– Sizeable net income of 5.6 million Euro in spite of higher rental and lease expenses, higher costs of publishing and temporary vacancy in the property in Stuttgart/ Moehringen
– Rental and lease revenues of about 18.2 million Euro as expected
– Funds from operations of 6.5 million Euro in line with the guidance
– Net debt substantially reduced in the wake of the IPO: leverage at 57.9 percent and loan-tovalue ratio (LTV) at 65.1 percent
– REIT equity ratio on 31 March 2012 at 43.2 percent, slightly below the 45 percent threshold: The German REIT law grants another 2 years of impunity during which to return to the statutory limit; the Board expects to again meet the REIT requirement in 2012
– Positive outlook for the full year confirmed: projections for revenues including operating cost prepayments between 72 and 74 million Euro and for the FFO between 17 and 19 million Euro; in spite of charges for reconstruction and temporary vacancies the Board projects a dividend of 9 to 12 million Euro for the fiscal year
Prime Office REIT-AG (“Prime Office”), a leading property firm focused on investments and management of prime office properties in Germany, is presenting its results for the first quarter of 2012, which confirm the robust development of the Company. Overall, the results in the first quarter are in line with management expectations even though a year on year comparison is difficult due to – in some areas significant – one-off effects, for instance from the Company’s IPO in July 2011 and last year’s fair valuation of the portfolio. With this in mind, the Board of Prime Office confirms the positive outlook for the full year and its related targets.
“We are pleased with the stable operating result achieved over the first three months of 2012. Business has developed in line with our expectations and we are very optimistic that we can meet our targets for the full year. These targets also include an attractive dividend which meets the expectations of our shareholders.”, says Claus Hermuth, the CEO of Prime Office.
