DGAP-News: GAGFAH S.A. Financial Results for H1 2010
(firmenpresse) - GAGFAH S.A. / Quarter Results
10.08.2010 06:07
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Press Release: August 10, 2010
GAGFAH S.A.
2-4, rue Beck
L-1222 Luxembourg
ISIN: LU0269583422
Frankfurt Stock Exchange, Regulated Market (Prime Standard)
GAGFAH S.A. Financial Results for H1 2010
Luxembourg, August 10, 2010 - GAGFAH S.A. (Frankfurt Stock Exchange: GFJ)
today announced its financial results for the first half of 2010.
William Joseph Brennan, CEO of GAGFAH S.A.'s German subsidiaries: 'Our
performance during the first six months of 2010 has yielded solid results.
GAGFAH's Funds from Operations (FFO) per share was EUR 0.38 for the first
six months of 2010. Operationally, profit from leasing was EUR 240.3
million in spite of a weighted average base of approximately 8,500 fewer
units. This represents a year-on-year (y-o-y) growth of 2.8% on an average
per unit basis.
For the second half of this year, we will continue to rationalize costs and
grow our organic cash flow. Given the stable development of residential
properties in Germany, we intend to further pursue our strategy of selected
asset sales. In addition, the Board of Directors has declared a revised
quarterly dividend of EUR 0.10 per share, in order to enhance the Company's
financial flexibility. GAGFAH continues to generate solid operating cash
flows and, by taking this action, will be better positioned to take
advantage of potential attractive investment or refinancing opportunities
as they may arise.'
Highlights
- Profit from the leasing of investment property of EUR 240.3 million in
the first six months of 2010, compared to EUR 246.1 million in the
first six months of 2009, a decrease of 2.4%, on a base of
approximately 5.0% or 8,500 fewer units on average. Adjusted for units
sold, the profit from the leasing of investment property increased by
2.8% y-o-y on an average per unit basis.
- NAV of EUR 12.44 per share and gross asset value of EUR 848 per square
meter as of June 30, 2010.
- FFO of EUR 0.38 per share or EUR 84.9 million in the first six months
of 2010, compared to EUR 0.39 per share or EUR 88.3 million in the
first six months of 2009.
- Quarterly dividend for the second quarter of 2010 of EUR 0.10 per
share. The second quarter dividend will be paid on September 9, 2010.
All per share data is based on the number of shares outstanding as of the
respective dates.
Rents
- Our rental growth rate was 1.2% annualized for the first six months of
2010 on a same store basis1), in line with our target for the year.
Property Sales
- 2010 Sales Program: we sold 241 units for EUR 21.5 million through our
condo2) sales channel and 100 units for EUR 5.2 million through our
large multi-family home sales channel.
- Year to date in 2010, we have also contracted to sell another 2,501
units for a value of EUR 92.9 million, bringing our YTD 2010 total to
EUR 119.6 million.
- Additionally, we financially closed (sold) 5,422 units for EUR 226.3
million associated with the 2009 sales program.
Vacancy
- Our vacancy rate decreased to 5.1% at the end of Q2, in line with our
target of ca. 5% for midyear.
- Excluding units held for condo sales, our vacancy rate was at 5.0%.
Cost
- Management cost per unit were EUR 392, down from EUR 401 for the same
period in 2009 on a basis of approximately 8,500 fewer units.
- We intend to continue to focus on reducing our management cost per unit
and overall SG&A expenses, focusing on headcount and overhead admin.
1) Same store basis: Residential units GAGFAH owned at both dates: As of
December 31, 2009, and as of June 30, 2010.
2) Privatization/small multi-family homes.
Key Financial Information
Consolidated Statement of Comprehensive H1 H1 Q2 Q2 Q1
Income (EUR million) 2010 2009 2010 2009 2010
Income from the leasing of investment 458.4 495.9 237.9 251.6 220.5
property
Profit from the leasing of investment 240.3 246.1 115.4 118.9 124.9
property
Profit from the sale of investment 8.9 10.5 3.4 5.4 5.5
property and assets held for sale
Loss from fair value measurement of -10.3 -92.3 -8.2 -73.1 -2.1
investment property
EBITDA 216.7 130.4 101.2 38.6 115.5
EBIT 208.1 124.7 100.2 35.0 107.9
EBT 50.8 -33.7 24.0 -38.5 26.8
FFO 84.9 88.3 38.3 39.6 46.6
FFO in EUR per share 0.38 0.39 0.17 0.18 0.21
Group Capitalization 06-30-10 06-30-10 12-31-09 12-31-09
EUR million % EUR million %
Total equity 2,387.6 25.5 2,457.7 25.2
Financial 6,193.4 66.1 6,525.3 66.7
liabilities
Other liabilities 786.5 8.4 794.3 8.1
Total equity and 9,367.5 100.0 9,777.3 100.0
liabilities
Operational Figures H1 2010 H1 2009 Q1 2010FFO is a non-IFRS financial measure used by our Group's management to
Group residential portfolio Units 159,850 169,534 162,528
Sqm 9,687,681 10,224,414 9,821,193
Net cold rent/sqm (in EUR) 5.05 4.99 5.03
Vacancy rate (in %) 5.1 4.6 5.4
Sold units 5,763 1,116 3,075
report the funds generated from continued operations. FFO is an appropriate
measure of underlying operating performance of real estate companies as it
provides shareholders with information regarding the Group's ability to
service debt, make capital expenditures or pay dividends. The following is
a reconciliation of EBIT to FFO for our Group:
FUNDS FROM OPERATIONS - FFO (EUR H1 H1 Q2 Q2 Q1Conference Call
MILLION) 2010 2009 2010 2009 2010
EBIT 208.1 124.7 100.2 35.0 107.9
Reorganization and restructuring 6.6 3.9 0.0 2.9 6.6
expenses
Depreciation and amortization 2.0 1.8 1.0 0.7 1.0
EBITDA 216.7 130.4 101.2 38.6 115.5
Loss from fair value measurement of 10.3 92.3 8.2 73.1 2.1
investment property
Realized valuation gains through 2.2 6.0 1.2 4.1 1.0
sales
Expenses for / income from share- 1.1 -1.5 0.4 -2.1 0.7
based remuneration
Net interest expenses - - -77.5 -75.4 -78.1
155.6 148.2
Current tax expenses -1.0 -2.1 -0.3 -1.7 -0.7
Property development business -2.8 4.9 -3.0 2.8 0.2
Sales expenses (large MFH and non- 12.2 n/a 7.7 n/a 4.5
core)
Other 1.8 6.5 0.4 0.2 1.4
FFO 84.9 88.338.3 39.6 46.6
FFO in EUR per share 0.38 0.39 0.17 0.18 0.21
Management will host an earnings conference call at 1:00 P.M. CET (12:00
noon London time, 7:00 A.M. New York time) today. All interested parties
are welcome to participate in the live call. You can access the conference
call by dialing 1866 966 9439 from within the U.S., or +44 (0) 1452 555 566
from the U.K., or 8002 7512 from Luxembourg, or 0800 101 4960 from Germany
or +44 (0) 1452 555 566 from all other countries ten minutes prior to the
scheduled start of the call; please refer to 'GAGFAH Q2 2010 Earnings
Call'. The conference ID will be 91476101.
A webcast of the conference call will be available to the public on a
listen-only basis at www.gagfah.com. Please allow extra time prior to the
call to visit the site and download the necessary software required to
listen to the internet broadcast. A replay of the webcast will be available
for twelve months following the call on www.gagfah.com.
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
geographically diversified and well maintained residential property
portfolio located throughout Germany. With a portfolio of approximately
160,000 apartments, GAGFAH is the largest German listed residential
property company.
The Q2 2010 Interim Report of GAGFAH is available on www.gagfah.com.
Contact:
GAGFAH S.A.
2-4, Rue Beck
L-1222 Luxembourg
Grand Duchy of Luxembourg
Tel: +352 266 366 1
Forward-Looking Statements
This press release contains statements that constitute forward-looking
statements. Such forward-looking statements relate to, among other things,
future commitments to acquire real estate and achievement of acquisition
targets, timing of completion of acquisitions and the operating performance
of our investments. Forward-looking statements are generally identifiable
by use of forward looking terminology such as 'may', 'will', 'should',
'potential', 'intend', 'expect', 'endeavour', 'seek', 'anticipate',
'estimate', 'overestimate', 'underestimate', 'believe', 'could', 'project',
'predict', 'continue', 'plan', 'forecast' or other similar words or
expressions. Forward-looking statements are based on certain assumptions,
discuss future expectations, describe future plans and strategies, contain
projections of results from operations or of financial conditions or state
other forward looking information. Our ability to predict results or the
actual effect of future plans or strategies is limited. Although we believe
that the expectations reflected in such forward-looking statements are
based on reasonable assumptions, our actual results and performance may
differ materially from those set forth in the forward-looking statements.
These forward-looking statements are subject to risks, uncertainties and
other factors that may cause our actual results in future periods to differ
materially from forecasted results or stated expectations, including the
risk that GAGFAH S.A. will be unable to extent existing financing at
suitable terms, be unable to increase rents and occupancy, to sell further
units or further reduce management costs.
10.08.2010 06:07 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: GAGFAH S.A.
2-4, rue Beck
1222 Luxemburg
Luxemburg
Phone: + 352 266 366 21
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 Hamburg, München, Düsseldorf, Berlin, Stuttgart
End of News DGAP News-Service
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