DGAP-News: KWG Kommunale Wohnen AG / Key word(s): Final Results/Real Estate KWG Kommunale Wohnen AG: KWG AG shows substantial earnings increases 14.04.2014 / 08:00 --------------------------------------------------------------------- - Net Rental Income rises to EUR 30.7 mn. (prev. EUR 19.8 mn.) - FFO more than doubles to EUR 5.4 mn. (prev. EUR 2.0 mn.) - NNNAV per share at EUR 11.38 (prev. EUR 11.16) - Positive outlook for business year 2014 Hamburg - 14 April 2014 - KWG Kommunale Wohnen AG, a long-term oriented property holding company of residential real estate in which Austrian conwert Immobilien Invest SE holds a 77% majority stake, looks back upon a successful course of its FY 2013: Considerable increase in earnings / outperformance of guidance Revenues in FY 2013 increased to EUR 45.7 mn. after EUR 27.9 mn. in the previous year. Net Rental Income in the KWG-Group rose from EUR 19.8 mn. in 2013 to EUR 30.7 mn. and increased considerably during the course of the year. Q4 2013 Net Rental Income amounted to EUR 7.5 mn. versus prior year's level of approx. EUR 5.5 mn. during the comparable quarter. In the business year 2013 the Funds from Operations (FFO) more than doubled to 5.4 mn. versus EUR 2.0 mn. in the previous year. With this substantial increase KWG AG outperformed its guidance of EUR 5.0 mn. The Group's Net Result of EUR 1.2 mn. in 2013 is based on a positive operating cash flow of EUR 3.8 mn. Net asset value enhancement / conservative balance sheet structure The Triple Net Asset Value (NNNAV) per share climbed from EUR 11.16 in 2012 to EUR 11.38 in 2013. By the year end the KWG-share showed a discount of approx. 44% to the NNNAV per share. The Loan to Value (LTV) was kept at a reasonable debt level standard with 55.5% (2012: 56.2%) and was in line with the guidance of KWG AG. The value of KWG AG's property assets declined slightly due to property sales and value adjustments in the portfolio from EUR 428.1 mn. in 2012 to EUR 424.5 mn. in 2013. Hence, the property assets per sqm increased from EUR 712 in 2012 to EUR 723 in 2013. The positive operative development is based on the consistent optimization of the KWG AG portfolio and on rent increases for properties acquired in 2012. With EUR 14.7 mn. almost half of the rental income in 2013 was realized with the acquired properties. Further increase of earnings in 2014 expected For the fiscal year 2014 the management board of KWG AG expects an ongoing positive development. KWG AG plans to carry on its approach to sell properties that are not 100% in line with the company's portfolio strategy. Though, the management board expects that the Net Rental income in 2014 will be maintained at the previous year's level of approx. EUR 30 mn. With an ongoing modernization of the portfolio the net rental income per sqm as well as the value of property assets per sqm shall be increased. Furthermore the management board expects a slight increase in FFO from rental income. The earnings shall also be supported by liquidity increases from the portfolio adjustments. The equity this frees up shall be invested in the enhancement of the KWG's properties to support the profitability of the portfolio. The management board expects Earnings before Interest and Taxes of approx. EUR 5.0 mn. Further information In line with the preparation of the financial statement 2013 the IFRS-consolidated statement of 2012 has been restated. The restatement has an effect of EUR -0.8 mn. on the previous year's Group's Net Result. The annual report is available for download on the corporate website at http://www.kwg-ag.de/en/investor-relations/ Contact KWG Kommunale Wohnen AG Jan Hutterer Alstertor 9 20095 Hamburg Tel.: +49 (0)40 226 30 88-100 eMail: [email protected] www.kwg-ag.com End of Corporate News --------------------------------------------------------------------- 14.04.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: KWG Kommunale Wohnen AG Alstertor 9 20095 Hamburg Germany Phone: 040 22 63 088 100 Fax: 040 22 63 088 200 E-mail: [email protected] Internet: www.kwg-ag.de ISIN: DE0005227342 WKN: 522734 Listed: Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart; Frankfurt in Open Market (Entry Standard) End of News DGAP News-Service --------------------------------------------------------------------- 262975 14.04.2014