DGAP-News

ESTAVIS AG Makes Good Start to Financial Year

DGAP-News: ESTAVIS AG / Key word(s): Interim Report/Quarter Results
ESTAVIS AG Makes Good Start to Financial Year

14.11.2014 / 11:46

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- Revenues rise by 37 percent to 10.7 million euros (previous year: 7.8
million euros).

- Privatisations deliver substantially increased contribution to
operating income

- Quarterly profit of 0.14 million euros and favourable outlook for the
financial year

Berlin, 14 November 2014 - ESTAVIS AG (ISIN: DE000A0KFKB3) started into the
2014/2015 financial year with a consolidated income of 0.14 million euros
(prior-year quarter: 0.1 million euros). Sales revenues rose by 37 percent
to 10.7 million euros (prior-year quarter: 7.8 million euros).

The first quarter of the 2014/2015 financial year of ESTAVIS AG was defined
by stable contributions to operating income in the Portfolio segment and by
an increased contribution to operating income in the Trading segment.
Compared to 0.7 million euros in the prior-year quarter, the Trading
segment's contribution to operating income grew by 43% year on year as it
climbed to 1.0 million euros. This means that during the first three months
ESTAVIS already managed to generate the equivalent of nearly 40 percent of
the year-end total of the previous financial year in the Trading segment.
"This success in the privatisation business is largely attributable to
proprietary trading. It vindicates our strategy of steadily expanding our
proprietary trading through our subsidiary ESTAVIS Wohneigentum GmbH," said
Jacopo Mingazzini, the CEO of ESTAVIS AG.

Just recently, the company restocked its privatisation pipeline with assets
earmarked for proprietary trading. It spent approximately 15 million euros
to acquire 294 residential units in Berlin's Lichtenberg borough. "The
apartments are in excellent repair and are perfectly suited for private
investors and owner occupiers," as Mingazzini noted.

The Portfolio segment performed according to plan. The expansion of the
property stock through acquisitions in the town of Neubrandenburg and the
takeover of the property company J2P Real Estate AG pushed revenues up to
2.8 million euros, an increase by 14 percent. However, it implied a
year-on-year decline in the contribution to operating income in the
Portfolio segment. The income total was impacted in particular by one-off
payroll and benefit costs as well as by transaction and restructuring costs
in connection with the acquisition of a 4,300-unit portfolio. Despite the
positive group EBIT in an amount of 1.7 million euros, the consolidated
income thus came to just 0.14 million euros.