German residential company GSW Immobilien reported net rental income rose by around 13.3% in the first six months of 2012 to EUR 78.9 mln from EUR 69.6 mln in the year-earlier period. However, earnings before interest and tax (EBIT) were down 3% year-on-year at EUR 66.3 mln.
German residential company GSW Immobilien reported net rental income rose by around 13.3% in the first six months of 2012 to EUR 78.9 mln from EUR 69.6 mln in the year-earlier period. However, earnings before interest and tax (EBIT) were down 3% year-on-year at EUR 66.3 mln.
In a press statement, the company said last year’s EBIT figure was distorted by events such as the sale of BMH Berlin Mediahaus and the expenses for the IPO in January this year. Adjusted for these effects, EBIT rose by EUR 10 mln. Earnings before interest, tax, depreciation and amortisation (EBIDTA) fell by a similar percentage year-on-year, but adjusted EBITDA was up 11.6% which was in line with forecasts, the company said.
Board member Jörg Schwagenscheidt attributed the increase primarily to improved net rental income as a result of higher rents, a lower vacancy rate and good results from disposals. The vacancy rate declined to around 3.2% while existing rents increased by 4% to EUR 5.14 per m2 per month in the same period.
Net asset value (EPRA NAV), increased to EUR 1.4 bn at the end of the first half. The loan-to-value ratio declined to 51.5% from 58%, thanks largely to the proceeds from the capital increase held in May this year. Due to the higher number of shares following the capital increase and the distribution of EUR 0.90 per share dividend, net asset value (EPRA NAV) per share dipped from EUR 29.72 at end-2011 to EUR 27.59.
For the full year, GSW is forecasting funds from operations (FFO) will increase to between EUR 61-64 mln. In the first half, FFO rose 12.4% to EUR 32.6 mln, excluding disposals.
