News Detail

TLG IMMOBILIEN increases its FFO by around 50% and rental income by around 40%

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

15.05.2018 / 07:00
The issuer is solely responsible for the content of this announcement.


TLG IMMOBILIEN increases its FFO by around 50% and rental income by around 40%

- Significant rental income growth of 40.1% compared to the previous year, reaching EUR 55.0 m

- Funds from operations increased by 49.8% to EUR 31.6 m in the first quarter of 2018 and by 6.9% to EUR 0.31 per share compared to the first quarter of 2017

- EPRA Net Asset Value of EUR 22.09 per share as at 31 March 2018

- Acquisition/additions to the portfolio of office properties in Mannheim, Eschborn and Hamburg and a neighbourhood shopping centre in Rostock in 2018, with a total investment amount of EUR 143.3 m


Berlin, 15 May 2018 - TLG IMMOBILIEN has made a successful start to the new year. The report on the first quarter of 2018 published today announces rental income of around EUR 55.0 m. Compared to the same period in the previous year, this represents growth of 40.1% (Q1 2017: EUR 39.2 m). The funds from operations (FFO), a key indicator for the Group, increased disproportionately by 49.8% to EUR 31.6 m (Q1 2017: EUR 21.1 m), due primarily to the higher net operating income from letting activities resulting from the acquisition of properties and the takeover of WCM. The FFO per share was EUR 0.31 as at the reporting date (Q1 2017: EUR 0.29) and therefore higher than in the same period in 2017 despite the increased number of shares resulting from the cash capital increases in 2017 as well as the capital increase as part of the takeover of WCM.

Compared to end 2017, the EPRA Vacancy Rate of the portfolio as a whole increased slightly by 0.2 percentage points to just 3.8%. The weighted average lease term (WALT) of the rental agreements in the TLG IMMOBILIEN portfolio was 6.1 years as at 31 March 2018 and therefore 0.2 years lower than on 31 December 2017. The EPRA Net Asset Value (EPRA NAV) increased in the first quarter of 2018. As at 31 March 2018, it was EUR 22.09 per share (31/12/2017: EUR 21.84).

As at the reporting date, the financing structure of TLG IMMOBILIEN had a net LTV of 39.6% (31/12/2017: 39.2%). The company's average cash costs of debt were 1.83%. As at 31 March 2018, the interest-bearing liabilities had an average weighted maturity of 6.1 years.

In the first quarter of 2018, the value of the property portfolio increased by 2.2% to EUR 3,477 m, due essentially to the addition of two office properties in Mannheim and Eschborn as well as a neighbourhood shopping centre in Rostock worth EUR 80.7 m in the first quarter. Additionally, the office property "Office 3001" in the Altona district of Hamburg was acquired recently, with Reemtsma Cigarettenfabrik GmbH as the anchor tenant. The transfer of benefits and encumbrances is scheduled to take place in July 2018 (details here).

"Once again, we can report a successful start to the year: our FFO increased by EUR 21.1 m compared to the previous year and are now EUR 31.6 m, the value of the property portfolio has increased by around EUR 76.0 m due to new properties and at 39.6%, the net LTV remains solid. At the same time, we have enough resources to continue expanding our portfolio in the future", says Peter Finkbeiner, member of the Management Board of TLG IMMOBILIEN AG.

"With the addition of the three properties in Mannheim, Eschborn and Rostock to the portfolio and the recently announced acquisition of an office property in Hamburg, we will be able to continue successfully expanding our portfolio in line with our investment strategy", says Niclas Karoff, member of the Management Board of TLG IMMOBILIEN AG.

CURRENT QUARTERLY FINANCIAL REPORT
www.tlg.eu > Investor Relations > Financial Reports & Presentations

WEBCAST ON THE QUARTERLY FIGURES FROM AROUND 10 A.M. TODAY
www.tlg.eu

 

KEY GROUP FIGURES ACCORDING TO IFRS
Results of operations Unit 01/01/2018-
31/03/2018
01/01/2017-
31/03/2017
Change in %
Rental income EUR k 54,967 39,229 40.1
Net operating income from letting activities (NOI) EUR k 47,591 34,394 38.4
Net income for the period EUR k 19,717 15,709 25.5
Funds from Operations (FFO) EUR k 31,648 21,126 49.8
FFO per share1 EUR 0.31 0.29 6.9
         
Statement of financial position Unit 31/03/2018 31/03/2017 Change in %
Investment property EUR k 3,465,835 3,383,259 2.4
Cash and cash equivalents EUR k 164,384 201,476 -18.4
Balance sheet total EUR k 3,860,856 3,835,748 0.7
Equity EUR k 1,955,969 1,936,560 1.0
Equity ratio % 50,7 50.5 0.2 pp
Interest-bearing liabilities EUR k 1,539,889 1,541,692 -0.1
Net debt EUR k 1,375,505 1,340,216 2.6
Net LTV² % 39,6 39.2 0.4 pp
EPRA NAV EUR k 2,260,973 2,228,512 1.5
EPRA NAV per share1 EUR 22,09 21.84 1.1
         
KPIs of the portfolio Unit 31/03/2018 31/03/2017 Change in %
Property value3 EUR k 3,476,592 3,400,582 2.2
Properties number 425 426 -1
Annualised in-place rent4 EUR k 219,864 214,057 2.7
In-place rental yield in % 6.3 6.3 0,0 pp
EPRA Vacancy Rate in % 3.8 3.6 0,2 pp
WALT in years 6.1 6.3 -0.2 years
Average rent EUR/sqm 10.12 10.0 0.7

1 Total number of shares as at 31 December 2017: 102.0 m, as at 31 March 2018: 102.3 m. The weighted average number of shares was 71.9 m in the first three months of 2017 and 102.1 m in the first three months of 2018

2 Calculation: Net debt divided by property value

4 Pursuant to the values reported in the financial statements in accordance with IAS 40, IAS 2, IAS 16, IFRS 5

5 Net rent for the year excluding utilities is calculated on the basis of the agreed annualised rent as at the reporting date and does not take into account any rent-free periods.

 

CONTACT

Christoph Wilhelm
Corporate Communications

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

Phone: +49 30 2470 6089
E-mail: sven.annutsch@tlg.de
 

ABOUT TLG IMMOBILIEN AG

TLG IMMOBILIEN AG is a listed leading commercial real estate company in Germany that has been synonymous with real estate expertise for over 25 years. TLG IMMOBILIEN AG generates stable rental in-come and exhibits low vacancy rates, very good building stock and profits from its local employees' excel-lent market knowledge. As an active portfolio manager, TLG IMMOBILIEN AG is specialised in commercial properties for office and retail use: it focuses on managing a high-quality portfolio mostly comprising office properties in Berlin, Frankfurt/Main, Dresden, Leipzig and Rostock. The company also has a region-ally diversified portfolio of retail properties in highly frequented micro-locations. The portfolio also includes seven hotels in Berlin, Dresden, Leipzig and Rostock. TLG IMMOBILIEN AG's properties stand out not on-ly due to their excellent locations but also because of their long-term rental or lease agreements.

As at 31 March 2018, the property value amounted to EUR 3.5 bn. As at the same reporting date, the EPRA Net Asset Value per share amounted to EUR 22.09.

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.



15.05.2018 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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