DEMIRE AG: Profit soars in the first quarter of 2016
- Rental income rises to EUR 17.8 million (previous year: EUR 7.0 million)
- EBIT increases to EUR 14.0 million (previous year: EUR 5.2 million)
- Net profit/loss for the period grows to EUR 4.2 million (previous year: EUR 0.5 million)
- Basic EPRA NAV per share rises to EUR 5.29 (December 31, 2015: EUR 5.20)
Frankfurt/Main, 09. June 2016 – After nearly tripling its real estate holdings in 2015 and adding the Kurfürstengalerie property in Kassel in January 2016, DEMIRE got off to a good start in the 2016 fiscal year.
The DEMIRE Group’s rental income in the first three months of 2016 amounted to EUR 17.8 million after just EUR 7.0 million in the prior year. Net rental income amounted to EUR 13.1 million following a sum of EUR 5.2 million in the comparable prior-year period.
IFRS earnings before interest and taxes (EBIT) rose to EUR 14.0 million (previous year EUR 5.2 million). The net profit/loss for the period in the first quarter of 2016 increased to EUR 4.2 million after just EUR 0.5 million in the prior year.
Total assets of the real estate group specialised in secondary locations increased slightly to EUR 1.1 billion as at March 31, 2016 (December 31, 2015: EUR 1.0 billion). Net debt (LTV) decreased further to a total of 66.3 % (December 31, 2015: 67.5 %) of real estate holdings of roughly EUR 971 million. Cash flow from operating activities in the first quarter of 2016 rose from EUR 6.4 million in the previous year’s comparable quarter to EUR 8.1 million.
Basic EPRA NAV per share rose slightly in the first quarter of 2016 to EUR 5.29 (December 31, 2015: EUR 5.20).
CEO Hon.-Prof. Andreas Steyer in his comments on DEMIRE’s strategic focus said: “Following the Company’s successful growth since the start of the previous fiscal year, the focus has been on consolidating the new additions to the portfolio and improving our financial result going forward. With the refinancing of the first half of the HFS loan through cheaper loans scheduled for mid-June 2016, we will improve our financial result in the future by roughly EUR 2.2 million annually and thereby raise the FFO.”
Net profit/loss for the period adjusted for the effects from valuation and non-recurring and special items (FFO) before non-controlling interests amounted to EUR 3.4 million in the first quarter of 2016. In view of the rentals and refinancing of financial liabilities already concluded or still planned and the gradually increasing savings in administrative costs through insourcing services that were previously outsourced, the Executive Board reconfirms the FFO forecast of nearly EUR 20 million before non-controlling interests for the full year of 2016.
The first quarter 2016 interim statement is available on the company’s website at www.demire.ag under the Investor Relations section: http://www.demire.ag/en/investor-relations/reports-results/2016