place rent also rose by 2.7 percent in the same period to EUR 5.26 per square metre per month (31 March 2012: EUR 5.12/sqm). On a like-for-like basis (property portfolio not including acquisitions and disposals) the in-place rent increased by 2.5 percent over the past 12 months.
Positive effects from higher net rental income and result on disposals
In the first quarter , net operating profit (EBIT) increased compared to the same period of the previous year from EUR 31.7 million to EUR 39.4 million – a rise of 24.3 percent. This increase is attributable primarily to the higher net rental income and result on disposals. Net operating profit before depreciation, amortisation, interest and taxes (EBITDA) developed in step with EBIT in the period under review. ‘Adjusted for non-recurring effects, there was a 16.2 percent increase in adjusted EBITDA to EUR 38.7 million. The consolidated net income of EUR 19.8 million exceeded the previous year’s figure by EUR 11.1 million,’ said Andreas Segal, CFO of GSW Immobilien AG.
FFO I (funds from operations, not including result on disposals of investment property) , which are relevant to the dividend payment, also benefited again from the strong operating performance and the larger portfolio. Compared to the same quarter of the previous year, FFO I increased by 32.2 percent to EUR 19.8 million (EUR 0.39 per share) and were thus within the range expected by GSW for this period. FFO I after adjustment for capitalised maintenance expenses (adjusted FFO or AFFO) increased from EUR 11.4 million to EUR 16.7 million. Based on the still-thriving housing market in Berlin and a strong net rental income, the management board is reiterating the forecast of generating FFO I of approximately EUR 73 million to EUR 78 million for 2013 as a whole.
Slight rise in net asset value, loan-to-value ratio decreases further
The company’s net asset value (NAV) in accordance with EPRA , representing the Group’s economic equity, increased by roughly 1.3 percent to approximately EUR 1,545.6 million as of the end of the first quarter. This equates to a figure of EUR 30.59 per share as per 31 March 2013. The loan-to-value ratio decreased to 53.2 percent due to a decline in net debt. GSW’s property portfolio, which is valued periodically as per 31 December each year, still has a value of approximately EUR 3.3 billion.
New CEO, proven strategy to be continued
Since 16 April 2013, Dr. Bernd Kottmann has been the new CEO of GSW. Dr. Kottmann has more than 25 years’ experience as a management board and supervisory board member of listed real estate companies. He has gained extensive expertise in both the commercial and the residential property segment and has also been a long-standing member of the management board of an MDAX-listed group. Despite this change to GSW’s Management Board, there are no changes planned for the company’s proven business strategy.
As of today, the complete interim report for the first three months of the 2013 financial year is available for inspection and download at www.gsw.de .
Contact
GSW Immobilien AG
Charlottenstrasse 4, 10969 Berlin, Germany
Press Investor Relations
Thomas Rücker René Bergmann
E-mail: [email protected] E-mail: [email protected]
Tel.: +49. (0) 30. 25 34-13 32 Tel.: +49. (0) 30. 25 34-13 62
Fax: +49. (0) 30. 25 34-19 34 Fax: +49. (0) 30. 25 34-233 1960
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
15.05.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
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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: | [email protected] |
| 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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| 211144 15.05.2013 |
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