Earnings Release • Feb 22, 2010
Earnings Release
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MAGNAT Real Estate Opportunities GmbH & Co. KGaA is the first real estate company with a focus on property development in Eastern European, Austrian and German metropolitan areas to be listed in Frankfurt.
With integration of R-QUADRAT Immobilien GmbH, 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 asset management for third parties via its subsidiary R-QUADRAT Immobilien GmbH. The strategy of MAGNAT is designed to exploit opportunistic inefficiencies in real estate markets. Unlike the traditional 'Buy & Hold' approach, MAGNAT takes a 'Develop & Sell' or 'Buy & Sell' approach, which focuses on property development supplemented by portfolio trading. MAGNAT investors participate in development returns in Eastern Europe, South-Eastern Europe, the Commonwealth of Independent States (CIS) as well as in Germany and Austria.
| Q 3 2009/10 |
Q3 2008/09 |
Q 1–3 2009/10 |
Q1–3 2008/09 |
|
|---|---|---|---|---|
| Earnings from letting | 925 | 171 | 2,011 | 1,404 |
| Earnings from the sale of real estate companies |
0 | 0 | 0 | 0 |
| Earnings from asset manage ment |
98 | 0 | 98 | 0 |
| Earnings from investments accounted for using the equity method |
1,853 | 3,191 | 542 | -2,640 |
| Operating result (EBIT) | 3,088 | 790 | 396 | -6,964 |
| Earnings before tax (EBT) | 1,683 | -6,000 | -2,771 | -14,926 |
| Consolidated earnings after minority interests |
1,736 | -5,059 | -2,484 | -13,540 |
| Basic earnings per share | 0.27 | -0.96 | -0.38 | -2.56 |
| Diluted earnings per share | 0.27 | -0.96 | -0.38 | -2.56 |
| Equity | 122,077 | 85.763 | ||
| Liabilities | 62,335 | 55,976 | ||
| Balance sheet total | 184,413 | 141,739 | ||
| Equity ratio in % | 66.2 | 60.5 | ||
| Cash & cash equivalents | 9,720 | 11,682 |
* unaudited
| In the third quarter of fiscal year 2009/2010, MAGNAT generates a positive Group result of EUR 1.7 million after minority interests |
|---|
| First-time consolidation of asset manager R-QUADRAT leads to a positive impact on earnings |
| Cash and cash equivalents climb to EUR 9.7 million due to successful divestments in Turkey and Vienna |
| Balance sheet total rises to EUR 184.4 million |
| Net asset value amounts to EUR 8.19 per share |
| Frankfurt 11 February 2010 – In the third quarter of fiscal year 2009/2010 (1 April 2009 – 31 March 2010), the Group result of MAGNAT REAL ESTATE OPPORTUNITIES GmbH and Co. KGaA ('MAGNAT', ISIN DE000A0XFSF0) was positive at EUR 1.7 |
million net of tax and minority interests (according to IFRS). MAGNAT's result benefited from first-time consolidation of the hitherto external asset manager R-QUADRAT Immobilien GmbH ('R-QUADRAT').
In the first nine months of fiscal year 2009/2010, MAGNAT's Group result net of tax and minority interests improved from EUR -13.5 million to EUR -2.5 million compared with the same period last year. Operating income (EBIT) amounted to EUR 0.4 million compared with EUR -7.0 million in the same period last year.
| Q 1–3 2009/10 |
FY 2008/09 |
FY 2007/08 |
|
|---|---|---|---|
| Number of shares | 13,894,651 | 52,900,000 | 52,900,000 |
| Market capitalisation per 31.12.2009 |
44,462,883 | 17,986,000 | 58,190,000 |
| Earnings per share | -0.38 | -0.12 | 0.17 |
| Price/earnings ration | neg. | neg. | 6.47 |
| NAV per share | 8.19 | 1.63 | 1.89 |
| Freefloat (shareholders < 3%) | 34.36 % | 74.68 % | 57.58 % |
| Nominal share capital (in EUR) | 13,894,651 | 52,900,000 | 52,900,000 |
| NAV | Shares | NAV per share | |
|---|---|---|---|
| NAV per the financial statements | 107,83 | 13,89 | 7,76 |
| Effect of exercise of options, convertibles and other equity interests |
– | – | – |
| Diluted NAV, after the exercise of options, convertibles and other equity interests |
107,83 | 13,89 | 7,76 |
| Revaluations* | 6,00 | 0,43 | |
| German Portfolio ** | 6,00 | 0,43 | |
| Land Bank | 0,00 | 0,00 | |
| Development 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 | (0,09) | (0,01) | |
| Goodwill as result of deferred tax | – | – | |
| Diluted EPRA NAV | 113,75 | 8,19 |
* only German portfolio and land bank portfolios acc. to appraisal values /
management estimates Development portfolio accounted for at historical acquisitions costs
** Residential and Commercial
Due to the integration of R-QUADRAT, the balance sheet total increased from EUR 143.2 million at 30 September 2009 to EUR 184.4 million. Group equity increased from EUR 90.6 million at 30 September 2009 to EUR 122.0 million at the reporting date, 31 December 2009. Therefore, at 31 December 2009, MAGNAT recorded an improved equity ratio of 66.2 percent.
MAGNAT's cash and cash equivalents have increased from EUR 3.9 million at 30 September 2009 to EUR 9.7 million at 31 December 2009.
After integration of the profitable R-QUADRAT, MAGNAT again calculates the net asset value (NAV) transparently as per EPRA recommendations. Due to the integration of R-QUADRAT in the wake of a capital increase against contribution in kind, the number of shares increased from 5.29 million to 13.89 million units. On that basis, the recalculated NAV is EUR 8.19 per share.
In the third quarter of fiscal year 2009/2010, MAGNAT was able to report several profitable transactions. For example, MAGNAT received EUR 5 million from the successful sale of land from the Turkish YKB portfolio. Proceeds from the sale were 3.5 times the purchase price. MAGNAT sold a real estate project profitably with a gratifying return in the form of the 'Widerhofergasse' in Vienna. The newly integrated R-QUADRAT succeeded in placing the tax relief model 'Schumanngasse 16' in Vienna. The return on investment from this placement amounts to more than EUR 1 million. Another tax relief model is currently being planned.
Following integration of R-QUADRAT, MAGNAT now disposes of the new business area asset management for third parties. In that respect, R-QUADRAT already services clients in the area of real estate and in turn receives annual management fees. That income now flows to MAGNAT. The new asset management subsidiary, R-QUADRAT, employs highly qualified and experienced staff at its offices in Frankfurt, Vienna and Kiev and is thus represented by its own local management teams in the metropolitan areas of its core markets. Due to this pronounced real estate expertise, MAGNAT plans to expand the new business area by further asset management mandates predominantly in German speaking countries.
| Name | MAGNAT Real Estate Opportunities GmbH & Co. KGaA |
|---|---|
| ISIN | DE000A0XFSF0, DE000A1CRPG1 |
| WKN | A0XFSF, A1CRPG |
| Token | M5RK (Bloomberg: M5R K, Reuters: M5RGK.DE) |
| Number of shares | 13,894,651 |
| Freefloat (Shareholder < 3%) | ~35% |
| Analyst Price Target | 8.50 EUR |
| Coverage | Close Brothers Seydler; Silvia Quandt & Cie. AG |
| General Standard | Frankfurt Stock Exchange (Frankfurt und Xetra) |
| Open Market | Berlin, Düsseldorf und Stuttgart |
| Index | C-DAX, DIMAX |
| [email protected] | |
| Homepage | www.magnat-reop.com |
Ordinary Annual General Meeting, Frankfurt/Main 29.10.2009 Half year report 2009/2010 30.11.2009 Interim report Q3 for period ending 31 December 2009 11.02.2010 Publication of the 2009/2010 financial statements 31.07.2010 Interim report Q1 for period ending 30 Juni 2010 11.08.2010
Strategically, MAGNAT continues to give absolute priority to securing liquidity. Moreover, intensification of the re-marketing efforts is an important component for securing and improving profitability. To mitigate the sharp cyclical fluctuations in the real estate markets, MAGNAT will continue to carefully scrutinize and if need be adjust the distribution of the portfolio between the regions of Germany/Austria and Eastern/South-Eastern Europe.
Now that the integration of R-QUADRAT has been completed and on the assumption of an improvement of the current general market environment, the Management of MAGNAT anticipates that earnings performance will continue to improve over the next 12 months. Risks to further business development lie in a possible new economic downturn this year.
Frankfurt/Main, 11 February 2010
CEO
Jan Oliver Rüster
Jürgen Georg Faè CFO
Financial calendar
Information: The original of this interim report was published in German. In case of deviations, the German version prevails. Further company information as well as the online-version of this financial report is available for download at www.magnat-reop.com. To request printed information, please mail to: info@ magnat-reop.com.
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