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TLG IMMOBILIEN AG revises FFO forecast upwards following successful first half of 2016

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

2016-08-10 / 07:03
The issuer is solely responsible for the content of this announcement.

Press release

TLG IMMOBILIEN AG revises FFO forecast upwards following successful first half of 2016

- Funds from operations increased by 23.6% compared to the same period in the previous year, reaching EUR 38.3 m

- Rental income grew by 10.7% to EUR 67.6 m

- Portfolio value grew by 12.3% in the first half of 2016

- EPRA Net Asset Value at EUR 17.33 per share as at 30 June 2016 following distribution of a dividend of EUR 0.72 on 1 June 2016

- FFO forecast for 2016 revised upwards to between EUR 74 m and EUR 76 m

Berlin, 10 August 2016 - The figures published today for the first half of 2016 confirm that TLG IMMOBILIEN AG is on track for a successful year. The Group generated rental income of around EUR 67.6 m in the reporting period, which is 10.7% higher than in the first half of 2015 (EUR 61.1 m). The funds from operations (FFO) increased 23.6% to EUR 38.3 m (H1/2015: EUR 31.0 m).

The EPRA Vacancy Rate fell by 0.6 pp to 3.1% in the first half of the year. The weighted average lease term (WALT) of the rental agreements in the TLG IMMOBILIEN AG portfolio remained unchanged at 6.5 years as at 30 June 2016. The EPRA Net Asset Value (EPRA NAV) was EUR 1.169 bn or EUR 17.33 per share on the same date, taking into account the dividend of EUR 0.72 per share distributed on 1 June 2016.

The financing structure of TLG IMMOBILIEN AG remains conservative. The Net Loan to Value ratio (Net LTV) was 40.5% on the reporting date (31 December 2015: 33.6%) and the average cash costs of debt of the company were 2.70%. The existing loans had an average remaining term of 4.8 years as at 30 June 2016. The company is currently able to arrange new long-term finance at a rate that is far below 2%.

As at the reporting date on 30 June 2016, the portfolio of TLG IMMOBILIEN AG comprised a total of 413 properties (31 December 2015: 418) with a total value of around EUR 1.983 bn according to IFRS (31 December 2015: EUR 1.766 bn). This means that property values increased by 12.3% in the first half of 2016. This is essentially the result of strategic acquisitions; the office properties "Erlenhöfe" in Berlin and "Technisches Rathaus" in Leipzig were added to the portfolio in the second quarter with a total investment volume of around EUR 107.8 m.

"The results of the second quarter underline the success of our business strategy once more. We assume that we will reach the portfolio value of EUR 2 bn originally forecast for 2017 this year. Furthermore, the general approval of resolutions by our annual general meeting at the end of May strongly reflects the support and confidence of our shareholders in our growth strategy", says Peter Finkbeiner, member of the Management Board of TLG IMMOBILIEN AG.

In light of the consistently successful course of business of the company, the Management Board of TLG IMMOBILIEN AG has revised the FFO forecast for 2016 as a whole upwards to between EUR 74 m and EUR 76 m.

Download the quarterly report here: > Investor Relations > Financial Reports & Presentations > 2016


Results of operations Unit 01/01/2016-
in %
Rental income EUR k 67,585 61,060 10.7
Net operating income from letting activities (NOI) EUR k 61,240 54,929 11.5
Disposal profits EUR k 617 4,691 -86.8
Net income EUR k 33,510 74,886 -55.3
FFO EUR k 38,306 31,002 23.6
FFO per share1 EUR 0.57 0.51 11.8
Balance sheet metrics Unit 30/06/2016 31/12/2015 Change
in %
Investment property EUR k 1,972,921 1,739,474 13.4
Cash and cash equivalents EUR k 36,776 183,736 -80.0
Balance sheet total EUR k 2,050,168 1,999,461 2.5
Equity EUR k 949,792 967,874 -1.9
Equity ratio % 46.3 48.4 -2.1 pp
Liabilities to financial institutions EUR k 840,660 782,688 7.4
Net debt EUR k 803,884 598,952 34.2
Net LTV² % 40.5 33.6 6.9 pp
EPRA NAV EUR k 1,168,839 1,171,594 -0.2
EPRA NAV per share1 EUR 17.33 17.37 -0.2
Portfolio key figures Unit 30/06/2016 31/12/2015 Change
in %
IFRS portfolio value3 EUR k 1,983,122 1,765,834 12.3
Properties number 413 418 -5 units
Annualised in-place rent4 EUR k 143,052 131,379 8.9
In-place rental yield in % 7.2 7.4 -0.2 pp
EPRA Vacancy Rate in % 3.1 3.7 -0.6 pp
WALT in years 6.5 6.5 0.0 years
Average rent EUR/sqm 9.41 9.23 2.0

1 Total number of shares on 30 June 2015: 61.3 m; on 30 June 2016: 67.4 m. The average weighted number of shares was 61.3 m in the first half of 2015 and 67.4 m in the first half of 2016.

2 Calculation: Net debt divided by property value

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]

TLG IMMOBILIEN AG is a stock exchange-listed leading commercial real estate company focusing on Berlin and growth regions in Eastern Germany. For 25 years, TLG IMMOBILIEN AG is synonymous with real estate expertise in Germany's East. TLG IMMOBILIEN AG generates stable rental income and exhibits low vacancy rates, very good building stock and profits from its local employees' excellent market knowledge. As an active portfolio manager, TLG IMMOBILIEN AG is specialised in commercial properties for office and retail use. TLG IMMOBILIEN AG focuses on managing a high-quality portfolio of office properties in Berlin and other regional economic centres, as well as a regionally 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 only due to their excellent locations but also because of their very long-term rental or lease agreements.

As at 30 June 2016, the value of the properties under IFRS totalled EUR 1,983 bn. As at the same reporting date, the EPRA Net Asset Value per share amounted to EUR 17.33.

2016-08-10 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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