News Detail

TLG IMMOBILIEN reports successful start into financial year 2015

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

2015-06-01 / 07:10

Press release

TLG IMMOBILIEN reports successful start into financial year 2015

- Funds from operations (FFO) increased by 25.4% year on year to EUR 15.8 mn, 7% growth in rental income

- EPRA net asset value rises by 4.8% to EUR 15.63 per share as at 31 March 2015

- Further portfolio growth: total volume of EUR 60.8 mn of acquired real estate assets were added to portfolio in Q1 2015

- Forecast of at least 10% growth in FFO for 2015 reaffirmed

Berlin, 1 June 2015 - TLG IMMOBILIEN AG built on its strong 2014 business momentum in Q1 2015. The Group generated a total of EUR 30.4 mn in rental income during the reporting period, representing an increase of 7% against the first quarter of the previous year (EUR 28.4 mn). Funds from operations (FFO) increased by 25.4% to EUR 15.8 mn (Q1 2014: EUR 12.6 mn).

The annualised in-place rent in the Company's core portfolio increased by 5.1% as compared to 31 December 2014 to EUR 111.7 mn. The EPRA Vacancy Rate increased slightly by 0.3 percentage points to 3.5% particularly due to non-recurring effects. As at 31 March 2015, the EPRA Net Asset Value (EPRA NAV) amounted to EUR 958.2 mn, or EUR 15.63 per share, representing an increase of 4.8% as compared to the year-end of 2014.

In addition to the successful development of its operating business, TLG IMMOBILIEN AG maintains a conservative financing structure. The Net Loan-to-Value (Net-LVT) as at the reporting date was 38.8% (31 December 2014: 40.3%) and the Company's average cost of debt amounted to 2.95%. The existing loans have an average maturity of 5.4 years as at 31 March 2015. The Company's cost for new long-term financings remains below 2%.

As at 31 March 2015, TLG IMMOBILIEN AG's portfolio includes a total of 451 properties (31 December 2014: 460) with a total IFRS value of EUR 1.589 bn (31 December 2014: EUR 1.526 bn). This corresponds to a 4.1% increase in the real estate value in Q1 2015. The value of the Company's core portfolio increased by 5.9% to approx. EUR 1.497 bn (31 December 2014: EUR 1.414 bn) due to new acquisitions made in line with the portfolio strategy and thanks to favourable developments in the Company's core markets. By contrast, the value of the non-core portfolio decreased by EUR 21.1 mn to approx. EUR 91 mn (31 December 2014: EUR 112 mn). This was driven by further disposals of properties that were not in line with TLG IMMOBILIEN's portfolio strategy.

The core portfolio's share in the value of the total portfolio rose to 94.3% (31 December 2014: 92.6%) due to acquisitions and disposals realised during the reporting period. The average remaining term of lease agreements in the core portfolio is currently 7.3 years. Together with the low vacancy rate of 3.5%, this provides an excellent basis for TLG IMMOBILIEN AG's future performance.

"We significantly increased our consolidated net income during the first quarter of the current financial year. Our operating performance was very solid and the Company continued to grow. Furthermore, significant contributions to earnings also resulted from fair value remeasurement gains, which ultimately reflect the high quality of our portfolio and the attractiveness of our locations", said Peter Finkbeiner, member of TLG IMMOBILIEN AG's Management Board.

In light of the positive performance in the first quarter of financial year 2015, the Management Board of TLG IMMOBILIEN AG expects the Company's performance for the overall year to remain positive and maintains its forecast that funds from operations will increase by at least 10% year on year (2014: EUR 52.4 mn). TLG IMMOBILIEN AG also reaffirms its strategic goal of increasing the value of its portfolio to EUR 2 bn by the end of 2017.


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 March 2015 the portfolio value (fair value) is EUR 1.589 bn. The EPRA Net Asset Value per share is EUR 15.63 as at the reference day.

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