DGAP-News: TLG IMMOBILIEN AG / Key word(s): Final Results/Real Estate
- Rental income grows by 10.3% to EUR 140.5 m compared to the previous year
- Funds from operations increased by 20.1% to EUR 76.9 m
- EPRA Net Asset Value reached EUR 18.51 per share as at 31 December 2016
- Portfolio value increased by 26.9% through acquisitions and other value-enhancing measures, exceeding EUR 2.2 bn
- Proposal to increase the dividend per share for 2016 to EUR 0.80 (+11.0%)
- FFO guidance between EUR 84 m and EUR 86 m in 2017 (excluding further acquisitions)
Berlin, 9 March 2017 - The financial results for 2016 published today highlight that TLG IMMOBILIEN AG was able to significantly increase its funds from operations (FFO) as well as to once more increase its portfolio value. The portfolio growth is primarily related to acquisitions, which also include the company's strategic move into the western German market with the acquisition of two office properties in Frankfurt/Main in October 2016. With a property value of around EUR 2.2 bn as at 31 December 2016 (31/12/2015: EUR 1.8 bn), TLG IMMOBILIEN AG has exceeded the EUR 2 bn portfolio target, communicated during its IPO in October 2014, one year in advance.
The FFO totalled EUR 76.9 m in the reporting year, representing an increase of 20.1% compared to the previous year (EUR 64.0 m). At the same time the annual FFO forecast, which had already been revised upwards from between EUR 72 m and EUR 74 m to between EUR 74 m and EUR 76 m in August, was surpassed.
The significant FFO growth was primarily driven by the steadily increasing rental income which totalled EUR 140.5 m in 2016. This corresponds to an increase of 10.3% compared to the previous year (31/12/2015: EUR 127.4 m).
Standing at 3.8% as at 31 December 2016, the EPRA Vacancy Rate of the portfolio remained low (31/12/2015: 3.7%). The weighted average lease term (WALT) of the rental agreements in the portfolio of TLG IMMOBILIEN AG was around 6.1 years as at 31 December 2016 (31/12/2015: 6.5 years). The successful conclusion of new rental agreements together with the extensions of existing leases prevented a further WALT decrease. The EPRA Net Asset Value (EPRA NAV) was approx. EUR 1.3 bn or EUR 18.51 per share as at the reporting date (31/12/2015: EUR 17.37 per share).
With a Net LTV of 43.4%, the financing structure of TLG IMMOBILIEN AG remained conservative as at the reporting date. The company's average costs of debt decreased from 2.79% to just 2.46% over the course of 2016. As at 31 December 2016 the existing loans had an average remaining term of 5.3 years. For over 99% of the company's liabilities, the interest rates are fixed for the term of the liability by means of fixed-rate agreements or secured by interest rate hedges.
As at 31 December 2016, the portfolio of TLG IMMOBILIEN AG comprised 404 properties (31/12/2015: 418) with a total property value of approx. EUR 2.2 bn, which represents an increase of 26.9% over the previous year (31/12/2015: EUR 1.8 bn). In the 2016 financial year the company invested a total of EUR 442.8 m in the acquisition of 16 properties. The annualised in-place rent of the acquisitions totalled EUR 25.9 m and will serve as a key fundament for future growth in earnings. With a total investment volume of EUR 363.7 m, of which around EUR 167.5 m is attributable to the acquisition of two office properties in Frankfurt/Main (purchase price EUR 160.0 m), the growth strategy of the company centred on office properties in the reporting year.
'The key financial and portfolio data for the 2016 financial year show that TLG IMMOBILIEN AG was able to maintain its highly dynamic growth track record since the IPO in October 2014 without compromising its financial stability or the quality of its portfolio. We successfully reached the target we announced during the IPO to expand our portfolio to a value of EUR 2 bn by the end of 2017 more than one year in advance. Simultaneously we considerably increased our FFO once again and broadened our earnings base through acquisitions. Our shareholders will take part in this continued growth', says Peter Finkbeiner, member of the Management Board of TLG IMMOBILIEN AG.
'Our entry into the market in Frankfurt/Main was an important strategic milestone in 2016. We see potential for future expansion into regions of Germany in which we do not currently operate. However, we will remain true to the principles that we consider key factors in our success so far: a clear focus on properties in attractive locations where we can be in sufficiently close proximity to our tenants and properties, even in the long term', adds Niclas Karoff, member of the Management Board of TLG IMMOBILIEN AG.
In light of the successful performance of the company in 2016 and with the approval of the Supervisory Board, the Management Board intends to propose to the general meeting of TLG IMMOBILIEN AG the payment of a dividend of EUR 0.80 per share for the 2016 financial year, which is 11.0% higher than in the previous year. The Management Board also expects that the FFO of the company will increase to between EUR 84 m and EUR 86 m in the 2017 financial year if no further acquisitions are made.
The 2016 FY financial report is available to download here:
KEY GROUP FIGURES ACCORDING TO IFRS
1 Total number of shares as at 31 December 2015: 67.4 m; as at 31 December 2016: 67.4 m. The weighted average number of shares in 2015 was 62.0 m and 67.4 m in 2016.
2 Calculation: Net debt divided by property value
3 Pursuant to the values reported in the financial statements in accordance with IAS 40, IAS 2, IAS 16, IFRS 5
4 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.
About TLG IMMOBILIEN AG
As at 31 December 2016, the property value amounted to EUR 2.2 bn. As at the same reporting date, the EPRA Net Asset Value per share amounted to EUR 18.51.
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.
|Company:||TLG IMMOBILIEN AG|
|Phone:||030 - 2470 - 50|
|Fax:||030 - 2470 - 7337|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|