DGAP-News: Earnings position of Polis Immobilien improves significantly in fiscal 2010
(firmenpresse) - DGAP-News: POLIS Immobilien AG / Key word(s): Preliminary
Results/Final Results
Earnings position of Polis Immobilien improves significantly in fiscal
2010
21.02.2011 / 08:49
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- Preliminary figures for 2010 published
- Best letting performance in the history of the company
- Earnings before taxes (EBT) rise from a negative EUR 6.8 million to a
positive EUR 2.0 million
- Positive valuation result on investment properties
Berlin, 21 February 2011 - POLIS Immobilien AG [ISIN: DE0006913304]
improved its earnings markedly in the fiscal year 2010. Group earnings
before taxes (EBT) amounted to EUR 2.0 million, up from a negative EUR 6.8
million in the previous year. POLIS Immobilien used the growing demand for
well furnished office space to boost its letting performance from 69
percent in 2009 to approx. 73 percent at the end of 2010. Once all office
properties let by the end of the year are handed over to the new tenants,
the letting ratio will rise to 79 percent. The company was able to increase
the letting performance (square metres of newly let properties) to 21,200
square metres, which is the highest level in the history of the company.
The letting performance thus more than doubled as compared to the year 2009
(10,080 square metres).
New tenants of office properties in Berlin, Cologne, Stuttgart, Düsseldorf
and Hanover
In fiscal 2010, POLIS Immobilien continued its strategy of enhancing the
value of their office properties through investments in modernisation. This
strategy will have a positive effect on the company's figures in the coming
quarters. In the past year, POLIS Immobilien was able to convince numerous
new tenants of the benefits of their office properties. Among these tenants
is the Amt für Liegenschaften und Wohnen in Stuttgart, which moved into a
4,000 square metres office in a building complex in November 2010. New
leases were also signed in Berlin, Cologne, Düsseldorf and Hanover. The
property specialist expects new potential to arise from its new location,
Dresden, where the company has acquired three office buildings in the city
centre and plans to acquire a fourth one shortly. The buildings are located
in a prime city centre locations and have a total lettable space of approx.
31,000 square metres, of which 73 percent is let.
Positive valuation result following EUR 18 million investment in property
modernisation
Due to the planned modernisations and the resulting vacancies as well as
the weak market environment in 2009, rental income declined as expected by
six percent to EUR 13.05 million in the fiscal year 2010. Funds from
operations (FFO), adjusted for the result from revaluation and the sale of
properties, the valuation result of financial derivatives and deferred
taxes, amounted to EUR 2.0 million (2009: EUR 3.73 million). Income from
property management totalled EUR 9.58 million (2009: EUR 11.5 million),
while operating cash flow stood at EUR 7.7 million (2009: EUR 9.5 million).
In 2010, POLIS Immobilien invested roughly EUR 18 million in the
modernisation of its properties. The positive valuation result of approx.
EUR 0.8 million (2009: EUR -9,28 million) means that the properties met the
recognition criteria. The further decline in market interest rates again
led to a valuation loss of the interest rate hedges in an amount of EUR 0.8
million. This means that the valuation results more or less offset each
other. At the same time, interest expenses declined to EUR 4.72 million
(2009: EUR 4.84 million), while the weighted average interest rate on debt
capital dropped from 3.8 percent to 3.4 percent. Four properties were sold
at approx. EUR 14.2 million to optimise the portfolio; the sale was
effected at the market values determined in the previous year, which means
that it had no impact on the result.
Modernised offices attract new tenants
The available modernised properties will lead to a marked increase in
rental income as soon as all properties let are occupied and the rent-free
periods that have been agreed for some properties expire. POLIS Immobilien
expects additional potential from new tenants. 'Investments have been made
to further enhance the fixtures and the quality of the office properties,
which makes us optimistic that further leases will soon be signed in the
new year,' said Dr. Alan Cadmus, CEO of POLIS Immobilien. He does not
expect construction activity and, hence, the supply of new office buildings
in Germany to pick up any time soon, as banks are still reluctant to
finance pure-play project developments. 'We expect the dynamic demand for
existing properties to continue as the positive economic trend continues,'
Dr. Alan Cadmus added.
POLIS Immobilien intends to continue the good letting performance in the
fiscal year 2011 and to achieve a letting ratio of almost 90 percent of all
properties, which would lay the basis for continued growth in 2012. The
property portfolio will be expanded moderately. An equity ratio of approx.
47 percent as of 31 December 2010 means that the company is soundly
financed and can seize acquisition opportunities all by itself.
The final figures and the annual report will be published on 31 March 2011.
POLIS Immobilien AG, which was founded in Berlin in 1998, is listed real
estate company that buys, refurbishes/revitalises, and manages office
properties for its own portfolio. The company focuses on one market
segment: office properties in inner-city locations at the most important
German office centres. The company acquires properties that are either
already renovated and are completely let, thereby generating stable cash
flow, or properties that are vacant or require modernisation, and which
offer specific value appreciation potential. This potential may be realised
by corresponding modernisation measures or full revitalisation. As of 1
January 2011, POLIS Immobilien's real estate portfolio comprises a total of
37 properties with a market value of around EUR 306 million. POLIS
Immobilien shares are listed on the regulated market (Prime Standard) of
the Frankfurt Securities Exchange. Further information can be found at
www.polis.de.
Investor Relations:
Dr. Alan Cadmus
POLIS Immobilien AG
Tel: +49 30 225 00-250
E-mail: ir(at)polis.de
URL: www.polis.de
Press contact:
Britta Cirkel
HOSCHKE&CONSORTEN Public Relations GmbH
Tel: +49 40 36 90 50- 56
E-mail: b.cirkel(at)hoschke.de
End of Corporate News
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Language: English
Company: POLIS Immobilien AG
Rankestraße 5/6
10789 Berlin
Deutschland
Phone: +49 30 225 00-261
Fax: +49 30 225 00-299
E-mail: info(at)polis.deInternet: www.polis.de
ISIN: DE0006913304
WKN: 691330
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Hamburg, München
End of News DGAP News-Service
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112850 21.02.2011
Datum: 21.02.2011 - 08:49 Uhr
Sprache: Deutsch
News-ID 33250
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