Gutburg Immobilien S.A. / Key word(s): Half Year Results
25.09.2014 07:00

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

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News Release

Gutburg Immobilien benefits from positive development trends of high population areas in Eastern Germany

Luxembourg, 25 September 2014 - Strong demand for residential property in vital East German areas has a positive impact on the business development of Gutburg Immobilien S.A. (consecutively "Gutburg Immobilien"). Increasing population in cities such as Leipzig, Halle and Cottbus drive the continued reduction of vacancy rates and result in rising rents in the central locations of Gutburg Immobilien. Increasingly, higher rental prices can be established thanks to the attractive positioning and the high desirability of our apartments. Mid-term, this will have a positive impact on the profitability of Gutburg Immobilien.

Revenue from rents recorded during the first half-year of 2014 grew by 2.2% to EUR 11.5 million, whereas the monthly net rental income at the end of June amounted to EUR 1.96 million. Compared to the prior year period this corresponds to a significant increase of 3.2%. On an annualized basis net rental income thus amounts to EUR 23.5 million. The total lettable living space as of June 30, 2014 adds up to 452 835 sqm, as against 449 073 sqm per end of June 2013. Thanks to new rentals the vacancy rate of the portfolio could be lowered by 73 bps to 12.3%. The average portfolio rent (net rental income per month and square metre) increased by 2.4% from EUR 4.23 to EUR 4.33 per sqm, a particularly positive development. Still, the average rate in new rentals could be increased even more markedly. Against this, investments and refurbishments in connection with new rentals decreased to EUR 1.0 million during the reporting period compared to EUR 1.4 million in the prior half-year.

Reported operating profit could be boosted over-proportionally by 19% to EUR 7.4 million for the half-year period thanks to efficient and active management, compared to EUR 6.3 million during the prior half-year. Adjusted profit for the period rose markedly to EUR 3.0 million due to extraordinary, non-recurring transaction costs incurred during the first half-year of 2013. However, profit reported for the period has been charged by net losses from fair value adjustment on derivative financial instruments due to still falling interest rates. These fair value adjustments will not impact profitability over the term-time thanks to matching terms of the existing mortgages.

Adjusted equity capital as of June 30, 2014 amounted to EUR 75.8 million compared to EUR 67.0 million at the end of the prior year period. Thus the equity ratio increased from 25.0% to27.7%.

Gutburg Immobilien with strong positioning in growing markets
During the first half-year 2014 rental rates at the most important portfolio locations of Gutburg Immobilien could be augmented within a still positive market development, in some cases considerably. This will impact results positively for the entire year 2014 and thus lead to a significantly increased annualized net rental income. Demand for our attractive rental properties - which fare well compared to the market especially in Leipzig, Halle and Cottbus - continues unabatedly. Despite ongoing augmentation, the average rental rates procured by us are still very favorable and are below market levels in the important locations. Against this, we will meet the challenges at the less central locations. Overall, we expect to record a stable annual performance in a continuing positive market environment.

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: from Jan 1 - July 8, 2013
2) based on independent valuation as of Dec 31


Key figures per share


2 based on adjusted equity capital

The complete report on the half-year 2014 of Gutburg Immobilien S.A. is available on our website www.gutburg.com under the link: http://gutburg.com/download/companies/gutburg/Annual%20Reports/HJ-2014_en. pdf



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Additional features:
Document: http://n.equitystory.com/c/fncls.ssp?u=ONYYUTDXHM Document title: Gutburg Immobilien benefits from positive development trends of high population areas in Eastern Germany

25.09.2014 News transmitted by EQS Schweiz AG. 
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