Colonia Real Estate AG
Colonia Real Estate AG: Colonia Real Estate AG’s first-quarter result impacted by restructuring expenditure following takeover by TAG Immobilien AG
Colonia Real Estate AG / Key word(s): Quarter Results 23.05.2011 / 08:00 * First-quarter rental income (NOI) down slightly YOY to EUR 9.0 million * Restructuring expenditure of EUR 4.6 million Euro pushes EBT for Q1 2011 down to EUR -5.4 million (Q1 2010: EUR 0.3 million) Cologne, May 23, 2011 - For Colonia Real Estate AG (or 'Colonia' in the following), the first quarter was dominated by the acquisition of a controlling majority by TAG Immobilien AG (or 'TAG' in the following). After the controlling majority of voting rights had been achieved in mid- February, an integration and restructuring process was prepared and initiated across Colonia group's operations. This initially led to significant changes in the composition of the management and supervisory boards. TAG's CEO and CFO will assume these positions at Colonia in addition to their tasks on the TAG Management Board. At the operations level, synergies in asset and property management are to be realised by the end of the year. During the restructuring process, the focus will be on accelerating vacancy reduction and pooling the companies' capacities in managing the various portfolios. The initiated processes are also expected to lead to cost savings on internal administration and central tasks, and not least to pave the way for Colonia's integration into the TAG Group. Initially, the EUR 4.6 million in restructuring expenditure on these measures has impacted first-quarter results. In the first three months of 2011, Colonia generated total revenues of EUR 29.3 million after EUR 23.4 million in the comparable period of 2010. Revenues from rent increased slightly, and amounted to EUR 21.9 million in the first three months of 2011 after EUR 21.0 million in Q1 2010. This led to net rental income of EUR 9.0 million for Q1 2011 (Q1 2010: EUR 10.4 million). This first-quarter result yielded EBIT of EUR 2.3 million, significantly down from the previous year's EUR 8.2 million. The first-quarter financial result was EUR -7.6 million after EUR -7.9 million in Q1 2010, and led to negative pre-tax earnings (EBT) of EUR -5.4 million (Q1 2010: EUR 0.3 million) and a period result of EUR -5.6 million after EUR 0.1 million in Q1 2010. The focus in 2011 is on managing the existing real estate inventory and continuing to optimise the rental income and reduce vacancy. One action area will be the Salzgitter portfolio, which had a vacancy rate of 24 percent at the end of Q1 2011; here, extensive investments in the inventory will be needed. Based on the positive development seen in Germany's economy and real estate market, and the growth potential inherent in Colonia's existing inventory, the Management Board does, however, expect to achieve an operating profit in the current fiscal year. The Board of Management Cologne, May 23, 2011 Colonia Real Estate AG Zeppelinstraße 4-8 D-50667 Cologne Listing: regulated market of the Frankfurt Stock Exchange (Prime Standard) ISIN: DE0006338007 WKN: 633800 About Colonia Real Estate AG Colonia Real Estate AG is one of the leading listed real estate investment and management groups in Germany with round about 19,000 residential units and EUR 2.1 bn Assets under Management. The Colonia business model is based on two columns. The investment segment concentrates on high-yield residential property portfolios held for the company's account and co-investments in commercial and residential properties together with institutional partners. Second column of the Colonia business model is the service segment. Here Colonia Real Estate Solutions GmbH provides all services along the life cycle of a property in a modular manner. Contact: Colonia Real Estate AG Zeppelinstr. 4-8 50667 Cologne, Germany Phone +49 (0)221 71 60 71 0 Fax +49 (0) 221 71 60 71 99 E-Mail: pr@colonia.ag End of Corporate News --------------------------------------------------------------------- 23.05.2011 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Colonia Real Estate AG Zeppelinstr. 4 - 8 50667 Köln Deutschland Phone: +49 221-716071-0 Fax: +49 221-716071-99 E-mail: ir@colonia.ag Internet: www.colonia.ag ISIN: DE0006338007 WKN: 633800 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart; Luxembourg End of News DGAP News-Service --------------------------------------------------------------------- 125694 23.05.2011
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