Highest revenues and best net result in the company’s history
All material economic key data saw considerable increases or improvements in line with the scope of the acquisition.
Real estate portfolio tripled
The number of residential properties under management more than tripled year on year, amounting to 16,647 units at the end of the year (previous year: 4,905 units).
Revenues almost doubled
Revenues – which consist almost entirely of rental revenues – are expected to rise to EUR 35.7 million, which roughly equates to double the rental revenues of the previous year. The development of the real estate portfolios was not quite in line with the development of rental revenues given that the transfer of benefits and encumbrances for the new portfolios took place only in the second half of the 2014 financial year and was not yet fully complete at the end of the year. Rental revenues for those real estate units which had belonged to the Westgrund group already in 2013 increased by 4.4 percent in 2014.
The overall performance of Westgrund AG almost tripled in line with growth in the real estate portfolio, increasing to EUR 119.2 million. This increase primarily reflects the increased value of the real estate portfolio, which at EUR 78.9 million was almost four times higher than in the previous year, and is mainly attributable to the newly acquired portfolios.
Results more than tripled
The considerable expansion of the real estate portfolios meant that all of the expense items, such as material expenses, personnel expenses and interest expenses, also saw a logical increase. However, they increased to a lesser extent than the overall performance. According to the still preliminary data, earnings before taxes (EBT) consequently increased to EUR 71.6 million, more than triple the figure recorded in the previous year, reaching a record level in the history of Westgrund AG. Taking income taxes into account, the company closed the 2014 financial year with a consolidated net result that was also more than three times higher than the previous year at EUR 59.8 million.
FFO more than quadrupled
Funds from operations without gains from the sale of properties (FFO I) will reach EUR 5.6 million – more than four times higher than the comparative figure for the previous year (EUR 1.3 million). FFO is typically used as a key figure in real estate companies to measure the economic success of current business operations. As such, they reflect the successful growth course of Westgrund AG in the operating business.
Net asset value (NAV) more than tripled
The going concern value of Westgrund AG following the EPRA calculation method (net asset value) will, according to the still preliminary data, reach EUR 313.5 million in 2014 – more than three times the previous year’s figure. Undiluted NAV per share will come to EUR 4.24.
Financing structure (LTV) improved
Despite this strong growth, Westgrund AG retained a conservative financing structure in 2014. At the end of the year, the loan to value ratio of the properties (LTV) was at 54 percent. In addition to a capital increase that was successfully placed in autumn 2014 with gross proceeds of EUR 140 million, the temporary interim financing was also replaced with long-term bank loans at the end of the year. The average interest rate of external financing fell to 2.6 percent.
The complete annual financial statements are expected to be available at the end of March on the website of Westgrund AG.