GxP German Properties AG: GxP German Properties increases 1H 2017 results and guidance

GxP German Properties increases 1H 2017 results and guidance

- Market value of office properties at EUR 116 million, increase of 9.3% from year end 2016

- Increase in the NAV/share ⁽¹⁾ from EUR 4.85 to EUR 5.79, increase of 19.4% from year end 2016

- Positive net income inkl. Revaluation gains of EUR 5.0m

- Increased guidance through the acquisition of Berlin-Teltow

Frankfurt, 31 August 2017 - GxP German Properties (ISIN: DE000A1YCNN8, WKN: A1YCNN) continued its growth phase in the first half of 2017. Six months after the operational launch and despite considerable investments costs the company realised a positive adjusted net income of EUR 5.0 million for the first half-year of 2017.

As of 30 June 2017, the owned real estate portfolio comprises nine office properties with a total market value of approx. EUR 116 million, an increase of + 9.3% from year end 2016.

The Net Asset Value (NAV) ⁽¹⁾ as of June 30, 2017 increased by 19.4% to EUR 50.2 million or EUR 5.79 per share⁽¹⁾. The net Loan-To-Value ratio (LTV) as indicator for the company's debt ratio was reduced from 65.7% to below 60% in the first half of 2017 and is close to the mid-term target corridor of 50-55%. As of June 30, 2017, the company's cash position stood at EUR 5.8 million. On 28 August 2017, a cash capital increase of EUR 3.6 million was placed and additional liquidity was created for the announced acquisition in Berlin-Teltow as well as further acquisitions.

Rental income in the first half of 2017 amounted to EUR 3.7 million confirming the previously guided annualized rental income of EUR 7.5 million.

Adjusted for the revaluation gains from the existing portfolio the Group achieved an adjusted net income of EUR 5.0 million in the first half of 2017. The FFO I for the first half of 2017 amounted to EUR 1.6 million confirming the previously provided guidance of approx. EUR 3.5 million.

Increased guidance through expansion of portfolio

On 28 August 2017, an additional office property was acquired in Berlin-Teltow with the total portfolio value increasing to EUR 134 million.

The weighted average lease term (WAULT) for the overall portfolio increases from 3.0 years to 3.2 years, with the vacancy rate reducing from 14.9% to 13.4%. The average interest rate on the outstanding debt is decreasing slightly from 2.2% to 2.1%.

The entire real estate portfolio including Berlin-Teltow generates an annualized rental income of around EUR 8.6 million. This corresponds to a net initial yield of approx. 6.4%. With this high-yielding portfolio the company expects an increased annualized FFO I of around EUR 4.0 million (previously EUR 3.5 million). The net initial yield as well as the implicit FFO yield based on the current market capitalization above 9% are clearly above the market average. Management expects an increase in the NAV/share including the acquisition in Berlin-Teltow from currently EUR 5.79/share to at least EUR 5.95/share. The strict acquisition criteria were consistently implemented through the recent acquisition with an expected increase in the core metrics NAV per share and FFO I.

1) NAV excl. goodwill. The reported NAV under HGB is EUR 83.6 million or EUR 9.65/share

IR Contakt

Axel Mühlhaus / Patrick Wang
edicto GmbH
Eschersheimer Landstr. 42-44
D-60322 Frankfurt
Tel.: +49 (0) 69/ 905505-52
Fax: +49 (0) 69/ 905505-77
E-Mail: gxp@edicto.de