Half-year financial report of Godewind Immobilien AG confirms successful continuation of operating business in 2019
- Strong growth in all key figures continues in the first half of the year
- EPRA Net Asset Value (EPRA NAV) reaches EUR 4.54 per share as of 30 June
- FFO increases significantly to EUR 2.8 million
- The value of the office property portfolio rises to currently around EUR 950 million
- FFO forecast for full year raised
Frankfurt am Main, 13 August, 2019 - Godewind Immobilien AG (ISIN: DE000A2G8XX3, trading symbol: GWD, Godewind), a company specializing in German office real estate, continued to successfully implement its business model in the first half of 2019, which is designed to increase earnings through expansion.
Expansion of office property portfolio accelerated in the first half of the year
In the first half of 2019, Godewind closed five further purchase contracts for office properties with a gross acquisition value of around EUR 466.5 million, thus expanding its portfolio to nine properties in total as of 30 June 2019. Another office property, the City Gate in Frankfurt, was contractually secured for a gross purchase price of EUR 90.5 million. The gross value of the nine portfolio properties was around EUR 855 million as of 30 June 2019. The value of the entire portfolio, including the City Gate property, is therefore currently around EUR 950 million.
The targeted purchase of office properties with extensive vacant space created the conditions for further profitable growth in the coming years. As a result, consolidated results for the first half of 2019 was already EUR 73.4 million, compared with EUR 10.1 million at the end of the 2018 financial year. The Funds from operations (FFO) now amount to around EUR 2.8 million, compared with EUR minus 3.8 million as of 31 December 2018. It has to be taken into account that, on the one hand, some new rental agreements have not yet been recognised in income and, on the other hand, the income from the five properties acquired in the first half of 2019 has only been included in the current business figures on a pro rata basis. The closing for the City Gate in Frankfurt, the latest contractually secured property on 22 May, is expected to take place at the end of the third quarter.
The newly acquired properties already showed a clearly positive performance, despite some late closings in the reporting period. On the one hand, this development underlines the quality of the office properties acquired. On the other hand, it illustrates the progress made in reducing the strategic vacancy rate. Including the City Gate property which ist not yet closed, the vacancy rate has already been reduced from originally 28.0 percent to pro forma around 22.5 percent. Due to this positive performance, the result from the valuation of investment properties amounted to EUR 82.9 million. The result from letting and leasing increased to EUR 8.9 million.
The EPRA Net Asset Value (EPRA NAV) amounted to EUR 487.7 million or EUR 4.54 per share at the end of the first half of 2019 after EUR 396.4 million or EUR 3.65 per share at the end of the 2018 financial year. Net LTV amounted to 46.0 percent at the end of the first six months of 2019.
Continued good growth prospects for 2019 - Forecast raised
As already announced on 22 July, Godewind's management has raised its outlook for the 2019 financial year due to the very good operating performance in the first half of the year and the continued positive outlook for the second half. In addition to lower than expected financing costs and the first successes already achieved in reducing purchased vacancies will have an effect.
The FFO is now expected in a range of EUR 8.5 million to EUR 9.5 million, also taking into account the City Gate office tower and the properties acquired in the first half of the year, but subject to any further acquisitions. So far, FFOs have been forecasted in the single-digit mid-million range based on the contractually secured property portfolio at the time of the forecast. Rental income will continue to rise significantly in the second half of the year and the EPRA Net Asset Value (EPRA NAV) should also increase further compared to the half-year result.
Basis laid for first dividend distributions
The ten office properties in total, including City Gate, form a strong basis for further NAV and FFO increases in the current financial year and for the first dividend distribution for the 2019 financial year. With a office property portfolio of around EUR 950 million of Value-Add and Core(+) office properties to date, Godewind is currently almost fully invested. In line with its business model, the company will now initially focus on further reducing the targeted acquired vacancy rate.
The half-year financial report 2019 of Godewind Immobilen AG will be available in the Investor Relations section of the website during the course of the day: https://www.godewind-ag.com/en/financial-reports/.
Group key figures according to IFRS at a glance as of 30 June 2019
1.1. - 30.6.2019
1.1. - 30.6.2018
|Income from letting activities ||in TEUR ||14,952 ||0 |
|Net operating income from letting activities ||in TEUR ||8,944 ||0 |
|Gains/losses from property valuation ||in TEUR ||82,976 ||0 |
|EBITDA ||in TEUR ||4,408 ||-2,287 |
|Consolidated net income ||in TEUR ||73,394 ||-5,488 |
|FFO I ||in TEUR ||2,759 ||-987 |
|FFO I per share ||in EUR ||0.03 ||-0.02 |
|EPRA earnings ||in TEUR ||17,359 ||-5,488 |
|EPRA earnings per share ||in EUR ||0.16 ||-0.09 |
|Earnings per share, basic ||in EUR ||0.67 ||-0.08 |
|Earnings per share, diluted ||in EUR ||0.66 ||-0.08 |
BALANCE SHEET FIGURES
| || |
|Investment property ||in TEUR ||855,005 ||300,905 |
|Cash and cash equivalents ||in TEUR ||14,479 ||157,745 |
|Balance sheet total ||in TEUR ||891,276 ||503,054 |
|Equity (including non-controlling interests) ||in TEUR ||467,118 ||397,251 |
|Equity ratio ||in % of ||52.4 ||78.97 |
|Net debt ||in TEUR ||393,540 ||-59,390 |
|Net loan to value (Net LTV) ||in % of ||46.0 ||-19.7 |
|EPRA NAV ||in TEUR ||487,728 ||396,394 |
|EPRA NAV per share ||in EUR ||4.54 ||3.65 |
|EPRA NNNAV per share ||in EUR ||4.51 ||3.62 |
SELECTED PORTFOLIO KEY FIGURES
| || |
|Property value pursuant to IAS 40 ||in TEUR ||855,005 ||300,905 |
|Number of properties || ||9 ||4 |
|Lettable area ||in m² ||270,416 ||96,655 |
|Annual basic rent ||in TEUR ||34,856 ||13,657 |
|Gross initial yield ||in % of ||4.08 ||4.54 |
|EPRA vacancy rate ||in % of ||28.4 ||32.3 |
|Loan to value (LTV) of the portfolio ||in % of ||47.7 ||29.1 |
|WALT ||in years ||4.3 ||4.2 |
|Average rent ||in EUR/m² ||15.23 ||15.98 |
About Godewind Immobilien AG
Godewind Immobilien AG, headquartered in Frankfurt am Main, is a company specializing in German office real estate. The company's focus is on building and extending an attractive real estate portfolio in the growth areas of Germany. As an active portfolio and asset manager, Godewind strives for sustainable increases in earnings and income, which are supplemented by the regular realisation of added value potential. Including the latest acquisition City Gate, Godewind has an office real estate portfolio totalling around EUR 950 million. In the medium term, the aim is to build a commercial real estate portfolio of around three billion euros with the help of the company's wide-ranging network and by means of value-added acquisitions.
Based on internal portfolio and asset management, Godewind Immobilien AG will manage commercial real estate cost-efficiently, conclude long-term leases and thus increase the value of the company. The company has loss carryforwards for corporation and trade tax as well as a tax deposit account. Godewind Immobilien AG shares are traded in the Prime Standard segment of the Frankfurt Stock Exchange (FWB). For further information please visit http://www.godewind-ag.com.
Investor Relations Contact
Godewind Real Estate AG
Phone +49 69 27 13 97 32 13
Kirchhoff Consult AG
Phone +49 40 60 91 86 65
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