KWG Kommunale Wohnen AG, the long-term oriented property holding company of German residential real estate, expects to post the most successful first half year in the company's history. The preliminary H1 2012 Group net result was raised by six times from 3.4 million to approx. 20 million.
Net Cold Rent increased according to preliminary numbers in H1 2012 by around 30% vs. last year to around 9 million. Funds-from-Operations (FFO) increased significantly from 0.2 million to around 1.2 million. Thus, the cash generation and profitability of KWG Group have been improved considerably.
This dynamic development in results is i.a. based on the first time full consolidation per May 1, 2012 of Barmer Wohnungsbau AG, in which KWG has secured a controlling stake.
The consolidation of Barmer Wohnungsbau AG is expected to contribute approx. 13 million to the Group's H1 net result and approx. 0.2 million to the Group's FFO. However, KWG AG also records significant improvements of all relevant metrics excluding the consolidation of Barmer Wohnungsbau AG in a like-for-like comparison vs. last year.
Compared like-for-like KWG AG improved its H1 2012 Revenues that represent Gross Rental Income from 10.1 million to almost 12 million. At the same time income from Net Cold Rent increased over-proportionally by almost 20% to around 8 million.
The Net Result of more than 7 million was doubled vs. last year (last year: 3.4 million). Particularly satisfactory is the FFO development which improved by more than four times from previous year's 0.2 million to almost 1 million.
The positive development is primarily a result of the company's own portfolio's successful optimization. I.a. the actual Net Cold Rent per m² was increased from 4.83 to 5.05.
The net result from the fair value measurement of investment property which improved from 3.1 million per June 30, 2011 to approx. 7 million per June 30, 2012 reflects the portfolio's improved cash generation and quality. The Group's investment property was valued at approx. 754/m² per June 30, 2011.
Final H1 2012 numbers for the entire KWG Group will be published according to schedule on Tuesday August 14, 2012.