· 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 | ||
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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 | ||
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1) Including minority interests |
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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
Press contact:
edicto GmbH
Axel Mühlhaus/ Dr. Sönke Knop
+49 69 905505-52
wcm(at)edicto.de