DGAP-News: LEG Immobilien AG / Key word(s): Annual Results/Personnel
Dusseldorf, 10 March 2019
- Thomas Hegel departs as CEO at the end of the next Annual General Meeting on 29 May 2019. As of 1 June 2019 his successor is Lars von Lackum (CDO)
- Dr. Volker Wiegel to join the Management Board as Chief Operating Officer (COO) with effect from 1 June 2019
- FFO I reaches target range with further growth of 7.9% to EUR 318.6 million
- Like-for-like rent per square metre up 3.0% as forecast
- Adjusted pro forma NAV, which makes the effects of a potential conversion of the 2014/2021 convertible bond even more transparent, rises by 15.4% to EUR 93.40 per share
- Dividend (proposal) to be increased significantly by 16.1% to EUR 3.53 per share
- FFO I forecast confirmed at EUR 338-344 million for 2019 and EUR 356-364 million for 2020
A new appointment was also made to the position of Chief Operating Officer (COO). The Supervisory Board has appointed Dr. Volker Wiegel (42) to the Management Board as COO for a term of three years starting on 1 June 2019. Since 2013, Dr. Volker Wiegel, a lawyer and economist, worked at LEG Immobilien AG as General Counsel and established the Legal, Structure and Organisation department, which is primarily responsible for the ongoing development of operational processes. Prior to joining LEG, Dr. Volker Wiegel worked for the international law firm Sullivan & Cromwell LLP.
The responsibilities of Eckhard Schultz (54) as Chief Financial Officer (CFO) and Deputy Chairman of the Management Board remain unchanged.
"Thomas Hegel has accomplished exceptional work for LEG over the past 13 years. The successful transformation from a state-owned company into a leading MDAX-listed housing company under his management is testament to what he has achieved. Thomas Hegel has earned the particular gratitude of the Supervisory Board," commented Michael Zimmer, Chairman of the Supervisory Board of LEG Immobilien AG. "In ensuring a natural successor in the interests of the company's long-term development, the Supervisory Board is delighted to welcome Lars von Lackum as the new Chief Executive Officer. With his proven expertise in corporate management, his conceptual skills when it comes to corporate development and his transaction experience, Lars von Lackum is predestined for the task of further developing LEG."
Thomas Hegel: "Over the past decade, LEG has undergone a significant evolution and achieved ambitious targets. I would like to thank all of the employees who made this possible and with whom I have greatly enjoyed working over so many years. Lars von Lackum is the right successor to continue this growth strategy."
As forecast, LEG Immobilien AG closed the 2018 financial year with positive earnings and value development. Key drivers of the positive earnings performance remain structural organic rental growth, effects from acquisitions in core markets and a further decline in interest expenses. Positive fundamental development and the high level of demand for residential properties in investment markets also contributed to the significant increase in the value of the portfolio.
"We achieved our ambitious targets once again and will continue to growth with prudent, value-adding investments in our portfolio as well as acquisitions. We expect our stable, sustainable growth to continue in the coming years," commented Thomas Hegel, CEO of LEG Immobilien AG.
The negative effect of increased costs for craftsmen services was offset by efficiency enhancement measures. Accordingly, the operating EBITDA margin improved slightly once again to 72.3% (2017: 72.1%). We expect to see a further improvement in the operating margin over the coming years.
In the reporting period, in-place rent rose by 3.0% year-on-year on a like-for-like basis to an average of EUR 5.67 per square metre. The rent in the free-financed portfolio increased by as much as 3.9% on a like-for-like basis. Despite slightly higher fluctuation due to modernisation, the like-for-like vacancy rate remained stable year-on-year at 3.3%.
Significant value growth in the property portfolio
The main factor behind the rise in NAV was the growth in the value of the property portfolio, which appreciated by 8.2% in 2018. This was driven by positive operational performance as well as the high level of demand for German residential properties. The value of the property portfolio corresponds to an attractive gross rental yield of 5.5% and a value of EUR 1,198 per square metre.
Significant increase in dividend planned
Net debt in relation to property assets (loan-to-value/LTV) amounted to a low level of 40.7% at the end of the quarter. This serves to underline LEG's low risk profile and continues to offer scope for financing the company's future growth.
Outlook for 2019 and 2020 confirmed
The press release is available to download at: http://leg.ag/GB-2018-de
|LEG Immobilien AG
|+49 (0) 211 / 4568 - 0
|+49 (0) 211 / 4568 - 261
|Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart, Tradegate Exchange
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