POLIS Immobilien AG
POLIS Immobilien reports good operating figures and successful acquisition
POLIS Immobilien AG / Key word(s): Quarter Results/Quarter Results Corporate News POLIS Immobilien reports good operating figures and successful acquisition – Result from property management rises 20 percent to EUR 9.8 million at the nine-month stage – Funds from operations up 44 percent to EUR 2.8 million – Acquisition of an office property in Berlin Berlin, 7 November 2013 – POLIS Immobilien AG [ISIN: DE0006913304] today published its financial report for the period ended 30 September 2013, which shows that the real estate company’s operating figures continued to improve. Rental income in the first nine months of 2013 was up by EUR 1.1 million on the same period of the previous year to EUR 12.8 million thanks to the good letting performance. The result from property management after maintenance and property management expenses was up by an impressive 20 percent on the previous year to EUR 9.8 million. This is primarily attributable to higher rental income and reduced property management costs. At EUR 1.2 million, the result from the revaluation of investment properties was positive but lower than in the prior year period (EUR 3.4 million) due to the depreciation of an office property in Frankfurt, which will be vacated at the end of the year, and the expected modernisation costs. By contrast, the valuation result from the financial derivatives used for interest rate hedging increased sharply to EUR 2.2 million due to higher interest rates, compared to a negative result of EUR 1.9 million in the prior year period. As a result, the Group’s net income climbed to EUR 5.5 million (prior year period: EUR 3.0 million). Funds from operations (FFO) up 44 percent to EUR 2.8 million The funds from operations (FFO), which represent the operating result – adjusted for the result from revaluation and the sale of properties, the valuation result of financial derivatives and deferred taxes – increased by 44 percent to EUR 2.8 million. Acquisition of an office property in Berlin As announced by POLIS on 30 August, the company acquired an office and retail building with approx. 11,300 square metres of lettable space close to its headquarters in the west of the Berlin city centre. Located on the corner of Rankestrasse 21 and Lietzenburger Strasse 44/46, the property is almost fully let and, together with ‘Quartier Büchsenstrasse’ in Stuttgart and ‘Altmarkt’ in Dresden, one of the largest and highest revenue generating properties in the company’s current portfolio. On the other hand, POLIS sold an office property in Dortmund at a profit of EUR 377,000. ‘We have increased assets under management to over EUR 350 million and want to grow this way also in future,’ said Dr. Alan Cadmus, CEO of POLIS. The continued high equity ratio of 47 percent, considerable liquid funds and unused credit lines will support the purchase of new properties. Tenant demand for POLIS office properties remains high In the first nine months of 2013, POLIS was able to sign new or renew existing leases for some 12,990 square metres of lettable space, of which 6,530 square metres were newly let. The leases signed by 30 September 2013 represent a rental income of approx. EUR 8.0 million. As a result of the new leases, the letting ratio climbed to 92 percent (30 Sept. 2012: 82 percent) and will increase to 93 percent by the end of the year assuming no other changes in the letting situation. As lettings increase, less lettable space is available, which is why the letting performance was lower than in the prior year period. The largest new leases were signed in Dresden and Cologne, at 2,716 square metres (thereof 795 square metres in Q3) and 2,122 square metres (thereof 1,338 square metres in Q3), respectively. The single most important lease renewal was negotiated with the Cologne Technical College at Gustav-Heinemann-Ufer 54. The Technical College opted for an early renewal of the existing lease for 3,080 square metres until 2020 and additionally leased 589 square metres for the same duration. Future business outlook The office markets continued to stabilise at a high level at the beginning of 2013. In spite of increased construction activity, the number of vacant office properties in Germany has declined. POLIS projects moderate economic growth slightly below the prior year level for the full year 2013. The key operating figures will continue to improve in the fiscal year 2013 thanks to the increased letting ratio. POLIS wants to further increase the result from property management and to achieve growth through the acquisition of new properties in 2013. From today’s point of view, the funds from operations will grow by about 50 percent to over EUR 4.0 million in 2013 and climb to over EUR 5.0 million in 2014. The report for the nine-month period ended 30 September 2013 is available for downloading on the company’s website at www.polis.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 September 2013, POLIS Immobilien’s real estate portfolio comprised a total of 26 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:
End of Corporate News 07.11.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group 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: | 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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