TAG Immobilien AG surpasses the FFO forecast for the 2017 financial year and increases the dividend for 2017
DGAP-News: TAG Immobilien AG / Key word(s): Preliminary Results
- FFO in the 2017 financial year increases by 31% to EUR 127.4m or - per share - by 21% to EUR 0.87 (forecast: EUR 119.0-121.0m / EUR 0.82 per share)
- Strong valuation result at end of 2017 increases NAV per share to EUR 13.80, resulting in LTV of just 52.3%
- Successful capital recycling continued in 2017: nearly 5,000 residential units acquired at an average purchase multiplier of 12.2 times the current annual net cold rent and approximately 2,000 residential units sold at a multiplier of 18.7
- Vacancy in TAG's residential units continues to improve, falling by 1.3 percentage points over the course of 2017 to 4.8% - below 5% for the first time
- Dividend forecast for 2017 to be raised from EUR 0.62 to EUR 0.65 per share
Hamburg (February 22, 2018) - Today TAG Immobilien AG (TAG) publishes preliminary figures from its IFRS consolidated financial statements for the 2017 financial year. With a portfolio that grew by around 3,000 residential units in 2017 to more than 83,000 units, the company delivered a strong operating result, and also benefited from its refinancing activities, some of which already began to have an effect in 2017.
Strong key indicators based on excellent operational performance
At EUR 396.5m, Earnings before taxes (EBT) were significantly above the previous year's EBT of EUR 246.7m. Besides the positive operating performance and reduced financing costs (decrease in average cost of debt during the course of 2017 from 3.15% p.a. to 2.34% p.a.), this increase was due to valuation gains on the real estate portfolio, which amounted to EUR 549.7m (previous year: EUR 163.1m) for the full year, before taking into account the adjustment of the valuation to reflect the full deduction of transaction costs. Therefore, the valuation of the real estate portfolio increased by around 14% year-on-year in 2017, which underscores the price dynamics and positive economic development in the regions managed by TAG. All in all, with an average of c. EUR 845 per sqm or 14.1 times the current annual net cold rent, the real estate valuation remains at a conservative level.
In addition to the significantly increased FFO, the AFFO, i.e. FFO minus total expenditure on modernisation, also improved disproportionately by EUR 34.1m year-on-year, to EUR 84.6m (+68%), or - per share - by EUR 0.21 to EUR 0.58 per share (+57%). Consolidated net income increased by 56%, from EUR 200.7m in the previous year to EUR 313.7m in 2017.
At the end of 2017, the net asset value (NAV) per share increased to EUR 13.80 after EUR 11.85 at the end of the previous year, despite the dividend payment of EUR 0.57 per share in May 2017. The loan-to-value (LTV) ratio was down by 4.8 percentage points to 52.3% in 2017, after 57.1% at 31 December 2016.
Already-adjusted FFO forecast 2017 exceeded, dividend proposal increased once again for 2017
Martin Thiel, CFO of TAG, comments: "With our focus on acquisitions in the 'B locations' in Eastern Germany and our strategy of capital recycling, we are achieving attractive returns and strongly growing cash flows. At this point, more than 70% of our total portfolio is in the former East German states. Targeted investment and dedicated neighbourhood management form the basis for our excellent rental and vacancy performance. These operational successes as well as significant effects from 'yield compression' are also reflected in the sharp rise in the valuation result. Against this backdrop, and given the savings from the refinancing measures taken in 2017, we are delighted to be able to propose to our shareholders a 14% year-on-year increase in dividend."
Further details on the results of the 2017 financial year can be found in the presentation published today at https://www.tag-ag.com/en/investor-relations/presentations/. The information above is based on preliminary figures. The final results of the 2017 financial year will be announced with the publication of TAG Immobilien AG's 2017 Annual Report on 22 March 2018.
|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, Tradegate Exchange|
|End of News||DGAP News Service|