DGAP-News: GAGFAH S.A.: Financial Results for Q3 2011
(firmenpresse) - DGAP-News: GAGFAH S.A. / Key word(s): Quarter Results
GAGFAH S.A.: Financial Results for Q3 2011
07.11.2011 / 21:10
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Press Release: November 07, 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 Q3 2011
Luxembourg, November 07, 2011 - GAGFAH S.A. (Frankfurt Stock Exchange: GFJ)
today announced its financial results for the first nine months of 2011.
William Joseph Brennan, CEO of GAGFAH S.A.'s German subsidiaries: 'The
third quarter 2011 results were in line with expectations; the business
delivered eleven cents of FFO, with an average of about 11,100 fewer units
than last year, due to sales. Within the quarter we also spent EUR 4.8
million more on our properties than in Q2, in line with the enhanced 2011
property investment previously announced.
We are proud to be able to offer decent, affordable housing to over 300,000
people in about 350 towns in Germany. Our company has been around for
almost a century, through all the challenges those years have brought. In
contrast to the continued economic turmoil playing out in the financial
markets and the political arena, especially within the euro zone, our key
operational metrics remain stable and within our expected range.
Given the current discount to NAV and the volatility in the equities market
overall, we will continue to explore avenues to help us get to a stable and
more reflective valuation for our Company.
Preferring to retain the cash within the business, and to support our
property investment and financing goals, the Board has taken the decision
not to pay an interim dividend for Q3.'
Highlights
- FFO for the first nine months of 2011 from the core rental business of
EUR 0.35 per share. Including the EUR?0.14 contribution from sales,
the Company delivered EUR?0.49 of FFO per share for the first nine
months of 2011. Third quarter 2011 FFO per share was EUR?0.11
including EUR 0.01 from sales.
- Profit from leasing was EUR 307.4 million in the first nine months of
2011 compared to EUR 352.1 million in the first nine months of 2010, on
an average base of about 11,100 fewer units due to sales.
- Profit margin for the first nine months of 2011 was 46.5%.
- Operations during the first nine months of 2011 were broadly in line
with 1.6% annualized same-store1) rent growth, turnover at about 13%
and a vacancy rate of 5.5%.
- Sales: We financially closed the sale of 4,552 units (incl. 1,154
non-core units) from the 2010 sales program for a total volume of EUR
218.0 million. In addition, we sold or contracted to sell 2,840 units
for a total value of EUR 147.2 million from our 2011 sales program.
These sales numbers do not include the disposal group (two subsidiaries
with ca. 4,800 units in Berlin), for which the sales agreement was
signed on November 2, 2011.
- Cost to manage per unit was EUR 381 annualized for the first nine
months of 2011 compared to EUR 389 for the prior-year period.
- NAV of EUR 12.10 per share and gross asset value of EUR 858 per square
meter as of September 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 third quarter of 2011.
1) Same store basis: Residential units GAGFAH owned at both dates: As of
December 31, 2010, and as of September 30, 2011.
Key Financial Information
Consolidated Statement of Comprehensive 9M 9M Q3 Q3 Q2
Income (EUR million) 2011 2010 2011 2010 2011
Income from the leasing of investment 661.0 696.0 225.4 237.6 226.2
property
Profit from the leasing of investment 307.4 352.1 97.1 111.8 105.2
property
Profit from the sale of investment 15.1 12.7 4.1 3.8 3.6
property and assets held for sale
Loss / profit from the fair value -30.4 -57.3 5.8 -47.0 -31.7
measurement of investment property
EBITDA 247.1 278.0 90.7 61.3 59.9
EBIT 234.3 268.1 89.2 60.0 50.5
EBT 10.0 33.4 -3.8 -17.4 -18.2
FFO 110.7 128.6 25.2 43.7 31.4
FFO in EUR per share (weighted average, 0.49 0.57 0.11 0.19 0.14
undiluted)
Group 09-30-11 09-30-11 12-31-10 12-31-10
Capitalization EUR m % EUR m %
Total equity 2,216.7 25.3 2,302.7 24.9
Financial 5,487.6 62.5 6,011.2 64.9
liabilities
Other liabilities 1,071.3 12.2 947.8 10.2
Total equity and 8,775.6 100.0 9,261.7 100.0
liabilities
Operational Figures1) In addition, the sale of 1,154 non-core units was financially closed in
(core portfolio)
09-30-2011 09-30-2010 06-30-2011
Group residential portfolio
Units 154,472 158,806 154,730
Sqm 9,379,128 9,631,404 9,394,051
Net cold rent/sqm (in EUR) 5.11 5.06 5.09
Vacancy rate (in %) 5.5 5.3 5.3
Sold units (financial closing)1) 3,906 6,791 3,645
the first nine 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:
FUNDS FROM OPERATIONS - FFO1) The 9M 2011 numbers include expected prepayment fees for the early
(EUR MILLION) 9M 9M Q3 Q3 Q2
2011 2010 2011 2010 2011
EBIT 234.3 268.1 89.2 60.0 50.5
Reorganization and restructuring 8.7 6.6 0.5 0.0 7.2
expenses
Depreciation and amortization 4.1 3.3 1.0 1.3 2.2
EBITDA 247.1 278.0 90.7 61.3 59.9
Loss / profit from the fair value 30.4 57.3 -5.8 47.0 31.7
measurement of investment property
Realized valuation gains through sales 25.3 3.6 2.9 1.4 2.9
Expenses for share-based remuneration 3.3 1.6 0.7 0.5 0.7
Net interest expenses - - -93.2 -76.4 -69.5
229.0 232.0
Current tax expenses -8.6 -0.3 -3.8 0.7 -2.4
Property development business 2.6 -2.6 1.6 0.2 0.7
Sales expenses (non-condo) 4.3 19.2 1.5 7.0 1.9
Other1) 35.3 3.8 30.6 2.0 5.5
FFO 110.7 128.6 25.2 43.7 31.4
FFO in EUR per share (weighted average, 0.49 0.57 0.11 0.19 0.14
undiluted)
Weighted average number of shares 222.8 225.9 222.8 225.9 223.4
(undiluted)2)
repayment of debt related to the sale of the disposal group of EUR23.5
million and fees and other costs relating to the Dresden litigation of
EUR8.0 million.
2) Excl. treasury shares.
Conference Call
Management will host an earnings conference call on November 8, 2011, at
12:00 noon CET (11:00 A.M London time, 6:00 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 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
Q3 2011 Earnings Call'. The conference ID will be 23395669.
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.
Percentages and figures in this press release may include rounding
differences.
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 residential property company
listed in Germany.
The Q3 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(at)gagfah.com
Tel: +352 266 366 21
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(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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