DGAP-News: GAGFAH S.A. / Key word(s): Miscellaneous
GAGFAH: Financial Restructuring Now Completed and Full Attention Back
On Operations
21.10.2013 / 16:30
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Press Release: October 21, 2013
GAGFAH S.A.
2-4, rue Beck
L-1222 Luxembourg
ISIN: LU0269583422
Frankfurt Stock Exchange (Ticker Symbol: GFJ)
Regulated Market (Prime Standard)
GAGFAH: Financial Restructuring Now Completed and Full Attention Back On
Operations
- Closing of EUR 700 million CMBS with 2.71% coupon plus new EUR 91
million loan for OWG portfolio complete the refinancing process
- Reduced overall interest expenses from 4.35% at year end 2012 to now
3.10%
- FFO guidance for 2013 and 2014 confirmed
GAGFAH has basically completed its financial restructuring by closing the
EUR 700 million CMBS for which the pricing was announced on October 9. The
transaction was 1.6 times oversubscribed. The CMBS has a 2.71% coupon and a
five-year maturity plus a one-year extension option. GAGFAH also closed a
new EUR 91 million loan for the OWG portfolio with a coupon of 3.54% and a
seven-year maturity.
With the closing of these transactions, GAGFAH has now fully resolved all
of its 2013 and also the vast majority of its 2014 maturities by
successfully refinancing more than EUR 4 billion in only nine months and at
significantly better rates. The overall interest rate going forward will be
3.10%, more than 120 basis points lower than the 4.35% at the end of last
year. At the same time, the LTV has been reduced from 65% to 62%. The
average maturity more than doubled from less than three years to 6.2 years.
The only loan left to be refinanced is the EUR 358 million Malibu loan
which is set to mature in October 2014. A substantial amount of the
properties secured by this loan are part of the regional non-core asset
pool that we have identified. We intend to sell a large share of the
regional non-core assets of the Malibu portfolio before we refinance the
remainder in the second half of next year.
With the increased headroom after the successful refinancings, the focus is
now fully back on the operations side. GAGFAH has identified ~11% of the
portfolio as regional non-core, meaning that those assets are in remote
locations with regards to GAGFAH's top 30 locations and their respective
commuter belts, and intends to dispose those assets in the next few years.
Additionally, we have identified a EUR 250 million value-enhancing
investment program that we will implement in the next five years and which
we expect will add ~2 cents of incremental FFO per share and per year for
the next five years. These investments will be largely financed through
sales, which we expect will contribute ~50 million of net cash per year
over the next years.
The FFO per share guidance for this year is EUR 0.59 to EUR 0.61 (5% to 10%
per share growth) and EUR 0.79 to EUR 0.82 for next year (30% to 35% per
share growth).
A concise, updated company presentation is available on
http://www.gagfah.com/en/investor-relations/publications/presentations.htm
l.
Contact
GAGFAH S.A.
Investor Relations
Rene Hoffmann
2-4, rue Beck
L-1222 Luxembourg
Tel.: +352 266 366 21
rhoffmann@gagfah.com
www.gagfah.com
R.C.S. Luxembourg B 109.526
Media
Dirk T. Schmitt
+49 175 721 4836
dschmitt@gagfah.de
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
residential property portfolio located in Germany.
GAGFAH's portfolio includes about 144,000 own residential units and more
than 35,000 units under property and facility management for third parties.
Our portfolio makes us one of the largest residential property companies
listed in Germany, and we believe that our size, our significant presence
in the key residential markets and our scalable operating platform make us
one of the leading providers of housing for low- to medium-income
households in Germany. Our operating subsidiaries are full-scale service
providers for a broad range of property and facility management services
with a clear focus on residential properties. The key elements of our
strategy are (i) to create sustainable and increasing cash flows out of the
existing asset base (rent, occupancy, property costs, platform), (ii) to
invest in value-enhancing portfolio properties (iii) to pursue accretive
growth opportunities and (iv) to realize value through asset sales.
End of Corporate News
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21.10.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
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Language: English
Company: GAGFAH S.A.
2-4, rue Beck
1222 Luxemburg
Grand Duchy of Luxembourg
Phone: + 352 266 366 1
Fax: + 352 266 366 01
E-mail: info@gagfah.com
Internet: www.gagfah.com
ISIN: LU0269583422, LU0269583422
WKN: A0LBDT
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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235478 21.10.2013
DGAP-News: GAGFAH: Financial Restructuring Now Completed and Full Attention Back On Operations
| Source: EQS Group AG