GAGFAH S.A. / Quarter Results
12.05.2010 05:59
Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Press Release: May 12, 2010
GAGFAH S.A.
2-4, rue Beck
L-1222 Luxembourg
ISIN: LU0269583422
Frankfurt Stock Exchange, Regulated Market (Prime Standard)
GAGFAH S.A. Financial Results for Q1 2010
Luxembourg, May 12, 2010 - GAGFAH S.A. (Frankfurt Stock Exchange: GFJ)
today announced its financial results for Q1 2010.
William Joseph Brennan, CEO of GAGFAH S.A.'s German subsidiaries: 'We are
off to a good start in 2010. GAGFAH's Funds from Operations (FFO) per share
was EUR0.21 for the first quarter. Operationally, profit from leasing was
EUR124.9 million on a weighted average base of approximately 8,200 fewer
units, growing on a per unit basis 3.1% quarter by quarter. With German
residential values having held steady, and a positive Q1 behind us, we are
continuing to pursue ways to grow our organic cash flow, rationalize our
costs, and strengthen our balance sheet through selected asset sales.'
Highlights
- Profit from the leasing of investment property of EUR124.9 million in
the first quarter of 2010, from EUR127.2 million in the first quarter
of 2009 on a weighted average of approximately 8,200 fewer units. On an
average per unit basis, the profit from the leasing of investment
property increased by 3.1%.
- NAV of EUR12.52 per share and gross asset value of EUR844 per square
meter as of March 31, 2010.
- FFO of EUR0.21 per share or EUR46.6 million in the first quarter of
2010.
- Quarterly dividend for the first quarter of 2010 of EUR0.20 per share
will be paid on June 11, 2010.
Rents
- Our rental growth rate was 1.0% annualized for the first quarter of
2010 on a same store basis1).
Property sales
- In the first quarter of 2010, we sold incrementally through our condo
sales2) channel 305 units at a margin of 23 % for a total value of
EUR21.2 million and a net cold rent multiple of 17.5.
- In addition, we closed the sale of 2,770 units for a total value of
EUR116.0 million in Q1 2010 that were previously contracted for sale as
at year end 2009.
Vacancy
- Our vacancy rate increased to 5.4 % at the end of Q1, in part due to
severe weather conditions. We anticipate being at our target vacancy
rate of approximately 5.0 % by mid year.
- Excluding units held for condo sales, our vacancy rate was at 5.3%.
Cost
- Management cost per unit broadly stable at EUR393 on a basis of approx.
8,200 fewer units.
- We intend to continue to focus on optimizing our cost per unit and
overall SG&A expenses.
1) Same store basis: Residential units GAGFAH owned at both dates: As at
December 31, 2009 and as of March 31, 2010.
2) Privatization / small multi-family homes
All per share data is based on the number of shares outstanding as of the
respective dates.
Key Financial Information
FINANCIAL FIGURES
|[![CDATA[|[pre|]]]|]
Income Statement (EUR million) Q1 2010 Q1 2009 Q4 2009
Income from the leasing of 220.5 244.3 227.1
investment property
Profit from the leasing of 124.9 127.2 114.4
investment property
Profit from the sale of investment 5.5 5.1 9.4
property
Loss from fair value measurement -2.1 -19.2 -51.2
EBITDA 115.5 91.8 73.5
EBIT 107.9 89.7 55.8
EBT 26.8 4.8 -20.7
FFO 46.6 48.7 55.5
FFO in EUR per share 0.21 0.22 0.25
|[![CDATA[|[/pre|]]]|]
|[![CDATA[|[pre|]]]|]
Group 03-31-2010 03-31-2010 12-31-2009 12-31-2009
Capitaliz- EUR million % EUR million %
ation
Total 2,424.1 25.3 2,457.7 25.2
Equity
Financial 6,323.9 66.0 6,525.3 66.7
liabilities
Other 830.5 8.7 794.3 8.1
liabilities
Total equity 9,578.5 100.0 9,777.3 100.0
and
liabilities
|[![CDATA[|[/pre|]]]|]
OPERATIONAL FIGURES
|[![CDATA[|[pre|]]]|]
Q1 2010 Q1 2009 Q4 2009
Group residential portfolio
Units 162,528 171,926 165,789
Sqm 9,821,193 10,371,528 10,008,818
Net cold rent/sqm (in EUR) 5.03 4.97 5.02
Vacancy rate (in %) 5.4 4.5 4.9
Sold units 3,075 217 3,983
|[![CDATA[|[/pre|]]]|]
FFO is a non-IFRS financial measure used by our Group's management to
report the funds generated from continuing operations. FFO is an
appropriate measure of underlying operating performance of real estate
companies as it provides shareholders with information regarding the
Group's ability to service debt, make capital expenditures or pay
dividends. The following is a reconciliation from EBIT to FFO for our
Group:
FUNDS FROM OPERATIONS - FFO (EUR MILLION)
|[![CDATA[|[pre|]]]|]
Q1 Q1 Q4
2010 2009 2009
EBIT 107.9 89.7 55.8
Reorganization and restructuring 6.6 1.0 16.6
expenses
Depreciation and amortization 1.0 1.1 1.1
EBITDA 115.5 91.8 73.5
Loss from fair value measurement 2.1 19.2 51.2
Realized valuation gains through 1.0 1.9 12.8
sales
Income / expenses for share-based 0.7 0.6 -0.6
remuneration
Net interest expenses (periodical) -75.3 -72.8 -79.3
Current tax expenses -0.7 -0.4 -7.7
Property development projects 0.2 2.1 -1.5
Elimination large multi-family homes 1.7 n/a 2.3
sales program
Other 1.4 6.3 4.8
FFO 46.6 48.7 55.5
FFO in EUR per share 0.21 0.22 0.25
|[![CDATA[|[/pre|]]]|]
Conference Call
Management will host an earnings conference call at 1:00 P.M. CET (12:00
noon London time, 7:00 A.M. New York time) later that day. All interested
parties are welcome to participate in the live call. You can access the
conference call by dialing 1866 966 9439 from within the U.S., or +44 (0)
1452 555 566 from the U.K., or 8002 7512 from Luxembourg, or 0800 101 4960
from Germany or +44 (0) 1452 555 566 from all other countries ten minutes
prior to the scheduled start of the call; please refer to 'GAGFAH Q1 2010
Earnings Call'.
A webcast of the conference call will be available to the public on a
listen-only basis at www.gagfah.com. Please allow extra time prior to the
call to visit the site and download the necessary software required to
listen to the internet broadcast. A replay of the webcast will be available
for twelve months following the call on www.gagfah.com.
About GAGFAH S.A.
GAGFAH S.A. is a joint stock corporation organized under the laws of the
Grand Duchy of Luxembourg qualifying as a securitization company under the
Luxembourg Securitization Law of March 22, 2004. The core business of
GAGFAH S.A.'s operating subsidiaries is the ownership and management of a
geographically diversified and well maintained residential property
portfolio located throughout Germany. With a portfolio of more than 162,000
apartments, GAGFAH is the largest German listed residential property
company.
The Q1 2010 Interim Report of GAGFAH is available on www.gagfah.com.
Contact:
GAGFAH S.A.
2-4, Rue Beck
L-1222 Luxembourg
Grand Duchy of Luxembourg
Tel: +352 266 366 1
Forward-Looking Statements
This press release contains statements that constitute forward-looking
statements. Such forward-looking statements relate to, among other things,
future commitments to acquire real estate and achievement of acquisition
targets, timing of completion of acquisitions and the operating performance
of our investments. Forward-looking statements are generally identifiable
by use of forward looking terminology such as 'may', 'will', 'should',
'potential', 'intend', 'expect', 'endeavour', 'seek', 'anticipate',
'estimate', 'overestimate', 'underestimate', 'believe', 'could', 'project',
'predict', 'continue', 'plan', 'forecast' or other similar words or
expressions. Forward-looking statements are based on certain assumptions,
discuss future expectations, describe future plans and strategies, contain
projections of results from operations or of financial conditions or state
other forward looking information. Our ability to predict results or the
actual effect of future plans or strategies is limited. Although we believe
that the expectations reflected in such forward-looking statements are
based on reasonable assumptions, our actual results and performance may
differ materially from those set forth in the forward-looking statements.
These forward-looking statements are subject to risks, uncertainties and
other factors that may cause our actual results in future periods to differ
materially from forecasted results or stated expectations, including the
risk that GAGFAH S.A. will be unable to extent existing financing at
suitable terms, be unable to increase rents and occupancy, to privatize
further units or further reduce management costs.
12.05.2010 05:59 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]
---------------------------------------------------------------------------
Language: English
Company: GAGFAH S.A.
2-4, rue Beck
1222 Luxemburg
Luxemburg
Phone: + 352 266 366 21
Fax: + 352 266 366 01
E-mail: info@gagfah.com, skliche@gagfah.com
Internet: www.gagfah.com
ISIN: LU0269583422, LU0269583422
WKN: A0LBDT
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Hamburg, Stuttgart
End of News DGAP News-Service
---------------------------------------------------------------------------
DGAP-News: GAGFAH S.A.: Financial Results for Q1 2010
| Source: EQS Group AG