DGAP-News: GAGFAH Successful Completion of 2013 - Confident about Strong FFO Growth

| Source: EQS Group AG
DGAP-News: GAGFAH S.A. / Key word(s): Miscellaneous
GAGFAH Successful Completion of 2013 - Confident about Strong FFO

15.01.2014 / 08:26


Press Release: January 15, 2014
2-4, rue Beck
L-1222 Luxembourg

ISIN: LU0269583422
Frankfurt Stock Exchange (Ticker Symbol: GFJ)
Regulated Market (Prime Standard)

GAGFAH Successful Completion of 2013 - Confident about Strong FFO Growth

  - Recurring FFO to come out at ~EUR0.60 per share for 2013 as expected

  - Improved operational results with rent growth >1% and vacancy rate
    < 4.5% for 2013

  - Strong growth expected in 2014 and 2015 - guidance further specified

  - Management plans to pay a dividend again targeted for 2014 financial

Luxembourg, January 15, 2014 - While the detailed annual accounts for 2013
are scheduled to be released on March 26, as previously announced,
preliminary results already confirm the 2013 guidance of recurring FFO of
~EUR0.60 per share, rent growth >1% and vacancy rate < 4.5%.

2013 was a turnaround year for the Company with a number of highlights that
form the basis for a positive development going forward, most namely:

  - Portfolio strategy focusing on the 30 largest cities and their
    respective commuter belts

  - Completed capital structure optimization by refinancing more than
    EUR4bn of debt

  - Identified and started to implement a EUR250 million value enhancing
    investment program

  - Increased free float from about 33% to close to 60%

  - Management team established with full responsibility for execution of
    new business strategy

Going into the new year, the management specifies its recurring FFO
guidance of EUR0.80 to EUR0.82 per share (~+35% y-o-y) for this year and
EUR0.88 to EUR0.90 per share (~+10% y-o-y) for next year. Management plans
a dividend between EUR0.20 and EUR0.25 per share for this year (to be
payable in 2015), which will be paid out of free cash flow (cash available
for distribution, CAD). For 2015 and beyond, the management targets a total
shareholder return between ~5% and 7%, which is expected to include an
adequate dividend yield on NAV and solid NAV growth.

Thomas Zinnöcker, CEO of GAGFAH GROUP and Member of the Board of Directors
of GAGFAH S.A., commented, '2013 was a very good year for GAGFAH and its
stakeholders. We have successfully laid the groundwork for an improved
operational performance and for strong FFO growth this year, and we are
very confident about our targets for 2014 and beyond.'

An updated investor presentation with further details can be found on the
Company's website at www.gagfah.com ((Investor Relations (Publications


Investor Relations
Rene Hoffmann
2-4, rue Beck
L-1222 Luxembourg 
Tel.: +352 266 366 21
R.C.S. Luxembourg B 109.526

Dirk T. Schmitt
+49 175 721 4836


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 is a leading owner and operator of residential real estate in
Germany. Our portfolio includes about 144,000 own residential units that
are mostly located in the large German cities and their respective commuter
belts. 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 affordable 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.

Our objective is to generate shareholder value through sustainable and
growing cash flows, increasing net asset value and sustainable dividends by
efficiently managing our portfolio, carrying out value-enhancing property
investments, pursuing accretive growth opportunities, and realizing value
through selected asset sales.

End of Corporate News


15.01.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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The issuer is solely responsible for the content of this announcement.

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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,  
End of News    DGAP News-Service  
248059 15.01.2014