PRESS & MEDIA
2 May 2018
GxP German Properties Achieves Substantial Growth in 2017
- Net asset value (NAV) per share climbs to EUR 6.12
- Total value of the real estate portfolio (GAV) increased by EUR 76.8 million to EUR 165.3 million
- Earnings after taxes rose from EUR 9.4 million to EUR 15.5 million
Berlin, 2 May 2018 – The listed Germany company GxP German Properties AG (ISIN: DE000A1YCNN8, WKN: A1YCNN) saw substantial growth during the 2017 financial year, and significantly increased its earnings figures. This is the upshot of the voluntary IFRS consolidated financial statements the company published for the first time as it presented the figures for its 2017 financial year. As of now, the annual report is available for download on the company’s homepage.
Portfolio Metrics Enhanced by Growth and Active Asset Management
By the end of the reporting period, four new acquisitions had brought up the real estate portfolio up to a total of twelve high-yield commercial properties with a combined floor area of 106,700 square metres (previous year: eight properties with a total of 65,095 square metres). The goal of massively enlarging the real estate holdings during the year under review was thereby achieved.
A total of 18 new leases for a combined floor area of 14,500 square metres were signed. The average vacancy rate had dropped by 229 basis points to 13.15 percent by the balance sheet date (previous year: 15.4 percent), whereas the portfolio’s weighted average unexpired lease terms (WAULT) went up from 2.89 to 3.67 years.
The real estate held by the company is spread across eleven locations in Germany, and adds up to a total value (GAV) of EUR 165.3 million (previous year: EUR 88.5 million) and a NAV of EUR 64.8 million (previous year: EUR 38.5 million). The NAV per share climbed to EUR 6.12 (previous year EUR 3.64). The gross yield of the real estate portfolio equalled 6.32 percent.
Robust Growth in Earnings and Sound Financial Position
Revenues collected during the 2017 financial year came to a total of EUR 13.0 million, with rent revenues accounting for the bulk of it at EUR 9.7 million. Another EUR 3.1 million represent proceeds from sales of properties no longer matching the company’s strategy, while EUR 0.2 million in revenues were generated by services provided in the asset management segment. During the previous year, sales revenues totalled EUR 57.6 million, with property sales proceeds accounting for EUR 54.6 million of the total.
The appreciation of the real estate portfolio during the year under review added up to EUR 19.3 million and thus clearly exceeded the prior-year figure (EUR 14.2 million). In addition to the properties acquired in 2017, the appreciation is attributable to portfolio properties that underwent improvements within the asset management framework. Earnings after taxes rose from EUR 9.4 million to EUR 15.5 million.
Analogously, the company’s financial situation was further stabilised. The gearing ratio (loan-to-value or LTV) was down to 59.0 percent by year-end (previous year: 58.8 percent) while the equity ratio rose by 180 basis points to 35.5 percent (previous year: 33.7 percent).
During the reporting period, the cash flow from operations amounted to EUR 5.8 million (previous year: EUR -17.0 million).
Plans Call for Further Portfolio Growth and Improvement of the Portfolio Metrics in 2018
In the ongoing financial year of 2018, GxP German Properties AG plans to continue its portfolio expansion and to keep improving its portfolio metrics. Boris Tramm, the company’s CEO, said: “We intend to keep exploiting the potential of the different real estate markets in 2018 in order to supplement our property holdings by acquiring assets that meet our quality requirements and return expectations. At the same time, we will continue to optimise our existing portfolio in a consistent effort to broaden the income basis of our company and to lay the ground for long-term appreciation.”
TEL: +49 (0)30 28 44 987 62
GxP German Properties AG
Europa Center 9th floor
TEL.: +49 (0)30 886 267 40
FAX: +49 (0)30 886 267 411
About GxP German Properties AG
Based in Berlin, GxP German Properties AG concentrates on the acquisition, portfolio management and asset management of office and retail real estate in Germany. The company’s investment focus includes attractive commercial real estate in the segments “core+” and “value-add” in the country’s metro regions as well as in selected midsize German cities. The strategy pursued by the company is to raise appreciation potential through active portfolio management, and to secure sustainable rent revenues at the same time. To this end, it relies on its long-term experience on the real estate market and its comprehensive network.
For more details, go to the company’s homepage at www.gxpag.com