DGAP-News: GAGFAH Continues on Its Successful Path- Increase of Targeted Dividend by 35%

| Source: EQS Group AG
DGAP-News: GAGFAH S.A. / Key word(s): Half Year Results
GAGFAH Continues on Its Successful Path- Increase of Targeted Dividend
by 35%

13.08.2014 / 06:58


Press Release: August 13, 2014
2-4, rue Beck
L-1222 Luxembourg

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

GAGFAH Continues on Its Successful Path- Increase of Targeted Dividend by

  - Rent growth +2.4% compared to prior-year period

  - Vacancy rate of 3.7% at the end of Q2 after 4.1% at the end of Q1

  - Adjusted EBITDA +7.3% compared to prior-year period

  - Recurring FFO increased by 95% to EUR 93.2 million in the first six
    months (EUR 0.43 per share)

  - Increased FFO guidance for 2014 and outlook for 2015

  - Increase of targeted dividend by 35% to EUR 0.30 - 0.35 per share for

  - Outlook on key performance indicators for 2015 - 2017 shows substantial
    value enhancing potential and reflects the stability of the business

Luxembourg, August 13, 2014 - After the turnaround last year and the full
exit of the private equity majority shareholder, GAGFAH continues on its
successful path with substantial improvements especially in operations. The
vacancy rate at the end of the first half year was 3.7%, which is 40 basis
points below the vacancy rate at the end of Q1 this year. Rent growth was
2.4% compared to the prior-year period (2.1% on a like-for-like basis).

In spite of 1.2% fewer units as a result of sales, the Adjusted EBITDA grew
by 7.3% to EUR 178.3 million. The Recurring FFO almost doubled to EUR 93.2
million (EUR 0.43 per share) during the first six months of this year.

The implementation of the non-core sales program is running according to
plan with 3,086 sold units in the first half of this year, of which 1,490
were financially closed as of June 30. Condo sales remain strong with 549
sold units, of which 385 were financially closed as of June 30 and with a
gross margin of 25.3% above their carrying values.

The NAV per share as of June 30, 2014, was EUR 13.59, which is an increase
of 4% compared to the end of 2013.

In light of the positive development during the first six months,
management has raised the guidance for Recurring FFO for 2014 to EUR 0.86
to EUR 0.88 per share. The previous target range was EUR 0.84 to 0.86 per
share. The targeted dividend for 2014 has now been increased by 35% to EUR
0.30 to 0.35. Previously, the range for the targeted dividend was EUR 0.23
to 0.25 per share.

Against the background of last year's successful turnaround, the complete
exit of the former private equity majority shareholder earlier this year
and the sustainable improvements in operations, GAGFAH has prepared an
outlook for 2015 - 2017. It includes substantial value accretion potential
for our shareholders from internally generated cash flow and underlines the
stability and continuity of our business model. Having regained its
strength, GAGFAH is well positioned.

Thomas Zinnöcker, CEO of GAGFAH GROUP commented: "The results during the
first six months were in line with and in some cases even above our
expectations. We are very confident regarding the remainder of the year and
have therefore decided to enable our shareholders to participate even more
in the company's success. That is why we have raised the targeted dividend
for this year by 35% to EUR 0.30 to 0.35 per share. Our outlook on the KPIs
for the years 2015 to 2017 underlines our stable business model and the
additional value accretion potential we expect for our shareholders. We are
confident to continue to deliver strong results and set standards in terms
of transparency."

The management will host an earnings call today at 12:00 noon Luxembourg
time. All interested parties are welcome to participate in the live call.
You can access the conference call by dialing

  - 1 8773 284 999 from the U.S.

  - 08000 730 438 from the U.K.

  - 8002 7956 from Luxembourg

  - 0800 5890 680 from Germany 

  - +44 (0) 1452 561488 from all other countries 

ten minutes prior to the scheduled start of the call. Please refer to
"GAGFAH S.A. 6M 2014 Earnings Call". The conference ID will be 77828223.

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

The 6M 2014 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
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 more than 141,000 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.


13.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
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  
282025 13.08.2014