DGAP-News: GAGFAH S.A. / Key word(s): Half Year Results
GAGFAH S.A.: Financial Results for Q2 2011
10.08.2011 / 06:26
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Press Release: August 10, 2011
GAGFAH S.A.
2-4, rue Beck
L-1222 Luxembourg
ISIN: LU0269583422
Frankfurt Stock Exchange, Regulated Market (Prime Standard)
GAGFAH S.A. Financial Results for Q2 2011
Luxembourg, August 10, 2011 - GAGFAH S.A. (Frankfurt Stock Exchange: GFJ)
today announced its financial results for the first half of 2011.
William Joseph Brennan, CEO of GAGFAH S.A.'s German subsidiaries: 'GAGFAH
had a solid and stable second quarter, producing EUR 0.14 of FFO per share,
of which EUR 0.12 per share came from our core rental business, and EUR
0.02 came from our asset sales business. The core rental business results
were comparable to Q1, and the sales business results reflect the
seasonality of sales activity. The quarter again demonstrated the stability
of the core business, with results overall in line with our expectations.
Against a background of renewed economic uncertainty, in both the euro zone
countries and abroad, our business delivers stable, largely predictable
results. With EUR 8.4 billion in German residential real estate assets, and
a portfolio of about 155,000 units, our key metrics of annualized rent
growth of 1.4%, vacancy of 5.3%, with turnover of about 12%, and overhead
costs per unit of EUR 379, all further underscore the fact that the
business continues to perform at historical, normalized levels.
With a track record covering almost a century in the German residential
real estate business, GAGFAH provides safe, decent housing to over 300,000
people of diverse backgrounds, needs, and financial means in about 350
cities and towns across Germany. As the largest listed residential company
in Germany, our size, depth of experience and operational structures have
set the benchmark for the industry.
The Board has made the decision not to pay an interim dividend for Q2 2011,
preferring to retain the cash within the business, and to support our
increased property investment and financing goals.'
Highlights
- FFO for the first six months of 2011 from the core rental business of
EUR 0.25 per share. Including the EUR 0.13 contribution from sales, the
Company delivered EUR 0.38 of FFO per share for the first six months of
2011. Second quarter 2011 FFO per share was EUR 0.14 including EUR 0.02
contribution from sales.
- Profit from leasing was EUR 210.3 million in the first six months of
2011 compared to EUR 240.3 million in the first six months of 2010, on
an average base of about 11,800 fewer units due to sales.
- Profit margin for the first six months of 2011 was 48.3%.
- Operations during the first six months of 2011 on track with 1.4%
annualized same-store1) rent growth, turnover at about 12% and a
vacancy rate of 5.3%.
- Sales: We financially closed the sale of 4,249 units (incl. 914
non-core units) from the 2010 sales program for a total volume of EUR
206.3 million. In addition, we sold or contracted to sell 395 units for
a total value of EUR 41.2 million from our 2011 sales program.
- Cost to manage per unit was EUR 379 annualized for the first six months
of 2011 compared to EUR 392 for the prior-year period.
- NAV of EUR 12.12 per share and gross asset value of EUR 857 per square
meter as of June 30, 2011.
- Dividend: In order to retain additional flexibility and financial
resources within the business and to support the company's property
investment and financing objectives, the Board has made the decision
not to pay an interim dividend for the second quarter of 2011.
1) Same store basis: Residential units GAGFAH owned at both dates: As of
December 31, 2010, and as of June 30, 2011.
Key Financial Information
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Consolidated Statement of Comprehensive H1 H1 Q2 Q2 Q1
Income (EUR million) 2011 2010 2011 2010 2011
Income from the leasing of investment 435.6 458.4 226.2 237.9 209.4
property
Profit from the leasing of investment 210.3 240.3 105.2 115.4 105.1
property
Profit from the sale of investment 11.0 8.9 3.6 3.4 7.4
property and assets held for sale
Loss from the fair value measurement -36.2 -10.3 -31.7 -8.2 -4.5
of investment property
EBITDA 156.4 216.7 59.9 101.2 96.5
EBIT 145.1 208.1 50.5 100.2 94.6
EBT 13.8 50.8 -18.2 24.0 32.0
FFO 85.5 84.9 31.4 38.3 54.1
FFO in EUR per share (weighted average, 0.38 0.38 0.14 0.17 0.24
undiluted)
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Group 06-30-11 06-30-11 12-31-10 12-31-10
Capitalization EUR million % EUR million %
Total equity 2,235.8 25.5 2,302.7 24.9
Financial 5,719.2 65.2 6,011.2 64.9
liabilities
Other liabilities 813.4 9.3 947.8 10.2
Total equity and 8,768.4 100.0 9,261.7 100.0
liabilities
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Operational Figures (core
portfolio) 06-30-2011 06-30-2010 03-31-2011
Group residential portfolio
Units 154,730 159,850 154,987
Sqm 9,394,051 9,687,681 9,411,570
Net cold rent/sqm (in EUR) 5.09 5.05 5.08
Vacancy rate (in %) 5.3 5.1 5.4
Sold units (financial closing) 1) 3,645 5,763 3,382
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1) In addition, the sale of 914 non-core units was also financially closed
in the first six months of 2011.
FFO is a non-IFRS financial measure used by our Group's management to
report the funds generated from continued operations. FFO is an appropriate
measure of underlying operating performance of real estate companies as it
provides shareholders with information regarding the Group's ability to
service debt, make capital expenditures or pay dividends. GAGFAH's
calculation of FFO may be different from the calculation used by other
companies and, therefore, comparability may be limited. The following is a
reconciliation of EBIT to FFO for our Group.
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FUNDS FROM OPERATIONS - FFO (EUR H1 H1 Q2 Q2 Q1
MILLION) 2011 2010 2011 2010 2011
EBIT 145.1 208.1 50.5 100.2 94.6
Reorganization and restructuring 8.2 6.6 7.2 0.0 1.0
expenses
Depreciation and amortization 3.1 2.0 2.2 1.0 0.9
EBITDA 156.4 216.7 59.9 101.2 96.5
Loss from the fair value measurement 36.2 10.3 31.7 8.2 4.5
of investment property
Realized valuation gains through 22.4 2.2 2.9 1.2 19.5
sales
Expenses for share-based remuneration 2.6 1.1 0.7 0.4 1.9
Net interest expenses - - -69.5 -77.5 -66.3
135.8 155.6
Current tax expenses -4.8 -1.0 -2.4 -0.3 -2.4
Property development business 1.0 -2.8 0.7 -3.0 0.3
Sales expenses (non-condo) 2.8 12.2 1.9 7.7 0.9
Other 4.7 1.8 5.5 0.4 -0.8
FFO 85.5 84.9 31.4 38.3 54.1
FFO in EUR per share (weighted 0.38 0.38 0.14 0.17 0.24
average, undiluted)
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Conference Call
Management will host an earnings conference call at 12:00 noon CET (11:00
A.M. London time, 6:00 A.M. New York time) today. All interested parties
are welcome to participate in the live call. You can access the conference
call by dialing 1866 966 9439 from within the U.S., or 0800 694 0257 from
the U.K., or 8002 7512 from Luxembourg, or 0800 101 4960 from Germany or
+44 (0) 1452 555 566 from all other countries ten minutes prior to the
scheduled start of the call; please refer to 'GAGFAH Q2 2011 Earnings
Call'. The conference ID will be 88859203.
A webcast of the conference call will be available to the public on a
listen-only basis at www.gagfah.com. Please allow extra time prior to the
call to visit the site and download the necessary software required to
listen to the internet broadcast. A replay of the webcast will be available
for twelve months following the call on www.gagfah.com.
About GAGFAH S.A.
GAGFAH S.A. is a joint stock corporation organized under the laws of the
Grand Duchy of Luxembourg qualifying as a securitization company under the
Luxembourg Securitization Law of March 22, 2004. The core business of
GAGFAH S.A.'s operating subsidiaries is the ownership and management of a
geographically diversified and well maintained residential property
portfolio located throughout Germany. With a portfolio of approximately
155,000 apartments, GAGFAH is the largest German listed residential
property company.
The Q2 2011 Interim Report of GAGFAH is available on www.gagfah.com.
Contact:
GAGFAH S.A.
2-4, Rue Beck
L-1222 Luxembourg
Grand Duchy of Luxembourg
info@gagfah.com
Tel: +352 266 366 1
Forward-Looking Statements
This press release contains statements that constitute forward-looking
statements. Such forward-looking statements relate to, among other things,
future commitments to acquire real estate and achievement of acquisition
targets, timing of completion of acquisitions and the operating performance
of our investments. Forward-looking statements are generally identifiable
by use of forward looking terminology such as 'may', 'will', 'should',
'potential', 'intend', 'expect', 'endeavour', 'seek', 'anticipate',
'estimate', 'overestimate', 'underestimate', 'believe', 'could', 'project',
'predict', 'continue', 'plan', 'forecast' or other similar words or
expressions. Forward-looking statements are based on certain assumptions,
discuss future expectations, describe future plans and strategies, contain
projections of results from operations or of financial conditions or state
other forward looking information. Our ability to predict results or the
actual effect of future plans or strategies is limited. Although we believe
that the expectations reflected in such forward-looking statements are
based on reasonable assumptions, our actual results and performance may
differ materially from those set forth in the forward-looking statements.
These forward-looking statements are subject to risks, uncertainties and
other factors that may cause our actual results in future periods to differ
materially from forecasted results or stated expectations, including the
risk that GAGFAH S.A. will be unable to extent existing financing at
suitable terms, be unable to increase rents and occupancy, to sell further
units or further reduce management costs.
End of Corporate News
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Language: English
Company: GAGFAH S.A.
2-4, rue Beck
1222 Luxemburg
Grand Duchy of Luxembourg
Phone: + 352 266 366 1
Fax: + 352 266 366 01
E-mail: info@gagfah.com
Internet: www.gagfah.com
ISIN: LU0269583422, LU0269583422
WKN: A0LBDT
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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135021 10.08.2011
DGAP-News: GAGFAH S.A.: Financial Results for Q2 2011
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