TIDMSMTG
RNS Number : 9305B
Summit Germany Limited
26 September 2018
Summit Germany Limited
2018 Half Year Results
26 September 2018
We are pleased to present the interim unaudited results for the
six months ended 30 June 2018 ("the Reporting Period") for Summit
Germany Limited and its subsidiaries ("the Group").
Profits
-- Net profit of EUR87.1 million (H1-2017: EUR12.9 million, FY 2017: EUR113.0 million)
-- Profit Before Tax (PBT) of EUR102.1 million (H1-2017: EUR14.1
million, FY 2017: EUR128.7 million)
-- EBITDA of EUR107.2 million (H1-2017: EUR19.1 million, FY 2017: EUR146.0 million)
-- Gross profit of EUR29.1 million (H1-2017:EUR26.2 million, FY 2017: EUR55.8 million)
NAV
-- EPRA NAV increased 14.3% to EUR655.0 million (FY 2017: EUR572.9 million)
-- Group's NAV increased 13.4% to EUR605.0 million (FY 2017: EUR533.3 million)
-- NAV and EPRA NAV per share of EUR1.30 and EUR1.41, respectively (FY 2017: EUR1.15 and EUR1.23, respectively)
Rent and operations
-- Rental income increased by 10.9% to EUR31.5 million (H1-2017:
EUR28.4 million, FY 2017: EUR60.5 million)
-- EUR64.5 million annualised net rent
-- Funds From Operations (FFO) 13.7% up to EUR19.9 million
(H1-2017: EUR17.5 million, FY 2017: EUR36.5 million)
-- Average rent per sqm per month of EUR6.6 across the portfolio is lower than ERV
-- 92% occupancy over the portfolio's majority, excluding properties for re-development
-- New leases and renewals for approximately 46,000 sqm securing
rental income of ca. EUR4.1 million p.a.
Events post reporting period
-- Acquisition of controlling stake in a Frankfurt-listed real estate company, including:
o EUR166 million office portfolio of 12 properties located in
German major cities
o Total lettable area of 106,700 sqm, 89% let
o Rent of approximately EUR10.8 million p.a.
The result of this acquisition will be reflected in the Group's
results for the third quarter of 2018.
-- Disposal of non-strategic property for EUR3.5 million.
Financing
-- EUR300 million placement of senior fixed rate notes at 2.00%
p.a. for seven year term in January 2018.
-- Refinancing EUR232 million of medium term secured debt facilities using bond proceeds:
o Repayment of ca. EUR220 million of debt facilities bearing
average 3.6% interest p.a.
o Acquisition of EUR12.2 million of debt bearing 3.7% interest
p.a.
o Total interest savings of approximately EUR3.4 million
p.a.
-- Following refinancing activities, Group's LTV is at 45% as at
30 June 2018 with an average interest rate of 2.17% and average
duration of almost seven years.
Dividend
-- Total dividend distributions of EUR9.3 million during the
Reporting Period, reflecting 2.00 cents per share.
-- Additional EUR4.65 million paid post Reporting Period, reflecting 1.00 cents per share.
Harry Hyman, Chairman commented: "The performance of the Group
portfolio in combination with the financing activity during the
first half of the year have fixed the portfolio in a strong
position. We achieved significant portfolio growth, both an uplift
in the value of our existing assets as well as a major acquisition
just after the period end. The latter will contribute net rent and
provide high-quality assets to respond to hands on asset
management. We expect this to support us in outperforming our
underlying markets over the next periods."
Zohar Levy, Managing Director commented: "Our core strategy
continues to focus on working our assets to grow the rental base
and occupancy rates. That has been supplemented by two major
acquisitions in the last 18 months, and substantial improvement in
the terms of group debt. Our activity in developing surplus
building rights on existing properties has progressed and we expect
it to raise a significant upside, resulting in additional inherent
value of the portfolio. The German real estate market remains very
attractive and we believe that the impact of our asset management
skills on our under rented portfolio will be reflected in portfolio
performance and further growth in asset values."
For the full report please download the PDF.
http://www.rns-pdf.londonstockexchange.com/rns/9305B_1-2018-9-25.pdf
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information please contact:
Summit Germany Limited Tel: +44 (0) 1481 700 300
Zohar Levy - Managing Director
Itay Barlev (Braun) - Finance Director
Non-Executive Chairman Tel: +44 (0) 20 7451 7050
Harry Hyman
Carey Group, Company Secretary Tel: +44 (0) 1481 700 300
Sara Bourne
Liberum Capital Limited, Nominated Adviser Tel: +44 (0) 20 3100 2222
and Joint Broker
Chris Clarke / Gillian Martin
Cenkos Securities, Joint Broker Tel: +44 (0) 20 7397 8900
Mark Connelly
Russell Kerr / Selwyn Jones (Broking)
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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