DGAP-News: ORCO Germany strengthens balance sheet and further secures Berlin portfolio
(firmenpresse) - DGAP-News: ORCO Germany S.A. / Key word(s): Quarter Results
ORCO Germany strengthens balance sheet and further secures Berlin
portfolio
27.11.2012 / 22:08
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Berlin, 27 November 2012
Orco Germany - 9 months 2012 financial information
ORCO Germany strengthens balance sheet and further secures Berlin portfolio
Key recent achievements:
- Reinforcement of balance sheet
The Company continued to execute its deleveraging. The 84.5% of the bonds
acquired by OPG, the Company's main shareholder, have been converted into
new OG shares increasing the equity by EUR 107 million. Most of the 15.5%
of the bonds remaining on the balance sheet as at 30 September 2012 have
been acquired since by OPG in exchange of OPG New Notes issued early
October. These remaining bonds shall be converted into new OG shares,
finalizing the corporate deleveraging.
- Finalization of GSG refinancing for approximately EUR 270 million.
A club of five German banks confirmed on the 18th October 2012 the main
terms and conditions for granting EUR 270 million to GSG, OG's fully
consolidated subsidiary. Signature of the new loan agreement is expected in
the coming days while closing is expected to take place in December of this
year.
- Sale of Sky Office.
The Sky Office Building sale contract was signed on the 17th October 2012
to equity-only buyer Allianz for EUR 117 million with a closing expected on
30 November 2012. The sale quickly followed failure in September to close a
previous agreement for EUR 126 million and generated a new impairment of
EUR 13.2 million in Q3. The timely transaction of Sky was necessary as
sales proceeds, together with refinancing, are to ensure full repayment of
GSG's existing RBS facility which today amounts to EUR 284 million.
- Berlin portfolio performs well
The overall Berlin portfolio, including Gebauer Höfe, increased its
occupancy from 77.3% up to 80.0% year on year. Repeatedly, ORCO-GSG in
particular has been successful in acquiring new tenants and improving
rental revenues. Year on year, ORCO-GSG managed to increase the average
commercial net rent from EUR 4.98 per sqm to EUR 5.12 per sqm, and raised
the overall occupancy rate from 77.0% in September 2011 to 79.5%, thus
increasing total revenues year on year by EUR 0.8 million, or 2.1%, to EUR
38.9 million - despite of asset sales in 2011 and 2012.
Nine months financial results and outlook:
- One-off effects significantly impair operating and net results.
The total turnover over the first nine months of 2012 amounted to EUR 48.6
million compared to EUR 47.2 million over the same period in 2011. ORCO
Germany closed with a negative operating result of EUR 3.1 million compared
to a positive result of EUR 44.3 million over the same period in 2011. The
main reason for the negative operating result was one-off effects.
Impairments, amortisation and provisions amounted to EUR -31.2 million,
mainly driven by impairments linked to the Sky Office building sale
contract and on the cash deposit to cover the Leipziger Platz neighbourhood
agreement.
Adjusted EBITDA increased to EUR 22.6 million, up by 3.9% compared to the
corresponding period of 2011. ORCO Germany closed the first 9 months of
2012 with a net loss of EUR 24.6 million compared to a net gain of EUR 16.4
million in 2011.
- Outlook
For the fourth quarter 2012 the Company's top priorities remain to close
the Sky Office sale and to finalize the ORCO-GSG loan refinancing while
further improving the operational performance of its portfolio. Furthermore
ORCO-GSG is examining development potentials on existing assets with the
aim to extract further value through additional space addition or
conversion.
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 the 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 (0)40 609186 18
F +49 (0)40 609186 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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Datum: 27.11.2012 - 22:08 Uhr
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