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DGAP-News: TAG Immobilien AG
/ Key word(s): Quarterly / Interim Statement/Forecast
PRESS RELEASE TAG Immobilien AG achieves another increase in quarterly earnings and forecasts 9% increase in FFO and dividend for 2020
Strong operative key performance indicators Net rental income increased to EUR 64.9m in the third quarter of 2019 from EUR 64.4m in Q2 2019 due to slightly lower expenses from property management in the third quarter of 2019. Net rental income for the first nine months of 2019 amounted to EUR 192.9m, compared to EUR 184.9m as at 30 September 2018. In Q3 2019, vacancy in TAG's residential units reduced by 0.3 percentage points to 4.9%, down from 5.2% in the previous quarter and 5.0% at the beginning of the year, as a result of the successful implementation of modernisation programmes to reduce vacancy. Across the entire portfolio, i.e. including the Group's commercial units and the current financial year's acquisitions that had already become effective, vacancy dropped to 5.2% from 5.3% as of 31 December 2018. At EUR 19.79 per sqm as of 30 September 2019, total investment - maintenance and modernisation cost (capex) - in the residential units, projected to a period of 12 months, was on par with the EUR 19.24 per sqm invested in the 2018 financial year. Besides the aforementioned increase in Funds from Operations (FFO), Adjusted Funds from Operations (AFFO), i.e. FFO after deduction of all capex, increased in the first nine months of 2019 to EUR 74.6m after EUR 66.3m at 30 September 2018. Net income for the first nine months of 2019 amounted to EUR 267.9m, compared to EUR 248.6m in the prior-year period. Net asset value (NAV) per share increased to EUR 18.82 at 30 September 2019, after EUR 17.32 at the end of 2018. Excluding the dividend of EUR 0.75 per share paid to shareholders in Q2 2019, NAV growth was nearly 13%. The loan-to-value (LTV) debt ratio reduced to 45.5%, after 46.2% at the end of the previous quarter and 47.3% at the end of the previous year. The average interest rate for total financial debt continued its downward trend, falling to just 1.76% at 30 September 2019, after 1.92% at year-end 2018. The average remaining maturity of total financial debt as of 30 September 2019 remained unchanged at a high level at 7.3 years (31 December 2018: 8.1 years). Acquisitions and disposals during the 2019 financial year to date On the disposal side, 279 residential units, most of which are no part of TAG's long-term core portfolio due to their location, were sold for a price of EUR 10.0m and a book profit of EUR 0.6m in the nine-month period ended 30 September 2019. FFO and dividend forecast for 2020
Compared to the forecast for the 2019 financial year, which remains unchanged, this leads to an expected increase in FFO of around EUR 14.0m. The main reason for this increase, which also includes a positive effect of around EUR 2.4m from new IFRS accounting rules on leases, is the increase in rental income of around EUR 13.3m expected for the 2020 financial year. Martin Thiel, CFO of TAG, commented: "We expect a significant 9% year-on-year increase in FFO and dividend from 2019 to 2020, based on the positive operational developments in rent and vacancy. Our business model offers our tenants affordable as well as attractive homes in neighbourhoods under our long-term management, including B locations and especially Eastern Germany. This is also in the best interests of our shareholders, to whom we announce a further increase in the dividend for the 2020 financial year, to EUR 0.87 per share." Further details regarding the third quarter of 2019 can be found in the Interim Statement published at . Press enquiries:
30.10.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
| Language: | English |
| Company: | TAG Immobilien AG |
| Steckelhörn 5 | |
| 20457 Hamburg | |
| Germany | |
| Phone: | 040 380 32 0 |
| Fax: | 040 380 32 388 |
| E-mail: | |
| Internet: | -ag.com |
| ISIN: | DE0008303504 |
| WKN: | 830350 |
| Indices: | MDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange |
| EQS News ID: | 899471 |
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| End of News | DGAP News Service |
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899471Â Â 30.10.2019Â
