POLIS IMMOBILIEN AG 
By POLIS Immobilien publishes preliminary figures for 2012
- Funds from Operations (FFO) more than doubled to EUR 2.6 million
- Michael Piontek appointed new Chief Financial Officer
16.02 million and EUR 11.2 million, respectively. As had been expected, funds from operations, which reflect the operating result adjusted for the result from revaluation, the sale of properties, the valuation result of financial derivatives and deferred taxes, more than doubled to EUR 2.6 million (2011: EUR 1.2 million).
The specialist for the modernisation and management of office properties in established locations in Germany's leading office cities achieved a positive valuation result of EUR 2.4 million for the portfolio properties. The previous year's higher valuation result of EUR 4.5 million was influenced by the non-recurrent effect of the first-time valuation of the investment properties at the company's new location in Dresden. The valuation result shows that the high modernisation investments of the past years have led to value increases. Another positive
aspect is the renewal of leases for some 15,365 square metres, which will improve the stability of future earnings. "All value-enhancing measures and investments are geared to the wishes
of the tenants. This ultimately pays off in the form of high tenant satisfaction and long-term tenant retention," says Dr. Alan Cadmus, CEO of POLIS.
What had not been expected, however, was the continued decline in market interest rates, which again led to non-cash valuation losses from interest rate hedges in the amount of EUR
2.5 million (2011: EUR 3.7 million). Together with the lower valuation result from investment properties, this decline was also the reason for the reduction in consolidated net income before taxes (IFRS), which amounted to EUR 2.6 million in 2012 (2011: EUR 3.2 million).
To reduce its exposure to financing-related valuation effects and open up financial scope for new acquisitions, POLIS successfully restructured part of its debt capital, renewed loan agreements
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and interest rate hedges and reduced the interest rate hedge ratio in the second half of the year. The company now has credit lines available for new acquisitions, which it intends to use in the current fiscal year. Special opportunities will result from the new "Third-party Asset Management" unit, which aims to offer investors a share in POLIS' high-quality properties and to manage the assets and properties for them. An equity ratio of 49 percent means that POLIS remains soundly financed.
As a result of an internal restructuring, in the context of which significant hidden reserves were disclosed in October 2012, the company posted a net income of EUR 6.2 million according to German accounting standards (HGB), which is the relevant result for payment of a dividend. As this is exclusively the result of an internal, non-cash process, the Management Board will propose to carry the HGB profit forward to new account.
Since the former Chief Financial Officer left the company in July 2012, Dr. Alan Cadmus has been the sole member of the Management Board. Michael Piontek has now been appointed Chief Financial Officer with effect from 1 April 2013. He previously worked as Head of Accounting and Finance at Berlinovo Immobilien GmbH and Managing Director of its subsidiary, IBV GmbH. Having worked in the banking sector for many years, he joined the Berlin government in 2003, where he was in charge of risk limitation and winding up the risk positions of the former Bankgesellschaft Berlin. Michael Piontek holds an MBA in Financial Management.
Successful letting performance continues in the new year
The quality-oriented business model and the homogeneous property portfolio suggest that the successful letting performance will continue next year. Up to the end of February 2013, the company had signed new and renewed existing leases for 5,000 square metres. The key operating figures will continue to improve in the fiscal year 2013 due to the increased lettings. The company aims to stabilise the letting ratio at over 90 percent of all properties by the end of 2013. Moreover, POLIS plans to further increase the result from property management and to purchase
new properties with the aim of generating additional growth. From today's point of view, funds from operations will rise to over EUR 4.0 million in 2013 and to over EUR 5.0 million in 2014. More projects with third parties are expected to boost the assets under management to over EUR 350 million.
The key figures for the financial year 2012 can be found at www.polis.de/IR/finanzberichte.php. The
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2012 Annual Report will be published on 28 March 2013.
POLIS Immobilien AG, which was founded in Berlin in 1998, is a listed real estate company that buys, refurbishes/revitalises, and manages office properties for its own portfolio. The company focuses on one market segment: office properties in inner-city locations at the most important German office centres. The company acquires properties that are either already renovated and are completely let, thereby generating stable cash flow, or properties that are vacant or require modernisation, and which offer specific value appreciation potential. This potential may be realised by corresponding modernisation measures or full revitalisation. As of December 31 2012, POLIS Immobilien's real estate portfolio comprised a total of 29 properties with a market value of around EUR 290 million. POLIS Immobilien shares are listed on the regulated market (Prime Standard, ISIN: DE0006913304) of the Frankfurt Securities Exchange. Further information can be found at www.polis.de.
Investor Relations: Press Contact:Dr. Alan Cadmus POLIS Immobilien AG Tel: +49 30 225 00-250
E-Mail: ir@polis.de
URL: www.polis.de
Britta Cirkel
HOSCHKE & CONSORTEN Public Relations GmbH Tel: +49 40 36 90 50- 56
E-Mail: b.cirkel@hoschke.de
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