DGAP-News

GAGFAH 2014 - Promised and Delivered

DGAP-News: GAGFAH S.A. / Key word(s): Final Results
GAGFAH 2014 - Promised and Delivered

03.03.2015 / 07:00

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Press Release: March 3, 2015
GAGFAH S.A.
2-4, rue Beck
L-1222 Luxembourg

ISIN: LU0269583422
Frankfurt Stock Exchange (Ticker Symbol: GFJ)
Regulated Market (Prime Standard)

GAGFAH 2014 - Promised and Delivered

- Strong operational results with 2.7% rent growth and 3.4% vacancy rate

- EUR189.9 million Recurring FFO (EUR0.88 per share)

- EUR14.39 EPRA NAV per share

- Proposed dividend of EUR0.35 per share

2014 was a very successful year for GAGFAH. The Company had set ambitious
targets for 2014 and has fully delivered on its promises. The final results
underline the strong performance during the previous year and clearly
demonstrate GAGFAH's progress.

Operations
Net cold rent grew 2.7% (like-for-like: 2.6%) to EUR5.35 per square meter
in 2014. The vacancy rate declined by 70 basis points in the course of 2014
and came out at 3.4%. Excluding the impact from the ca. 6,300 units
acquired in the fourth quarter, the vacancy rate was 3.2%. GAGFAH invested
a total of EUR151.2 million (+25%) or EUR17.59 per square meter.

Sales
GAGFAH closed the sale of 766 condo units and 4,168 non-core units for a
total of EUR222.0 million and signed sales agreements for an additional 165
condo units plus 1,543 non-core units. While the non-core units were sold
broadly in line with their respective carrying values, the gross margin on
the condo sales was 26.2% and the net cold rent multiple was 20.2x.

Financial Results
The net operating income (NOI) in 2014 was EUR390.7 million (+4.9%), which
represents an NOI margin of 69.5% and an NOI yield of 5.1%. The adjusted
EBITDA was EUR349.7 million (+4.3%) and reflects a margin of 4.5% on the
average property value in the course of 2014. Supported by higher rental
income, broadly stable property and overhead expenses and substantially
lower interest expenses, the Recurring FFO was EUR189.9 million or EUR0.88
per share (+47%). Based on the 2014 year-end EPRA NAV, the Recurring FFO
yield is 6.1%.

The improved cash flows of the business supported the EUR161.9 million gain
from the fair value measurement of investment property (+2.1% compared to
Dec. 31, 2013 values). GAGFAH's portfolio is valued at EUR895 per square
meter, with a 13.4x target-rent multiple and a 13.8x in-place-rent