EANS-News: GSW Immobilien AG posts positive nine-month figures for 2011
30.11.2011 – 07:47
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- 9-month report Berlin (euro adhoc) - GSW Immobilien AG posts positive nine-month figures for 2011 Consolidated net income rises up significantly to EUR 54.8 million (previous year: EUR 20.0 million) Adjusted EBITDA of EUR 86.4 million as expected FFO I of EUR 40.4 million Equity ratio climbs to 40.3% Net asset value (EPRA) rises to EUR 28.20 per share Berlin, 30 November 2011 - GSW Immobilien AG continued its positive business performance from the first half of the year in the third quarter and enjoyed a successful close of the first nine months of the financial year 2011. GSW generated significantly higher consolidated net income compared to the same period of the previous year. The company´s operating activities continued to perform in a stable manner. The full interim report for the first nine months of the financial year 2011 can be viewed and downloaded at www.gsw.de. Results confirm stability and continuity of business model Despite a smaller property portfolio as compared to the same period of the previous year, GSW´s net rental income remained virtually constant. It declined slightly year-on-year as of 30-September-2011 to EUR 102.8 million (2010: EUR 107.1 million). The basis for this good result was the reduction of vacancy as of 30-September-2011 from 4.0% to 3.6% while at the same time increasing the average rent for residential units from EUR 4.90 per square meter to EUR 4.95. In addition to the positive development in operating activities, the clear rise in EBIT from EUR 69.2 million to EUR 103.8 million is also due to non-recurring other income of EUR 25.4 million generated mainly by the disposal of the cable network Berlin Mediahaus GmbH (BMH). EBITDA amounted to EUR 104.6 million in the reporting period after EUR 84.1 million in the first nine months of 2010. After the adjustment for non- recurring effects such as project costs for the IPO in April 2011 and income from the sale of BMH, the adjusted EBITDA amounted to EUR 86.4 million, down slightly on the previous year´s level of EUR 91.0 million. Overall, GSW closed the first nine months of 2011 with a consolidated net profit of EUR 54.8 million, a clear rise in earnings compared to the same period of the previous year (EUR 20.0 million). Based on the weighted average number of shares, earnings per share rose to EUR 1.42 (previous year: EUR 0.57). "Reasons for the solid figures are our stable business model with its clear focus on the Berlin residential market and our robust financing structure", explained Thomas Zinnöcker, CEO of GSW Immobilien AG. Management Board confirms FFO I guidance of EUR 54 million to EUR 59 million for 2011 In the first nine months of 2011, the figure relevant to the dividend, FFO I (funds from operations, excluding sales result) amounted to EUR 40.4 million (previous year: EUR 62.2 million), in line with GSW´s forecasts for this period. The drop in FFO I was essentially a result of higher interest payments after the refinancing of securitised loans in February. Based on 41.05 million shares, FFO I per share for the reporting period was EUR 0.98. In consideration of the positive development of the Berlin residential market, GSW can look ahead with optimism and anticipates rising rents with a positive impact on the company´s sales and earnings. "We can therefore confirm the forecast already published for the 2011 financial year of FFO I of between EUR 54 million and EUR 59 million. At the same time, this is an important basis for being able to pay our shareholders a dividend after just our first year as a listed company," confirmed Andreas Segal, CFO of GSW. GSW buys residential portfolio with around 4,800 units GSW has also taken another key step forward in the implementation of its corporate strategy. Effective 1 November 2011, around 4,800 units in good locations across Berlin were acquired for approximately EUR 330 million. In particular, the above-average rents and relatively low vacancy rate of this portfolio will have a positive effect on our earnings power from the next financial year. "From 2012, we are expecting an additional FFO I of EUR 6.5 million to EUR 7.5 million per year. We are delighted that we have been able to invest the capital raised by the IPO so promptly. It is a part of our corporate strategy to expand our professional property platform through external growth in the coming years as well," said COO Jörg Schwagenscheidt. Net asset value and equity ratio up significantly GSW´s equity (IFRS) rose to EUR 1,113.9 million as of the end of the reporting period, an increase of around 14.1% as against 31-December-2010. Taking into account the increase in equity, EPRA NAV (net asset value) also increased significantly to EUR 1,157.9 million as of 30-September-2011, corresponding to EUR 28.20 per share. Thanks to this positive result, the equity ratio improved to 40.3% (31-December-2010: 36.4%). The property portfolio of GSW, which is regularly remeasured as of 31th December of each year, is still valued at around EUR 2.6 billion. Stable share price performance contrary to market trend The stability and continuity of GSW´s business model has had a stabilising effect on the development of its share price in recent months, as a result of which GSW´s shares significantly outperformed the market as a whole. Further proof of GSW´s good acceptance on the capital market was the successful placement of a total of 8.2 million shares held by the two biggest shareholders Cerberus and Whitehall after the end of the reporting period of 30-September- 2011. This transaction took place on 13 October and lasted just a few hours in the face of strong demand. Thus, Cerberus and Whitehall each reduced their shareholdings to around 10%. At the same time, free float rose significantly to 74%, which can have a positive effect on the liquidity of GSW shares in future. "This makes the company more attractive to institutional investors and strengthens our positioning on the German capital market," said CFO Andreas Segal. Contact GSW Immobilien AG Charlottenstrasse 4, 10969 Berlin, Germany Press Investor relations Thomas Rücker Sebastian Jacob e-mail: thomas.ruecker@gsw.de e-mail: sebastian.jacob@gsw.de Tel: +49 (0) 30 25 34-13 32 Tel: +49 (0) 30 25 34-18 82 Fax: +49 (0) 30 25 34-19 34 Fax: +49 (0) 30 25 34-19 09 About GSW Founded in 1924, GSW Immobilien AG is a leading private residential property company in Berlin with a portfolio of around 53,000 residential units and total residential space of 3.3 million sqm. In addition, a subsidiary of GSW manages approximately 17,350 residential and commercial units for third parties. GSW´s corporate strategy is geared towards the long-term management of rented apartments, using a systematic approach intended to enhance customer satisfaction and operational efficiency. As of 31-December-2010, the company´s property portfolio was valued at around EUR 2.6 billion. Since then GSW has acquired residential properties with a value of around EUR 330 million. Further inquiry note: René Bergmann Tel.: +49 30 2534 1362 Fax: +49 30 2534 1909 E-Mail: rene.bergmann@gsw.de end of announcement euro adhoc -------------------------------------------------------------------------------- company: GSW Immobilien AG Charlottenstr. 4 D-10969 Berlin phone: +49 30 68 99 99 0 FAX: +49 30 68 99 99 999 mail: kundenservice@gsw.de WWW: http://www.gsw.de sector: Real Estate ISIN: DE000GSW1111 indexes: MDAX stockmarkets: regulated dealing/prime standard: Frankfurt, regulated dealing: Berlin language: English