WCM Beteiligungs- und Grundbesitz-AG: WCM maintains profitable growth in first nine months of 2017 - Takeover by TLG IMMOBILIEN AG proceeding on schedule
WCM maintains profitable growth in first nine months of 2017 - Takeover by TLG IMMOBILIEN AG proceeding on schedule
- Nine-month rental income rises to EUR34.6m (previous year: EUR23.8m)
- FFO I increases to EUR17.7m (previous year: EUR12.9m)
- Significant effects from the takeover by TLG IMMOBILIEN AG
- Forecast for 2017 confirmed
Frankfurt, 9 November 2017 - WCM Beteiligungs- und Grundbesitz-AG (WCM AG, ISIN: DE000A1X3X33) maintained its profitable growth trajectory in the first nine months of 2017, with an increasing focus on the integration of purchased portfolios. The Company's operating success was accompanied by comprehensive implementation measures ahead of the impending takeover by TLG IMMOBILIEN AG (TLG). The takeover process has been proceeding according to plan and has triggered various expected one-off effects at WCM, such as expenses due to changes of legal forms and consultancy expenses. The takeover offer from TLG was successfully concluded after the end of the reporting period. As at 6 October 2017, TLG held 85.9% of WCM-shares.
WCM's net income was EUR17.0m in the first nine months of 2017, remaining stable from EUR16.9m in the same period last year. Rental income during the period rose from the previous figure of EUR23.8m to EUR34.6m, driven significantly by strong portfolio expansion over the past 12 months. The value of the WCM property portfolio totalled EUR805.5m as of 30 September 2017, compared to EUR576.4m on 30 September 2016 and EUR662.1m at year-end 2016. Funds from operations (FFO I) increased to EUR17.7m during the period under review, up from EUR12.9m in the same period in 2016. This corresponds to a figure of EUR0.13 per share after the first nine months of 2017, compared with EUR0.10 in the prior-year period. As at 30 September 2017, the EPRA Net Asset Value (NAV) was EUR351.5m, compared with EUR345.4m at the end of 2016. As at 30 September 2017, the property portfolio had an EPRA vacancy rate of 4.3%, up from 3.8% at the end of 2016. The slight increase is due to the new acquisitions MIA I and MIA II, whose vacancy rates of 7.0% and 4.8%, respectively, resulted in a temporary increase in the EPRA vacancy rate. The net loan-to-value (LTV) was 55.7 % after 53.1% at the end of 2016.
The WCM Management Board reiterates its 2017 guidance made in the 2016 annual report regarding funds from operations of between EUR23m and EUR24m, subject to the effects of the takeover. Rental income for 2017 will probably come in at the upper end or slightly above the communicated range of EUR42m to EUR44m.
The quarterly statement on Q3/2017 of WCM AG is available at www.wcm.de in the Investor Relations section.
WCM Group Key IFRS Figures
in kEUR 1 Jan. - 1 Jan. - Change Change According to IFRS 30 Sept. 2017 30 Sept. 2016 in absolute figures in percent Rental income 34,647 23,849 10,797 45.3 Net rental income 31,751 22,261 9,490 42.6 Consolidated net profit for the period 16,990 16,928 62 0.4 FFO I 17,729 12,888 4,841 37.6 FFO I per share (in EUR) 0.13 0.10 0.03 30.0 FFO II 17,828 13,687 4,141 30.3 FFO II per share (in EUR) 0.13 0.11 0.02 18.2 EPRA earnings 4,781 4,634 147 3.2 Earnings per share, undiluted (in EUR) 0.10 0.12 -0.02 -16.7 Earnings per share, diluted (in EUR) 0.09 0.12 -0.03 -25.0 in kEUR Key Balance Sheet Figures 30 Sept. 2017 31 December 2016 Change in absolute figures Change in percent Total property portfolio 805,448 662,073 143,375 21.7 Total assets/Total equity and liabilities 874,512 710,273 164,239 23.1 Equity 1) 315,133 315,933 -800 -0.3 Financial liabilities 476,344 361,864 114,480 31.6 EPRA NAV 351,534 345,366 6,168 1.8 EPRA NAV per share (in EUR) 2.57 2.62 -0.05 -1.9 EPRA NNNAV per share (in EUR) 2.30 2.39 -0.09 -3.8 1) Including minority interests
Key Portfolio Figures 30 September 2017 31 December 2016 Number of assets 56 53 Lettable area 422,724 m² 324,031 m² Annualised rental income in mEUR 47.4 38.3 EPRA net initial yield (NIY) in percent 5.1 5.1 EPRA vacancy rate in percent 4.3 3.8 Weighted average lease term in years 7.8 8.9 Average cost of debt in percent 1.9 2.0 Net loan-to-value (LTV), in percent 55.7 53.1
By Segment Office Retail Number of assets 11 45 Lettable area 110,511 m² 312,213 m² Annualised rental income in kEUR 18,131 29,280 EPRA vacancy rate in percent 5.8 3.4 Weighted average lease term in years 7.9 7.7
About WCM AG
WCM Beteiligungs- und Grundbesitz-AG (WCM AG), with headquarters in Frankfurt am Main, is a specialised commercial real estate company. As a real estate proprietor, the focus is on long-term rental of high-quality office and retail properties in the major office locations in Germany. Since the operational restart in 2014, WCM AG has focused on an extensive network for the acquisition of properties as well as on value-creating asset management, in order to generate attractive long-term rental income and a steady cash flow. The portfolio has a gross asset value of more than EUR800m.
edicto GmbH Axel Mühlhaus/ Dr. Sönke Knop +49 69 email@example.com
09.11.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: WCM Beteiligungs- und Grundbesitz-AG Bleichstr. 64-66 60313 Frankfurt am Main
Germany Phone: +49 (0)69 963 7319-10 Fax: +49 (0)69 963 7319-20 E-mail: firstname.lastname@example.org Internet: www.wcm.de ISIN: DE000A1X3X33 WKN: A1X3X33 Listed: Regulated Market in Frankfurt (Prime Standard), Hamburg, Stuttgart; Regulated Unofficial Market in Munich, Tradegate Exchange End of News DGAP News Service