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TLG IMMOBILIEN optimises its portfolio at the start of the year and improves its FFO and EPRA NAV

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

08.05.2019 / 07:00
The issuer is solely responsible for the content of this announcement.

TLG IMMOBILIEN optimises its portfolio at the start of the year and improves its FFO and EPRA NAV


- At EUR 34.6 m, FFO is 8.7% higher than in the previous year

- Rental income increased by 3.7% to EUR 57.0 m

- EPRA NAV per share increased by around 1.5% to EUR 26.67

- Net LTV declined by 1.1 percentage points to 33.6%

Berlin, 8 May 2019 - TLG IMMOBILIEN (ISIN: DE000A12B8Z4) has closed the first quarter of 2019 successfully. These developments were due to positive operating earnings, active portfolio, asset and property management and the consistently favourable market environment for the real estate sector. The value of the property portfolio remained at around EUR 4.1 bn. Rental income increased by 3.7% to EUR 57.0 m (previous year: EUR 55.0 m). Funds from operations (FFO) increased by 8.7% compared to the first quarter of 2018, reaching EUR 34.6 m (previous year: EUR 31.8 m) or EUR 0.33 per share (previous year: EUR 0.31). The EPRA NAV of the Group was EUR 26.67 per share as at 31 March 2019 (EUR 26.27 as at 31/12/2018), which represents growth of 1.5%.

Due to disposals of non-strategic properties, the portfolio of TLG IMMOBILIEN contained 391 properties in total as at 31 March 2019 (31/12/2018: 409), of which 286 remained in the strategic portfolio. For one, the portfolio of 15 small retail properties in various locations that was sold in late 2018 has now transferred to the buyer (details here). Furthermore, portfolio investments have been capitalised and partially negate the decrease in the value of the portfolio resulting from the disposals.

The EPRA Vacancy Rate of the strategic portfolio was 3.4% as at the reporting date (31/12/2018: 3.3%) and the weighted average lease term (WALT) remained at 6.0 years. At 5.3%, the in-place rental yield also remained stable compared to the end of 2018. On a like-for-like basis, the annualised in-place rent of the strategic portfolio increased by a total of 3.5% compared to the previous year, reaching EUR 222.8 m (31/12/2018: EUR 216.0 m). Of this growth, 74% was attributable to the office asset class, effecting an increase of 5.4%.

The Net LTV of TLG IMMOBILIEN declined by 1.1 percentage points to 33.6% in the first quarter of 2019, due primarily to the current surpluses and income from disposals. In the same period, the average costs of debt were 1.82% (31/12/2018: 1.83%) with an average weighted maturity of 5.2 years. For 99.3% of the interest-bearing liabilities, the interest rate is fixed over the term of each liability by fixed interest rate agreements or secured by interest rate hedges.

The elimination of non-strategic properties from the portfolio through disposal, a strategy initiated in late 2018, continued in the first quarter of 2019. At the moment, there are 105 non-strategic properties in the portfolio of TLG IMMOBILIEN including properties that have already been sold but which have not yet transferred to the buyer, such as the portfolio of 29 retail properties that was disposed of in the first quarter of 2019 (Details here). The selective acquisition of office properties with a view to strengthening the strategic portfolio announced in the 2018 annual report also continued in the first quarter with the acquisition of Westside Office in Bonn (closing April 2019, details here). Another significant point of focus in the first quarter was the intensification of preparations for the upcoming development and investment activities for our project on Alexanderplatz in Berlin, the office and commercial building 'Annenhöfe' in Dresden and for two other office projects in Berlin and Dresden that are still in the pipeline.

Gerald Klinck, Chief Financial Officer of TLG IMMOBILIEN: 'The key parameters continued to develop positively in the first quarter. Given that we were able to lower our Net LTV to 33.6%, we are in the perfect position to make future investments.'

Jürgen Overath, Chief Operating Officer of TLG IMMOBILIEN: 'We strategically streamlined our property portfolio through acquisitions and disposals in the first quarter of 2019. Over the course of the year, we want to strengthen our portfolio further through investments and selective acquisitions.'

The 2019 general meeting of TLG IMMOBILIEN AG will be held in Berlin on 21 May 2019. The Management Board will propose the payment of a dividend of EUR 0.91 per share which would represent an 11% increase in the dividend (2018: EUR 0.82).

The company also announces that Stefan E. Kowski, a member of the Supervisory Board, has resigned with effect from 15 May 2019.

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Caption: Gerald Klinck and Jürgen Overath, TLG IMMOBILIEN AG
Copyright: Michael Fahrig
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Earnings indicators Unit 01/01/2019-
in %
Rental income EUR k 56,992 54,967 3.7
Net operating income from letting activities (NOI) EUR k 50,784 48,572 4.6
Disposal profits EUR k 11,581 255 4.441,6
Net income EUR k 24,601 19,717 24.8
Funds from operations (FFO) EUR k 34,591 31,836 8.7
FFO per share1 EUR 0.33 0.31 6.5
Balance sheet metrics Unit 31/03/2019 31/12/2018 Change
in %
Investment property EUR k 3,950,848 4,067,527 -2.9
Cash and cash equivalents EUR k 189,925 153,893 23.4
Total assets EUR k 4,353,338 4,320,847 0.8
Equity EUR k 2,181,485 2,157,239 1.1
Equity ratio % 50.1 49.9 0.2 pp
Interest-bearing liabilities EUR k 1,567,965 1,579,442 -0.7
Net debt EUR k 1,378,040 1,425,549 -3.3
Net LTV² % 33.6 34.7 -1.1 pp
EPRA NAV EUR k 2,758,905 2,715,723 1.6
EPRA NAV per share1 EUR 26.67 26.27 1.5
Key portfolio performance indicators
(overall portfolio)
Unit 31/03/2019 31/12/2018 Change
Property value3 in EUR k 4,098,555 4,109,449 -0.3%
Lettable area in sqm 1,887,333 1,912,793 -1.3%
Property value per sqm in EUR/sqm 2,172 2,148 1.1%
Properties number 391 409 -18 units
EPRA Vacancy Rate in % 3.4 3.3 0.1 pp
WALT in years 6.1 6.1 0.0 years
Annualised in-place rent4 EUR k 226,162 227,154 -0.4%
Average rent in EUR/sqm 10.57 10.44 1.2%
In-place rental yield in % 5.5 5.5 0.0 pp
Average market rent in EUR/sqm 11.32 11.27 0.4%
In-place rental yield on market rent in % 6.2 6.2 0.0 pp

1 Total number of shares as at 31 December 2018: 103.4 m, as at 31 March 2019: 103.4 m. The weighted average number of shares was 102.1 m in the first quarter of 2018 and 103.4 m in the first quarter of 2019.

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 26.67. 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.

08.05.2019 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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