POLIS Immobilien AG
POLIS Immobilien boosts sales revenues and FFO in first half of 2014
POLIS Immobilien AG / Key word(s): Half Year Results/Half Year Results Corporate News POLIS Immobilien boosts sales revenues and FFO in first half of 2014 – Rental income climbs 8 percent to EUR 9.21 million – Funds from operations rosed by 47 percent to EUR 3.45 million – Occupancy rate increased by 4 percentage points to 93 percent – Positive outlook for the second half of the year Berlin, 7 August 2014 – POLIS Immobilien AG [ISIN: DE0006913304] continued to grow in the first half of 2014. Rental income was up by 8 percent on the prior year period to EUR 9.21 million. “The increased rental income is attributable to the new investment property at Rankestraße 21 in Berlin and the high level of take-up of the previous years. “We expect the occupancy rate to increase even a bit further in the second half of the year”, said Dr. Alan Cadmus, Chief Executive Officer of POLIS. The company, which specialises in the modernisation and management of office properties, continues to grow and wants to acquire further properties in attractive locations of the most important German business cities. Thanks to higher rental revenues, net rental income increased by 6 percent on the prior year period to EUR 7.18 million. The occupancy rate climbed 4 percentage points to 93 percent during the same period. “The temporary vacancy of approx. 3 percent of our total portfolio space resulting from the departure of the sole tenant at Gutleutstraße 26 in Frankfurt was fully offset by lettings in other properties in the first half of the year,” Cadmus emphasised. The increase in take-up to 10,400 square metres (previous year: 9,310) reported in the first half of the year comprises new lease agreements for 3,550 square metres and renewals for 6,890 square metres. Between them, all lease agreements have an average remaining term of 3.8 years, while the average rent amounts to EUR 11.67 per square metre. In mid-2014, POLIS sold the two properties at Rheinstraße 43 – 45 and Rheinstraße 105 – 107 in Mainz. These sales were made with a view to optimising the portfolio, as the current plans indicated that the properties had no potential for further value increases and the company aims to reduce the number of minor locations. As the sales prices were more or less in line with the market values, no significant income was generated from the sale. The Berlin-based company invested EUR 2.01 million (previous year: EUR 4.39 million) in the modernisation of its properties in the first half of the year. Additionally, the market values of the investment properties increased by EUR 1.24 million. Due to income from a guarantee payment, other income improved to EUR 0.71 million (previous year: EUR 0.06 million). Interest expenses increased by 3 percent to EUR 2.97 million as the company made greater use of bank loans. An extraordinary repayment made as of 30 June 2014 will have a positive effect in the second half of the year. Funds from operations (FFO), which are adjusted for all extraordinary results, improved by a high 47 percent to EUR 3.45 million. Excellent capitalisation supports growth plans An equity ratio of 49 percent (up from 48 in the previous year) means that POLIS is very solidly financed and has sufficient reserves for acquisitions. The company has liquid funds of EUR 4.38 million and substantial financing scope. The high operating cashflow is stable. “Thanks to this excellent capitalisation and our low leverage, we are able to grow further and to refinance ourselves at favourable interest rates”, said Chief Financial Officer Michael Piontek. POLIS is confident that attractive acquisitions will be announced shortly. Outlook POLIS plans to further improve its key performance indicators in the 2014 financial year on the basis of an ongoing improvement in the occupancy rate and the acquisition of new properties. The Board of Management has confirmed its guidance of a moderate increase in funds from operations and earnings before taxes (EBT) below the prior year level, as the valuation result from financial derivatives is expected to be lower than in the previous year. The quarterly report is available for downloading on the company’s website at www.polisag.de/IR/zwischenberichte.php. 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 30 June 2014, POLIS real estate portfolio comprised a total of 24 properties with a market value of around EUR 314 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:
07.08.2014 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP 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: | POLIS Immobilien AG | |
Rankestraße 5/6 | ||
10789 Berlin | ||
Germany | ||
Phone: | +49 30 225 00-261 | |
Fax: | +49 30 225 00-299 | |
E-mail: | info@polis.de | |
Internet: | www.polis.de | |
ISIN: | DE0006913304 | |
WKN: | 691330 | |
Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hamburg, München | |
End of News | DGAP News-Service |
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