DGAP-News: GAGFAH S.A.: Financial Results for Q1 2011
(firmenpresse) - DGAP-News: GAGFAH S.A. / Key word(s): Quarter Results
GAGFAH S.A.: Financial Results for Q1 2011
19.05.2011 / 20:42
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Press Release: May 19, 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 Q1 2011
Luxembourg, May 19, 2011 - GAGFAH S.A. (Frankfurt Stock Exchange: GFJ)
today announced its financial results for the first quarter 2011.
William Joseph Brennan, CEO of GAGFAH S.A.'s German subsidiaries: 'GAGFAH
has delivered another stable quarter of earnings. For the first quarter
2011, GAGFAH produced 54.1 million Euros of FFO, equalling 24 cents per
share on a portfolio of 12,600 fewer units, due to sales. The core rental
business contributed 13 cents, with 11 cents coming from our sales channel.
Q1 2010 produced FFO of 21 cents, of which 20 cents came from the rentals
business line.
With 155,000 units, GAGFAH is the largest listed residential property
company in Germany. As reflected in our key financial and operational
metrics, the business is stable and healthy. Our Q1 2011 asset values hold
steady on a portfolio worth 8.5 billion in total, our margin of 50.2% is
stable. Our annualized same store rent growth came in at 1.7%, vacancy was
5.4%, and our tenant turnover was 11%, with our tenants remaining on
average 11 years in their apartments. All in line with both our
expectations, as well as the stable, normalised historical levels for
GAGFAH.
We will be focusing on three areas of opportunity where we can drive
positive change for the business:
1. Communications: providing broader, more balanced and factual
perspectives
2. Property Investment: commercially sound, increased investments in our
assets
3. Refinancing: improving our capital structure.
In order to retain additional flexibility and financial resources within
the business and to support the Company's property investment and financing
objectives, the Board has made the decision not to pay an interim dividend
for the first quarter of 2011.'
Highlights
FFO for the first quarter of 2011 from the core rental business of EUR 0.13
per share. Including the EUR 0.11 contribution from sales, the Company
delivered EUR 0.24 of FFO per share for the quarter.
Profit from leasing was EUR 105.1 million in the first quarter 2011
compared to EUR 124.9 million in the first quarter 2010, on an average base
of about 12,600 fewer units due to sales.
Profit margin for the first quarter of 2011 of 50.2%.
Operations on track with 1.7 % annualized same-store1) rent growth,
turnover at 11 % and a vacancy rate of 5.4 %.
Sales: We financially closed the sale of 3,259 units from the 2010 sales
program for a total volume of EUR 177.8 million. In addition, we also
closed or contracted to sell 211 condo units for a total value of EUR 22.5
million from our 2011 sales program.
Cost to manage per unit was EUR 379 annualized for the first quarter 2011
compared to EUR 393 for the prior-year period.
NAV of EUR 12.19 per share and gross asset value of EUR 857 per square
meter as of March 31, 2011. The NAV per share as of December 31, 2010, was
EUR 12.17.
Dividend: In order to retain additional flexibility and financial resources
within the business and to support the Company's property investment and
financing objectives, the Board has made the decision not to pay an interim
dividend for the first quarter of 2011.
1) Same store basis: Residential units GAGFAH owned at both dates: As of
December 31, 2010, and as of March 31, 2011.
Key Financial Information
FINANCIAL FIGURES
Q1 Q1 Q4
Income Statement (EUR million) 2011 2010 2010
Income from the leasing of investment 209.4 220.5 215.5
property
Profit from the leasing of investment 105.1 124.9 108.0
property
Profit from the sale of inv. prop. and 7.4 5.5 3.5
assets held for sale
Loss from the fair value measurement -4.5 -2.1 -12.2
of inv. property
EBITDA 96.5 115.5 87.8
EBIT 94.6 107.9 80.2
EBT 32.0 26.8 17.8
FFO 54.1 46.6 42.0
FFO in EUR per share 0.24 0.21 0.19
Group 03-31-11 03-31-11 12-31-11 12-31-11OPERATIONAL FIGURES
Capitaliz- EUR million % EUR million %
ation
Total 2,276.1 25.5 2,302.7 24.9
equity
Financial 5,804.4 65.1 6,011.2 64.9
liabilities
Other 838.3 9.4 947.8 10.2
liabilities
Total equity 8,918.8 100.0 9,261.7 100.0
and
liabilities
03-31-11 03-31-10 12-31-101) Core portfolio only (financial closing).
Group residential portfolio
Units 154,987 162,528 158,314
Sqm 9,411,570 9,821,193 9,597,660
Net cold rent/sqm (in EUR) 5.08 5.03 5.07
Vacancy rate (in %) 5.4 5.4 5.2
Sold units1) 3,382 3,075 7,521
FFO is a non-IFRS financial measure used by our Group's management to
report the funds generated from continuing 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 from EBIT to FFO for our
Group:
FUNDS FROM OPERATIONS - FFO (EUR MILLION)
Q1 Q1 Q4Conference Call
2011 2010 2010
EBIT 94.6 107.9 80.2
Reorganization and restructuring 1.0 6.6 6.2
expenses
Depreciation and amortization 0.9 1.0 1.4
EBITDA 96.5 115.5 87.8
Loss from the fair value measurement 4.5 2.1 12.2
of inv. prop.
Realized valuation gains through 19.5 1.0 3.7
sales
Expenses for share-based 1.9 0.7 0.2
remuneration
Net interest expenses -66.3 -75.3 -64.4
Current tax expenses -2.4 -0.7 -4.4
Property development business 0.3 0.2 0.2
Sales expenses (non-condo) 0.9 1.7 7.7
Other -0.8 1.4 -1.0
FFO 54.1 46.6 42.0
FFO in EUR per share (weighted 0.24 0.21 0.19
average, undiluted)
Management will host an earnings conference call on Friday, May 20, 2011,
at 12:00 noon CET (11:00 A.M. London time, 6:00 A.M. New York 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 within the U.S.,
or 0800 694 0257 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
Q1 2011 Earnings Call'. The conference ID will be 67804096.
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
155,000 apartments, GAGFAH is the largest German listed residential
property company.
The Q1 2011 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
info(at)gagfah.com
Tel: +352 266 366 21
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 privatize
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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125549 19.05.2011Unternehmensinformation / Kurzprofil:
Datum: 19.05.2011 - 20:42 Uhr
Sprache: Deutsch
News-ID 34156
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