DGAP-News: Godewind Immobilien AG / Key word(s): Half Year Results/Preliminary Results
Godewind Immobilien AG announces preliminary half-year results and raises forecast for the full year
- Strong growth in all key figures continues in the first half of the year
- Office property portfolio rises by EUR 554 million since the beginning of the year to a book value of EUR 855 million at the end of the first half of the year
- EPRA Net Asset Value (EPRA NAV) reaches EUR 4.54 per share at mid-year – an increase of 24.4 percent vs. year end 2018
- FFO increases significantly to EUR 2.8 million
- Forecast for the full year 2019 raised
Frankfurt am Main, July 22, 2019 – Godewind Immobilien AG (ISIN: DE000A2G8XX3, trading symbol: GWD, Godewind), a company specializing in German office real estate, continued to successfully implement its business model in the first half of 2019, which is designed to increase earnings through expansion. This is shown in the preliminary consolidated results as of 30 June 2019.
Development of a profitable office portfolio
In the first half of 2019, Godewind closed five further purchase contracts for office properties with a gross acquisition value of around EUR 467.5 million, thus expanding its portfolio to nine properties in total as of 30 June 2019. Another office property, the City Gate in Frankfurt, was contractually secured for a gross purchase price of EUR 90.5 million. The book value of the nine portfolio properties amounted to around EUR 855 million as of 30 June 2019. The value of the entire portfolio, including the City Gate property, is therefore currently around EUR 950 million. Thus, the company achieved its goal of building up a profitable and substantial portfolio with significant growth potential with the proceeds from the IPO in 2018. Godewind has thus come much closer to its medium-term goal of expanding its office property portfolio to around EUR 3 billion.
The EPRA Net Asset Value (EPRA NAV) at the end of the first half of 2019 was around EUR 487.8 million or EUR 4.54 per share after EUR 396.4 million or EUR 3.65 per share at year end 2018. Net LTV amounted to 46 percent at the end of the first six months of 2019.
The consolidated results at the end of the first half of 2019 was around EUR 73.4 million. Rental income amounted to around EUR 11.5 million and funds from operations (FFO) amounted to around EUR 2.8 million. It has to be taken into account that, on the one hand, some new rental agreements have not yet been recognised in income and, on the other hand, the income from the five properties acquired in the first half of 2019 has only been included in the current business figures on a pro rata basis. In addition, the closing of the property City Gate in Frankfurt, which was contractually secured as the last building on May 22, is expected by the end of the third quarter.
Forecast for the entire financial year raised
Due to the very good operating performance development in the first half-year and the continued positive outlook for the second half of the year, Godewind’s management raises its forecast for the 2019 financial year. Beside lower than expected financing costs, the first significant successes in the reduction of the specifically purchased vacancy rate from originally 28 percent, which had, including the not yet closed property City Gate, already been reduced to 22.5 percent pro forma by the end of the first half of the year, will also have an impact. The FFO will now, also including the high-rise office building City Gate and the properties acquired in the first half of the year, but subject to any further acquisitions, be expected in a range of EUR 8.5 million – EUR 9.5 million. So far, an FFO in the single-digit mid-million range has been forecast, with this assumption based on the contractually secured property portfolio at the time of the forecast. Rental income is expected to increase further in the second half of this year and the NAV should also rise further compared to the half-year result.
About Godewind Immobilien AG
Godewind Immobilien AG, headquartered in Frankfurt am Main, is a company specializing in German office real estate. The company’s focus is on building and extending an attractive real estate portfolio in the growth areas of Germany. As an active portfolio and asset manager, Godewind strives for sustainable increases in earnings and income, which are supplemented by the regular realisation of added value potential. Including the latest acquisition, Godewind has an office real estate portfolio totalling around EUR 950 million. In the medium term, the aim is to build a commercial real estate portfolio of around three billion euros with the help of the company’s wide-ranging network and by means of value-added acquisitions.
Based on internal portfolio and asset management, Godewind Immobilien AG will manage commercial real estate cost-efficiently, conclude long-term leases and thus increase the value of the company. The company has loss carryforwards for corporation and trade tax as well as a tax deposit account. Godewind Immobilien AG shares are traded in the Prime Standard segment of the Frankfurt Stock Exchange (FWB). For further information please visit https://www.godewind-ag.com.
Investor Relations Contact
Godewind Real Estate AG
Phone +49 69 27 13 97 32 13
Kirchhoff Consult AG
Phone +49 40 60 91 86 65
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