DGAP-News: Prime Office REIT-AG increases funds from operations year-on-year in 2012
(firmenpresse) - DGAP-News: Prime Office REIT-AG / Key word(s): Final Results
Prime Office REIT-AG increases funds from operations year-on-year in
2012
21.03.2013 / 07:30
---------------------------------------------------------------------
Proposed dividend of 0.18 Euro per share for fiscal year 2012 in line with
guidance: tax-free dividend for domestic investors
Prime Office increases funds from operations year-on-year in 2012
- Funds from operations (FFO) increase to 22.8 million Euro, exceeding the
full year guidance that had been raised to 20 to 22 million Euro in
November
- Proposed dividend of about 9.3 million Euro or 0.18 Euro per share in
line with the guidance: dividends are paid tax-free to domestic investors
- Net income at -5.2 million Euro (FY 2011: 17.6 million Euro) due to
expected adjustments of the property portfolio's fair value, temporary
vacancies and higher rental and lease expenses
- Net income adjusted by valuation effects ('EPRA earnings') increases by
0.7 million Euro to 16.0 million Euro
- Successful optimisation of financing structure: significant reduction of
financial liabilities by 86.5 million Euro or about 14 percent to 546.2
million Euro: loan-to-value ratio (LTV ratio) down 500 basis points to 60.2
percent
- REIT equity ratio as a result of the fair valuation of the property
portfolio and the derivative interest rates hedges with 42.9 percent below
45 percent threshold of German REIT-law
Munich, 21 March 2013. Prime Office REIT-AG ('Prime Office'), a leading
listed property company with REIT status focused on investments and
management of prime office properties in Germany, reports the results of
fiscal year 2012 in which the company grew funds from operations (FFO)
year-on-year in spite of temporary vacancies in individual properties.
'We have delivered on the FFO and dividend guidance for fiscal year 2012 by
increasing FFO compared to the previous year and proposing a 0.18 Euro
dividend per share. Sustainable repayments also enabled us to again
substantially reduce the LTV of our company and to further optimise the
financing structure by fully repaying or refinancing the last remaining
property loans in foreign currencies. The measures we have taken allow for
improved financial results going forward,' said Claus Hermuth, CEO of Prime
Office.
In fiscal year 2012, Prime Office generated 72.3 million Euro in rental and
lease revenues (or 68.9 million Euro 'like-for-like' upon adjustment for
the sale of the Imtech Headquarters in Hamburg), after 75.3 (71.7
like-for-like) million Euro in the previous year. Greater rental and lease
expenses decreased the rental and lease income in the reporting period
year-on-year to 61.8 (FY 2011: 64.9) million Euro. Still, the operating
income before valuation effects of 55.5 million Euro in fiscal year 2012
was almost unchanged compared to the previous year (FY 2011: 55.8 million
Euro).
The fair value of the property portfolio, which now consists of 13 office
properties after the sale of the Imtech headquarters in Hamburg, fell by
17.6 million Euro or -1.9 percent (like-for-like) to 908.5 million Euro
compared to the year-end 2011 (31 December 2011: 926.1 million Euro
like-for-like). This resulted largely from temporary vacancies and leases
that are due to expire in the near future. Fair value adjustments, higher
rental and lease expenses and temporary vacancies reduced operating
earnings (EBIT)to 35.1 (FY 2011: 58.7) million Euro.
The net income of Prime Office declined to -5.2 (FY 2011: 17.6) million
Euro mainly as a result of the expected fair value adjustments across the
property portfolio, temporary vacancies and higher rental and lease
expenses. Net income per share declined accordingly to -0.10 (FY 2011:
0.50) Euro. Conversely, the company's EPRA earnings, which are adjusted by
the effects from the fair valuation of the property portfolio and the
derivative financial instruments, amounted to 16.0 (FY 2011: 15.3) million
Euro. This corresponds to EPRA earnings per share of 0.31 (FY 2011: 0.30
(weighted) or 0.44 (not weighted)) Euro.
FFO increased by about 5 percent over the reporting period in spite of
various operating drags, reaching 22.8 (FY 2011: 21.8) million Euro and
exceeding the guidance that had been raised to 20 to 22 million Euro in
November 2012.
Prime Office continued to optimise its financing structure in fiscal year
2012 and going into 2013. Thus, Prime Office repaid financings of about 94
million Euro early, reducing leverage (LTV ratio) as of 31 December 2012 by
500 basis points to 60.2 (31 December 2011: 65.2) percent. The repayments
decreased financial liabilities as at 31 December 2012 by a significant
86.5 million Euro or about 14 percent to 546.2 (31 December 2011: 632.7)
million Euro. Total liabilities as at the balance sheet date declined
commensurately by 70.1 million Euro or about 10 percent to 642.5 (31
December 2011: 712.6) million Euro. As part of these measures, the company
either fully repaid its foreign exchange financings or refinanced them in
Euro. The company therefore no longer holds foreign exchange financings or
related foreign exchange hedges (CHF swaps).
As a result of the fair valuation of the property portfolio and the
derivative interest rates hedges, the REIT equity ratio as at 31 December
2012 amounted to 42.9 (31 December 2011: 43.1) percent and remained below
the statutory minimum equity ratio for REIT joint stock companies of 45
percent. Under the German REIT law, the company has until 31 December 2013
to return the equity ratio to the statutory limit with impunity. The Prime
Office board has made the return to this limit a high priority.
The board plans to propose to the general shareholders' meeting to be held
on 23 July 2013 in Munich a dividend for the past fiscal year in the total
amount of 9.3 million Euro or 0.18 Euro per share. This proposed dividend
is in line with the guidance of 9 to 12 million Euro. As in the previous
year, the dividend will be paid from the tax account; the dividend is
therefore tax-free for domestic investors. Insofar, the proposed dividend
corresponds to a gross dividend of about 0.24 Euro per share.
Against the backdrop of the anticipated vacancies, the planned
refurbishment measures and the objective of maintaining a stable risk
profile for the company, Prime Office will focus on reaching the REIT
minimum equity ratio and protecting the REIT status. As part of this
effort, the property company wants to meet its letting objectives and is
also considering additional property sales.
Subject to letting successes and potential property sales, Prime Office
again plans to pay dividends for 2013. For fiscal year 2013, the board
anticipates revenues including operating cost prepayments of 51 to 53
million Euro and FFO of 0 to 2 million Euro.?Contact details
Prime Office REIT-AG
Richard Berg
Director Investor Relations / Corporate Communications
Hopfenstrasse 4
80335 Munich
Telephone +49. 89. 710 40 90 40
Facsimile +49. 89. 710 40 90 99
Email richard.berg(at)prime-office.de
About Prime Office REIT-AG
Prime Office REIT-AG (Symbol: PMO, ISIN DE000PRME012) with headquarters in
Munich is a leading property firm focusing on investments in high quality
office buildings in Germany as well as their facility and property
management. The company's portfolio consists of 13 office properties in
central locations across major cities and conurbations in Western Germany
with a total useable area of approximately 368,000 squaremetres. According
to a valuation performed by the property surveyor CB Richard Ellis, the 13
properties had a total market value of approximately 909 million Euro as at
31 December 2012. The property portfolio of Prime Office consists
exclusively of individual buildings in special locations. All holdings are
select modern office properties with an attractive architecture and quality
fit-out. The portfolio is broadly diversified across locations and tenants.
The properties are rented long-term to high credit-quality tenants. Prime
Office REIT-AG intends to generate stable long-term rental income using a
return-oriented approach to managing the existing portfolio based on broad
property, location and tenant diversification. Rental income is also
expected to grow consistently through the addition of suitable individual
properties. The company plans to become a leading specialised REIT for
prime office properties in Germany.
Additional information on Prime Office REIT-AG is available in the Internet
on: www.prime-office.de
End of Corporate News
---------------------------------------------------------------------
21.03.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
Language: English
Company: Prime Office REIT-AG
Hopfenstraße 4
80335 München
Germany
Phone: +49 (0)89 7104090 40
Fax: +49 (0)89 7104090 99
E-mail: richard.berg(at)prime-office.ag
Internet: www.prime-office.ag
ISIN: DE000PRME012
WKN: PRME01
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), München,
Stuttgart; Freiverkehr in Berlin, Düsseldorf
End of News DGAP News-Service
---------------------------------------------------------------------
204661 21.03.2013
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 21.03.2013 - 07:30 Uhr
Sprache: Deutsch
News-ID 241594
Anzahl Zeichen: 5505
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 176 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: Prime Office REIT-AG increases funds from operations year-on-year in 2012"
steht unter der journalistisch-redaktionellen Verantwortung von
Prime Office REIT-AG (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
