DGAP-News: Westgrund Continues Growth in H1 2013
(firmenpresse) - DGAP-News: WESTGRUND Aktiengesellschaft / Key word(s): Half Year
Results
Westgrund Continues Growth in H1 2013
28.08.2013 / 11:45
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Press Release
Westgrund Continues Growth in H1 2013
- Consolidated income raised to 7.1 million euros (previous year: 0.52
million euros)
- Rent revenues 50 percent up year on year
- Operating cash-flow soars to 1.86 million euros (previous year: 0.26
million euros)
- Clearly positive results expected for 2013 and 2014
Berlin, 28 August 2013 - Berlin-based WESTGRUND AG, a residential property
asset holder specialising in acquisitions and optimisations, continued its
brisk growth course during the first semester of 2013. More than 1,400
housing units transferred into the WESTGRUND inventory during the reporting
period. 'The housing stock acquired is characterised by low net rents that
could be raised considerably. These units deliver a positive cashflow from
the start,' said Arndt Krienen, CEO of WESTGRUND AG, as he elaborated the
acquisition strategy. In addition to the clearly positive cashflow of 1.86
million euros (up from 0.26 million euros last year), the Group benefitted
from the valuation effects of the real estate assets it acquired during the
first semester. The consolidated income before taxes and including all
valuation effects adds up to 7.1 million euros, compared to 0.52 million
euros during the same period last year. 'Affordable acquisition prices,
rent increases, and the rollback of vacancies definitively contributed to
the appreciation,' said Krienen.
H1 2013 Key Ratios Positive across the Board
'The key ratios from the first semester of 2013 demonstrate both the
strategic and the operative success of WESTGRUND,' said Krienen.
During the first six months of the year, WESTGRUND AG realised revenues of
six million euros (previous year: four million euros), thereof 5.8 million
euros (previous year: 3.8 million euros) from rental income. 'The
substantial increase in rental income by 50 percent is explained by the
portfolio expansion,' said Krienen.
The operating cashflow also increased due to acquisitions dating back to
2012. It came to 1.86 million euros by the end of the first semester
(previous year: 0.26 million euros). 'Most of the acquisitions were fully
aggregated during the first semester, and generate a corresponding
cashflow,' Krienen went on to say.
Earnings before taxes (EBT) equal 8.47 million euros (previous year: 0.6
million euros). 'This sum includes valuation effects for the residential
real estate portfolios in an amount of 7.9 million euros,' elaborated
Krienen.
Positive Outlook - Poised for Continued Growth
The Management Board expects to see continued growth in the financial years
of 2013 and 2014, along with substantial profits for the year. 'We intend
to keep expanding the portfolio to boost profits, and to invest in housing
portfolios with serious appreciation potential,' said Krienen. The way
forward is to acquire only assets or buildings with minor maintenance
backlogs. At the same time, the company steers clear of project
developments or the developer business in general. The idea is to build up
regional themed portfolios with at least 2,500 flats each in four or five
locations in Germany. Preferred regions include the Berlin metro area, the
region of Dresden-Halle-Leipzig, Ludwigshafen-Mannheim, North
Rhine-Westphalia, and selected locations in Lower Saxony.
The full 2013 Semi-Annual Report of WESTGRUND AG is available as download
at http://www.westgrund.de/investor-relationspresse.html.
About Westgrund:
WESTGRUND AG, a residential property specialist, was founded in 1990, and
has been seated in Berlin since 2012. WESTGRUND AG focuses on the
acquisition, management and optimisation of German housing stock. The
company places a premium on the appreciation potential and the location of
a given residential property. By upgrading the management of the
portfolios, for instance, the company accomplishes massive reductions in
vacancy while boosting the cashflow from property management. At the
moment, the portfolio includes around 5,000 flats held in the company's
proprietary portfolio. WESTGRUND AG is listed on the regulated market of
the Düsseldorf stock exchange (WEG1: DE000A0HN4T3).
Contact:
WESTGRUND AG
Joachimstaler Strasse 34
D-10719 Berlin
Arndt Krienen
CEO
Tel. +49-30- 639619-210
Fax: +49-30-639619-228
E-mail: krienen(at)westgrund.de
End of Corporate News
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28.08.2013 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.
DGAP's Distribution Services include Regulatory Announcements,
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Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: WESTGRUND Aktiengesellschaft
Joachimstalerstrasse 34
10719 Berlin
Germany
Phone: +49 30 639 619 20
Fax: +49 30 639 619 228
E-mail: krienen(at)westgrund.de
Internet: www.westgrund.de
ISIN: DE000A0HN4T3
WKN: A0HN4T
Listed: Regulierter Markt in Düsseldorf; Freiverkehr in Berlin,
Hamburg, Stuttgart; Frankfurt in Open Market
End of News DGAP News-Service
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227865 28.08.2013
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Datum: 28.08.2013 - 11:45 Uhr
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