TLG IMMOBILIEN AG / Key word(s): Half Year Results/Real Estate
TLG IMMOBILIEN significantly increases revenue and earnings in H1 2015
- Funds from operations up 19.2% against H1 2014 to EUR 31 m
- Rental income up 7.2% to EUR 61.1 m
- EPRA Net Asset Value rises by 9.4% to EUR 16.31 per share as at 30 June 2015
- Additional portfolio growth: acquisitions in the amount of approx. EUR 144 m in H1
- FFO forecast for full year 2015 revised upwards significantly to approx. EUR 63 m
Berlin, 27 August 2015 - TLG IMMOBILIEN significantly increased its rental income and key earnings figures in the first half of 2015. The Group generated a total of approx. EUR 61.1 m in rental income during the first six months of the year, representing an increase of 7.2% as compared to the first half of 2014. Funds from operations (FFO) increased by 19.2% to EUR 31 m (H1 2014: EUR 26 m).
Annualised net rent in the Company's core portfolio increased to EUR 111.2 m as at the reporting date. The EPRA Vacancy Rate increased slightly by 0.7 percentage points to 3.9% due in particular to temporary non-recurring effects. As at 30 June 2015, the EPRA Net Asset Value (EPRA NAV) amounted to EUR 16.31 per share, which represents an increase of 9.4% as compared to the end of 2014.
In addition to the successful development of its operating business, TLG IMMOBILIEN AG continued to have a conservative financing structure. For instance, leverage (Net LVT) as at the reporting date was 41.3% (31.12.2014: 40.3%) and the Company's average cost of debt amounted to 2.95%. Loans have an average maturity of 5.2 years as at 30 June 2015. The Company's costs for new long-term financing are currently below 2%.
As at 30 June 2015, TLG IMMOBILIEN AG's portfolio comprises a total of 447 properties (31.12.2014: 460) whose value under IFRS totals approx. EUR 1.622 bn (31.12.2014: EUR 1.526 bn). Thus, while the number of properties in the portfolio decreased slightly, the value of the property portfolio increased by 6.3% during the first half of 2015. The value of the Company's core portfolio increased by 8.1% to approx. EUR 1.529 bn (31.12.2014: EUR 1.414 bn) due to new acquisitions made in line with the portfolio strategy and thanks to favourable developments on real estate markets. By contrast, the value of the non-core portfolio decreased by EUR 18.8 m, or 16.7%, to approx. EUR 93.5 m (31.12.2014: EUR 112.3 m). This was attributable primarily to disposals of properties that were not in line with TLG IMMOBILIEN's portfolio strategy.
The core portfolio's share of the total portfolio value rose to 94.2% (31.12.2014: 92.6%) due to the acquisitions and disposals realised during the reporting period. The average remaining term of lease agreements in the core portfolio is currently 7.2 years. The core portfolio's vacancy rate continues to be low and currently amounts to 3.9%.
"The substantial increases in revenue and earnings figures during the first half of 2015 are primarily a reflection of the continuing strong and successful development of the operating business. The systematic implementation of our strategy through additional acquisitions at attractive locations can be seen in a further increase of our portfolio value. As such, we have taken significant steps towards achieving our targets for 2015 as well as our future targets for further expanding our portfolio", said Peter Finkbeiner, member of TLG IMMOBILIEN AG's Management Board.
In light of the positive developments during the first half of the year, the Management Board of TLG IMMOBILIEN AG substantiated and revised its FFO forecast upwards for the full financial year. After having originally forecast a year-on-year increase of at least 10% in funds from operations (2014: EUR 52.4 m), the Management Board now expects the Company's FFO to amount to approx. EUR 63 m in full year 2015. Furthermore, TLG IMMOBILIEN AG continues to stand by its strategic goal of increasing the value of its portfolio to EUR 2 bn by the end of 2017.
About TLG IMMOBILIEN AG
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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|