DGAP-News: GAGFAH S.A.: Financial Results for the Year 2010
(firmenpresse) - DGAP-News: GAGFAH S.A. / Key word(s): Final Results
GAGFAH S.A.: Financial Results for the Year 2010
23.03.2011 / 07:17
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Press Release: March 23, 2011
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 the Year 2010
Luxembourg, March 23, 2011 - GAGFAH S.A. (Frankfurt Stock Exchange: GFJ)
today announced its financial results for the year 2010.
William Joseph Brennan, CEO of GAGFAH S.A.'s German subsidiaries: 'The
German economy recovered strongly in 2010, with GDP growing by 3.6% and
unemployment declining from 8.2% to 7.7%. In the German residential real
estate market, rents grew on average by 1.2%, and we saw increasing
interest from investors seeking the steady and consistent performance that
German residential housing has historically offered.
Against that background, GAGFAH had a solid performance, with improvements
in operations, additional progress towards cost optimization, and asset
sales in line with our target. Our Funds from Operations (FFO) per share
was EUR 0.76 for 2010 and EUR 0.19 for the fourth quarter. Profit from
leasing was EUR 460.1 million compared to EUR 486.3 million in the prior
year, mainly as the result of having approximately 9,700 fewer units due to
sales. Our profit margin grew from 49.8% to 50.5% year on year. Overall,
the results are in line with our expectations and the Board of Directors
has declared a regular quarterly dividend of EUR 0.10 per share for the
fourth quarter.'
Highlights
FFO for 2010 from the core rental business of EUR 0.70 per share. Including
the contribution from sales, the Company delivered EUR 0.76 of FFO for
2010. Fourth quarter 2010 FFO per share was EUR 0.19 including sales.
Profit from leasing was EUR 460.1 million in 2010 compared to EUR 486.3
million in 2009, on an average base of ca. 9,700 fewer units due to sales.
Profit margin for 2010 of 50.5% from 49.8% in 2009.
Operations on track with 1.2% same store rent growth1), turnover at 12% and
vacancy rate of 5.2%, all in line with targets.
1) Same store basis: Residential units GAGFAH owned at both dates: As of
December 31, 2009, and as of December 31, 2010.
Sales: Closed or contracted to sell 9,948 units for a total value of EUR
473.2 million, exceeding our target of EUR 450 million for the year.
Cost to manage per unit was EUR 374, a historical low, and down 4.3% from
EUR 391 for 2009, reflecting the ongoing focus we have been placing on
overhead and management costs.
NAV of EUR 12.17 per share and gross asset value of EUR 852 per square
meter as of December 31, 2010.
Quarterly dividend for the fourth quarter of 2010 of EUR 0.10 per share.
The fourth quarter dividend will be paid on April 12, 2011.
Key Financial Information
Consolidated Statement of Comprehensive Income Q4 Q4
(EUR million) 2010 2009 2010 2009
Income from the leasing of investment 911 976.8 215.5 227.1
property .5
Profit from the leasing of investment 460 486.3 108.0 114.4
property .1
Profit from the sale of investment property 16.2 22.8 3.5 9.4
and assets held for sale
Loss from fair value measurement of investment - - -12.2 -51.2
property 69.5 197.0
EBITDA 365 262.7 87.8 73.5
.8
EBIT 348 237.1 80.2 55.8
.3
EBT 51.2 -92.3 17.8 -20.7
FFO 170 190.0 42.0 55.5
.6
FFO in EUR per share (weighted average, 0.76 0.84 0.19 0.25
undiluted)
Group Capitalization 12-31-10 12-31-10 12-31-09 12-31-09
EUR m % EUR m %
Total equity 2,302.7 24.9 2,457.7 25.2
Financial liabilities 6,011.2 64.9 6,525.3 66.7
Other liabilities 947.8 10.2 794.3 8.1
Total equity and 9,261.7 100.0 9,777.3 100.0
liabilities
Operational Figures 12-31-2010 12-31-20092) core portfolio only (financial closing)
Group residential portfolio (core):
Units 158,314 165,789
Sqm 9,597,660 10,008,818
Net cold rent/sqm (in EUR) 5.07 5.02
Vacancy rate (in %) 5.2 4.9
Sold units 2) 7,521 5,329
FFO is a non-IFRS financial measure used by our Group's management to
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 MILLION) 2010 2009 Q4 Q4Conference Call
2010 2009
EBIT 348.3 237.1 80.2 55.8
Reorganization and restructuring expenses 12.8 21.4 6.2 16.6
Depreciation and amortization 4.7 4.2 1.4 1.1
EBITDA 365.8 262.7 87.8 73.5
Loss from fair value measurement of 69.5 197.0 12.2 51.2
investment property
Realized valuation gains through sales 7.3 21.2 3.7 12.8
Expenses for / income from share-based 1.8 -1.4 0.2 -0.6
remuneration
Net interest expenses - - -64.4 -79.3
296.4 301.4
Current tax expenses -4.7 -10.8 -4.4 -7.7
Property development business -2.4 4.4 0.2 -1.5
Sales expenses (non-condo) 26.9 5.8 7.7 2.3
Other 2.8 12.5 -1.0 4.8
FFO 170.6 190.0 42.0 55.5
FFO in EUR per share (weighted average, 0.76 0.84 0.19 0.25
undiluted)
Management will host an earnings conference call at 1:00 P.M. CET (12:00
noon London time, 800 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 Q4 2010 Earnings
Call'. The conference ID will be 50776540.
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 more than 158,000
apartments, GAGFAH is the largest German listed residential property
company.
The 2010 Annual 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
info(at)gagfah.com
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', 'endeavor', '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.
End of Corporate News
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Language: English
Company: GAGFAH S.A.
2-4, rue Beck
1222 Luxemburg
Großherzogtum Luxemburg
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
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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116526 23.03.2011Unternehmensinformation / Kurzprofil:
Datum: 23.03.2011 - 07:17 Uhr
Sprache: Deutsch
News-ID 33542
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