TLG IMMOBILIEN AG Continues Growth in Successful Q1 2016

TLG IMMOBILIEN AG continues growth in successful Q1 2016

- Funds from operations increased by 8.8% year on year to EUR 17.1 m

- Rental income up 7.0% to EUR 32.5 m

- Portfolio value increases by 5.6% after assumption of nine new assets

- Purchase agreements for two additional properties signed in Q1 (total investment volume of EUR 107.8 m)

- EPRA Net Asset Value rises by 1.6% to EUR 17.64 per share as at 31 March 2016

- FFO forecast of between EUR 72 m and EUR 74 m, including made acquisitions, confirmed for 2016

BERLIN--()--TLG IMMOBILIEN AG published its Q1 2016 financial figures today, which confirmed yet another successful start to the year. In the first three months of 2016, the Company built on its successful performance in the previous year. The Group generated a total of approx. EUR 32.5 m in rental income during the reporting period, representing an increase of 7.0% against the first quarter of the previous year (EUR 30.4 m). Funds from operations (FFO) increased by 8.8% to EUR 17.1 m (Q1 2015: EUR 15.8 m).

“In the first quarter of the current financial year we not only further increased our consolidated net profit and improved our operating KPIs, but also acquired additional properties, thereby making great strides in reaching a portfolio value of EUR 2 bn that was initially targeted for 2017”

In the first quarter of the year, the EPRA Vacancy Rate declined by 0.4 percentage points to 3.3%. The weighted average lease term (WALT) in TLG IMMOBILIEN AG's portfolio is currently 6.5 years. As at 31 March 2016, the EPRA Net Asset Value (EPRA NAV) amounted to EUR 1,190 m, or EUR 17.64 per share, representing an increase of 1.6% as compared to the end of 2015.

In addition to the successful development of its operating business, TLG IMMOBILIEN AG continued to have a conservative financing structure. The Net Loan to Value (Net LVT) as at the reporting date was 36.2% (31 December 2015: 33.6%) and the Company's average cost of debt amounted to 2.91%. Existing loans have an average remaining term of 4.7 years as at 31 March 2016. At present, the Company's costs for new long-term financing are significantly lower than 2.0%.

As at 31 March 2016, TLG IMMOBILIEN AG's portfolio includes a total of 414 properties (31 December 2015: 418) whose value under IFRS totals approx. EUR 1.865 bn (31 December 2015: EUR 1.766 bn). This corresponds to a 5.6% increase in the value of the properties in Q1 2016, which was due primarily to new acquisitions made in line with the portfolio strategy. This includes the seven office properties and two hotel properties in Leipzig and Dresden that were purchased at the end of 2015 and included in the portfolio in Q1 2016. The transaction costs for these properties totalled approx. EUR 112.8 m. Furthermore, purchase agreements were signed in Q1 2016 for two additional office properties in Berlin and Leipzig with a total investment volume of EUR 107.8 m.

"In the first quarter of the current financial year we not only further increased our consolidated net profit and improved our operating KPIs, but also acquired additional properties, thereby making great strides in reaching a portfolio value of EUR 2 bn that was initially targeted for 2017", says Peter Finkbeiner, Management Board member of TLG IMMOBILIEN AG.

In light of the ongoing excellent business performance, the Management Board of TLG IMMOBILIEN AG expects that the Company will continue to perform well in the full year 2016 and confirms its forecast that the Company will close out 2016 with FFO of between EUR 72 m and EUR 74 m, taking into account the acquisitions made thus far.

Download the quarterly report here:

www.tlg.eu > Investor Relations > Financial Reports & Presentations > 2016

KEY GROUP FIGURES ACCORDING TO IFRS

Results of operations   Unit   01/01/2016-31/03/2016   01/01/2015-31/03/2015   Change in %
Rental income EUR k 32,513 30,374 7.0
Net operating income from letting activities (NOI) EUR k 28,892 26,854 7.6
Disposal profits EUR k 619 5,790 -89.3
Net income EUR k 12,888 32,124 -59.9
FFO EUR k 17,135 15,753 8.8
FFO per share1 EUR 0.25 0.,26 -3.8
 
Balance sheet metrics Unit 31/03/2016 31/12/2015 Change in %
Investment property EUR k 1,852,405 1,739,474 6.5
Cash and cash equivalents EUR k 99,779 183,736 -45.7
Balance sheet total EUR k 1,997,950 1,999,461 -0.1
Equity EUR k 978,325 967,874 1.1
Equity ratio % 49.0 48.4 0.6 pp
Liabilities to financial institutions EUR k 775,115 782,688 -1.0
Net debt EUR k 675,336 598,952 12.8
Net LTV² % 36.2 33.6 2.6 pp
EPRA NAV EUR k 1,189,829 1,171,594 1.6
EPRA NAV per share1 EUR 17.64 17.37 1.6
 
KPIs of the portfolio Unit 31/03/2016 31/12/2015 Change in %
IFRS portfolio value3 EUR k 1,864,756 1,765,834 5.6
Properties number 414 418 -4 units
Annualised in-place rent4 EUR k 135,991 131,379 3.5
In-place rental yield in % 7.3 7.4 -0.1 pp
EPRA Vacancy Rate in % 3.3 3.7 -0.4 pp
WALT in years 6.5 6.5 0.0 years
Average rent EUR/sqm 9.50 9.23 2.9

1 Total number of shares as at 31 March 2015: 61.3 m; as at 31 March 2016: 67.4 m. Due to the capital increase in November 2015, the weighted average number of shares in the first quarter 2015 was 61.3 m and 62.0 m in the first quarter 2016.

2 Calculation: Net debt divided by property value

3 Pursuant to the values reported in the financial statements in accordance with IAS 40, IAS 2, IAS 16, IFRS 5

4 Net rent for the year excluding utilities is calculated on the basis of the agreed annualised rent as at the reporting date and does not take into account any rent-free periods.

About TLG IMMOBILIEN AG

TLG IMMOBILIEN AG is a stock exchange-listed leading commercial real estate company focusing on Berlin and growth regions in Eastern Germany. For 25 years, TLG IMMOBILIEN AG is synonymous with real estate expertise in Germany's East. TLG IMMOBILIEN AG generates stable rental income and exhibits low vacancy rates, very good building stock and profits from its local employees' excellent market knowledge. As an active portfolio manager, TLG IMMOBILIEN AG is specialised in commercial properties for office and retail use. TLG IMMOBILIEN AG focuses on managing a high-quality portfolio of office properties in Berlin and other regional economic centres, as well as a regionally diversified portfolio of retail properties in highly frequented micro locations. The portfolio also includes seven hotels in Berlin, Dresden, Leipzig and Rostock. TLG IMMOBILIEN AG's properties stand out not only due to their excellent locations but also because of their very long-term rental or lease agreements.

As at 31 March 2016, the value of the properties under IFRS totalled EUR 1,865 bn. As at the same reporting date, the EPRA Net Asset Value per share amounted to EUR 17.64.

Language:   English
Company: TLG IMMOBILIEN AG
Hausvogteiplatz 12
10117 Berlin
Germany
Phone: 030 - 2470 - 50
Fax: 030 - 2470 - 7337
E-mail:

kontakt@tlg.de

Internet:

www.tlg.de

ISIN: DE000A12B8Z4
WKN: A12B8Z
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart

Contacts

TLG IMMOBILIEN AG
Christoph Wilhelm, +49 30 2470 6355
Corporate Communications
christoph.wilhelm@tlg.de
or
Sven Annutsch, +49 30 2470 6089
Investor Relations
sven.annutsch@tlg.de

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