DGAP-News: Colonia Real Estate AG: Colonia Real Estate AG's first-quarter result impacted by restructuring expenditure following takeover by TAG Immobilien AG
(firmenpresse) - DGAP-News: Colonia Real Estate AG / Key word(s): Quarter Results
Colonia Real Estate AG: Colonia Real Estate AG's first-quarter result
impacted by restructuring expenditure following takeover by TAG
Immobilien AG
23.05.2011 / 08:00
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* First-quarter rental income (NOI) down slightly YOY to EUR 9.0 million
* Restructuring expenditure of EUR 4.6 million Euro pushes EBT for Q1 2011
down to EUR -5.4 million (Q1 2010: EUR 0.3 million)
Cologne, May 23, 2011 - For Colonia Real Estate AG (or 'Colonia' in the
following), the first quarter was dominated by the acquisition of a
controlling majority by TAG Immobilien AG (or 'TAG' in the following).
After the controlling majority of voting rights had been achieved in mid-
February, an integration and restructuring process was prepared and
initiated across Colonia group's operations. This initially led to
significant changes in the composition of the management and supervisory
boards. TAG's CEO and CFO will assume these positions at Colonia in
addition to their tasks on the TAG Management Board. At the operations
level, synergies in asset and property management are to be realised by the
end of the year. During the restructuring process, the focus will be on
accelerating vacancy reduction and pooling the companies' capacities in
managing the various portfolios. The initiated processes are also expected
to lead to cost savings on internal administration and central tasks, and
not least to pave the way for Colonia's integration into the TAG Group.
Initially, the EUR 4.6 million in restructuring expenditure on these
measures has impacted first-quarter results.
In the first three months of 2011, Colonia generated total revenues of EUR
29.3 million after EUR 23.4 million in the comparable period of 2010.
Revenues from rent increased slightly, and amounted to EUR 21.9 million in
the first three months of 2011 after EUR 21.0 million in Q1 2010. This led
to net rental income of EUR 9.0 million for Q1 2011 (Q1 2010: EUR 10.4
million). This first-quarter result yielded EBIT of EUR 2.3 million,
significantly down from the previous year's EUR 8.2 million. The
first-quarter financial result was EUR -7.6 million after EUR -7.9 million
in Q1 2010, and led to negative pre-tax earnings (EBT) of EUR -5.4 million
(Q1 2010: EUR 0.3 million) and a period result of EUR -5.6 million after
EUR 0.1 million in Q1 2010.
The focus in 2011 is on managing the existing real estate inventory and
continuing to optimise the rental income and reduce vacancy. One action
area will be the Salzgitter portfolio, which had a vacancy rate of 24
percent at the end of Q1 2011; here, extensive investments in the inventory
will be needed.
Based on the positive development seen in Germany's economy and real estate
market, and the growth potential inherent in Colonia's existing inventory,
the Management Board does, however, expect to achieve an operating profit
in the current fiscal year.
The Board of Management
Cologne, May 23, 2011
Colonia Real Estate AG
Zeppelinstraße 4-8
D-50667 Cologne
Listing: regulated market of the Frankfurt Stock Exchange (Prime Standard)
ISIN: DE0006338007
WKN: 633800
About Colonia Real Estate AG
Colonia Real Estate AG is one of the leading listed real estate investment
and management groups in Germany with round about 19,000 residential units
and EUR 2.1 bn Assets under Management.
The Colonia business model is based on two columns. The investment segment
concentrates on high-yield residential property portfolios held for the
company's account and co-investments in commercial and residential
properties together with institutional partners. Second column of the
Colonia business model is the service segment. Here Colonia Real Estate
Solutions GmbH provides all services along the life cycle of a property in
a modular manner.
Contact:
Colonia Real Estate AG
Zeppelinstr. 4-8
50667 Cologne, Germany
Phone +49 (0)221 71 60 71 0
Fax +49 (0) 221 71 60 71 99
E-Mail: pr(at)colonia.ag
End of Corporate News
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Language: English
Company: Colonia Real Estate AG
Zeppelinstr. 4 - 8
50667 Köln
Deutschland
Phone: +49 221-716071-0
Fax: +49 221-716071-99
E-mail: ir(at)colonia.ag
Internet: www.colonia.ag
ISIN: DE0006338007
WKN: 633800
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart; Luxembourg
End of News DGAP News-Service
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125694 23.05.2011
Datum: 23.05.2011 - 08:00 Uhr
Sprache: Deutsch
News-ID 34168
Anzahl Zeichen: 0
contact information:
Kategorie:
Business News
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