Colonia Real Estate AG / Half Year Results
15.08.2007
Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Colonia Real Estate AG again with record result in the first half 2007
Net profit increases from EUR 8.9mn to EUR 47.3mn - Revenues from rental
income and asset and fund management fees jump to EUR 33.1mn
Cologne, 15 August 2007 - Colonia Real Estate AG (ISIN: DE0006338007; WKN:
633800) achieved again a record result in the first half 2007. The net
profit before minorities increased from EUR 8.9mn to EUR 47.3mn and exceeds
already last years record result. All business units contributed to this
result increase. Significant revaluation profits on the residential
holdings and a five-folding of the recurring revenues from EUR 6.5mn to EUR
33.1mn resulted in an enhanced net rental income of EUR 15.5mn (2006: EUR
4.6mn) and a strong dynamic earnings growth in the new asset and fund
management unit of net EUR 5.8mn (2006: EUR 0.1mn). The undiluted earnings
per share increased clearly as of 30 June 2007 to EUR 2.60 after EUR 0.59
in the previous year.
The company clearly improved its revenues and the net result. The total
income in the first half 2007 climbed to EUR 95.3mn (half year 2006: EUR
19.6mn) and the EBIT to EUR 73.0mn (half year 2006: EUR 14.6mn) with a
particular increase of the gross rental income which improved from EUR
6.0mn to EUR 23.7mn (+382%) and the asset and fund management fees from EUR
0.5mn to EUR 9.4mn.
Total assets more then doubled at the end of Q2 to EUR 1,065mn (end 2006:
EUR 420mn). The investment properties increased to EUR 789.9 (end 2006: EUR
353.2). Cash holdings in the company improved to EUR 215.4 (end 2006:
36.0mn). Total equity tripled clearly to EUR 319.3mn (end 2006: 100.1mn).
This corresponds to an enhanced, solid equity ratio in the company of 30.0%
in the first half 2007 after 23.8% at the end of 2006.
After the positive first six months and the good outlook, the management
reinforces the full year guidance to be at least EUR 62mn to EUR 65mn net
profit after tax.
Explainatory part:
'The profit development in the first half 2007 exceeded our expectations.
With our comfortable cash liquidity and the ongoing growing, recurring
revenues from rental income and asset and fund management fees Colonia Real
Estate sees itself in the current market environment very well positioned.
We expect as well in the second half some major transaction to be
completed', comments Stephan Rind, CEO of Colonia Real Estate AG the
result.
Strong growth in residential investments
The significant earnings contribution was mainly based on the strong growth
in the residential investment business unit. The total holdings could be
increased from last year c. 8,300 units to almost 19,000 units as of end of
June 2007. Total revenues from rental income reached EUR 23.7mn (2006: EUR
6.0mn). The net result from rental income climbed to EUR 15.5mn (2006: EUR
4.6mn) The company expects a reduction of the current vacancy of c. 15.5%
to 10% over the coming 18 months. Extensive refurbishment projects will be
partially finished in September 2007. This will sustainably increase the
recurring rental income and the value of the portfolio in the second half.
Furthermore, the portfolio was running through a first time appraisal which
led to a revaluation gain of EUR 61.5mn. The expansion of the residential
holdings by an additional 10,000 units over the coming 12 months is
planned. Particular portfolios are currently under due diligence.
Dynamic development in the Asset and Fund Management
Additional asset management mandates in the first half 2007 led to an
enhanced revenue and earnings growth. The revenue in the asset and fund
management climbed to a significant EUR 9.4mn (2006: EUR 1.4mn) whereas the
asset management contributed EUR 7.0mn (2006: 0.5mn) and the fund
management EUR 2.4mn (2006: EUR N/A). The combined net result reached a
substantial EUR 5.8mn (2006: EUR 0.1mn). The 'Herkules' portolio, which is
one mandate from Resolution GmbH with Colonia holding a co-investment stake
of 4.8%, is in preparations to become one of the first multi billion office
real estate portfolios for a German REIT. The achievement of the REIT
status as well as the planned IPO depends on the market conditions.
The Fund Management could successfully place its first EUR 57mn nursery
home fund early this year with two more funds being in preparations to be
placed this year. One of the nursery home funds is intended to be
distributed to retail clients. The placing of the first fund as well as the
preparation of the following funds led to costs in the first half of EUR
1.2mn. The demand for premium structured products in this segment is
furthermore very high.
Solid financing structure in the company
The entire debt in the company is fully refinanced at fixed rates.
Including the convertible bond, the refinancing takes place at a fixed rate
of 4.1% with an average maturity of 5.1 years. The current turbulences on
the debt markets does not have an impact on the current real estate
holdings. Demand for new refinancings is satisfied by attractive offers
from banks. The company can not see any shortage for future refinancings.
Positive outlook
Furthermore, the Management sees very attractive opportunities in the
current market environment for all business units to show significant
growth in the coming quarters. Several new residential portfolios are
currently under due diligence for a potential acquisition. At the same
time, all so far acquired portfolios will contribute recurring rental
income in Q3 and therefore broaden the cash flow basis of the company. The
Asset Management shows an ongoing dynamic development in the implementation
of the business plans both for Colonia Real Estate AG on the residential
side as well as for third parties on commercial properties. The Fund
Management is on its way to place two additional structured close-end fund
products till the end of this year. The yesterday announced increase of
Colonia´s stake in Resolution GmbH to 75.1% and the target to increase the
Assets under Management from currently EUR 2.5bn to at least EUR 3.0bn till
the end of the year, underlines the leading position of the company as an
integrated real estate and asset manager in Germany.
The extensive half year report can be found on the companies homepage under
http://www.cre.ag/index.php?id=200 .
About Colonia Real Estate AG
Colonia Real Estate AG (Reuters: KBUG.DE / Bloomberg: KBU GY) is a listed
real estate investment and management group focusing on the German market.
Its integrated business model consists of three synergistic cornerstones:
The Investment Division concentrates on high-yield residential property
portfolios held for the company's account and opportunistic co-investments
in commercial real estate together with prominent partners. Resolution GmbH
specializes in asset management for the Group as well as for complex
domestic real estate portfolios held by international investors, whom it
also advises on transactions. The focus is on yield optimization and
realizing appreciation potential. CRE Fonds Management GmbH's core business
is the conception, the marketing and the management of structured
investment products such as closed-end real estate funds for institutional
investors and private clients.
This release is not a prospectus and, to the extent that it may constitute
an advertisement, does not constitute an offer to sell or the solicitation
of an offer to purchase the shares or other securities of Colonia Real
Estate AG.
This news release contains forward-looking statements based on current
assumptions and forecasts made by the management of Colonia Real Estate AG.
Various risks, uncertainties and other factors could lead to material
differences between the actual future results, financial situation,
development or performance of Colonia Real Estate AG and the estimates
given here. Colonia Real Estate AG assumes no liability whatsoever to
update these forward-looking statements or to conform them to future events
or developments.
Contact:
Christoph D. Kauter
Head of Corporate Finance and Investor Relations
Colonia Real Estate AG
Zeppelinstr. 4-8
50667 Köln
Telefon: +49 (0)221 71 60 71 0
Fax: +49 (0) 221 71 60 71 99
E-Mail: ir@cre.ag
Sylvia Faber
Citigate Dewe Rogerson GmbH
Goethestraße 26-28
60313 Frankfurt am Main
Tel: 0049-69 90 500 - 100
Fax: 0049-69 90 500 - 101
E-Mail: sylvia.faber@citigatedr.de
DGAP 15.08.2007
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Language: English
Issuer: Colonia Real Estate AG
Zeppelinstr. 4 - 8
50667 Köln
Deutschland
Phone: +49 221-716071-0
Fax: +49 221-716071-99
E-mail: info@cre.ag
Internet: www.cre.ag
ISIN: DE0006338007
WKN: 633800
Indices: SDAX, GPR 250, MSCI Germany Small Cap Index, FTSE EPRA/ NAREIT, E&G DIMAX
Listed: Amtlicher Markt in Berlin, Frankfurt (Prime Standard),
Düsseldorf; Freiverkehr in Hamburg, München, Stuttgart
End of News DGAP News-Service
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