Gutburg Immobilien S.A. / Key word(s): Final Results
29.04.2014 07:00

Release of an ad hoc announcement pursuant to Art. 53 KR

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News Release

Gutburg Immobilien on stable new basis and with positive developments
Luxembourg, 29 April 2014 - Gutburg Immobilien S.A. (consecutively "Gutburg Immobilien") continued to record positive business developments during the financial year 2013 and forcefully pursued its strategy to further increase the attractiveness of the living spaces offered. Moreover, by establishing a new company structure and concluding an extensive refinancing, we have set a sound basis for the further development of the organization.
Revenue from rents recorded during the financial year 2013 increased by 2.3% to EUR 22.6 million, thereby raising the monthly net rental income at the end of the reporting period to EUR 1.92 million. On an annualized basis, net rental income corresponds to EUR 23.0 million as at December 2013. Total rented floor space at year-end 2013 amounted to 452'952 square meters, compared to 448'195 square meters at year-end 2012. Thanks to new rentals the vacancy rate of the portfolio could be reduced by 120 basis points from 13.5% as of 31 December 2012 to 12.3% as of 31 December 2013. Demand for residential properties developed positively in particular in Leipzig, Schwerin and Brandenburg. New rentals have been concluded at an average rate of around EUR 4.60 per square meter and month. Thus, since December 2012, the average monthly portfolio rent has increased by 1% from EUR 4.20 to EUR 4.24 per square meter. During the financial year 2013 a total of EUR 3.17 million has been expensed for investments and refurbishments, compared to EUR 3.47 million in the prior year.
Reported operating profit for the year 2013 amounts EUR 13.21 million and operating cash flow stood at EUR 10.11 million. Value adjustments on investment property of EUR 6.81 million exceed the investment spending by more than double. Adjusted profit of EUR 2.64 million for the full year 2013 has been charged by non-recurring income-statement related transaction and consulting costs of around EUR 1.1 million in connection with the bond placement.

Adjusted equity as of 31 December 2013 amounted to EUR 72.81 million, compared to EUR 57.30 million as of the prior year-end. Thanks to the financial restructuring the adjusted equity ratio increased from 21.52% to 26.64%.

Gutburg Immobilien on sound footing is well positioned for the future
The first half-year of 2013 has been marked by an encompassing, long-term reorientation, both with regard to the constitution of the shareholder base and the optimization of the debt structure.

As such, Gutburg Immobilien refinanced its mortgages and thereby benefits in the long term from the currently favorable interest-rate environment. In total, loans in the amount of EUR 141.9 million and a term until 2020 have been newly negotiated with two German banks. Thereby interest rates have been fixed at customary market rates for the entire duration.
The newly founded holding company Gutburg Immobilien S.A., Luxembourg, additionally has placed on 8 July 2013 a corporate bond issue in the amount of CHF 55 million with a coupon of 4.75%. The five-year straight bonds have been listed on the Swiss stock exchange (SIX Swiss Exchange) and hold a rating of BB+ (outlook stable) by the German rating agency Euler Hermes.
At the same time the new holding company has concluded an increase in share capital. Proceeds from the bond issue as well as the equity placement with new, long-term oriented shareholders have been used to acquire of 33.1% of the shares in Perseus Real Estate Investment S.à r.l. as well as to repay an outstanding mezzanine loan. Prior to this, Adurion Real Estate Lux. S.A., the previous majority owner of the Perseus Group, has contributed its 61.8% share in Perseus by means of contribution in kind into Gutburg.
The executed capital increases and the secured long-term financing place Gutburg Immobilien group on a sound position for the future.
On occasion of an extraordinary general meeting on 25 April 2014 Marcel Rohner has been elected to the Board of Directors of Gutburg Immobilien S.A. The Board of Directors proposes to the ordinary annual general meeting a distribution of EUR 4.00 per share.

Positive outlook

We are confident about the further development of our real estate portfolio. By continuously investing in maintenance and refurbishment of the properties we target additional new rentals and thus further improvements of our profitability, thereby strengthening our competitive market positioning also to the benefit of our tenants. For the current year we expect rental revenues to continue to grow and a further increase in the average portfolio rent. Net profit and cash flow are expected to improve substantially due to significantly reduced interest expenses as well as the absence of non-recurring transaction costs.

Contact:
Simon Koenig, CEO
koenig@gutburg.com
Phone +41 44 914 90 00

About Gutburg Immobilien S.A.

Gutburg Immobilien comprises a real estate portfolio of around 8'500 residential units with a total floor space of 516'372 sqm in Brandenburg (Havel), Cottbus, Görlitz, Halle (Saale), Leipzig, Markneukirchen, Plauen, Schwerin and Schmalkalden. Around half of the rentable space and of group rental revenues is accounted for by the objects in Leipzig. Gutburg Immobilien S.A. has been incorporated on 30 May 2013 and within the frame of a recapitalization as of 8 July 2013 has taken over 94.9% of the Perseus Group which has owned the real estate portfolio since 31 March 2018.
 

Key figures at a glance

Financial key figures


1 2013 after non-recurring charges in connection with restructuring and refinancing


Key figures per share


2 based on adjusted equity capital attributable to Gutburg shareholders
The complete report on the financial year 2013 of Gutburg Immobilien S.A. is available on our website www.gutburg.com under the link: http://gutburg.com/download/companies/gutburg/Annual%20Reports/gb2013.pdf


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Additional features:
Document: http://n.equitystory.com/c/fncls.ssp?u=CTVFNXCKWP Document title: Gutburg Immobilien on stable new basis and with positive developments


29.04.2014 News transmitted by EQS Schweiz AG. 
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