GSW Immobilien AG was once again operationally successful during the first six months of this year, further increasing its letting and management result. In addition, GSW acquired approximately 2,800 apartments in Berlin. The MDAX-listed company thereby fully and profitably invested the cash inflows from the capital measures implemented in 2012. GSW intends to continue this successful expansion course with due caution. As of today, the full interim report for the first six months of the 2013 financial year can be viewed and downloaded at www.gsw.ag.
The company’s letting and management result again developed positively. The Berlin-based real estate company acquired a total of approximately 2,800 apartments in Berlin in two transactions in late July and early August. With actual rental income of approximately €5.62 per square meter per month, the vacancy rate in the purchased properties amounts to only around 0.9 %. The total purchase price for the two portfolios is around €201 million, or €1,176 per square meter.
The properties are predominantly situated in attractive locations in Friedrichshain-Kreuzberg (28 %), Pankow (26%) und Lichtenberg (24%), and the majority have been modernized. For the most part the acquisitions will not impact GSW’s overall result until next year. “We expect the acquisitions to have a long-term positive impact on operating margins and an additional FFO contribution of approximately between €6.2 million and €6.6 million,” said Jörg Schwagenscheidt, Member of the Board of Management of GSW Immobilien AG, whose areas of responsibility include acquisitions. CFO Andreas Segal added: “We have thereby fully and profitably invested the cash inflows from the capital measures implemented in 2012.”
Compared to the first half of the previous year, net rental income increased by 16.3% to € 91.8 million. In-place rent climbed from € 5.14 to €5.31 per square meter per month, an increase of 3.3 %. In a like-for-like comparison (property portfolio not including acquisitions and disposals), in-place rent marked an increase of 2.9 % over the past 12 months. The vacancy rate fell by 0.5 percentage points year-on-year to 2.7%.
EBIT and consolidated net income rise further, FFO forecast for 2013 confirmed
Net operating profit (EBIT) also increased from €66.3 million in the first half of 2012 to € 76.1 million – a rise of 14.7%. Adjusted for extraordinary effects, adjusted EBITDA climbed by 15.5 % to €76.3 million. The consolidated net income of €42.5 million exceeded the equivalent figure from the previous year by 69.7%. “In addition to a further improvement in operating performance, this was also attributable to the acquisitions made in the previous year,” said Schwagenscheidt.
The key figure FFO I (funds from operations, not including sales result), which is relevant to the dividend payment, rose by 30.4% in comparison to the first half of the previous year to €42.5 million (€0.84 per share). As such, it was in line with GSW’s expectations for this period. AFFO was up 42.6 % to €35.1 million. On the basis of Berlin’s still-thriving housing market and the strong management result, the Board of Management is maintaining its FFO I forecast: “Overall, we are confirming our forecast of FFO I of between €73 million and €78 million for the 2013 financial year," said Segal.
After the dividend payment, the company’s net asset value (NAV) in accordance with EPRA amounted to approximately €1,517 million at the end of the first half of the year, equivalent to € 30.03 per share. The loan-to-value ratio remained constant at 53.8%.