DGAP-News: GAGFAH: Progress on Refinancing Creates Headroom for Improvement
(firmenpresse) - DGAP-News: GAGFAH S.A. / Key word(s): Quarter Results/Interim Report
GAGFAH: Progress on Refinancing Creates Headroom for Improvement
15.05.2013 / 07:10
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Press Release: May 15, 2013
GAGFAH S.A.
2-4, rue Beck
L-1222 Luxembourg
ISIN: LU0269583422
Frankfurt Stock Exchange (Ticker Symbol: GFJ)
Regulated Market (Prime Standard)
GAGFAH: Progress on Refinancing Creates Headroom for Improvement
GAGFAH has resolved a major part of the refinancing and is very close to
resolving the remaining debt for this year. 'This puts the Company in a
great position and enables us to refocus on our core business and to
prepare GAGFAH for the next phase,' explained Thomas Zinnöcker, CEO of
GAGFAH GROUP and member of the Board of Directors of GAGFAH S.A.
The management is currently in the process of analyzing the portfolio with
a view towards clustering the assets into different segments, with a
clear-cut strategy for each segment. We are looking to generate sustainable
and growing cash flows from our operating business in the short, medium and
long term. Our emphasis will be on investments in value-enhancing portfolio
measures and accretive growth opportunities to the extent that they add to
the performance and value of the Company. 'We are looking forward to
updating you as we move forward into what we believe is a promising future
for GAGFAH and all its stakeholders,' added Zinnöcker.
For the first three months of 2013, GAGFAH's performance was in line with
our expectations and a continuation of the robust development of prior
periods. Our recurring FFO was stable at EUR 23.6 million and grew on a
per-share basis by EUR 0.01 to EUR 0.12 for the first quarter due to the
lower share count. We closed 181 single-unit sales with a gross margin of
21.0% and a NCR multiple of 21.7x. In the context of our ongoing portfolio
optimization, we completed a block sale in Heidenheim with 542 units. As a
result, the vacancy rate of our Heidenheim portfolio declined from 12.1% at
the end of 2012 to 9.8% at the end of Q1 2013.
Our current discount to NAV is 24.1% based on the closing price on May 14,
2013, and the NAV of EUR13.30 per share as of the end of the first quarter
2013. This represents a significant reduction of the discount to NAV
compared to the beginning of last year when the discount was still about
70%.
After closing the new WOBA financing on February 20, 2013, GAGFAH and Bank
of America Merrill Lynch have agreed on an amendment to the loan agreement
which increases the loan amount by EUR 17.0 million to EUR 1,077.5 million
in exchange for a reduction in the coupon rate from 3.85% to 3.34%. By
reducing the cash interest rate by 51 basis points, we expect interest
savings of approximately EUR 4.4 million per year.
On GRF, the ca. EUR 2 billion facility that matures in August of this year,
we are on track towards refinancing the full loan amount with improved
terms. We have decided to reduce the number of pools from six to four to
benefit from increased investor demand and favorable terms for CMBS loans,
resulting in better terms, reduced complexity and lower execution risk. The
sources will be German and international banks as well as insurance
companies (board approval in place for the three lender pools) and CMBS. We
expect an overall interest rate between 3.0% and 3.5 % and a maturity
profile between five and ten years.
'Our successful refinancing of the WOBA loan with considerably improved
terms and the GRF refinancing which we expect to close shortly, also with
considerably improved terms, make us optimistic with regards to the 2014
debt maturities and provide significant financial headroom for our business
going forward. We are confirming our guidance of 5-10% recurring FFO growth
for this year,' explained Gerald Klinck, CFO of GAGFAH GROUP.
Income Statement 3M 2013 3M 2012* Prior-year numbers had to be adjusted as a consequence of changes in IFRS
EUR million
Income from the leasing of investment property 200.2 198.9
Rental income, fees, other 138.9 141.8
Profit from the leasing of investment property (NOI) 91.5 93.8
Profit from the sale of investment property and assets
held for sale 3.4 5.7
EBITDA 82.8 84.7
EBIT 80.7 83.9
03-31- 12-31-
Statement of Financial Position 2013 2012
EUR million
Investment property 7,699.9 7,741.5
Assets held for sale 48.2 31.0
Total assets 8,103.5 8,111.6
Equity 2,089.2 2,089.4*
Financial liabilities 5,205.7 5,231.1
Total equity and liabilities 8,103.5 8,111.6*
Operational Figures (core residential portfolio) 3M 2013 3M 2012
Units 144,280 148,269
Square meters 8,765,723
9,002,463
Net cold rent (EUR /sqm) 5.15 5.12
Vacancy rate (%) 5.3 5.5
Sold units (financial closing) 757 419
KPIs 3M 2013 3M 2012
Recurring FFO (EUR million) 23.6 23.8
Recurring FFO (EUR /share) 0.12 0.11
No. of shares (million, weighted average for the
period, excl. treasury shares) 195.3 206.5
NAV (EUR /share) 13.30 12.60*
No. of shares (million, end of period, excl. treasury
shares) 195.3 206.5
Net cold rent multiple (target rent) 13.3x 13.4x
LTV 64.3% 64.5%
Gross sales margin (condo sales) 21.0% 19.9%
accounting policies, which require a different accounting treatment of
pensions and joint ventures.
Management will host an earnings call later today at 11:00 A.M. Luxembourg
time (10:00 A.M. London time, 5:00 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 the U.S.
- 0800 694 0257 from the U.K.
- 8002 7512 from Luxembourg
- 0800 101 4960 from Germany
- +44 (0) 1452 555 566 from all other countries
ten minutes prior to the scheduled start of the call. Please refer to
'GAGFAH S.A. Q1 2013 Earnings Call'. The conference ID will be 58683403.
A live virtual audio webcast of the conference call will be available at
www.gagfah.com. A replay of the virtual audio webcast will be available for
twelve months following the call. The Q1 2013 interim report and management
presentation will be available as PDF downloads on www.gagfah.com starting
on May 15, 2013.
Contact
GAGFAH S.A.
Investor Relations
2-4,rue Beck
L-1222 Luxembourg
Tel.: +352 266 366 21
Mail: rhoffmann(at)gagfah.com
www.gagfah.com
R.C.S. Luxembourg B 109.526
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
residential property portfolio located in Germany.
GAGFAH's portfolio includes approximately 145,000 own residential units and
more than 40,000 units under property and facility management for third
parties. Our portfolio makes us the largest residential property company
listed in Germany, and we believe that our size, our significant presence
in the key residential markets and our scalable operating platform make us
one of the leading providers of housing for low- to medium income
households in Germany. Our operating subsidiaries are full-scale service
providers for a broad range of property and facility management services
with a clear focus on residential properties. The key elements of our
strategy are (i) to create sustainable and increasing cash flows out of the
existing asset base (rent, occupancy, property costs, platform), (ii) to
invest in value-enhancing portfolio properties (iii) to pursue accretive
growth opportunities and (iv) to realize value through asset sales.
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
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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