Summit Germany Limited Half-year Report (9305B)

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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: [phone] 
Zohar Levy - Managing Director 
Itay Barlev (Braun) - Finance Director 
 
Non-Executive Chairman                      Tel: [phone] 
Harry Hyman 
 
Carey Group, Company Secretary              Tel: [phone] 
Sara Bourne 
 
Liberum Capital Limited, Nominated Adviser  Tel: [phone] 
 and Joint Broker 
Chris Clarke / Gillian Martin 
 
Cenkos Securities, Joint Broker             Tel: [phone] 
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 [e-mail] or visit www.rns.com.

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September 26, 2018 02:01 ET (06:01 GMT)