WESTGRUND Aktiengesellschaft

Westgrund AG achieves record results in all areas

(DGAP-Media / 17.11.2014 / 07:25)

Westgrund AG achieves record results in all areas

- Sales up c. 54% to EUR 16.3m during first 9 months of 2014
- Net earnings per share up 98% to EUR 0.85
- LTV currently at 48%

Berlin, 17/11/2014 - The third quarter of 2014 was the most decisive in
Westgrund AG's history so far: announcement of the acquisition of 13,300
units in July this year as well as a EUR 140m capital increase, the
integration of the first 6,834 units and a listing upgrade to Prime
Standard at the end of September. These new assets will only start making
an impact on the group's P&L from fourth quarter 2014. Nevertheless during
the first 9 months of 2014 Westgrund again managed to significantly
increase its revenues by 53.8% from EUR 10.6m in 2013 to EUR 16.3m in 2014.
Pre-tax profit for the group was EUR 34.1m, up substantially from EUR 11.2m
during the same period last year. Included in this figure are not only
valuation improvements in the amount of EUR 42.5m (prior year EUR 9.5m),
but also one-off financing costs for the latest acquisition and non-cash
mark-to-market movements of interest rate swaps, which are used to hedge
loans on balance sheet. Post tax profit over the first 9 months of the
financial year amounts to EUR 28.5m after EUR 9.1m last year.

The operationally more relevant measure Funds from Operations without sales
("FFO I") was EUR 1.74m. Operating EBITDA (without revaluation gains and
non-cash items) came out at EUR 7.0m, again up significantly from the same
period last year.

"Our results show the solid basis on which we can now build as we integrate
the new assets from 1st October 2014 onwards", says Sascha Giest, Chief
Financial Officer at Westgrund AG. "We therefore also expect a significant
improvement of our full year results over last years numbers, and a further
substantial increase for 2015 when the newly acquired assets have been
fully integrated."

Out of the acquisition of 13,300 units that was signed in July 2014
("Berlinovo-Portfolio") approx. 11,600 units will remain within the
Westgrund Group long term. Some 1,300 units are due to be sold on in short
order, and for c.400 units pre-emption rights have been exercised. By 30th
September 2014 6,834 residential and commercial units (c. 54%) have been
taken over, which resulted in initial fair market value gains of EUR 34.7m.
By year end the majority of the remaining "Berlinovo"-Portfolio is expected
to be integrated.

Net asset value (NAV) of Westgrund AG already reached EUR 293m at the end
of the third quarter 2014, significantly above the firm's current share
price. Management expects further NAV and net rental growth in the forth