TLG IMMOBILIEN AG / Key word(s): Final Results/Real Estate
TLG IMMOBILIEN exceeds corporate targets for 2014 and expects further growth in 2015
- Funds from operations (FFO) increase by 13.5% in 2014 to EUR 52.37 million (2013: EUR 46.13 million), surpassing the Company's own forecast
- EPRA Net Asset Value (NAV) rises to EUR 14.91 per share as at 31 December 2014
- New acquisitions in core markets with a total volume of EUR 126 million and profitable disposal of non-core properties worth EUR 112 million
- Significant 3.7% (like-for-like) rise in rental income in the Company's core portfolio - low vacancy rate further reduced by 1.4 percentage points to 3.0% (like-for-like)
- Dividend of EUR 0.25 per share for 2014 shall be proposed
- Positive outlook: FFO expected to increase by at least 10% in 2015
- In 2015 acquisition of further properties with a total investment of around EUR 114 million; strategic portfolio growth target of EUR 2 billion by the end of 2017 reaffirmed
Berlin, 30 April 2015 - TLG IMMOBILIEN AG, a leading commercial real estate company focussed primarily on Berlin and regional economic hubs in East Germany, generated EUR 114.8 million in rental income in financial year 2014 and increased its funds from operations (FFO) by 13.5% to EUR 52.37 million (2013: EUR 46.13 million). The EUR 50 million FFO forecast for the full year in 2014 was thereby clearly exceeded. Net rent in the Company's core portfolio increased by 3.7% (like-for-like) as compared to the previous year. The EPRA Vacancy Rate fell by 1.4 percentage points (also like-for-like) to 3.0% at the end of 2014 (as at the respective annual reporting dates). The EPRA Net Asset Value (NAV) was EUR 914 million as at 31 December 2014, representing EUR 14.91 per share.
TLG IMMOBILIEN AG's operational success continues to be underpinned by a conservative financing structure. Net LTV stood at 40.3% at the end of 2014 was and the Company's average cost of debt continues to be less than 3.0%. The marginal costs for new long-term financing are currently below 2.0%. The existing loans have an average remaining term of 5.7 years as at 31 December 2014.
The IFRS value of TLG IMMOBILIEN AG's property portfolio rose by around 4.3% to EUR 1.526 billion (2013: EUR 1.462 billion), primarily due to the acquisitions made, while the number of properties fell from 573 to 460 as a result of the planned disposal of non-core properties. The core portfolio contains 323 of these properties. The core portfolio's share in the total value of the portfolio rose from 88.7% to 92.6% based on the acquisitions and disposals effected.
The increase in portfolio value is a reflection of the enhanced quality of the portfolio, which the four acquisitions with a total volume of EUR 126 million, along with measures to increase the value of existing properties and the disposal of non-core assets have all contributed towards. Income generated from the sale of real estate totalled EUR 112 million, around 10% greater than the carrying amount of the properties sold. The average remaining term of 7.6 years for lease agreements in the core portfolio, together with the low vacancy rate of 3.2%, provides a solid basis for the Company to perform well in the coming years.
The Company intends to distribute a dividend of EUR 0.25 per share for the 2014 financial year in order to share the business success with its shareholders.
"2014 was both a special year and a highly successful one for our Company. We completed a successful IPO in a challenging market environment, demonstrating that TLG IMMOBILIEN AG is able to establish itself in the capital markets. The extensive structural changes in the Company and ongoing improvement of the portfolio profile played a decisive part in this success", said Peter Finkbeiner, member of TLG IMMOBILIEN AG's Management Board. "With the positive results in financial year 2014, we have achieved and, in part, exceeded the growth targets set out during the IPO."
Niclas Karoff, member of the Management Board, added: "The broad capabilities and intense market penetration of our platform, together with continued improvement in the quality of our portfolio, provides a good foundation for further growth in the coming years".
Against this background and in view of the Company's performance in the first few months of the current financial year, TLG IMMOBILIEN AG's Management Board expects the Company to continue growing in 2015, with funds from operations forecast to rise at least 10% compared with the previous year (2014: EUR 52.37 million). TLG IMMOBILIEN AG also reaffirms its strategic goal of increasing the value of its portfolio to EUR 2 billion by the end of 2017.
Approximately EUR 114 million have already been invested in acquiring further properties in line with our strategy over the first four months of 2015. These include two office properties in Dresden and Rostock and two special retail centers in the Berlin area. The properties are all ideally situated for their respective functions and in good technical condition, with low vacancy rates and prestigious tenants.
About TLG IMMOBILIEN
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|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|
|End of News||DGAP News-Service|