.
- Consolidated net profit as announced increased from EUR 31.1mn to EUR 67.1mn
- First time dividend proposal of EUR 0.25 per share
- Full year 2008 guidance of EUR 72 - 75 mn
Colonia Real Estate AG (ISIN DE0006338007) could clearly increase the 2007 revenues and net profit. Revenues increased to EUR 157.7mn after EUR 128.5mn a year before. EBIT improved to EUR 82.6mn after EUR 51.7mn and net earnings after tax more then doubled to EUR 67.1mn after EUR 31.1mn in 2006. Earnings per share jumped to EUR 3.31 after EUR 1.97 a year before. The executive board and supervisory board of Colonia will propose a first time dividend payment of EUR 0.25 per share on this years annual general meeting. The executive board additionally plans to distribute future dividends in the amount of up to 60% of the operating cash earnings.
Total assets increased from EUR 420.2mn to EUR 1,035.9mn. Equity grew from EUR 100.1mn to EUR 321.6mn. This led to an improved equity ratio of 31.0% after 23.8% in 2006. Debt in the amount of EUR 638mn is long term financed at an average interest rate of 4.8% per year and a duration of more then 6 years, hence entirely hedge against interest rate volatility in the market. Only c.3% of the outstanding debt has a duration below one year. On the basis of an independent appraisal report as of 31st of December 2007 the companies net asset value (NAV) is EUR 16.30 per share after EUR 5.75 at the end of 2006. Co-Investments in commercial properties have been accounted at cost values. A valuation of the asset and fund management has not been included in this calculation.
Solid growth in all segments
The significant growth in net profit is based on a dynamic growth of the investment and asset management segment. Thus, the residential portfolio could be clearly increased and comprises now 19,800 apartments after 8,600 units one year before. This increased gross rental income by 192% to EUR 47.6mn after EUR 16.3mn. EBIT from this segment jumped to EUR 31.7mn after EUR 10.8mn. Particularly successful was the decrease of vacancy. On a like-for-like basis, the active asset management reduced the vacant space from 15.1% by 3.7% points to 11.4%. Rent levels increased on a like for like basis by 2.7% points. This positive development resulted in a entire revaluation profit of the residential portfolio of around EUR 60mn before tax.
A dynamic increase was driver of the asset management. CRE Resolution could boost its third parties revenues by factor three to EUR 8.9mn after EUR 3.0mn a year before. All-in, Resolution re-let 115,000 sqm of commercial space for its clients. The funds management slightly underachieved the 2007 targets with revenues of EUR 2.4mn through the placement of the first two nursery home funds CareInvest 1 and 2. The expected placement of the third fund was postponed in the fourth quarter due to weak capital markets. This fund is going to be placed through a co-opoeration with HGA, a subsidiary of HSH Nordbank, in the next months.
"The excellent result underlines the solid growth of the company. Particularly the successful "working the assetsû approach with a clear vacancy reduction and a strong improvement of rent levels in the residential portfolio are and will be key factors for the earnings growth. With the first-time payment of a dividend, we give shareholders the opportunity to participate on our earnings growthû, comments Stephan Rind, CEO of Colonia Real Estate AG the 2007 results.
Colonia Real Estate estimates for 2008 further improvements on the reduction of the residential portfolios' vancancy, rent increases and growth of assets under management for third parties on the commercial real estate side. Besides the active management, this results as well on a EUR 50mn modernisation program on 3,200 apartments that will be finalized in sommer 2008. An attractive subsidised lowinterest financing for the entire quality improvement has already been signed last year with banks like KfW. The asset and fund management segment shows an continuing high demand of predominantly long-term orientated foreign investors. Thus, the executive board expects an increase in revenues in this segment of at least 50% The 2008 net earnings guidance of EUR 72mn to 75mn includes c. 40% of fix foreseeable cash earnings from rental income, asset management fees and disposals of the current portfolio.
- Consolidated net profit as announced increased from EUR 31.1mn to EUR 67.1mn
- First time dividend proposal of EUR 0.25 per share
- Full year 2008 guidance of EUR 72 - 75 mn
Colonia Real Estate AG (ISIN DE0006338007) could clearly increase the 2007 revenues and net profit. Revenues increased to EUR 157.7mn after EUR 128.5mn a year before. EBIT improved to EUR 82.6mn after EUR 51.7mn and net earnings after tax more then doubled to EUR 67.1mn after EUR 31.1mn in 2006. Earnings per share jumped to EUR 3.31 after EUR 1.97 a year before. The executive board and supervisory board of Colonia will propose a first time dividend payment of EUR 0.25 per share on this years annual general meeting. The executive board additionally plans to distribute future dividends in the amount of up to 60% of the operating cash earnings.
Total assets increased from EUR 420.2mn to EUR 1,035.9mn. Equity grew from EUR 100.1mn to EUR 321.6mn. This led to an improved equity ratio of 31.0% after 23.8% in 2006. Debt in the amount of EUR 638mn is long term financed at an average interest rate of 4.8% per year and a duration of more then 6 years, hence entirely hedge against interest rate volatility in the market. Only c.3% of the outstanding debt has a duration below one year. On the basis of an independent appraisal report as of 31st of December 2007 the companies net asset value (NAV) is EUR 16.30 per share after EUR 5.75 at the end of 2006. Co-Investments in commercial properties have been accounted at cost values. A valuation of the asset and fund management has not been included in this calculation.
Solid growth in all segments
The significant growth in net profit is based on a dynamic growth of the investment and asset management segment. Thus, the residential portfolio could be clearly increased and comprises now 19,800 apartments after 8,600 units one year before. This increased gross rental income by 192% to EUR 47.6mn after EUR 16.3mn. EBIT from this segment jumped to EUR 31.7mn after EUR 10.8mn. Particularly successful was the decrease of vacancy. On a like-for-like basis, the active asset management reduced the vacant space from 15.1% by 3.7% points to 11.4%. Rent levels increased on a like for like basis by 2.7% points. This positive development resulted in a entire revaluation profit of the residential portfolio of around EUR 60mn before tax.
A dynamic increase was driver of the asset management. CRE Resolution could boost its third parties revenues by factor three to EUR 8.9mn after EUR 3.0mn a year before. All-in, Resolution re-let 115,000 sqm of commercial space for its clients. The funds management slightly underachieved the 2007 targets with revenues of EUR 2.4mn through the placement of the first two nursery home funds CareInvest 1 and 2. The expected placement of the third fund was postponed in the fourth quarter due to weak capital markets. This fund is going to be placed through a co-opoeration with HGA, a subsidiary of HSH Nordbank, in the next months.
"The excellent result underlines the solid growth of the company. Particularly the successful "working the assetsû approach with a clear vacancy reduction and a strong improvement of rent levels in the residential portfolio are and will be key factors for the earnings growth. With the first-time payment of a dividend, we give shareholders the opportunity to participate on our earnings growthû, comments Stephan Rind, CEO of Colonia Real Estate AG the 2007 results.
Colonia Real Estate estimates for 2008 further improvements on the reduction of the residential portfolios' vancancy, rent increases and growth of assets under management for third parties on the commercial real estate side. Besides the active management, this results as well on a EUR 50mn modernisation program on 3,200 apartments that will be finalized in sommer 2008. An attractive subsidised lowinterest financing for the entire quality improvement has already been signed last year with banks like KfW. The asset and fund management segment shows an continuing high demand of predominantly long-term orientated foreign investors. Thus, the executive board expects an increase in revenues in this segment of at least 50% The 2008 net earnings guidance of EUR 72mn to 75mn includes c. 40% of fix foreseeable cash earnings from rental income, asset management fees and disposals of the current portfolio.
