News Detail

TLG IMMOBILIEN exceeds FFO forecast and further increases portfolio value, based on preliminary financial results for 2014

TLG IMMOBILIEN AG / Key word(s): Real Estate/Preliminary Results

2015-03-02 / 08:50

Press release

TLG IMMOBILIEN AG exceeds FFO forecast and further increases portfolio value, based on preliminary financial results for 2014

- Funds from Operations (FFO) grows by 13% to approximately EUR52 m in 2014 (2013: EUR46.1 m)

- EPRA Net Asset Value (NAV) reaches EUR914 m (EUR14.91 per share) as of 31 December 2014

- Like-for-like rental growth of 3.7% exceeding expectations and EPRA vacancy rate further reduced to 3.0% in core portfolio (like-for-like)

- Portfolio quality further enhanced through strategic investments and disposals of non-core properties

- Strategic growth target of EUR2 bn portfolio value by 2017 affirmed

Berlin, 2 March 2015 - According to preliminary financial results, TLG IMMOBILIEN AG - a leading commercial real estate company focussed primarily on Berlin and regional economic hubs in Eastern Germany - generated a rental income of EUR115 m in financial year 2014 and increased its funds from operations (FFO) by 13% to approximately EUR52 m (2013: EUR 46.1 million). The forecasted FFO of EUR50 m for the full year was thus clearly exceeded. Net rents in the company's core portfolio increased by 3.7% (like-for-like) compared to the previous year. The EPRA vacancy rate declined by 1.4 percentage points to 3.0% by year-end 2014- also on a like-for-like basis. TLG IMMOBILIEN AG's EPRA Net Asset Value (NAV) amounted to EUR914 m by 31 December 2014.

In addition to the successful development of its operating business, TLG IMMOBILIEN AG continues to maintain its 'best-in-class' financing structure with a net loan to value of 40% at year-end 2014. The existing loans have an average maturity of 5.7 years. The company's average cost of debt is less than three per cent, while marginal costs for new long-term loans are currently below two per cent.

The IFRS value of TLG IMMOBILIEN AG's property portfolio could be increased by four per cent to EUR1.526 bn (2013: EUR1.462 bn) thanks to strategic acquisitions of properties as well as value-enhancing measures in the company's core portfolio, while at the same time disposing of non-core assets.

In financial year 2014, TLG IMMOBILIEN AG successfully realised property acquisitions worth approximately EUR126 m. During the first two months of 2015, the company completed additional property acquisitions in an amount of approximately EUR28 m. At the same time, non-core properties with a total value of approximately EUR112 million which no longer fit with TLG IMMOBILIEN AG's portfolio strategy were sold in the course of 2014. These non-core disposals generated a positive margin of approximately EUR11 m. With respect to the excellent market opportunities in the company's core markets TLG IMMOBILIEN AG affirms its growth target to expand its property portfolio to EUR2 bn by year-end 2017.

"Based on our preliminary figures, we can state that we have met our objectives for 2014, and have even exceeded some of them. This could be achieved based on the successful operating activities in our property portfolio as well as our consistent focus on investment activities", said Peter Finkbeiner, member of TLG IMMOBILIEN AG's Management Board. "In the run-up to our IPO in October 2014, we said that we wanted to continue growing and generate a FFO of approximately EUR50 m for 2014. We've kept that promise, and ultimately over-achieved our FFO target." Niclas Karoff, also a member of TLG IMMOBILIEN AG's Management Board, added: "Since the IPO, we have further increased the value and quality of our property portfolio by executing a number of strategic acquisitions and we have further strengthened our market position in Berlin as well as the relevant economic growth areas in Eastern Germany. The development during the first weeks of 2015 gives us reason to be confident that we will carry forward the successful development of the past financial year also into 2015."


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 leading commercial real estate company focusing on Berlin and growth regions in Eastern Germany. For over 20 years, TLG IMMOBILIEN has been synonymous with real estate expertise in Germany's East. TLG IMMOBILIEN 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 is specialised in commercial properties for office and retail use. TLG IMMOBILIEN 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 five hotels in Berlin, Dresden and Rostock. TLG IMMOBILIEN'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 31 December 2014 the portfolio value (fair value) is EUR 1.526 billion, based on preliminary financial results. The EPRA net asset value per share is EUR 14,91 as at the reference day.

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