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TLG IMMOBILIEN AG: TLG IMMOBILIEN launches development projects and increases its FFO and EPRA NAV

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

12.08.2019 / 07:56
The issuer is solely responsible for the content of this announcement.

TLG IMMOBILIEN launches development projects and increases its FFO and EPRA NAV

  • Gross Assets Value increased to EUR 4.6 B
  • Rental income has increased by 4.8% to EUR 114.8 m; FFO has increased by 5.5% year-over-year to EUR 71.5 m
  • Occupancy rate is almost 97% with 6 Years average WALT
  • EPRA NAV per share has increased by approx. 13.3% to EUR 29.77
  • Net LTV has dropped by 6.3 % points to 28.4%

Berlin, 12 August 2019 - TLG IMMOBILIEN AG (ISIN: DE000A12B8Z4) has closed the first six months of 2019 with great success. In addition to the positive market environment in the real estate sector, TLG reported excellent operating earnings due to active portfolio, asset and property management and due to multiple successful financing activities. The value of the property portfolio has increased to approx. EUR 4.6 bn and Rental income has increased by 4.8% to EUR 114.8 m. In addition, compared to the first six months of 2018, the funds from operations (FFO) have increased by 5.5% to EUR 71.5 m or EUR 0.69 per share (previous year EUR 0.66). As at 30 June 2019, the EPRA NAV of the Group was EUR 29.77 per share (31/12/2018: EUR 26.27) which represents an increase of 13.3%.

The revaluation of the property portfolio of TLG IMMOBILIEN AG as at 30 June 2019 led to a valuation gain of approximately EUR 400 m, which over 90% of the increase in value is attributable to the properties in Berlin.

As such, the property portfolio of TLG IMMOBILIEN AG is comprised of 391 properties in total as at 30 June 2019. The acquisition of Westside Office Bonn took place along with few disposals, which includes the sale of a small non-strategic retail portfolio consisting of 29 retail properties.

As of the reporting date, the EPRA Vacancy Rate was 3.1% and the weighted average lease term (WALT) has reached 6 years. The annualised in-place rent also increased by 2.8% to EUR 233.4 m . The largest increase in rent was 10.6% in the office asset class in Berlin and was primarily due to the conclusion of a new rental agreement in the office property Spreétage on Kaiserin-Augusta-Allee with an increase of 55.3%.

In addition to the project on Alexanderplatz in Berlin which has already been announced and is currently under further discussions with the city administration and political arms, TLG has also announced three other portfolio-based development projects in line with its growth strategy:

  • Two projects in Dresden, Annenhöfe and NEO with a total gross area of approximately 40,000 sqm. Construction has already begun on one and is set to start on the other.
  • Project WRIEZENER KARREE# in Berlin with approximately 37,000 sqm of gross floor area, with the aim to begin in 2020.

The capital increase carried out in June which generated gross proceeds of approximately EUR 222 m had also a positive effect on the net LTV: the net LTV of TLG IMMOBILIEN AG dropped by 6.3 % to 28.4% in the first six months of 2019 after considering the issuance of an unsecured bond of a EUR 600 m previously in May. The bonds were issued with a term ending on 28 May 2026 and a fixed coupon of 1.5% p.a.

In the first six months of the year, the average costs of the financing expenses were 1.74% (1.83% as at 31/12/2018) with an average remaining term of 5.8 years. For 99.5% of the interest-bearing liabilities, the interest rate is secured over the term of each liability by fixed interest rate agreements / interest rate hedges.

Barak Bar-Hen was appointed as new Chief Executive Officer of TLG IMMOBILIEN AG on 29 May and joined the existing Management Board of Gerald Klinck (CFO) and Jürgen Overath (COO) as the chairman. This further strengthens the strategy of the company which focuses on strategic, sustainable growth. Besides the Management Board, there have also been changes to the Supervisory Board. On 22 May, the general meeting elected Klaus Krägel, Jonathan Lurie and Ran Laufer as new members of the Supervisory Board alongside Sascha Hettrich and Helmut Ullrich. The Supervisory Board had already appointed Sascha Hettrich as Chairman of the Supervisory Board in May.

Barak Bar-Hen, Chief Executive Officer of TLG IMMOBILIEN AG: 'In the past two months since I was appointed as CEO, I realized how strong TLG is. It is a well-established company with a solid portfolio, financial strength, high quality employees and with great growth potential. We now focus on TLG's great internal growth engine within its current investment portfolio, and we aim to further expand and be a leading player in the core real estate sector.

Gerald Klinck, Chief Financial Officer of TLG IMMOBILIEN AG: 'In light of the capital increase and the extra financial leeway created by the positive valuation of our portfolio, we are well prepared for our upcoming acquisition projects and further financial activities.'

Jürgen Overath, Chief Operating Officer of TLG IMMOBILIEN AG: 'We reached an important milestone in our investment projects within our portfolio in the first six months of the year. They will enable us to add profitable properties in attractive locations in Berlin and Dresden to our portfolio.'

The annual general meeting of 2019 of TLG IMMOBILIEN AG in Berlin on 21 May 2019 approved the payment of a dividend of around EUR 94.1 m for the 2018 financial year. This equates to EUR 0.91 per no-par value bearer share entitled to dividends and therefore represents an 11% increase in the dividend compared to the previous year (dividend of EUR 0.82 in 2018).

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  Unit 01/01/2019-30/06/2019 01/01/2018-30/06/2018 Change in %
Earnings indicators        
Rental income in EUR k 114,827 109,570 4.8
Net operating income from letting activities (NOI) in EUR k 104,439 97,226 7.4
Result from the disposal of properties in EUR k 16,542 885 1769.2
Net income for the period in EUR k 322,064 170,858 88.5
Funds from operations (FFO) in EUR k 71,541 67,786 5.5
FFO per share1 in EUR 0.69 0.66 4.5
  Unit 30/06/2019 31/12/2018 Change
Balance sheet metrics        
Investment property in EUR k 4,435,111 4,067,527 9.0%
Cash and cash equivalents in EUR k 551,083 153,893 258.1%
Total assets in EUR k 5,443,597 4,320,847 26.0%
Equity in EUR k 2,605,663 2,157,239 20.8%
Equity ratio in % 47.9 49.9 -2.0 pp
Interest-bearing liabilities in EUR k 2,075,466 1,579,442 31.4%
Net debt in EUR k 1,302,291 1,425,549 -8.6%
Net LTV² in % 28.4 34.7 -6.3 pp
EPRA NAV in EUR k 3,333,112 2,715,723 22.7%
EPRA NAV per share1 in EUR 29.77 26.27 13.3%
  Unit 30/06/2019 31/12/2018 Change
Key portfolio performance indicators        
Property value3 in EUR k 4,592,502 4,109,449 11.8%
Lettable area in sqm 1,918,168 1,912,793 0.3%
Property value per sqm in EUR/sqm 2,113 2,012 5.0%
Properties number 391 409 -18 units
EPRA Vacancy Rate in % 3.1 3.3 -0.2 pp
WALT in years 6.0 6.1 -0.1 years
Annualised in-place rent4 in EUR k 233,488 227,154 2.8%
Average rent in EUR/sqm 10.67 10.39 2.7%
In-place rental yield in % 5.7 5.9 -0.2 pp
Average market rent in EUR/sqm 11.29 10.89 3.7%
In-place rental yield on market rent in % 6.3 6.4 -0.1 pp

1 Total number of shares as at 31 December 2018: 103.4 m, as at 30 June 2019: 112.0 m.

The weighted average number of shares was 102.4 m in the second quarter of 2018 and 103.6 m in the second 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]
Lisa Geppert
Investor Relations

Phone: +49 30 2470 6092
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 30 June 2019, its portfolio contains properties worth EUR 4.6 bn. As at the same reporting date, the adjusted EPRA Net Asset Value per share amounted to EUR 29.77. 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.


12.08.2019 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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