TAG Immobilien AG starts financial year 2016 with strong operating results and FFO of EUR 21.6 million
DGAP-News: TAG Immobilien AG / Key word(s): Quarter Results
TAG Immobilien AG starts financial year 2016 with strong operating results and FFO of EUR 21.6 million.
- Like for like rental growth rises to 3.8% p.a. at 31 March 2016
- Vacancy across the total portfolio further reduced from 8.2% at beginning of the year to 7.6% in April 2016; Vacancy in the residential units of the portfolio reduced by 0.2 percentage points by March 2016 / 0.4 percentage points by April 2016 since beginning of the year
- LTV ratio down to 59.0% or 61.0% including convertible bonds at 31 March 2016
- NAV per share increased to EUR 10.76
- Successful placement of treasury shares in March 2016 creates basis for new acquisitions and optimises the capital structure
- Dividend payout of EUR 0.55 per share planned for June 2016
Hamburg (10 May 2016) - TAG Immobilien AG ('TAG') generated FFO of EUR 21.6 million or EUR 0.17 per share in Q1 2016, after FFO of EUR 20.7 million (EUR 0.16 per share) in Q4 2015 and increases once again its operating cashflow. This positive development was fuelled by accelerated rental growth and a continued decline in vacancy across the portfolio. Besides this organic growth, the group created new liquidity for further acquisitions and optimised its capital structure with a placement of treasury shares in March 2016 that generated gross proceeds of EUR 58.3 million. A dividend of EUR 0.55 per share will be proposed to the Annual General Meeting on June 17, 2016.
Rental revenue totalled EUR 67.7 million in Q1 2016, up from EUR 65.9 million in the preceding quarter, Q4 2015. In Q1 2015, the Group had generated rental revenue of EUR 64.1 million. Mostly due to increased maintenance expenses, net rental income remained constant at EUR 53.1 million (previous quarter EUR 53.5 million).
The main driver of this positive operating performance was a further increase in like for like rental growth to 3.8% per annum at 31 March 2016, or 1.9% excluding the effects of vacancy reduction. The portfolios newly acquired during the course of 2015 and the first quarter of 2016 also contributed to rental growth. Across the Group, vacancy across the portfolio fell to 7.9% in March 2016, from 8.2% at 31 December 2015. In April 2016, overall vacancy declined further to 7.6%. In the residential units, the 7.7% vacancy rate at the beginning of the year (including the acquisitions of financial year 2015) was reduced to 7.5% in March 2016 and to 7.3% in April 2016.
In Q1 2016, earnings before taxes (EBT) amounted to EUR 19.7 million, after EUR 34.3 million in the first quarter of the previous year, when EBT was higher due to revaluation gains from newly acquired residential portfolios. Group net income at the end of the first quarter of 2016 was EUR 18.0 million, after EUR 28.0 million at the end of Q1 2015.
Funds from operations (FFO I without sales) were EUR 21.6 million at the end of Q1 2016, up from EUR 20.7 million and EUR 19.0 million in the previous two quarters, and EUR 18.1 million in Q1 2015.
Total assets at 31 March 2016 remained constant compared with year-end 2015 at EUR 3.8 billion. The equity ratio increased, in particular due to the placement of 5 million treasury shares in March 2016, to 30.9% at 31 March 2016 vs. 28.6% at 31 December 2015. The LTV (Loan to Value) debt-equity ratio, at 59.0% or 61.0% including liabilities from convertible bonds, was down from 31 December 2015 (60.7% and 62.7%). NAV (Net Asset Value) per share rose from EUR 10.64 at year-end 2015 to EUR 10.76 at the end of Q1 2016.
"In parallel to the operational growth achieved, in Q1 2016 we laid the foundations for continued targeted external growth through the placement of treasury shares in March and optimised our capital structure. The results of this placement, with a high premium on the three-month average share price and well above our NAV, demonstrates the high level of acceptance our shares enjoy on the capital market" says Martin Thiel, Chief Financial Officer of TAG Immobilien AG. "On the basis of our strong operating performance, we will propose a dividend of EUR 0.55 per share, up year-on-year once again, to the Annual General Meeting on 17 June 2016; based on the current share price, this represents a dividend yield of over 4.5%."
For details, please refer to the quarterly report to 31 March 2016, published today at http://www.tag-ag.com/investor-relations/financial-statemets/quartely-reports/.
|Company:||TAG Immobilien AG|
|Phone:||040 380 32 0|
|Fax:||040 380 32 388|
|ISIN:||DE0008303504, XS0954227210, DE000A12T101|
|WKN:||830350, A1TNFU, A12T10|
|Listed:||Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart; Terminbörse EUREX|
|End of News||DGAP News Service|