MAGNAT Real Estate Opportunities GmbH & Co. KGaA / Quarter Results/Interim Report
11.08.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Interim report for the 1st quarter of the 2008/2009 financial year
(Financial year: 1 April 2008 to 31 March 2009)
- In the first three months of the 2008/2009 financial year, the
consolidated result of MAGNAT was EUR -1.2 million.
- Starting in the first quarter with concentration of activities on
development of the portfolio and preparation of exits in Romania and
Germany
- Net asset value (NAV) at EUR 1.89 per share, without taking account of
the value lever in the development portfolio
Frankfurt, 11 August 2008 In the first three months of the 2008/2009
financial year, the consolidated result of MAGNAT REAL ESTATE OPPORTUNITIES
GmbH and Co. KGaA (ISIN DE000A0J3CH0) after taxes and minority interests
(according to IFRS) was EUR -1.2 million (same period in previous year: EUR
3.9 million).
The net result from the rental of housing inventory as of the reporting
date, 30 June 2008, was EUR 0.7 million (previous year: EUR 0.6 million).
No real estate companies were sold during the period under review.
Intensification of development activities led to a balanced outcome from
companies valued using the equity method (previous year: EUR 3.9 million).
The operating result (EBIT) amounts to EUR -1.0 million (previous year: EUR
3.6 million). In June 2008, the short-term financing of two investments in
Germany were replaced by long-term financing with outside capital at more
favourable terms and with a higher loan-to-value ratio. The financial
result amounted to EUR -0.3 million (previous year: EUR 0.5 million).
As of 30 June 2008, MAGNAT disposed of consolidated equity of EUR 104.2
million. Hence, the equity ratio is 72.6%. The balance sheet total as of 30
June 2008 stood at EUR 143.5 million. Cash and cash equivalents on the
reporting date amounted to EUR 3.2 million.
The net asset value as of 30 June 2008 stood at EUR 1.89 per share, without
taking into account any potential from the development portfolio. Thus, at
EUR 0.89 (XETRA closing price on 30 June 2008) the MAGNAT share was quoted
at 53% below NAV.
After the previous financial year saw focus principally being placed on
investing the funds raised, the first quarter of 2008/2009 sees MAGNAT
moving to the project developments phase. At the same time, exploitation
from existing investments is being prepared.
SIGNIFICANT DEVELOPMENTS:
Peremogi investment
40% stake in a project related to the construction of a Class A office and
commercial building in Kiev with an effective area of approximately 30,000
m². During the period under review, further optimisation of the planning
took place. Expansion of the effective area within the constraints of the
existing building permit is currently being looked at; in addition, cost
effectiveness of the structural foundation is being optimised. Financing
for the construction costs was secured during the reporting period. Talks
on a potential end-user participating in the project are at an advanced
stage.
VAKE 28 investment
In the first quarter of the financial year, MAGNAT acquired, for a total of
USD 1.0 million, a 37.5% stake in a project company involved in developing
an approximately 13,000 m² residential area in Tbilisi/Georgia. It is
encouraging to note that in this early phase, preliminary agreements on the
sale of several homes have already been concluded. After transfer, the
corresponding deposit payments will be revenue-producing. Due to the
payments received, the requirement of an available bank loan is under
review.
Nasze Katy investment
Construction of some 1,000 homes in five elements in Wroclaw; MAGNAT holds
50% of this investment. Building permits already exist for four elements;
the fifth element has been adapted for optimised utility by the end user
and submitted for approval. After completion and sale of the first element
consisting of 67 homes in the previous financial year, completion of the
second element consisting of some 200 homes is planned for between the end
of 2008 and spring 2009. The corresponding skeleton structure was completed
during the reporting period. In June 2008, a preliminary agreement on the
sale of a block comprising 26 flats and 10 parking spaces from the second
element was concluded with the municipality.
Yapi Kredi investment
33.3% participation in some 400 properties of varying usage in the
metropolitan area of Istanbul is developing according to schedule. From the
real estate earmarked for sale, 41 properties were sold during the
reporting period. In July 2008, part of a bridging loan from a consortium
partner was settled in the course of the disbursement of a bank loan. The
planning competition related to a promising development project at an
outstanding location in Istanbul has begun.
OUTLOOK:
The current situation in international financial markets gives no clear
indication of the further development of either the real estate markets or
the stock markets. While several international financial institutions are
already predicting an end to the real estate crisis, the Bank for
International Settlements (BIS) warns of a 'deeper and more prolonged
downturn than widely expected'. Since MAGNAT principally invests in
prosperous urban areas in Central and Eastern Europe ('CEE'), South Eastern
Europe ('SEE') and the Commonwealth of Independent States ('CIS'), which
are characterised by a high infrastructural backlog demand, MAGNAT is
optimistic that the demand for high-quality real estate will continue.
In the coming weeks and months, MAGNAT will, in particular, concentrate on
the exit from their investments in Romania. Furthermore, exploitation of
certain existing individual development projects will be pursued in the
coming months.
MAGNAT will reinvest funds released as a result of these exits in
profitable pipeline projects.
About MAGNAT:
MAGNAT is a German real estate company which focuses on real estate
development in Eastern Europe supplemented by special situations in the
home market of Germany. The management focuses on undervalued real estate
markets and on markets with high macroeconomic growth. The strategy of
MAGNAT is designed to exploit opportunistic inefficiencies. Unlike
traditional investment strategies, MAGNAT profits not only from rental
income, but also principally from attractive development returns.
ECONOMIC INDICATORS:
Q1 2008/ Q1 2007/
Key figures* in thousands of euro 2009 2008
Earnings from rentals 671 597
Earnings from the sale of real estate companies 0 0
Earnings from investments accounted for using the
equity method 19 3.897
Operating result (EBIT) -1.043 3.562
Earnings before taxes (EBT) -1.277 4.066
Consolidated result after taxes and minority
interests -1.176 3.875
* un-audited
CONTACT:
MAGNAT Real Estate Opportunities GmbH & Co. KGaA
Dominic Köfner, CIRO
Head of Corporate Communications
Grüneburgweg 18
D-60322 Frankfurt am Main
Phone: +49 (0)69 719 189 79 36
E-mail: dominic.koefner@magnat-reop.com
Press Relations
edicto GmbH
Axel Mühlhaus / Werner Rüppel
Phone: +49 (0) 69 905 50 55 2
E-mail: amuehlhaus@edicto.de
DGAP 11.08.2008
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Language: English
Issuer: MAGNAT Real Estate Opportunities GmbH & Co. KGaA
Grüneburgweg 18
60322 Frankfurt am Main
Deutschland
Phone: +49 (0)69 / 719 189 79 0
Fax: +49 (0)69 / 719 189 79 11
E-mail: info@magnat-reop.com
Internet: www.magnat-reop.com
ISIN: DE000A0J3CH0
WKN: A0J3CH
Listed: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in Berlin, Stuttgart
End of News DGAP News-Service
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DGAP-News: MAGNAT Real Estate Opportunities GmbH & Co. KGaA: Interim report for the 1st quarter of the 2008/2009 financial year
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