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TLG IMMOBILIEN AG continues to grow - successful financial nine months results

DGAP-News: TLG IMMOBILIEN AG / Key word(s): 9-month figures/Real Estate

2016-11-11 / 07:00
The issuer is solely responsible for the content of this announcement.


Press release

TLG IMMOBILIEN AG continues to grow - successful financial nine months results

- Rental income increased by 10.2% to EUR 103.4 m from previous year period

- Funds from operations increased by 22.7% to EUR 58.6 m

- EPRA Net Asset Value amounts to EUR 17.67 per share as at 30 September 2016

- Strategic entry into western German markets after the reporting date with the acquisition of two office properties in Frankfurt am Main - total purchase price of around EUR 160 m

- FFO forecast for 2016 confirmed between EUR 74 m and EUR 76 m


Berlin, 11 November 2016 - The financial figures published today demonstrate that the business operations of TLG IMMOBILIEN AG remained successful in the first nine months of 2016. Rental income of around EUR 103.4 m was generated in the reporting period, which represents an increase of 10.2% over the same period in 2015 (EUR 93.8 m). TLG IMMOBILIEN AG increased another key performance indicator, its funds from operations (FFO), by a significant 22.7% to EUR 58.6 m (9M 2015: EUR 47.8 m).

Compared to 31 December 2015, the EPRA Vacancy Rate of its portfolio decreased by 0.6 pp to 3.1%. The weighted average lease term (WALT) of the portfolio of TLG IMMOBILIEN AG was 6.2 years as at 30 September 2016 (31/12/2015: 6.5 years). As at the reporting date, the EPRA Net Asset Value (EPRA NAV) was EUR 1,191 m which equates to EUR 17.67 per share (31/12/2015: EUR 17.37 per share).

Due to the company's conservative finance structure, the Net LTV of TLG IMMOBILIEN AG was 40.4% as at the reporting date (31/12/2015: 33.6%). The average cash costs of debt of the company were 2.65%. As at 30 September 2016, its existing loans had an average remaining term of 4.7 years. The company can currently obtain new long-term finance at rates far below 2%.

As at 30 September 2016, the portfolio of TLG IMMOBILIEN AG comprised a total of 407 properties (31/12/2015: 418). The value according to IFRS is around EUR 1.987 bn which represents an increase of 12.5% in the first nine months of 2016 (31/12/2015: EUR 1.766 bn). In the third quarter TLG IMMOBILIEN AG acquired an office property in Berlin with considerable rent potential for a total investment of around EUR 32.1 m. It was added to the portfolio at the start of the fourth quarter of 2016. Furthermore, the acquisition of two adjoining neighbourhood shopping centres in Dresden was announced at the end of the third quarter of 2016. The combined purchase price was around EUR 22.8 m and the incidental acquisition costs were around EUR 1.5 m; the properties are due to be added to the portfolio of TLG IMMOBILIEN AG in the fourth quarter of 2016. Additionally, after the reporting date the company continued to pave the way for its strategic entry into the markets in western Germany with the acquisition of two high-quality office properties in Frankfurt am Main. The purchase price was around EUR 160 m in total.

'We are very pleased with our financial figures and portfolio indicators and will continue to work to drive these developments with the same level of dynamic in the future. In strategic terms, we intend to work from our new obtained location in Frankfurt to add strategic, value enhancing properties to our portfolio in the promising Rhine-Main region as well as in other locations in Germany. In doing so we will stick to our tried-and-tested business model', says Peter Finkbeiner, member of the Management Board of TLG IMMOBILIEN AG.

In light of the consistently successful course of business, the Management Board of TLG IMMOBILIEN AG can confirm the FFO forecast for 2016, which was revised upwards to between EUR 74 m and EUR 76 m halfway through the year.
 

The latest quarterly financial report is available to download here:

www.tlg.eu > Investor Relations > Financial Reports & Presentations > 2016


KEY GROUP FIGURES ACCORDING TO IFRS

Results of operations Unit 01/01/2016-
30/09/2016
01/01/2015-
30/09/2015
Change in %
Rental income EUR k 103,380 93,812 10.2
Net operating income from letting activities (NOI) EUR k 92,612 83,908 10.4
Disposal profits EUR k 617 5,093 -87.9
Net income EUR k 53,022 100,391 -47.2
FFO EUR k 58,612 47,781 22.7
FFO per share1 EUR 0.87 0.78 11.5
         
Balance sheet metrics Unit 30/09/2016 31/12/2015 Change in %
Investment property EUR k 1,974,067 1,739,474 13.5
Cash and cash equivalents EUR k 43,059 183,736 -76.6
Balance sheet total EUR k 2,090,843 1,999,461 4.6
Equity EUR k 969,912 967,874 0.2
Equity ratio % 46.4 48.4 -2.0 pp
Liabilities to financial institutions EUR k 859,220 782,688 9.8
Net debt EUR k 816,161 598,952 36.3
Net LTV² % 40.4 33.6 6.8 pp
EPRA NAV EUR k 1,191,322 1,171,594 1.7
EPRA NAV per share1 EUR 17.67 17.37 1.7
         
Portfolio key figures Unit 30/09/2016 31/12/2015 Change in %
IFRS portfolio value3 EUR k 1,987,349 1,765,834 12.5
Properties number 407 418 -11 units
Annualised in-place rent4 EUR k 143,462 131,379 9.2
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 6.2 6.5 -0.3 years
Average rent EUR/sqm 9.45 9.23 2.4
 
1 Total number of shares as at 30 September 2015: 61.3 m; as at 30 September 2016: 67.4 m. The weighted average number of shares in the first nine month 2015 was 61.3 m and 67.4 m in the first nine month 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.
 

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 25 years. 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: it focuses on managing a high-quality portfolio mostly comprising office properties in Berlin, Dresden, Leipzig and Rostock, as well as in Frankfurt from 2017. The company also has 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 long-term rental or lease agreements.

As at 30 September 2016, the value of the properties under IFRS totalled EUR 1,987 bn. As at the same reporting date, the EPRA Net Asset Value per share amounted to EUR 17.67.



2016-11-11 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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