DGAP-News: TLG IMMOBILIEN AG / Key word(s): 9-month figures/Real Estate TLG IMMOBILIEN increases its FFO during the first nine months of 2014 and further expands its portfolio 28.11.2014 / 07:30 --------------------------------------------------------------------- Press release TLG IMMOBILIEN AG increases its FFO during the first nine months of 2014 and further expands its portfolio - FFO increased by 28 percent to EUR 40.4 million (previous year: EUR 31.6 million) - Third-quarter acquisitions further expand core portfolio - Management Board bolsters FFO forecast of approximately EUR 50.0 million for all of 2014 and confirms potential dividend Berlin, 28 November 2014 - TLG IMMOBILIEN AG, a leading commercial real estate company focussed primarily on Berlin and regional economic centres in eastern Germany, increased its Funds from Operations (FFO) by 28 percent to EUR 40.4 million during the first nine months of the year (previous year: EUR 31.6 million) and further optimised its real estate portfolio through additional acquisitions. As at 30 September 2014, rental income amounted to EUR 85.4 million (prior-year period: EUR 88.9 million), due primarily to the Q4 2013 disposal of properties which were not aligned with the portfolio's strategy. Consolidated net profit for the first nine months of 2014 amounted to EUR 68.5 million (previous year: EUR 75.3 million). The interim financial report along with TLG IMMOBILIEN AG's complete consolidated interim financial statements for the first nine months of 2014 was published online today under the following URL: TLG.de > Investor Relations > Financial Reports Acquisitions further expand core portfolio During the third quarter of 2014, TLG IMMOBILIEN expanded its core portfolio centred around the "Forum am Brühl" - a premium, virtually fully-let office property located in the heart of Leipzig directly across from the city's central station. In addition, TLG IMMOBILIEN further optimised its office property portfolio after the reporting date by acquiring an additional property in Berlin-Mitte located in direct proximity to the river Spree. This premium office building, which was completed in 2014, has more than 12,000 square metres of lettable space and is primarily leased long term to the Verdi union and Deutsche Bahn. The vacancy rate of approximately twelve percent as at the acquisition date has since already been reduced to below two percent. Furthermore, a purchase agreement was notarised on 27 November 2014 for a speciality retail centre in Berlin-Adlershof with some 33,450 square metres of lettable space. The total purchase price for this property amounts to approximately EUR 30.8 million and net rent for the year excluding utilities is anticipated to be EUR 3.0 million. Key lease contracts landed in Q3 2014 In August, Germany's Federal Office for Real Estate Management (Bundesanstalt für Immobilienaufgaben) renewed its lease agreement for the approximately 18,000 square metres of space it rents at Berliner Karl-Liebknecht-StraÃe 31/33. Also, after expanding the space it rents at the "1alex" property at Berlin's Alexanderplatz by some additional 1,600 square metres, BTB Bildungszentrum now lets approximately 3,600 square metres of space. The core portfolio's EPRA vacancy rate (3.5 percent as at 30 September 2014) had once more been decreased as compared to the first half of the year. As at the reporting date, the weighted average lease term for the office property portfolio amounted to 5.9 years and 7.1 years for the retail portfolio. Statement of financial position and financing structure remain sound As at 30 September 2014, TLG IMMOBILIEN AG had a sound statement of financial position and a conservative financing structure. Investment property had increased to EUR 1.467 million as at the reporting date (31 December 2013: EUR 1.415 million). As at 30 September 2014, the net Loan-to-Value (LTV) ratio amounted to 46.4 percent; the average borrowing costs remained below three percent. Management Board bolsters FFO forecast and focus on growth strategy "Our business performance to date bolsters the forecast we made prior to our IPO, namely that we will succeed in increasing TLG IMMOBILIEN's FFO to approximately EUR 50.0 million for the full year in 2014. Beginning in 2015, our shareholders will share in the success of our company as we distribute a dividend comprising 70 to 80 percent of our annual FFO", said Peter Finkbeiner, member of the Management Board. Niclas Karoff, member of the Management Board, stated, "Our recent additions highlight the fact that we are systematically implementing our ambitious growth strategy through value-enhancing acquisitions. Furthermore, the issue proceeds generated from our IPO on 24 October 2014 represent a key springboard for us to expand our core portfolio through additional positive cash flow properties in the coming months." Contact <pre> Christoph Wilhelm Sven Annutsch Corporate Communications Investor Relations Phone: +49 30 2470 6355 Phone: +49 30 2470 6089 Email: christoph.wilhelm@tlg.de Email: sven.annutsch@tlg.de </pre> About TLG IMMOBILIEN TLG IMMOBILIEN AG is a leading commercial real estate company focusing on Berlin and growth regions in Eastern Germany. For over 20 years, TLG IMMOBILIEN has been synonymous with real estate expertise in Germany's East. TLG IMMOBILIEN generates stable rental income and exhibits low vacancy rates, very good building stock and profits from its local employees' excellent market knowledge. As an active portfolio manager, TLG IMMOBILIEN is specialised in commercial properties for office and retail use. TLG IMMOBILIEN focuses on managing a high-quality portfolio of office properties in Berlin and other regional economic centres, as well as a regionally diversified portfolio of retail properties in highly frequented micro locations. The portfolio also includes five hotels in Berlin, Dresden and Rostock. TLG IMMOBILIEN's properties stand out not only due to their excellent locations but also because of their very long-term rental or lease agreements. As at 30 September 2014 the portfolio value (fair value) is EUR 1.5 billion. The EPRA net asset value per share is EUR 14,27 as at the reference day. --------------------------------------------------------------------- 28.11.2014 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. The DGAP 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: TLG IMMOBILIEN AG Hausvogteiplatz 12 10177 Berlin Germany Phone: 030 - 2470 - 50 Fax: 030 - 2470 - 7337 E-mail: kontakt@tlg.de Internet: www.tlg.de ISIN: DE000A12B8Z4 WKN: A12B8Z Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 300395 28.11.2014
DGAP-News: TLG IMMOBILIEN increases its FFO during the first nine months of 2014 and further expands its portfolio
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