Colonia Real Estate AG / Key word(s): Quarter Results
10.11.2010 07:30
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Colonia Real Estate AG: Break-even earnings before tax in Q3 2010
- Vacancy rate declines further in Q3 2010 to currently 12.1%
- Asset Management returns to profitability at EUR 0.2 million
- EBIT of EUR 7.6 million despite high portfolio investments in Q3 2010
(Q1-Q3 2010: EUR 19.8 million)
- Positive cash flow from operating activities rises to EUR 2.9 million
in the first nine months of 2010
Cologne, November 10, 2010 - Colonia Real Estate AG generated break-even
earnings before tax (EUR k 6.4) and reduced again its vacancy rate in the
third quarter of 2010. After 13.6% at the start of 2010 and 12.4% after six
months, the vacancy rate is 12.1% at the end of the third quarter of 2010.
The target for the fiscal year as a whole is a vacancy rate of less than
12%.
Higher rental income in the third quarter of 2010 of EUR 22.7 million,
together with virtually unchanged operating expenses of EUR 13.0 million,
resulted in rental income (net operating income) of EUR 9.7 million.
Accordingly, the average rent per square meter rose from EUR 4.59 to
currently EUR 4.64. In total, rental income of EUR 26.1 million was
generated in the first nine months of 2010. A comparison with the figure
for the previous year of EUR 32.4 million is of limited use as the rental
income for the previous year still included rent from the portfolio sold in
September 2009.
We again increased investments in our portfolio in the third quarter. After
a total of EUR 6.0 million in the first half of 2010, investments in the
renovation and modernization of apartments amounted to a further EUR 4.6
million in the third quarter alone. Therefore the total investment volume
in the first nine months 2010 amounted EUR 10.6 million.
Our Asset Management division performed well, returning to profitability in
the third quarter at EUR 0.2 million. With costs remaining virtually
constant, this success was contributed in particular by the rise in
revenues (up 19.6%) compared to Q2 2010. This division has also reported
positive earnings for the first nine months of 2010. After a loss of EUR
1.5 million in 2009, it recorded a profit of EUR 0.2 million from January
to September 2010.
As a result in particular of the improved rental income and the profit in
Asset Management, we generated EBITDA of EUR 7.7 million in Q3 2010. This
marks a significant improvement after EUR 8.4 million in Q1 and EUR 3.7
million in Q2 2010, and was achieved in spite of investment spendings of
EUR 4.6 million in Q3 2010. Corresponding EBIT for Q3 2010 remained with
EUR 7.6 million on the same level like the previous quarters (Q1: EUR 8.2
million; Q2: EUR 7.6 million). This is a development that we knowingly
accepted to increase the value of our portfolio and to reduce the vacancy
rate in the long run.
As a result of the partial restructuring of our financing plus the
repayments made, we have cut our financial expenses significantly by EUR
3.2 million or 11.6% year-on-year to EUR 24.0 million in the first nine
months of 2010.
In spite of the improved earnings in Rentals and Asset Management in Q3
2010, the investments in our portfolio totaling EUR 10.6 million in the
first nine months of 2010, resulted in an - albeit small - consolidated
loss before taxes of EUR k 66.0.
Stephan Rind, CEO of Colonia Real Estate AG, said of these results: 'We
have systematically stuck by our investment policy in the third quarter of
2010 as well. We have invested EUR 4.6 million of our cash flow in
improving the rentability of our vacant apartments. We are aware that this
will squeeze our income figures in the short term. In spite of we were able
to generate a break-even result before tax in Q3 2010. Besides returning
our Asset Management division into profit zone we laid the foundation in
2010 to improve our rental income and thereby to significantly increase
consolidated profit of the Group.'
The full quarterly report can be downloaded from the following Internet
address from 8:00 am:
http://www.colonia.ag/121/Investor_Relations/Reports_Presentations/Financi
al_Reports.htm
Management Board
Cologne, November 10, 2010
Colonia Real Estate AG
ZeppelinstraÃe 4-8
D - 50667 Cologne, Germany
Listing: Frankfurt Official Market (Prime Standard)
ISIN: DE0006338007
SIN: 633800
About Colonia Real Estate AG
Colonia Real Estate AG is one of the leading listed real estate investment
and management groups in Germany with round about 19,000 residential units
and EUR 2.1 bn Assets under Management.
The Colonia business model is based on two columns. The investment segment
concentrates on high-yield residential property portfolios held for the
company's account and co-investments in commercial and residential
properties together with institutional partners. Second column of the
Colonia business model is the service segment. Here Colonia Real Estate
Solutions GmbH provides all services along the life cycle of a property in
a modular manner.
Contact
Claudia Kellert
Head of Investor Relations & Communication
ZeppelinstraÃe 4-8, 50667 Cologne, Germany
Tel +49. (0)221. 71 60 71-0, Fax +49. (0)221. 71 60 71-99
ir@colonia.ag
Contact:
Claudia Kellert
Head of Investor Relations and Communication
Colonia Real Estate AG
Zeppelinstr. 4-8
50667 Cologne, Germany
Phone +49 (0)221 71 60 71 0
Fax +49 (0) 221 71 60 71 99
E-Mail: pr@colonia.ag
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Language: English
Company: Colonia Real Estate AG
Zeppelinstr. 4 - 8
50667 Köln
Deutschland
Phone: +49 221-716071-0
Fax: +49 221-716071-99
E-mail: ir@colonia.ag
Internet: www.colonia.ag
ISIN: DE0006338007
WKN: 633800
Indices: SDAX, GPR 250, MSCI Germany Small Cap Index, FTSE EPRA/
NAREIT, E&G DIMAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Hamburg, München, Düsseldorf, Berlin, Hannover, Stuttgart
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DGAP-News: Colonia Real Estate AG: Break-even earnings before tax in Q3 2010
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