DGAP-News: GAGFAH S.A.: Continued Progress on Turnaround in the First Half of this Year; Substantial FFO Growth Expected in 2014
(firmenpresse) - DGAP-News: GAGFAH S.A. / Key word(s): Half Year Results
GAGFAH S.A.: Continued Progress on Turnaround in the First Half of
this Year; Substantial FFO Growth Expected in 2014
14.08.2013 / 07:09
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Press Release: August 14, 2013
GAGFAH S.A.
2-4, rue Beck
L-1222 Luxembourg
ISIN: LU0269583422
Frankfurt Stock Exchange (Ticker Symbol: GFJ)
Regulated Market (Prime Standard)
GAGFAH S.A.: Continued Progress on Turnaround in the First Half of this
Year; Substantial FFO Growth Expected in 2014
- Further improvements on capital structure
- Portfolio analysis and asset management strategy almost concluded
- Value-enhancing capex program for next five years defined
- Recurring FFO per share growth of at least 25% in 2014
GAGFAH is continuing to make strong progress on repositioning the Company
for substantially increased operating performance. After successfully
refinancing more than EUR 3 billion of debt in the first half of this year,
GAGFAH has resolved another important part of the refinancing and has paid
back the full amount of the EUR 146.7 million loan of Acquisition 1 on July
22. The overall interest rate is currently 3.54%, after 4.35% at the end of
2012. The latest refinancing was possible through the recent equity event
which generated EUR 176 million net proceeds and at the same time reduced
the Fortress stake from 60.8% to 48.8%, significantly increasing the
Company's free float.
With both the successful recent capital increase and the accomplished
refinancing projects, GAGFAH has significantly enhanced its financial
headroom going forward. This will allow the Company to refocus on asset
management to unlock internal growth potential.
GAGFAH is in an advanced stage with regards to its portfolio analysis and
its asset management strategy. The Company has identified value-enhancing
portfolio measures and accretive growth opportunities with a total value of
about EUR 250 million in the next 5 years (on top of R&M measures). A
significant amount of the savings from lower interest rates will be
invested in the portfolio to drive asset value and operating performance.
This will lead to substantial FFO growth with impact starting in H2 2013
and full impact in 2014.
'We have identified great investment opportunities in fast growing cities
like Berlin, Hamburg or Dresden. With our new strategy, which focusses on
operational improvements in our portfolio, we believe there is a
significant upside for repositioning GAGFAH,' explained Thomas Zinnöcker,
CEO of GAGFAH GROUP and member of the Board of Directors of GAGFAH S.A.
Gerald Klinck, CFO of GAGFAH GROUP commented: 'For the first half year 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 47.7 million. We closed 305 single-unit sales for a total
consideration of EUR 31.1 million, a gross margin of 22.6% and a NCR
multiple of 20.9x. In addition, we sold 723 units in our portfolio
optimization program with gross proceeds of EUR 57.2 million. Our current
discount to EPRA NAV is 34% based on the closing price of EUR 8.84 on
August 13, 2013, and the EPRA NAV of EUR 13.42 per share as of the end of
the first half of 2013.'
GAGFAH's vacancy rate dropped from 5.3% (end of Q1) to 5.1% (end of Q2).
The net cold rent per sqm grew on a like-for-like basis by 1.1% year to
date (from EUR 5.15 as of December 31, 2012, to EUR 5.17 as of June 30,
2013). Rental income declined from EUR 283.7 million to EUR 277.5 million
year-on-year, mainly as the result of a 2.9% smaller portfolio due to
sales.
GAGFAH reiterates the guidance of 5% to 10% FFO per share growth this year,
also on the basis of the higher number of outstanding shares after the
equity event in July. On the basis of the refinancings already completed
and prior to potential additional savings from resolving the 2014 debt
maturities, the Company expects at least 25% FFO per share growth in 2014,
of which about two thirds are estimated to come from lower interest
expenses and the remaining one third from increased operating performance.
The management will host an earnings call today at 11:00 A.M. Luxembourg
time (10:00 A.M. London 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. 6M 2013 Earnings Call'. The conference ID will be 16373645.
A live virtual audio webcast of the conference call will be available at
www.gagfah.com. A replay of the live virtual audio webcast will be
available for twelve months following the call. The 6M 2013 interim report
and management presentation are available as PDF downloads on
www.gagfah.com.
Contact
GAGFAH S.A.
Investor Relations
Rene Hoffmann
2-4, rue Beck
L-1222 Luxembourg
Tel.: +352 266 366 21
rhoffmann(at)gagfah.com
www.gagfah.com
R.C.S. Luxembourg B 109.526
Media
Dirk T. Schmitt
+49 175 721 4836
dschmitt(at)gagfah.de
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 about 144,000 own residential units and more
than 35,000 units under property and facility management for third parties.
Our portfolio makes us one of the largest residential property companies
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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14.08.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: GAGFAH S.A.
2-4, rue Beck
1222 Luxemburg
Grand Duchy of Luxembourg
Phone: + 352 266 366 1Fax: + 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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225734 14.08.2013
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gagfah-s-a-continued-progress-on-turnaround-in-the-first-half-of-this-year
substantial-ffo-growth-expected-in-2014
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Datum: 14.08.2013 - 07:09 Uhr
Sprache: Deutsch
News-ID 287470
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