24.02.2015

LEG Immobilien AG announces FFO outlook for 2016 - FFO I in a range of EUR 223 million to EUR 227 million; raised guidance for 2015; preliminary results for 2014

LEG Immobilien AG  / Key word(s): Forecast

24.02.2015 19:04

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

LEG Immobilien AG announces FFO outlook for 2016 - FFO I in a range of EUR
223 million to EUR 227 million; raised guidance for 2015; preliminary
results for 2014

Based on the planned early refinancing of loans and accelerated
implementation of efficiency-enhancement measures, LEG Immobilien expects a
stronger increase in FFO I in 2015 and 2016.

LEG intends to gain long-term benefit from the attractive terms on the
financing markets. Therefore, loans totalling around EUR 900 million are to
be refinanced early. As a result, LEG's average financing costs are
expected to drop to less than 2.3%, and the average loan maturity is likely
to be extended to more than 11 years. The average maturity of the new
credit agreements is around 10 years. Early repayment of the loans involves
expected one-off expenses of around EUR 60 million with a payback period of
around 3.5 years in view of the reduced interest expenses.

Based on the first expected earnings effects of refinancing, the FFO I
forecast for 2015 is being raised to between EUR 195 million and EUR 200
million (previously: EUR 188 million to EUR 193 million).

Furthermore, there are plans to step up the internal efficiency-enhancement
programme. In view of the planned refinancing and efficiency-enhancement
measures, further significant earnings growth is expected in 2016. Hence,
LEG forecasts an FFO I in a range of EUR 223 million to EUR 227 million for
2016. These earnings forecasts do not yet include the effects of planned
future acquisitions.

The generation of economies of scale and planned efficiency-enhancement
measures are to become apparent in a sustainable increase in the operating
margin. LEG expects the key figure "adjusted EBITDA margin" to improve from
66.5% in 2014 to around 71% in 2017. This guidance does not yet take into
account any effects of acquisitions.

LEG Immobilien AG has increased FFO I for 2014 by 15.9% to EUR 163.6
million on the basis of the preliminary, as yet unaudited annual financial
statements. The upper end of the company's guidance range has thus been
reached. As a key operating performance indicator, rental growth of 3.0%
was achieved on a like-for-like basis, and the vacancy rate was reduced
further to a low level of 2.7% like-for-like. At the reporting date, net
asset value (NAV) excluding goodwill amounted to EUR 52.69 per share, up
6.7% year-on-year.


24.02.2015 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------------
 
Language:     English
Company:      LEG Immobilien AG
              Hans-Böckler-Straße 38  
              40476 Düsseldorf
              Germany
Phone:        +49 (0) 211 / 4568 - 0
Fax:          +49 (0) 211 / 4568 - 261
E-mail:       
Internet:     www.leg-nrw.de
ISIN:         DE000LEG1110
WKN:          LEG111
Indices:      MDAX
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated
              Unofficial Market in Berlin, Dusseldorf, Stuttgart
 
End of Announcement                             DGAP News-Service
 
---------------------------------------------------------------------------

Zurück zum Seitenanfang
Loading