DGAP-News: KWG Kommunale Wohnen AG: KWG increases turnover and results in the first nine months 2011 and raises its forecast for 2011
(firmenpresse) - DGAP-News: KWG Kommunale Wohnen AG / Key word(s): Quarter Results
KWG Kommunale Wohnen AG: KWG increases turnover and results in the
first nine months 2011 and raises its forecast for 2011
08.11.2011 / 08:00
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- Net rental income increased by 11 % to EUR 10.9 million, turnover rose by
9 % to EUR 15.8 million
- Group profit improved from EUR 0.4 million to EUR 4.5 million
- Vacancy rate in core portfolio reduced from 6.1 % to 3.9 %
- Guidance for 2011 raised due to positive operative development
Hamburg, 8 November 2011 - KWG Kommunale Wohnen AG, a German property
holding company with a long-term strategy, looks back on successful nine
months in 2011. Following the positive operative development in the first
half of 2011 and further successes in the portfolio management KWG AG shows
a strong development in turnover, rental income and results.
Considerable increase in financial results
The net rental income increased in the period by 11 % to 10.9 million
(30.09.2010: EUR 9.9 million). Coincidentally turnover rose from EUR 14.5
million to EUR 15.8 million. Compared to last year the group profit sharply
increased from EUR 0.4 million to EUR 4.5 million. Accordingly the results
per share equal EUR 0.42. On 30.09.2011 KWG AG shows a positive operating
cash flow and Funds-From-Operations (FFO) of approximate EUR 1.1 million.
Optimization of portfolio
The strong performance was based on considerably decreasing vacancy rates
and rising average rents per square meter. Here the average rent achieved
with new lets increased by 5 % compared to last year from EUR 5.06 to EUR
5.30. In the same period the vacancy rate of the portfolio decreased from
6.1 % to 3.9 %. In line with the continuous improvement of the portfolio
the vacancy rate in the core portfolio will be reduced to less than 3.5 %
by the end of the business year.
The improvements in the portfolio management were driven by extensive
investments in the value enhancement of the portfolio of more than EUR 6
million in the first nine months of the business year. The investments
primarily targeted the portfolios in Lower Saxony and North-Rhine
Westphalia. Due to the active investment approach KWG AG is able to extend
its core portfolio. By the end of the year the great majority of the total
portfolio will consist of units of the core portfolio.
Successful business model
The strong financial results and positive development of the real estate
portfolio prove the success of the KWG AG business model once again. It
aims at increasing the share of net rents over total turnover with a
continuous reduction of additional rental costs. The success of this
strategic approach is reflected in a disproportionate rise in net rents
over turnover in the first nine months. Apart from net rents the turnover
also includes home owner's association fees as well as energy and operating
costs.
Guidance for 2011 increased
Due to the positive operative performance and plain visibility for 2011 KWG
AG raises its guidance for 2011. The management board expects to increase
its net rental income in 2011 to EUR 15 million and to achieve a positive
operating cash flow by the end of the fiscal year. Therefore the guidance
released on 25.08.2011 will be outperformed by the year end. Due to the
positive development ofthe portfolio the annual group net income will be
kept at the level of the previous year.
About KWG AG
KWG Kommunale Wohnen AG is a German property company with a long-term
investment approach. The company acquires property portfolios for
attractive prices in well positioned micro-locations of metropolitan
regions and medium-sized cities. With an active real estate asset
management KWG creates sustainable value and reduces the utility costs for
the tenants with a consequent enhancement of the portfolio's energy
efficiency. The corporation offers services along the entire value chain
comprising purchasing, construction management as well as property
management. With the combination of these measures KWG is able to reduce
its vacancy rates considerably and increases its revenue from rentals
providing an exceptionally high return on equity. Currently the portfolio
of KWG incorporates more than 5,400 residential and commercial properties.
The company's shares are listed in the Entry Standard of the Frankfurt
Stock Exchange.
Contact
KWG Kommunale Wohnen AG
Jan Hutterer, Head of Investor Relations
Alstertor 9
20095 Hamburg
Germany
+49 (0)40 226 30 88-100
Email: ir(at)kwg-ag.de
www.kwg-ag.com
End of Corporate News
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Language: English
Company: KWG Kommunale Wohnen AG
Alstertor 9
20095 Hamburg
Germany
Phone: 040 22 63 088 100
Fax: 040 22 63 088 200
E-mail: ir(at)kwg-ag.de
Internet: www.kwg-ag.de
ISIN: DE0005227342
WKN: 522734
Listed: Freiverkehr in Berlin, München, Stuttgart; Open Market
(Entry Standard) in Frankfurt
End of News DGAP News-Service
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145084 08.11.2011
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Datum: 08.11.2011 - 08:00 Uhr
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