DGAP-News: GAGFAH S.A.: Very Confident Outlook for 2014 and Beyond after Successful Turnaround in 2013

| Source: EQS Group AG
DGAP-News: GAGFAH S.A. / Key word(s): Final Results
GAGFAH S.A.: Very Confident Outlook for 2014 and Beyond after
Successful Turnaround in 2013

26.03.2014 / 07:01


Press Release: March 26, 2014
2-4, rue Beck
L-1222 Luxembourg

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

GAGFAH S.A.: Very Confident Outlook for 2014 and Beyond after Successful
Turnaround in 2013

  - Recurring FFO in 2013 up more than 13% to EUR 123.7 million (EUR 0.60
    p.s.) from better operational performance and lower financing costs

  - 2013 year-end vacancy rate down to 4.1%, well below 4.5% guidance

  - Strong visibility for 35% recurring FFO growth expected in 2014, a
    vacancy rate of 3.5% and 2% rent growth

  - Material improvements on corporate governance and alignment with
    shareholder interest in the first quarter 2014

  - Management targets dividend payments between EUR 0.20 and EUR 0.25 per
    share for 2014 and EUR 0.40 and EUR 0.50 per share for 2015

  - Specific steps in place to reduce the LTV to ca. 53% by 2018 on the
    basis of new sustainable business model

GAGFAH S.A. has published its results for the full year 2013. While the
Company managed to transform the business model from a
financially-engineered approach into a sustainable and long-term oriented
strategy that focuses on the properties, GAGFAH also met or exceeded its
operating and financial targets.

Among the major milestones during the 2013 transition were the free float
increase to almost 60%, the portfolio strategy with a focus on GAGFAH's
core cities, the definition and kick-off of the EUR 250 million
value-enhancing investment program and the groundwork for reducing the LTV
to about 53% by 2018 through scheduled amortization, capex, sales and
improved operational performance.

We have seen increasing momentum quarter by quarter in 2013. This was most
notable in the vacancy reduction, where we cut the number of vacant units
by more than 20% to achieve a vacancy rate of 4.1% at the end of 2013, and
in the overall profitability growth in our operating business.

The positive dynamics have carried over into 2014, and on the basis of
strong earnings momentum and low interest payments, the Company has
continued to complete its transformation. The major achievements in 2014 so
far include material progress on corporate governance and stronger
alignment of interest between shareholders and management. Gerhard Zeiler
has been appointed as new independent Chairman of the Board of Directors
and GAGFAH has published its first voluntary declaration of compliance on
the German Corporate Governance Code.

The successful turnaround and ongoing improvements of the operating
performance will allow the Company to reinstate the dividend for 2014 and
beyond. The management targets dividend payments of EUR 0.20 - EUR 0.25 per
share for 2014 and EUR 0.40 - EUR 0.50 per share for 2015.

Thomas Zinnöcker, CEO of GAGFAH GROUP commented, "2013 was a breakthrough
for GAGFAH. We gained much more room to maneuver through better financing,
and we have used this additional headroom to implement a sustainable
business model focused on operations. We can see substantial improvements
in our operating performance and have good visibility on our sustainable
earnings growth not just for 2014 but also for future years."

The management will host an earnings call today at 12:00 noon Luxembourg
time (11:00 A.M. London time, 07:00 A.M. New York time). All interested
parties are welcome to participate in the live call. You can access the
conference call by dialing

  - 1 866 966 9439 from the U.S.

  - 0800 694 0257 from the U.K.

  - 8002 7512 from Luxembourg

  - 0800 101 4960 from Germany 

  - +44 (0) 1452 555 566 from all other countries 

ten minutes prior to the scheduled start of the call. Please refer to
"GAGFAH S.A. Full Year 2013 Earnings Call". The conference ID will be

A live virtual audio webcast of the conference call will be available at
www.gagfah.com. A replay will be available for twelve months following the
call. The FY 2013 report and management presentation are available as PDF
downloads on www.gagfah.com.

Investor Relations
Rene Hoffmann
2-4, rue Beck
L-1222 Luxembourg 
Tel.: +352 266 366 21
Mail: rhoffmann@gagfah.com 
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


26.03.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de


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  
259574 26.03.2014