WCM maintains profitable growth in first nine months of 2017 – Takeover by TLG IMMOBILIEN AG proceeding on schedule

 

·         Nine-month rental income rises to €34.6m (previous year: €23.8m)

·         FFO I increases to €17.7m (previous year: €12.9m)

·         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 €17.0m in the first nine months of 2017, remaining stable from €16.9m in the same period last year. Rental income during the period rose from the previous figure of €23.8m to €34.6m, driven significantly by strong portfolio expansion over the past 12 months. The value of the WCM property portfolio totalled €805.5m as of 30 September 2017, compared to €576.4m on 30 September 2016 and €662.1m at year-end 2016. Funds from operations (FFO I) increased to €17.7m during the period under review, up from €12.9m in the same period in 2016. This corresponds to a figure of €0.13 per share after the first nine months of 2017, compared with €0.10 in the prior-year period. As at 30 September 2017, the EPRA Net Asset Value (NAV) was €351.5m, compared with €345.4m 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 €23m and €24m, 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 €42m to €44m.

 

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 €800m.

  

Investor Relations:


Gunnar Janssen

Investor Relations

WCM Beteiligungs- und Grundbesitz-AG

+49 69 963 731 910

g.janssen(at)wcm.de

www.wcm.de

 

Press contact:

edicto GmbH
Axel Mühlhaus/ Dr. Sönke Knop
+49 69 905505-52
wcm(at)edicto.de