LEG Immobilien AG announces FFO outlook for 2016 - FFO I in a range of EUR 223 million to EUR 227 million; raised guidance for 2015; preliminary results for 2014

LEG Immobilien AG  / Key word(s): Forecast

24.02.2015 19:04

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LEG Immobilien AG announces FFO outlook for 2016 - FFO I in a range of EUR 223 million to EUR 227 million; raised guidance for 2015; preliminary results for 2014

Based on the planned early refinancing of loans and accelerated implementation of efficiency-enhancement measures, LEG Immobilien expects a stronger increase in FFO I in 2015 and 2016.

LEG intends to gain long-term benefit from the attractive terms on the financing markets. Therefore, loans totalling around EUR 900 million are to be refinanced early. As a result, LEG's average financing costs are expected to drop to less than 2.3%, and the average loan maturity is likely to be extended to more than 11 years. The average maturity of the new credit agreements is around 10 years. Early repayment of the loans involves expected one-off expenses of around EUR 60 million with a payback period of around 3.5 years in view of the reduced interest expenses.
Based on the first expected earnings effects of refinancing, the FFO I forecast for 2015 is being raised to between EUR 195 million and EUR 200 million (previously: EUR 188 million to EUR 193 million).
Furthermore, there are plans to step up the internal efficiency-enhancement programme. In view of the planned refinancing and efficiency-enhancement measures, further significant earnings growth is expected in 2016. Hence, LEG forecasts an FFO I in a range of EUR 223 million to EUR 227 million for 2016. These earnings forecasts do not yet include the effects of planned future acquisitions.

The generation of economies of scale and planned efficiency-enhancement measures are to become apparent in a sustainable increase in the operating margin. LEG expects the key figure "adjusted EBITDA margin" to improve from 66.5% in 2014 to around 71% in 2017. This guidance does not yet take into account any effects of acquisitions.

LEG Immobilien AG has increased FFO I for 2014 by 15.9% to EUR 163.6 million on the basis of the preliminary, as yet unaudited annual financial statements. The upper end of the company's guidance range has thus been reached. As a key operating performance indicator, rental growth of 3.0% was achieved on a like-for-like basis, and the vacancy rate was reduced further to a low level of 2.7% like-for-like. At the reporting date, net asset value (NAV) excluding goodwill amounted to EUR 52.69 per share, up 6.7% year-on-year.

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Language:     English
Company:      LEG Immobilien AG
              Hans-Böckler-Straße 38  
              40476 Düsseldorf
Phone:        +49 (0) 211 / 4568 - 0
Fax:          +49 (0) 211 / 4568 - 261
Internet:     www.leg-nrw.de
ISIN:         DE000LEG1110
WKN:          LEG111
Indices:      MDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart  
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