MAGNAT Real Estate Opportunities GmbH & Co. KGaA / Release of an announcement according to Article 37 of the WpHG [the German Securities Trading Act]
11.02.2008
Interim report according to Article 37 of the WpHG
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INTERIM ANNOUNCEMENT
WITHIN 2nd HALF-YEAR 2007/08
(financial year 1 April 2007 - 31 March 2008)
- MAGNAT net profit (consolidated, IFRS) for the first 9 months of the
financial year 2007/08 (1 April - 31 December 2007) at EUR 2.27 million
- MAGNAT continues to refrain from recognition of gains from revaluations
of its real estate portfolio in the financial statements - Profits
generated exclusively from realised earnings (gains from sales and rental
income)
- Increase of NAV to EUR 1.85 / share - Significant additional intrinsic
value from MAGNAT's core development business
Frankfurt / Main, February 11, 2008
MAGNAT Real Estate Opportunities GmbH & Co. KGaA (ISIN DE000A0J3CH0) earned
a consolidated net profit (IFRS based, after taxes and minority interests)
of EUR 2.27 million for the first nine months of its financial year
2007/2008 (1 April 2007 - 31 December 2007). Compared to the reference
period of the preceding financial year (an incomplete fiscal year from 6
April 2006 to 31 December 2006), net profit was increased by EUR 2.08
million. Earnings per share were EUR 0.04 (EUR 0.01 per share for the
reference period of the preceding financial year).
Net result from rental activities was EUR 1.52 million. As a result of
sales from the development portfolio, profits from investments accounted
for 'at equity' were EUR 3.59 million. The result in both segments was zero
for the reference period of the preceding financial year. Operating result
(EBIT) was EUR 2.02 million (minus 0.19 million in the reference period of
the preceding financial year). Net financial income was EUR 0.30 million
(0.38 million for the reference period of the preceding financial year),
income before taxes was EUR 2.11 million (EUR 0.19 million for the
reference period of the preceding financial year).
In contrast to predominant industry practice, MAGNAT entirely abstained
from 'IFRS 40 revaluations' of the real estate portfolio. Earnings in the
current financial year are exclusively the result of realised gains from
sales and from rental income. Further sales are in varying stages of
negotiation and execution, impact on earnings within current financial year
2007/08 is subject to completion of such sales until financial year-end.
Consolidated equity as of December 31, 2007, was EUR 100.45 million
(including EUR 12.62 million minority interests), corresponding to an
equity ratio of 80 percent (45.45 million and 91 percent, respectively, as
of March 31, 2007). Total assets as of December 31, 2007, were EUR 125.62
million (EUR 49.99 million as of March 31, 2007). MAGNAT has a comfortable
liquidity status, all currently necessary credit financings could be
secured according to plan. The continued high equity ratio provides
flexibility for further financing.
Net Asset Value, excluding the significant upsides from the development
portfolio, is EUR 1.85 per share. This is an increase of 13 percent
compared to total equity raised of EUR 1.64 per share. This increase in NAV
could be realised after a comparatively short period of time, as the last
(and also most substantial) capital increase took place in April 2007. A
significant additional upside, not included in the NAV-data above, is
embedded in real estate development, MAGNAT's core business.
Important Changes and Developments since October 1st, 2007
The following information is, to a large extent, an update of the(detailed) information provided in our semi-annual report, to which we may
refer (also to avoid reiterations). The semi-annual report is available for
download at
http://www.magnat-reop.com/de/investor-relations/finanzberichte).
No investments in new projects were made since publication of our
semi-annual report. Closing of the investments Saalfeld und Delitzsch
(German portfolio) for which contracts were signed in the first half of the
financial year was effected in December 2007. Credit financings for both
properties, as well as for the A&T-portfolio, were secured and executed.
Also, a loan commitment for the development project Peremogi (Kiev,Ukraine)
is now available.
In addition to recurring rental income, further exits have contributed to
the bottom line, specifically sales from the YKB-Portfolios. In the fourth
quarter of the current financial year, the contractual rights for phase 2
and the participation in the management company of the Chemelnitzky project
were sold; closing of this sale is subject to certain conditions precedent.
When closed as planned (which can be expected during the current financial
year 2007/08 from today's point of view, with purchase price due at the end
of March 2008), MAGNAT will be able to generate an additional pre-tax
profit of approximately EUR 6.5 million. Consolidated earnings (after taxes
and minority interests) for the 3rd quarter (October 1st, 2007 - December
31st, 2007) was slightly negative with EUR 0.3 million, as this transaction
took place after December 31, 2007; the results for the 3rd quarter was
also affected by one-time costs due to the segment change to the General
Standard. Further sales are in varying stages of negotiation and execution,
impact on earnings within current financial year 2007/08 is subject to
completion of such sales until financial year-end. All segments (properties
from the German portfolios, land bank in Eastern Europe,
development-portfolio) contribute to the exit pipeline.
Besides the sale of the contractual rights for phase 2 and the
participation in the management company as described above, the following
developments have taken place since publication of the interim financial
report: Also considering the agreement on the sale of the contractual
rights for phase 2 and the participation in the management company, the
buyer was granted an extension of the due date for the purchase price for
phase 1 (USD 8 million for the sale of 500 shops) until the end of
February. Management believes that the remaining conditions will be met
and, consequently, the payment will be made in accordance with the adapted
contract; the 10 percent reserve against the receivable (to account for the
currency risk and the net present value of the receivable) was maintained
out of prudence. Shares in both project companies sold remain pledged to
the seller until payment of purchase prices. Due date for the additional,
short-term loan of USD 1 million granted to the local project partner in
October 2007 was extended until the end of April 2008, ownership of the
additional 100 shops pledged was however transferred to MAGNAT (indirectly
through a project company). If repayment is not effected until the end of
April 2008, MAGNAT will be able to sell these additional 100 shops.
Financing of the transformers to increase the electrical load for the whole
market was secured by R-QUADRAT, MAGNAT's Asset manager; MAGNAT has not
incurred additional costs or provided additional financing.
Frankfurt/Main, 11th February 2008
MAGNAT Real Estate Opportunities GmbH & Co KGaA
Jan Oliver Ruester Peter Waldner
Contact
MAGNAT Real Estate Opportunities GmbH & Co. KGaA
Grueneburgweg 18
60322 Frankfurt am Main
Tel +49 (0) 69 719 189 79 15
Fax +49 (0) 69 719 189 79 11
E-Mail: info@magnat-reop.com
DGAP 11.02.2008
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Language: English
Issuer: MAGNAT Real Estate Opportunities GmbH & Co. KGaA
Grüneburgweg 18
60322 Frankfurt am Main
Deutschland
Internet: www.magnat-reop.com
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