DGAP-News: GAGFAH S.A.: Financial Results for the Fourth Quarter and Full Year 2011
(firmenpresse) - DGAP-News: GAGFAH S.A. / Key word(s): Final Results
GAGFAH S.A.: Financial Results for the Fourth Quarter and Full Year
2011
20.03.2012 / 12:11
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Press Release: March 20, 2012
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 the Fourth Quarter and Full Year 2011
Luxembourg, March 20, 2012 - GAGFAH S.A. (Frankfurt Stock Exchange: GFJ)
today announced its financial results for the fourth quarter and full year
2012.
William Joseph Brennan, CEO of GAGFAH S.A.'s German subsidiaries: 'GAGFAH
delivered a solid operational performance with an EBITDA of more than EUR
326 million and an FFO of almost EUR 160 million or EUR 0.73 per share,
both in line with the prior-year results considering the 12,500 fewer units
due to sales. The operational key figures of 1.5% rent growth, 5.1% vacancy
rate and 12% fluctuation rate are all in line with our expectations. We
financially closed asset deals of more than 7,600 units for a total
consideration of almost EUR 390 million in 2011. In addition we completed a
sales transaction to GSW in Berlin, in which we sold about 4,800
residential units by way of a share deal worth EUR330 million, making it
one of the largest residential real estate transactions in Germany in 2011.
We are satisfied that the WOBA litigation has been resolved in a positive
manner by amicable agreement after the City Council approval on March 15,
leaving only the formal clearance from the supervisory authority
outstanding, which is expected shortly. We had always said that we were
open to an out-of-court solution and believe that this settlement will also
be for the benefit of our tenants.
Our focus in 2012, in addition to our core business, will be on the
optimization of our capital structure, focusing on the two largest loans
that will mature next year.'
Highlights
- FFO for 2011 from the core rental business of EUR 0.52 per share.
Including the contribution from sales, the Company delivered EUR 0.73
of FFO per share for 2011. Fourth quarter 2011 FFO per share was EUR
0.24 including sales, of which EUR 0.17 came from the core rental
business.
- Profit from leasing was EUR 419.6 million in 2011 compared to EUR 460.1
million in 2010, on an average basis of ca. 12,500 fewer units due to
sales.
- Operating profit margin for 2011 of 48.1%.
- Operations on track with 1.5% same-store1) rent growth, turnover at
12.0% and vacancy rate of 5.1%, all in line with our targets.
- Sales: Financial closing of 7,605 units for a total value of EUR 388.8
million. 4,897 of these units for EUR 325.8 million came from our condo
and large multi-family homes sales programs out of our core portfolio
and the remaining 2,708 units for EUR 63.0 million were non-core asset
sales.
- Share deal: In addition, we financially closed the sale of approx.
4,800 units by way of a share deal in the fourth quarter of 2011,
generating EUR 330.0 million of gross proceeds and EUR 67.0 million of
net cash.
- Cost to manage per unit was EUR 380 for 2011 after EUR 374 for 2010 and
on an average basis of about 7.0% fewer units.
- NAV of EUR 12.53 per share and gross asset value of EUR 849 per square
meter as of December 31, 2011.
City of Dresden Litigation
In the interest of a timely resolution of the disputes and a good and
trustful future cooperation, the WOBA companies and the State Capital of
Dresden agreed to fully resolve all their disputes by mutual agreement and,
on March 2, 2012, entered into a settlement agreement subject to the
approval by Dresden's city council and supervisory authority. While the
settlement has already been approved by the City Council of Dresden on
March 15, it is still subject to formal approval by the legal supervisory
authority of Saxony which is expected to be rendered on or before March 21,
2012.
1) Same-store basis: Residential units GAGFAH owned at both dates: As of
December 31, 2010, and as of December 31, 2011.
Key Financial Information
Consolidated Statement of Comprehensive Income 2011 2010 Q4 Q4
(EUR million) 2011 2010
Income from the leasing of investment 872 911 211.2 215.5
property .2 .5
Profit from the leasing of investment 419 460 112.2 108.0
property .6 .1
Profit from the sale of investment property 22.0 16.2 6.9 3.5
and assets held for sale
Loss from the fair value measurement of - - -11.5 -12.2
investment property 41.9 69.5
EBITDA 326 365 79.4 87.8
.5 .8
EBIT 306 348 72.6 80.2
.9 .3
EBT 20.6 51.2 10.6 17.8
FFO 159 170 48.8 42.0
.5 .6
Number of shares (weighted average, undiluted, 218 225 207.1 225.9
in million) 1) .8 .9
FFO in EUR per share 1) 0.73 0.76 0.24 0.19
Group Capitalization 12-31-11 12-31-11 12-31-10 12-31-10
EUR million % EUR million %
Total equity 2,136.9 25.5 2,302.7 24.9
Financial 5,427.9 64.9 6,011.2 64.9
liabilities
Other liabilities 801.6 9.6 947.8 10.2
Total equity and 8,366.4 100.0 9,261.7 100.0
liabilities
Operational Figures (core portfolio) 12-31-2011 12-31-2010FFO is a non-IFRS financial measure used by our Group's management to
Group residential portfolio
Units 148,694 158,314
Sqm 9,027,693 9,597,660
Net cold rent/sqm (in EUR) 5.11 5.07
Vacancy rate (in %) 5.1 5.2
Sold units (financial closing) 2) 4,897 7,521
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:
FUNDS FROM OPERATIONS - FFO (EUR MILLION) 2011 2010 Q4 Q4 20101) Excluding treasury shares.
2011
EBIT 306.9 348.3 72.6 80.2
Reorganization and restructuring expenses 14.6 12.8 5.9 6.2
Depreciation and amortization 5.04.7 0.9 1.4
EBITDA 326.5 365.8 79.4 87.8
Loss from the fair value measurement of 41.9 69.5 11.5 12.2
investment property
Realized valuation gains through sales 35.3 7.3 10.0 3.7
Expenses for share-based remuneration 3.8 1.8 0.5 0.2
Net interest expenses - - -61.9 -64.4
290.9 296.4
Current tax expenses -17.3 -4.7 -8.7 -4.4
Property development business 2.4 -2.4 -0.2 0.2
Sales expenses (non-condo) 8.0 26.9 3.7 7.7
Other 49.8 2.8 14.5 -1.0
FFO 159.5 170.6 48.8 42.0
Number of shares (weighted average, 218.8 225.9 207.1 225.9
undiluted, in million) 1)
FFO in EUR per share 1) 0.73 0.76 0.24 0.19
2) In addition, we closed the sale of 2,708 non-core units in 2011. The
numbers do not include the share deal in which we sold approximately 4,800
units.
Management will host an earnings conference call today at 2:00 P.M.
Luxembourg time (1:00 P.M. London time, 9:00 A.M. New York time). All
interested parties are welcome to participate in the live call. You can
access the conference call by dialing
- 1 866 966 9439 from the U.S.
- 0800 694 0257 from the U.K.
- 8002 7512 from Luxembourg
- 0800 101 4960 from Germany
- +44 (0) 1452 555 566 from all other countries
ten minutes prior to the scheduled start of the call. Please refer to
'GAGFAH S.A. 2011 Earnings Call'. The conference ID will be 59550037.
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. The 2011 Annual
Report of GAGFAH S.A. is available on www.gagfah.com.
Contact
GAGFAH S.A.
Investor Relations
2-4, rue Beck
L-1222 Luxembourg
Tel.: +352 266 366 1
Mail: info(at)gagfah.com
www.gagfah.com
R.C.S. Luxembourg B 109.526
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 almost 150,000
apartments, GAGFAH is the largest residential property company listed in
Germany.
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', 'endeavor', '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 andperformance 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.
Percentages and figures in this press release may include rounding effects.
End of Corporate News
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20.03.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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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(at)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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