Frankfurt (pta033/15.11.2019/17:55) - ...
* Consolidated net income of Euro 1.748 million as of 30 September 2019
* LTV remains low at 43.4 percent
* Net asset value (NAV) per share of EUR 3.98
Frankfurt/M., 15 November 2019. ERWE Immobilien AG (ISIN DE000A1X3WX6, ERWE), Frankfurt am Main, generated positive consolidated net income in the first nine months of the financial year. Despite the high current volume of investments in developing its property portfolio and financing its further growth, the company posted consolidated net income of Euro 1.748 million as of 30 September 2019. At Eu-ro 5.988 million, the income from fair value measurement pursuant to IAS 40 once again made a material contribution to company earnings.
Gross rental income came to a cumulative total of Euro 2.455 million in the first nine months of the year and was thus ahead of the previous year's figure (Eu-ro 1.755 million). In the previous year, however, the new business model only took effect upon the contribution of the former ERWE Retail Immobilien GmbH as of 2 May 2018. Expenses from property lettings, which almost doubled to Euro 1.544 million, are also not comparable with the previous year's figure (Euro 0.887 million).
This is also true of the income from fair value measurement referred to above, for which the previous year's figure of Euro 9.127 million was still influenced by the contribution of ERWE Retail Immobilien and the substantial investments made by ERWE in Lübeck and Krefeld. The major share of the income from fair value measurements reported for the first nine months of this year is attributable to the takeover and valuation of land with a total surface of around 3.3 hectares in Friedrichsdorf close to Bad Homburg v.d.H. This factor was supplemented by income of Euro 1.3 million resulting from at-equity measurement to account for the pleasing lettings situation at Frankfurt Airport Center, which is expected to achieve full occupancy by the end of the year already.
"We are very satisfied with ERWE's performance, not least as we have made major progress in recent months in particular", comments Axel Harloff, a member of the Management Board. At Königpassage in Lübeck, where more than half the space has been let to the city administration on a long-term basis, following the necessary conversion and modernisation work the first surfaces have already been handed over two months earlier than planned. The conversion and modernisation measures at Postgalerie Speyer are also progressing on schedule. Alongside this modernisa-tion programme, a large portion of the space is being converted for use by an inter-national hotel group.
In Friedrichsdorf, where ERWE is developing TAUNUS LAB, a business park with usable space of around 58,000 m^2 and a parking facility with more than 1,400 parking spaces, demand for office space at the location, with its favourable transport links within the Greater Frankfurt region, is so high that ERWE plans to exercise its existing option to acquire a further 1.2 hectares of building land in the near future.
"Our balance sheet is in good shape at the end of the first nine months of the year", continues Harloff. Due to the investment in Friedrichsdorf and ongoing investments in converting and modernising the portfolio, consolidated total assets grew to Eu-ro 139.6 million (beginning of 2019: Euro 127.1 million). Investment properties reached a volume of Euro 117.4 million (beginning of 2019: Euro 101.9 million). Liquid funds contracted to Euro 14.1 million, with this also being due to the invest-ments made (beginning of 2019: Euro 19.2 million).
The key financial performance indicators still show great solidity and adequate scope for further growth. Adjusted EBIT totalled Euro 6.08 million. The loan-to-value figure is 43.4 percent. The net asset value of Euro 65.966 million, or Euro 3.98 per share, remained stable compared with the end of 2018.
"We will be upholding our acquisition and financing efforts", added Harloff. "We are also pressing ahead with developing our portfolio as planned, as a result of which we expect to see a further increase in income and further asset growth at our company."
ERWE Immobilien AG focuses on developing a highly profitable commercial real estate portfolio. Its preferred sites involve promising prime downtown locations in smaller towns and cities with more than 10,000 inhabitants. ERWE acquires properties whose potential value growth can be sustainably exploited by introducing new utilisation concepts. This way, the company aims to build a highly profitable and valuable portfolio with substantial revenue growth. ERWE Immobilien AG is listed in the Regulated Market (General Standard) on the stock exchange in Frankfurt am Main (XETRA) and in open trading in Berlin and Düsseldorf (ISIN: DE000A1X3WX6).
Contacts for enquiries:
german communications AG
Milchstr. 6 B
T. +49-40-4688330, F. +49-40-46883340
Hillermann Consulting e. K.
Streit´s Hof, Poststraße 14-16
T.+49-40-32027910, F. +49-40-320279114
|emitter:||ERWE Immobilien AG|
|contact person:||Christian Hillermann|
|phone:||+49 40 320 279-10|
|stock exchanges:||regulated market in Frankfurt; free market in Dusseldorf, free market in Stuttgart; open market in Berlin|