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TLG IMMOBILIEN doubles its total shareholder return year-over-year to around 31%

DGAP-News: TLG IMMOBILIEN AG / Key word(s): Annual Results/Real Estate

21.03.2019 / 07:00
The issuer is solely responsible for the content of this announcement.

TLG IMMOBILIEN doubles its total shareholder return year-over-year to around 31%


- FFO increased by around 31% to EUR 134.0 m, rental income increased by 33% to EUR 223.9 m

- Proposed dividend of EUR 0.91 per share

- The value of the properties in the portfolio increased by around 21% to EUR 4.1 bn, of which 90% is classified as strategic portfolio

- Potential for value-generating development identified in the portfolio for the next decade

- Adjusted EPRA NAV per share increased by around 27% to EUR 26.27

- Net LTV decreased to under 35% and provides a solid financial basis for future acquisitions

- FFO forecast 2019 - Increased by around 5% to between EUR 1.35 and EUR 1.38 per share (not including future acquisitions or disposals)

Berlin, 21 March 2019 - TLG IMMOBILIEN (ISIN: DE000A12B8Z4) has closed the 2018 financial year successfully. The total shareholder return on which the company intends to focus more closely increased by 30.8% on the basis of the adjusted EPRA Net Asset Value (EPRA NAV) and the dividend payment in 2018 (31/12/2017: 15.8%). The results from active asset management, the positive market environment and the stable operating earnings all contributed to these positive developments. The value of the property portfolio therefore increased to EUR 4.1 bn (31/12/2017: EUR 3.4 bn). Rental income increased by 33.0% to EUR 223.9 m (2017: EUR 168.3 m). In the same period, the funds from operations (FFO) increased by 30.5% to EUR 134.0 m (2017: EUR 102.7 m) or EUR 1.30 per share (2017: EUR 1.29) and as such were slightly higher than the forecast at the end of 2018.

As at 31 December 2018, there were 409 properties in the portfolio of TLG IMMOBILIEN (31/12/2017: 426 properties). Four property acquisitions stood in contrast to divestitures of non-strategic properties that were designed to optimise the portfolio. The acquisitions encompassed the neighbourhood shopping centre 'Klenow Tor' in Rostock, the office property 'Theo & Luise' in Mannheim, an office building in Eschborn and the Max-Born-Offices in Hamburg. Not including acquisitions and disposals, the fair value of the property portfolio as at 31 December 2018 increased by EUR 589.5 m. The factors behind this significant increase in value were the remeasurement of individual properties due to the recent conclusion of new long-term rental agreements at higher market rents, especially in the Berlin portfolio, and changes in the market environment caused by yield compression.

As at the reporting date, the EPRA Vacancy Rate for the entire portfolio was 3.3% (31/12/2017: 3.6%), the weighted average lease term (WALT) declined only slightly to 6.1 years (31/12/2017: 6.3 years) and the in-place rental yield was 5.5% (31/12/2017: 6.3%). The adjusted EPRA NAV was EUR 26.27 per share as at 31 December (31/12/2017: EUR 20.71), which represents growth of 26.8%.

With a Net LTV of 34.7% (31/12/2017: 39.2%), TLG IMMOBILIEN had a solid financing structure as at the reporting date. The decrease in the Net LTV was due primarily to the higher property value and the disproportionately small increase in net debt. The average cash costs of debt were 1.83% in 2018 (31/12/2017: 1.84%) with an average remaining term of 5.4 years. For 100% of the liabilities, the interest rate is fixed over the term of each liability by fixed interest rate agreements or secured by interest rate hedges.

Following its extensive analysis of the entire portfolio which was announced upon the publication of the figures for the third quarter of 2018, the Management Board restructured the portfolio into a strategic portfolio and a non-strategic portfolio at the start of 2019. The latter is to be disposed of over the next few years when the time and markets are ideal, whereas the strategic portfolio will contribute to future value growth through active asset management and strategic development and investment activities. In this context, the potential for around EUR 820 m of value growth over the next decade has been identified in the portfolio. As part of active portfolio management, the company continues to plan selected acquisitions as long as they will contribute to value. TLG IMMOBILIEN will focus on office properties in densely populated areas in Germany (for more information see page 13 of the annual report 2018).

Gerald Klinck, Chief Financial Officer of TLG IMMOBILIEN, comments on the successful 2018 financial year: 'Once again we have demonstrated the high quality of our portfolio and our asset management. Based on the adjusted EPRA NAV growth and the dividend paid in 2018, the total shareholder return was 30.8%. We have lowered our Net LTV to 34.7%, not least due to the remeasurement of our property portfolio, which means that TLG IMMOBILIEN has firepower in excess of EUR 1.0 bn and is very well positioned for future growth.'

Jürgen Overath, Chief Operating Officer of TLG IMMOBILIEN, speaks about the portfolio: 'In 2018, we further reinforced the property portfolio of TLG IMMOBILIEN with strategic acquisitions of office properties. From 2019 onwards, we will spur on our growth with even more determination by investing in our portfolio; we see the potential for around EUR 820 m of value creation over the next decade. Office developments on space that is already in our portfolio, such as on Alexanderplatz in Berlin and Postplatz in Dresden, will make a significant contribution. We are also ready to launch two other projects in Berlin and Dresden. At the same time, we plan to acquire attractive properties when the opportunities present themselves. Having started in 2018, we will continue to optimise our portfolio by disposing of non-strategic properties in 2019.'

Given the successful course of business in 2018 and with the approval of the Supervisory Board, the Management Board is able to propose the payment of a dividend of EUR 0.91 per share to the general meeting of TLG IMMOBILIEN in Berlin on 21 May 2019. This equates to a payout ratio of 70% of FFO. The Management Board expects the property portfolio to continue to grow in the 2019 financial year and FFO to increase to between EUR 140 m and EUR 143 m or by around 5% to between EUR 1.35 and EUR 1.38 per share.

LATEST FINANCIAL REPORT > Investor Relations > Financial Reports & Presentations > 2018



Caption: "Gerald Klinck" resp. "Jürgen Overath", TLG IMMOBILIEN AG
Copyright: Michael Fahrig
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Results of operations Unit 01/01/2018-
in %
Rental income in EUR k 223,886 168,310 33.0
Net operating income from letting activities (NOI) in EUR k 196,726 154,904 27.0
Disposal profits in EUR k 7,833 10,377 -24.5
Net income for the period in EUR k 310,946 284,373 9.3
Funds from operations (FFO) in EUR k 133,990 102,683 30.5
FFO per share1 in EUR 1.30 1.29 0.8
Statement of financial position Unit 31/12/2018 31/12/2017 Change
Investment property in EUR k 4,067,527 3,383,259 20.2 %
Cash and cash equivalents in EUR k 153,893 201,476 -23.6 %
Total assets in EUR k 4,320,847 3,835,748 12.6%
Equity in EUR k 2,157,239 1,936,560 11.4%
Equity ratio in % 49.9 50.5 -0.6 pp
Interest-bearing liabilities in EUR k 1,579,442 1,541,692 2.4%
Net debt in EUR k 1,425,549 1,340,216 6.4%
Net LTV² in % 34.7 39.2 -4.5 pp
EPRA NAV, adjusted in EUR k 2,715,723 2,112,689 28.5%
EPRA NAV, adjusted, per share1 in EUR 26.27 20.71 26.8%
KPIs of the portfolio Unit 31/12/2018 31/12/2017 Change
Property value3 in EUR k 4,109,449 3,400,582 20.8%
Lettable area in sqm 1,912,793 1,875,072 37,720 sqm
Property value per sqm in EUR/sqm 2,148 1,814 18.5%
Properties number 409 426 -17 units
EPRA Vacancy Rate in % 3.3 3.6 -0.3 pp
WALT in years 6.1 6.3 -0.2 years
Annualised in-place rent4 in EUR k 227,154 214,057 6.1%
Average rent in EUR/sqm 10.44 10.05 3.9%
In-place rental yield in % 5.5 6.3 -0.8 pp
Average market rent in EUR/sqm 11.27 10.05 12.1%
In-place rental yield on market rent in % 6.2 6.6 -0.4 pp

1 Total number of shares as at 31 December 2017: 102.0 m, as at 31 December 2018: 103.4 m. The weighted average number of shares was 79.7 m in 2017 and 102.8 m in 2018.

2 Calculation: Net debt divided by real estate assets

3 In line with values disclosed according to IAS 40, IAS 2, IAS 16 and IFRS 5

4 The annualised in-place rent is calculated using the annualised rents agreed as at the reporting date - not factoring in rent-free periods.



Christoph Wilhelm
Corporate Communications

Phone: +49 30 2470 6355
E-mail: [email protected]
Sven Annutsch
Investor Relations

Phone: +49 30 2470 6089
E-mail: [email protected]


For over 25 years, the listed company TLG IMMOBILIEN AG has owned and rented out commercial properties in selected promising locations in Germany. The company continuously develops its portfolio and actively generates value through strategic investments and selected property acquisitions. As at 31 December 2018, its portfolio contains properties worth in excess of EUR 4.1 bn. As at the same reporting date, the adjusted EPRA Net Asset Value per share amounted to EUR 26.27. The portfolio comprises office properties in cities including Berlin, Dresden, Frankfurt/Main, Leipzig and Rostock. It also contains a regionally diversified portfolio of retail properties, primarily in the neighbourhood shopping segment, in promising micro-locations as well as seven hotels in top central locations. The properties of TLG IMMOBILIEN AG stand out not only due to their excellent locations but also because of their long-term rental or lease agreements. Its highly qualified employees guarantee extensive local market expertise at its individual locations.

This publication contains forward-looking statements based on current views and assumptions of TLG IMMOBILIEN AG's management and made to the best of knowledge. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause TLG IMMOBILIEN AG's revenues, profitability or the degree to which it performs or achieves its targets, to materially deviate from what is explicitly or implicitly stated or described in this publication. Therefore, persons who obtain possession of this publication should not rely on such forward-looking statements. TLG IMMOBILIEN AG accepts no guarantee or responsibility regarding such forward-looking statements and will not adjust them to future results or developments.

21.03.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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