News Detail

TLG IMMOBILIEN records strong growth of FFO and EPRA NAV

DGAP-News: TLG IMMOBILIEN AG / Key word(s): Annual Results/Real Estate
31.03.2020 / 17:00
The issuer is solely responsible for the content of this announcement.

TLG IMMOBILIEN RECORDS STRONG GROWTH OF FFO AND EPRA NAV

- 3.6% increase in annual net rental income in the strategic portfolio like-for-like

- FFO per share up 5.4% year-on-year to EUR 1.37

- EPRA Vacancy Rate falls slightly to 3.1%, average WALT of 5.6 years

- EPRA NAV per share increases by 24.4% to EUR 32.69

- Debt ratio drops to 33.3%

- 77.8% of TLG IMMOBILIEN shares were tendered to Aroundtown as part of the exchange offer


Berlin, 31 March 2020 - TLG IMMOBILIEN AG (ISIN: DE000A12B8Z4) has successfully concluded the 2019 business year. The value of the property portfolio at year-end was around EUR 4.7 bn, and rental income rose by around 2.6% to EUR 229.8 m compared to 2018. Funds from operations (FFO) increased by 10.4% to EUR 148.0 m, or EUR 1.37 per share (previous year EUR 1.30). The Group's EPRA NAV amounted to EUR 32.69 per share as of 31 December 2019 (31/12/2018: EUR 26.27). This represents a total shareholder return of 27.9% from dividends and NAV growth per share.

Like-for-like, annual net rental income in the strategic portfolio rose by 3.6% in 2019. In addition, an office property was acquired in 2019 and a total of 53 non-strategic objects were sold as part of the ongoing optimisation of the portfolio. As of the reporting date, the EPRA Vacancy Rate was 3.1%, while the average remaining term of the rental agreements (WALT) was 5.6 years. Both indicators reflect the high level of tenant demand and earnings security in the TLG IMMOBILIEN portfolio.

As of 31 December 2019, the average cash-effective borrowing costs amounted to 1.36% (31/12/2018: 1.83%) with an average remaining term of 4.8 years and the cash balance for the end of the period rose to approx. EUR 500 m.

The payment of a dividend of EUR 0.96 per no-par value share from the net retained profit is expected to be proposed to the general meeting. The proposal will remain subject to the further development of the coronavirus pandemic and the performance of the markets until the invitation to the annual general meeting is published.

Gerald Klick, Chief Financial Officer (CFO) of TLG IMMOBILIEN AG: "2019 was a very busy year for TLG IMMOBILIEN and for me personally: we have recently completed the requirements for a successful merger with Aroundtown. Following the merger, our shareholders will be able to benefit from a significantly expanded value creation potential, which will be driven in particular by improved ratings, synergies in the operating business, improved financing possibilities and an acceleration of the development pipeline in the new combined group."

TLG IMMOBILEN decided on 4 March 2020 to change its listing segment within the regulated market of Frankfurt Stock Exchange to the General Standard. The change will take place on 26 June 2020 and the trading of the shares will remain unrestricted. This enables TLG IMMOBIIEN, among other things, to reduce costs and use its existing resources more efficiently. The strict transparency requirements of the regulated market will continue to apply also in the General Standard.

As part of the integration process with Aroundtown, Gerald Klinck will leave the company as of today.

Sascha Hettrich, Chairman of the Supervisory Board of TLG IMMOBILIEN: "We are facing very challenging days with the current Covid-19 pandemic but considering the strong performance of TLG IMMOBILIEN and Aroundtown, both companies' management skills and the group's strong liquidity, the merged group is heading for a very successful future."

CONTACT

Christoph Wilhelm
Corporate Communications

Phone: +49 30 2470 6355
E-mail: christoph.wilhelm@tlg.de
Oliver Sturhahn
Investor Relations

Phone: +49 30 2470 6089
E-mail: oliver.sturhahn@tlg.de
 

GROUP KPIS ACCORDING TO IFRS

       
  Unit 01/01/2019-
31/12/2019
01/01/2018-
31/12/2018
Earnings indicators      
Net operating income from letting activities (NOI) in EUR m 209.3 196.7
Funds from Operations (FFO) in EUR m 148.0 134.0
FFO per share1 in EUR 1.37 1.30
       
  Unit 31/12/2019 31/12/2018
Balance sheet metrics      
Balance sheet total in EUR m 6,902 4,321
Equity in EUR m 3,447 2,157
Net debt in EUR m 2,098 1,426
Net LTV incl. Hybrid² in % 42.7 34.7
EPRA NAV in EUR m 3,663 2,716
EPRA NAV per share1 in EUR 32.69 26.27
       
  Unit 31/12/2019 31/12/2018
Key portfolio performance indicators      
Property value3 in EUR m 4,719 4,109
EPRA Vacancy Rate in % 3.1 3.3
WALT in years 5.6 6.1
Rental yield in % 5.5 5.9
 

1 Total number of shares as at 31 December 2018: 103.4 m, as at 31 December 2019: 112.1 m. The weighted average number of shares was 102.8 m in 2018 and 107.8 m in 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

 

ABOUT TLG IMMOBILIEN AG

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 2019, its portfolio contains properties worth EUR 4.7 bn. As at the same reporting date, the adjusted EPRA Net Asset Value per share amounted to EUR 32.69. 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.



31.03.2020 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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