DGAP-News

Fiscal Year 2016: Hahn Group shows profitable growth - Seite 2

Business development 2016 in figures

The result from the sale and marketing of real estate assets rose in the financial year 2016 from EUR 4.4 million to EUR 8.7 million. The significant increase is mainly due to a higher transaction volume with institutional vehicles as well as the conception and successful placement of three investment funds in the private funds business. The increase in revenues from management fees by EUR 2.3 million to EUR 15.0 million (previous year: EUR 12.7 million) is due to the new consolidation of subsidiaries, which further deepens the value creation chain of the Hahn Group in real estate management.

Gross profit increased to EUR 28.7 million (previous year: EUR 23.1 million), whereby earnings before tax and financial expenses of EUR 10.0 million were roughly on a par with the previous year of EUR 9.7 million. The financial result of EUR -3.5 million (previous year: EUR -3.9 million) reflects stable financial income of EUR 0.2 million and reduced financial expenses. The financial expenses are directly related to the short-term holding of properties for private funds during the year. Earnings before income taxes amounted to EUR 6.5 million (previous year: EUR 5.8 million). At EUR 4.1 million, consolidated earnings after taxes were within reach of the very good prior-year figure (previous year: EUR 4.9 million). The tax rate increase compared to the previous year is due to the absence of tax-free earnings components.

As of December 31, 2016, the balance sheet total increased by EUR 39.5 million year-on-year to EUR 130.0 million. This is largely attributable to higher current assets, the temporary increase of company holdings as well as the fund processing with its associated high liquidity level near the end of the business year. Intangible assets also rose as a result of the new consolidation of subsidiaries. At the balance sheet date of December 31, 2016, equity amounted to EUR 43.6 million (December 31, 2015: EUR 40.5 million).

On the basis of a sustainably good earnings situation, the Management Board and the Supervisory Board propose to the Annual General Meeting the payment of a dividend of EUR 0.19 per registered share.

Positive outlook

The Management Board of Hahn AG expects that the interest of institutional investors and wealthy private investors in managed real estate investments will remain constantly high due to the low yields of alternative investments as well as the high volatility of the stock markets. This is likely to lead to a continued high demand for investments in Hahn fund products.