DGAP-News: KWG Kommunale Wohnen AG: KWG shows dynamic growth
(firmenpresse) - DGAP-News: KWG Kommunale Wohnen AG / Key word(s): Half Year Results
KWG Kommunale Wohnen AG: KWG shows dynamic growth
25.08.2011 / 07:50
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- Consolidated profit increased to 3.4 Mio. EUR after 0.5 Mio. EUR in
previous year
- Earnings per share reach 0.31 EUR after 0.05 EUR
- Further substantial growth in 2011 expected
Hamburg, 25 August 2011 - KWG Kommunale Wohnen AG, a long-term owner and
operator of German residential real estate, recorded significantly higher
earnings in the first half of 2011. Sale revenue rose in comparison to the
previous year, to EUR 10.1 million (30.06.2010: EUR 9.8 million) and the
consolidated profit increased by EUR 2.9 million over the previous year
to EUR 3.4 million (30.06.2010: EUR 0.5 million). At the same time, the
equity ration remained stable at 37.1 percent (30.06.2010: 34.8 percent),
providing KWG AG with the necessary scope to continue to exploit market
potential in the future.
Successful Letting Activities
New lets rose by around 30 percent in comparison to the corresponding
period in the previous year, while the vacancy ratio for the core portfolio
fell by 6.4 percent to 4.8 percent. The sale revenue additionally increased
by 3.1 percent over the previous year, to EUR 10.1 million (30.06.2010: 9.8
Mio. Euro). A particular gratifying achievement is the rise in the average
rent achieved with new lets by 3.2 percent to EUR 5.14 per sq. m.
(30.06.2010: EUR 4,98 per sq. m.). These developments reveal the sustained
improvement in the KWG AG portfolio management resulting from the
internalization of property management operations.
High Appreciation Potential
On 30 June 2011, the value of the real estate held by the Group was up by
7.1 percent in comparison to the previous year, at EUR 202.0 million. The
property assets per square metre increased over this period by 5 percent to
EUR 698. The increase has been achieved through renovation measures on the
Celle and Gelsenkirchen properties, the reduction of vacancy levels
throughout the portfolio as well as the acquisition of two residential
units.
The success of the undertaken renovation measures demonstrates the KWG
portfolio's exceptional appreciation potential: In Gelsenkirchen, the
vacancy ratio has fallen from 25.2 percent to 7.5 percent. At the same
time, energy efficiency measures have enabled a 37.8 percent rise in actual
rents to EUR 0.5 million p.a. These measures will be completed in 2011,
further improving the company's liquidity. The positive effect on the cash
flow will first show its full potential in the year 2012.
The extensive renovation measures are reflected in the company's cash flow.
As a result of the sharp rise in investments in the property holdings and
the acquisition of additional residential units, cash funds were down by
EUR 5.1 million at the end of the reporting period, at EUR 3.6 million.
These investments will strengthen the operative cash flow on a sustained
basis, by increasing our net rental income and reducing vacancies.
Further Growth Expected
KWG AG expects to continue its sustained positive development trajectory,
accompanied by a positive operative cash flow. The overriding aim is to
increase the net base rents by the end of the year to more than EUR 14
million and to exceed an aggregated operating performance of EUR 23
million.
The half year report will be available for download at www.kwg-ag.de in the
course of the day.
About KWG AG
KWG Kommunale Wohnen AG is a German property company with a long-term
investment approach. The company acquires property portfolios for
attractive prices in well positioned micro-locations of metropolitan
regions and medium-sized cities. With an active real estate asset
management KWG creates sustainable value and reduces the utility costs for
the tenants with a consequent enhancement of the portfolio's energy
efficiency. The corporation offers services along the entire value chain
comprising purchasing, construction management as well as property
management. With the combination of these measures KWG is able to reduce
its vacancy rates considerably and increases its revenue from rentals
providing an exceptionally high return on equity. Currently the portfolio
of KWG incorporates more than 5,400 residential and commercial properties.
The company's shares are listed in the Entry Standard of the Frankfurt
Stock Exchange.
Contact:
KWG Kommunale Wohnen AG
Jan Hutterer, Head of Investor Relations
Alstertor 9
20095 Hamburg
Germany
Tel. +49 40 226 30 88 140
Fax: +49 40 226 30 88 240
E-Mail: hutterer(at)kwg-ag.de
www.kwg-ag.com
KWG Kommunale Wohnen AG
ISIN: DE0005227342
WKN: 522734
Contact:
KWG Kommunale Wohnen AG
Jan Hutterer
Alstertor 9
20095 Hamburg
Germany
F. +49 (0)40 2263088-100
eMail: Hutterer(at)kwg-ag.de
End of Corporate News
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25.08.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: KWG Kommunale Wohnen AG
Alstertor 9
20095 Hamburg
Germany
Phone: 040 22 63 088 100
Fax: 040 22 63 088 200
E-mail: ir(at)kwg-ag.de
Internet: www.kwg-ag.de
ISIN: DE0005227342
WKN: 522734
Listed: Freiverkehr in Berlin, München, Stuttgart; Open Market
(Entry Standard) in Frankfurt
End of News DGAP News-Service
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136842 25.08.2011
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Datum: 25.08.2011 - 07:50 Uhr
Sprache: Deutsch
News-ID 59076
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