DGAP-News: Prime Office REIT-AG reports H1/2011 figures with revenue and income increase after IPO
(firmenpresse) - DGAP-News: Prime Office REIT-AG / Key word(s): Half Year Results
Prime Office REIT-AG reports H1/2011 figures with revenue and income
increase after IPO
12.08.2011 / 07:40
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Sizeable income after a loss in the prior year period
Prime Office reports H1/2011 figures with revenue and income increase after
IPO
- Rental and lease revenues slightly increased to 37.9 million Euros
- Net income of around 6.3 million Euros after a loss of -14.4 million
Euros in H1/2010
- Funds from operations with 9.9 million Euros on a high level, excl.
one-off effects FFO increased to 13.6 million Euros
- IPO increases REIT equity ratio to 45.8 percent
- Impressive lease up of around 38,000 square metres
- Positive full year outlook
Munich, 12 August 2011. Prime Office REIT-AG ('Prime Office'), a leading
property firm focused on investments and management of prime office
properties in Germany, looks back on a successful first half of 2011, today
reporting its financial figures for the first time after its IPO.
'We are pleased to report a positive operating result for the first half of
2011 which proves our strong performance. With our IPO and the
transformation of our company into a REIT, we have laid the foundation on
which our REIT, with its focus on high quality office properties, can take
an active role in shaping the German office property market,' said Claus
Hermuth, CEO of Prime Office.
The operating business of Prime Office developed well in the reporting
period. By increasing the overall occupancy rate to 99.7 percent and by
adjusting leases to the index in Essen and Hamburg, total rental revenues
reached 37.9 (H1/2010: 37.5) million Euros which equals a year-on-year
increase of 0.9 percent or 0.4 million Euros. In addition, rental expenses
in the first half of 2011 slightly decreased, which resulted in a 2.7
percent increase in rental income to around 33.3 (H1/2010: 32.5) million
Euros. Moreover, Prime Office's asset management recorded an excellent
rental performance. Over the first six months of the fiscal year, the
company signed new long-term lease or extended existing lease contracts for
a total of 38,000 square metres of high quality office spaces. Compared to
the total lettable space of the property portfolio, this represents a share
of about 10 percent. With a vacancy rate of only 0.3 percent, the portfolio
is still considered as fully let with a weighted term of lease of 6.8
years.
In the first six months of the fiscal year 2011, particularly earnings
effective IPO-related expenses of 3.7 million Euros led to a substantial
increase of other operating expenses. With 5.5 million Euros in the first
half of 2011, they were significantly higher than last year's figure of 1.3
million Euros. On the other hand, the property portfolio of Prime Office
developed positively with a slight increase in value by 0.2 million Euros
since 31 December 2010. Overall, Prime Office REIT-AG generated 27.7
million Euros in earnings before interest and taxes which despite
IPO-related charges is nonetheless a slight increase against the 2010 level
of 27.3 million Euros.
Altogether, Prime Office significantly improved its net income in the first
six months of 2011 to a total of 6.3 million Euros (previous year: -14.4
million Euros) despite higher financing and IPO-related expenses. This
translates into positive earnings per share of 0.36 Euros, following 0.83
Euros in the previous year.
At the same time, higher interest payments and IPO-related costs reduced
funds from operations (FFO) over the reporting period. Nonetheless, the
company generated a high FFO of 9.9 million Euros in the first half of
2011, compared with 15.3 million Euros in H1/2010. Adjusted by earnings
accretive IPO-related expenses, funds from operations would have amounted
to 13.6 million Euros in the reporting period.
The capital increase, which had been successfully placed as part of the
IPO, substantially strengthened the balance sheet in the first half of
2011. Thus, equity more than doubled to a total of 444.0 (31 December 2010:
221.0) million Euros. Consequently, the REIT equity ratio increased to 45.8
(31 December 2010: 22.8) percent, meaning that Prime Office complies with
the minimum equity requirements under the REIT law.
'In addition to our success in the operating business, we have
significantly improved our capital structure in the first half of 2011 by
the IPO, and we have achieved our goal of obtaining a REIT-compliant equity
structure. We hold on to our long-term objective of becoming one of the
leading REITs for prime office properties in Germany,' said Alexander von
Cramm, CFO of Prime Office.
For the fiscal year 2011, the company forecasts total revenues of around 76
million Euros and Funds from Operations of around 18 million Euros,
excluding on-off effects of around 24 million Euros.
Contact
Prime Office REIT-AG
Richard Berg
Director Investor Relations / Corporate Communications
Hopfenstraße 6
80335 Munich
Telephone +49. 89. 710 40 90 40
Facsimile +49. 89. 710 40 90 99
Email richard.berg(at)prime-office.de
About Prime Office REIT-AG
Prime Office REIT-AG is a leading property firm focusing on investments in
high quality office buildings in Germany. The company's portfolio consists
of 14 office properties in central locations across major cities and
conurbations in Western Germany with a total useable area of approximately
385,000 square meters. According to a valuation performed by the property
surveyor CB Richard Ellis, the 14 properties had a total market value of
970 million Euro as at 31 March 2011. The property portfolio of Prime
Office REIT-AG exclusively consists of individual buildings in premium
locations. All holdings are select modern office properties with an
attractive architecture and high building quality. The portfolio is broadly
diversified across locations and tenants. The properties are rented
long-term to high credit-quality tenants. Prime Office
REIT-AG intends to generate stable long-term rental income using a
return-oriented approach of managing the existing portfolio based on broad
property, location and tenant diversification. Rental income is also
expected to grow consistently through the addition of suitable individual
properties. The company plans to become a leading specialised REIT for
prime office properties in Germany.
For additional information on Prime Office REIT-AG please visit us in the
Internet on: www.prime-office.de.
End of Corporate News
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12.08.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Prime Office REIT-AG
Hopfenstraße 6
80335 München
Germany
Phone: +49 (0)89 7104090 40
Fax: +49 (0)89 7104090 99
E-mail: richard.berg(at)prime-office.ag
Internet: www.prime-office.ag
ISIN: DE000PRME012
WKN: PRME01
Listed: Regulierter Markt in Frankfurt (Prime Standard), München,
Stuttgart; Freiverkehr in Berlin, Düsseldorf
End of News DGAP News-Service
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