Earnings Release • Mar 23, 2011
Earnings Release
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Corporate | 23 March 2011 07:18
PATRIZIA Immobilien AG: PATRIZIA – earnings forecast met, loan extended
PATRIZIA Immobilien AG / Key word(s): Final Results/Forecast
23.03.2011 / 07:18
PATRIZIA – earnings forecast met, loan extended
– Operative profit of EUR 12.8 million meets forecast of EUR 12-13 million
– Real estate sales increase by 91% to 1,803 units
– Extension of the EUR 466 million bank loan to be refinanced by March 31, 2011 until June 30, 2014
– Equity ratio increased to 24.3%, debt reduced by 21%
– Increase in available liquidity by EUR 14.4 million to EUR 70.5 million
– New strategic orientation focuses on residential and commercial property
Augsburg (Germany) – March 23, 2011. PATRIZIA Immobilien AG (ISIN DE000PAT1AG) achieved an adjusted EBT of EUR 12.8 million in the fiscal year 2010 (2009: EUR 2.4 million) and thereby lies at the upper end of its forecast of EUR 12-13 million. The significantly improved business development was underpinned by more extensive sales: a total of 1,803 units were sold (2009: 946 units, +91%), 801 units individually through apartment privatization (2009: 657, +22%) and 1,002 units via block sales (2009: 289, +247%). These sales generated EUR 286.7 million (EUR 242.8 million of which are recognized as revenues). The disposal of 3 project development properties contributed a further EUR 42.4 million in revenues. As a result of the sales, rental income from the remaining portfolio dropped to EUR 63.8 million (2009: EUR 70.1 million, -9%). Total revenues at EUR 339.6 million was 35% higher than the previous year (2009: EUR 250.9 million).
At the end of 2010, the PATRIZIA portfolio consisted of 9,305 units. PATRIZIA invested EUR 6.9 million in maintenance (2009: EUR 8.8 million). EUR 20.2 million was invested in renovation and restructuring measures in the portfolio (2009: EUR 15.2 million), of which EUR 16.1 million was capitalized. Assuming an average portfolio size of around 742,400 sqm for 2010, annual maintenance costs amount to EUR 9.26/sqm, including renovation and restructuring costs of EUR 36.47/sqm. The monthly average rental per square meter for the entire portfolio fell to EUR 7.67 by the year's end due to regional conditions (December 31, 2009: 7.82 Euro/sqm). Rental income after the deduction of maintenance costs exceeds the adjusted financing result of EUR -48.1 million by 18.3%.
Profitability improved
EBIT calculated in accordance with IFRS increased from EUR 56.1 million in the previous year to EUR 61.2 million (+9.1%), while EBT rose from EUR -8.0 million to EUR 11.5 million (+244.3%). This shows that PATRIZIA has not only boosted its profitability, but that the company's financing costs are falling. Without the changes in value of interest rate hedges not impacting liquidity totaling EUR -1.6 million, and investment property totaling EUR 0.3 million, adjusted EBT amounts to EUR 12.8 million. This figure exceeds the previous year's result of EUR 2.4 million many times over.
Debt significantly reduced
PATRIZIA's balance sheet structure improved significantly in 2010. Bank loans were reduced by EUR 228.8 million to EUR 841.4 million (-21.4%), while cash and cash equivalents increased by 25.5% to EUR 70.5 million. The company's equity ratio reached 24.3% to the reporting date, thereby almost achieving the targeted lower limit of 25% (December 31, 2009: 20.0%). Meanwhile bank loans totaling over EUR 466 million requiring refinancing by March 31, 2011 were refinanced and extended by a term of 39 months until June 30, 2014. To this time the interest rate hedges related to the loan will also expire, meaning that consolidated profits will no longer be impacted by the fair value measurement of the interest rate hedges in the future. By the end of 2010, interest rates for 66.2% of liabilities to banks were hedged with the hedged rate of interest being 4.08%.
Appropriation of net profits
New financing will be required in 2011 for the acquisition of properties for residential property resale and project development. Against this background, we deliberately wish to have greater liquidity available. At the Annual General Meeting on June 29, 2011 the Managing Board and Supervisory Board will propose to carry all of PATRIZIA Immobilien AG's 2010 retained earnings forward to a new account.
Outlook for 2011
With the acquisition of the asset management company, LB Immo Invest GmbH, we expanded our existing range of services to include commercial real estate special funds. Alongside the fund we wish to offer more co-investments in the future, which should increasingly replace 100% own investments.
With its structure to date, PATRIZIA should at least achieve the EUR 12.8 million adjusted EBT posted in its last fiscal year. We expect an additional contribution of EUR 3.5 million from the acquisition of LB Immo Invest after the deduction of financing costs, meaning that we are targeting an adjusted EBT of EUR 16-17 million. Provided that we achieve this goal and that our capital funding is at a level of 25%, we would like to our shareholders to share in the company's success by paying out a dividend for fiscal year 2011.
The complete annual report for 2010 is available at www.patrizia.ag
Overview of the key items in the income statement:
| 2010 TEUR |
2009 TEUR |
+/- | |
| Revenues | 339,593 | 250,888 | 35.4% |
| Total operating performance | 179,856 | 159,253 | 12.9% |
| EBIT | 61,244 | 56,110 | 9.1% |
| EBIT adjusted* | 60,919 | 56,110 | 8.6% |
| EBT | 11,488 | -7,961 | 244.3% |
| EBT adjusted* | 12,789 | 2,419 | 428.7% |
| Consolidated net profit / loss | 6,201 | -9,500 | 165.3% |
* adjusted for profit / loss from non-cash market valuations
Augsburg (Germany) – March 23, 2011
PATRIZIA Immobilien AG
PATRIZIA Bürohaus
Fuggerstrasse 26
86150 Augsburg
Germany
Listing: Frankfurt Official Market (Prime Standard)
ISIN: DE000PAT1AG3
WKN: PAT1AG
Contact:
| Investor Relations Margit Miller Tel.: +49 (0) 821 5 09 10-369 Fax: +49 (0) 821 5 09 10-399 [email protected] |
Press Andreas Menke Tel.: +49 (0) 821 5 09 10-655 Fax: +49 (0) 821 5 09 10-695 [email protected] |
End of Corporate News
23.03.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
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| Language: | English |
| Company: | PATRIZIA Immobilien AG |
| Fuggerstraße 26 | |
| 86150 Augsburg | |
| Deutschland | |
| Phone: | +49 (0)821 – 509 10-000 |
| Fax: | +49 (0)821 – 509 10-999 |
| E-mail: | [email protected] |
| Internet: | www.patrizia.ag |
| ISIN: | DE000PAT1AG3 |
| WKN: | PAT1AG |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart |
| End of News | DGAP News-Service |
| - - - |
| 116529 23.03.2011 |
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