DGAP-News: ORCO Germany: Reinforcement of balance sheet as GSG refinancing progresses
(firmenpresse) - DGAP-News: ORCO Germany S.A. / Key word(s): Half Year Results
ORCO Germany: Reinforcement of balance sheet as GSG refinancing
progresses
31.08.2012 / 09:06
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Berlin, August 31, 2012
Half-year results 2012
ORCO Germany: Reinforcement of balance sheet as GSG refinancing
progresses
Key Events: first half results and post-closing events:
- Signature of refinancing term sheet on GSG for approximately EUR 270
Million
At the end of August the Group has obtained a detailed term sheet for
financing from a club of German banks in the amount of approximately EUR
270 Million. In light of such progress, the Company expects to obtain a
further extension of the standstill agreement on the existing EUR 286
Million financing beyond 31 August 2012.
- Executing of OG's bonds restructuring:
Approximately 85% of the OG bonds have been acquired by OPG against notes
convertible in two steps into approximately 26 Million new OPG shares and
the remaining OG bonds can be exchanged for a maximum of EUR 20 Million of
newly issued OPG notes (the 'New Notes'). The first step of conversion into
18 Million new shares took place in May, bringing the total number of OPG
shares issued to 35 Million.
Half year financial lights:
- Revenues and occupancy rate of GSG reach all time high
In the first half of 2012, the total revenues of ORCO Germany S.A. amounted
to EUR 32.3 million, a slight increase compared to previous year's EUR 31.9
million. ORCO-GSG, the key asset of ORCO Germany, continued improving
rental revenues. With revenues of EUR 26.2 million in the first half of
2012, GSG elevated revenues compared to previous year's period by EUR 0.6
million or 2.4%, thus delivering the lion's share of the total revenues of
ORCO Germany. This was reached by GSG due to an increased average
commercial net rent (from EUR 4.90 to EUR 5.11 per sqm) and a raise in the
overall occupancy rate from 77.1% in June 2011 to 78.9% in June 2012. Both,
revenues and occupancy rate, are on an all-time high.
The adjusted EBITDA improved to EUR15.9 million, up 23.1% from EUR12.9
million in H1/2011, reflecting the continuous improvement of the Company's
operational profitability.
Despite this stable development of revenues, ORCO Germany reported a
decrease of its operating result (EBIT) to EUR 3.1 million (EUR 31.4
million in the first half of 2011) and a net loss of EUR 12.3 million
(H1/2011: net profit of EUR 15.3 million). The main reasons for this sharp
decline were negative
effects from impairments taken, among others, on the Sky office building in
Düsseldorf (EUR 13.6 million) and a provision set up for potential
litigation on Leipziger Platz (EUR 4.0 million)
- Financial restructuring shows positive effects
In its Management Report for the first six months of the financial year
2012, ORCO Germany states, that as at 30 June 2012, the equity of ORCO
Germany has been raised significantly to EUR 165.5 million (versus EUR 69.8
million in 2011). The increase in equity mainly stemmed from the bond
restructuring and the accompanied capital increase of EUR 109.1 million as
a consequence of ORCO Property Group holding 85% of the bonds. With the
conversion of these OG bonds into bonds convertible in shares issued by
ORCO Property Group and, in addition, repayments on the GSG loan as well as
loan redemptions executed mainly on sold assets, total financial debts of
ORCO Germany as at 30 June 2012 have been reduced to EUR 440.8 million (31
December 2011: EUR 534.5 million). Thus, the loan to value ratio improved
from 78.0% as at 31 December 2011 to 65.6% thanks to the Group's
deleveraging efforts taken.
Outlook
Management remains confident to close the GSG refinancing by year end and
benefit from the historically low interest level once the refinancing has
been finally concluded. The Company also expects to have closed the Sky
office disposal.
Futhermore, ORCO-GSG might continue to dispose assets which are not judged
as of strategic importance. The scale of the disposal program depends on
achieved sales prices as well as the associated tax impact. In addition,
ORCO-GSG is examining development potentials on existing assets with the
aim to expose and enlarge spaces which can be leased out.
After approximately 85% of the ORCO Germany bonds have already been
converted into ORCO Property Group issued bonds convertible into shares, it
is aimed at to exchange remaining 15% of ORCO Germany bonds into new notes
issued by ORCO Property Group in September in order to finalize the
equitization of the ORCO Germany bond.
About ORCO Germany
ORCO Germany S.A. is a property company that is listed in the Prime
Standard on the Regulated Market at Frankfurt Stock Exchange and has its
registered office in Luxembourg. The ORCO Germany Group, which acts
consistently under its registered name of ORCO Germany, has been operating
in Germany since 2004 and concentrates on commercial property and project
development.
ORCO Germany is a subsidiary of ORCO Property Group, which is one of the
leading Central European property companies. The ORCO Property Group,
established in 1991, is based in Luxembourg and has listings on NYSE
Euronext Paris, Prague and Warsaw stock exchanges.
For further information please contact:
Kirchhoff Consult AG
Sebastian Bucher
Herrengraben 1
20459 Hamburg
T +49 40 60 91 86 18
F +49 40 60 91 86 60
E sebastian.bucher(at)kirchhoff.de
End of Corporate News
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Language: English
Company: ORCO Germany S.A.
42, rue de la Vallée
L-2661 Luxembourg
Grand Duchy of Luxembourg
Phone: +49 (0)30 390 93 116
Fax: +49 (0)30 390 93 199
E-mail: patricia.jaenisch(at)orco-gsg.de
Internet: www.orcogermany.de
ISIN: LU0251710041
WKN: A0JL4D
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Düsseldorf, Stuttgart
End of News DGAP News-Service
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