DGAP-News: GAGFAH Starts to Deliver
(firmenpresse) - DGAP-News: GAGFAH S.A. / Key word(s): Quarter Results
GAGFAH Starts to Deliver
12.11.2013 / 07:04
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Press Release: November 12, 2013
GAGFAH S.A.
2-4, rue Beck
L-1222 Luxembourg
ISIN: LU0269583422
Frankfurt Stock Exchange (Ticker Symbol: GFJ)
Regulated Market (Prime Standard)
GAGFAH Starts to Deliver
- Q3 Recurring FFO per share up 25% compared to Q2
- Strong vacancy reduction in Q3; new year-end target is below 4.5%
- Initial value-enhancing investments completed at attractive yields
- Continuously strong margin of 25.2% from condo sales during the first
nine months
Luxembourg, November 12, 2013 - GAGFAH S.A. has started to deliver a
stronger performance, as announced. The Q3 FFO per share grew by 25% to
EUR0.15 compared to Q2 on the back of substantially lower interest
expenses. With additional interest savings and further operational
improvements expected in Q4, GAGFAH reiterates its guidance of 5% to 10%
recurring FFO per share growth for this year and 30% to 35% for 2014.
Q3 showed a solid operating performance with good progress on vacancy
reduction. Driven by a focused vacancy reduction program with attractive
yields of around 20%, the vacancy rate at the end of Q3 dropped to 4.8%
after 5.1% at the end of Q2. Having already achieved the original year-end
target by the end of September, GAGFAH revises the vacancy rate guidance
from 4.8% to below 4.5% by the end of this year.
The value-enhancing investment projects that have already been completed
and those that are currently ongoing prove the Company's strategy to
generate an average return on investment of at least 7.5%. The investment
program is running according to plan and the results already achieved
within a short period show that GAGFAH is on the right track.
On the sales side of the business, GAGFAH completed 373 single-unit sales
during the first nine months and generated a net cash contribution of
EUR15.2 million from these sales plus an additional net cash contribution
of EUR7.7 million from other sales. The single-unit sales had a gross
margin of 25.2% and a net cold rent multiple of 21.1x.
Thomas Zinnöcker, CEO of GAGFAH GROUP and Member of the Board of Directors
of GAGFAH S.A. commented, 'We are very pleased with the progress we have
been making on the various topics. Our Q3 results are reflecting the
successful refinancings, and after basically completing our capital
restructuring, our next step is now to finalize our turnaround by further
improving our operational performance. We are seeing the first positive
results and based on the groundwork we have now laid, we are looking at a
very promising future.'
The management will host an earnings call today at 10:00 A.M. Luxembourg
time (9:00 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. 9M 2013 Earnings Call'. The conference ID will be 93250513.
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. The9M 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 is a leading owner and operator of residential real estate in
Germany. Our portfolio includes about 144,000 own residential units that
are mostly located in the large German cities and their respective commuter
belts. 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 affordable 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.
Our objective is to generate shareholder value through sustainable and
growing cash flows, increasing net asset value and sustainable dividends by
efficiently managing our portfolio, carrying out value-enhancing property
investments, pursuing accretive growth opportunities, and realizing value
through selected asset sales.
End of Corporate News
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12.11.2013 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 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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Datum: 12.11.2013 - 07:04 Uhr
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