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GxP German Properties publishes annual report 2016

DGAP-News: GxP German Properties AG / Key word(s): Final Results GxP German Properties publishes annual report 2016 31.03.2017 / 09:24 The issuer is solely responsible for the content of this announcement. GxP German Properties publishes annual report 2016

Berlin, 31 March 2017 - GxP German Properties (ISIN: DE000A1YCNN8, WKN: A1YCNN) has published its first annual report as a listed real estate company. The financial figures correspond to the preliminary figures published on 10 March 2017.

GxP's owned property portfolio comprises nine office properties with a total market value of approximately EUR106.2 million.

The net asset value (NAV) including the acquisition of the Dresden property amounted to EUR77.2 million or EUR1.11 per share as of 31 December 2016. This figure includes a goodwill of EUR35.2 million. Excluding the goodwill, the NAV is EUR0.61 per share. The net loan-to-value (LTV) ratio, as an indicator of the company's debt levels, stood at around 63 per cent at the end of 2016.

The current real estate portfolio is generating annualised rental income of around EUR7.5 million, which corresponds to a net initial rental yield of over 7.0 per cent. The company expects an annualised FFO I of approximately EUR3.5 million from the high-yielding portfolio. Both, net initial yield as well as the implied FFO yield of 8.5% (based on the current market capitalization) are well above the market average.

The company has further optimized its current portfolio through active asset management. Since the acquisition of the existing portfolio in December 2016 and February 2017 respectively, new leases of approximately 2,000 square meters or 2.5% of the total area of ​​about 80,000 square meters have been signed.

The profit and loss statement according to German GAAP (HGB) of the 2016 financial year is not meaningful as a result of the transfer of the first portfolio acquisition on December 5, 2016 and the extraordinary expenses associated with the capital increase as well as the stock exchange listing. Including the valuation gains from the portfolio (Lucky-buy) the group achieved an adjusted result of more than EUR7 million in 2016.