TLG ups full-year forecast on higher H1 earnings

Listed German property company TLG Immobilien has upgraded its earnings foreast for full-year 2015 after lifting FFO and rental income ‘significantly’ in the first half.

After originally forecasting a year-on-year increase of at least 10% in funds from operations, the company now expects full-year FFO to amount to around €63 mln after lifting the figure by 19.2% to €31 mln in the first six months.

TLG generated around €61.1 mln in rental income during the first six months of the year, representing an increase of 7.2% compared to the first half of 2014.

Although the number of properties in TLG’s portfolio decreased slightly, the value increased by 6.3% during the first half of 2015. The value of the core portfolio increased by 8.1% to around €1.5 bn due to new acquisitions. By contrast, the value of the non-core portfolio fell by 16.7% to around €93.5 mln, mainly reflecting disposals of properties that were not in line with TLG’s strategy.

TLG said its financial ratios were in good shape at end-June with the average cost of debt amounting to 2.95% and average maturities for loans running at 5.2 years. The company's costs for new long-term financing are currently below 2%.

‘The substantial increases in revenue and earnings figures during the first half of 2015 are primarily a reflection of the continuing strong and successful development of the operating business,’ said Peter Finkbeiner, member of TLG's management board. ‘The systematic implementation of our strategy through additional acquisitions at attractive locations can be seen in a further increase of our portfolio value. As such, we have taken significant steps towards achieving our targets for 2015 as well as our future targets for further expanding our portfolio.’