DGAP-News: GAGFAH 2014 - Promised and Delivered


DGAP-News: GAGFAH S.A. / Key word(s): Final Results
GAGFAH 2014 - Promised and Delivered

03.03.2015 / 07:00

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Press Release: March 3, 2015
GAGFAH S.A.
2-4, rue Beck
L-1222 Luxembourg

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

GAGFAH 2014 - Promised and Delivered 

  - Strong operational results with 2.7% rent growth and 3.4% vacancy rate 

  - EUR189.9 million Recurring FFO (EUR0.88 per share)

  - EUR14.39 EPRA NAV per share

  - Proposed dividend of EUR0.35 per share

2014 was a very successful year for GAGFAH. The Company had set ambitious
targets for 2014 and has fully delivered on its promises. The final results
underline the strong performance during the previous year and clearly
demonstrate GAGFAH's progress.

Operations
Net cold rent grew 2.7% (like-for-like: 2.6%) to EUR5.35 per square meter
in 2014. The vacancy rate declined by 70 basis points in the course of 2014
and came out at 3.4%. Excluding the impact from the ca. 6,300 units
acquired in the fourth quarter, the vacancy rate was 3.2%. GAGFAH invested
a total of EUR151.2 million (+25%) or EUR17.59 per square meter.

Sales
GAGFAH closed the sale of 766 condo units and 4,168 non-core units for a
total of EUR222.0 million and signed sales agreements for an additional 165
condo units plus 1,543 non-core units. While the non-core units were sold
broadly in line with their respective carrying values, the gross margin on
the condo sales was 26.2% and the net cold rent multiple was 20.2x.

Financial Results
The net operating income (NOI) in 2014 was EUR390.7 million (+4.9%), which
represents an NOI margin of 69.5% and an NOI yield of 5.1%. The adjusted
EBITDA was EUR349.7 million (+4.3%) and reflects a margin of 4.5% on the
average property value in the course of 2014. Supported by higher rental
income, broadly stable property and overhead expenses and substantially
lower interest expenses, the Recurring FFO was EUR189.9 million or EUR0.88
per share (+47%). Based on the 2014 year-end EPRA NAV, the Recurring FFO
yield is 6.1%.

The improved cash flows of the business supported the EUR161.9 million gain
from the fair value measurement of investment property (+2.1% compared to
Dec. 31, 2013 values). GAGFAH's portfolio is valued at EUR895 per square
meter, with a 13.4x target-rent multiple and a 13.8x in-place-rent
multiple. The EPRA NAV as of Dec. 31, 2014 was EUR14.39 per share (+10.1%).

Based on the strong results of 2014, the Board of Directors of GAGFAH S.A.
has decided to propose a cash dividend of EUR0.35 per share to the next
Annual General Meeting of Shareholders.

Thomas Zinnöcker, CEO of GAGFAH GROUP commented, "2014 was a very
successful year for GAGFAH. We were able to achieve the goals we had set
for ourselves, and we overachieved on the Total Shareholder Return target
with our NAV per-share growth of more than 10%. I am glad to announce that
for the first time since 2010, the Board of Directors has proposed a cash
dividend of EUR0.35 per share, which is fully funded by the cash available
for distribution that we generated in 2014. We are looking ahead with
optimism, and I am convinced that our joining forces with Deutsche
Annington will enable us to create the best of both worlds to the advantage
of all of our stakeholders."

 

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

  - 1 866 966 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 2014 Earnings Call ". The conference ID will be
89509220.

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 full year 2014 report and management presentation are available
as PDF downloads on www.gagfah.com.

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 acquisition, 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 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.



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Language:    English                                                    
Company:     GAGFAH S.A.                                                
             2-4, rue Beck                                              
             1222 Luxemburg                                             
             Grand Duchy of Luxembourg                                  
Phone:       + 352 266 366 21                                           
Fax:         + 352 266 366 01                                           
E-mail:      info@gagfah.com                                            
Internet:    www.gagfah.com                                             
ISIN:        LU0269583422, DE000A1ZJD18                                 
WKN:         A0LBDT, A1ZJD1                                             
Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated  
             Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,  
             Stuttgart                                                  
 
 
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