GIEAG enjoys successful operations in 2017, positive outlook
GIEAG Immobilien AG (GIEAG) can report on a successful fiscal year 2017. During the past year the company made key progress in its project developments and significantly further expanded its investment portfolio. Figures for the fiscal year were characterised by high ongoing rental income and the fact that there were no major projects with completion pending. Sales increased substantially in 2017 year-on-year, up by around 77 percent to EUR 22.8 million (previous year: EUR 12.8 million). Rental income from residential and commercial properties increased strongly to EUR 12.8 million. In 2016 this figure totaled EUR 7.7 million. Income from the sale of properties amounted to almost EUR 6.7 million in the past fiscal year after almost EUR 5 million in 2016.
The consolidated net loss for the year fell in 2017 to EUR 1.4 million after EUR 2.4 million one year previously. The timetable for project completions, scheduled start-up costs for major project developments, the associated staff reinforcements, write-downs as part of the application of the revaluation method according to the BilRUG as of 1 January 2016, capitalised hidden reserves and goodwill as well as unplanned expenses were key influencing factors. Further milestones were recorded for existing major projects which will be completed in the coming years. These include “MayOffice” and “MayLiving” in a prime location in the Pragsattel district in Stuttgart, with an investment volume of more than EUR 60 million. The conditions required for starting construction in the near future have been created in these projects. In the “Gerlingen Work” real estate project, with a total volume in the clear double digit million euro range, it was possible to already start construction in the spring of 2018 and a well-known, long-term anchor tenant has been acquired for the office property. Shell construction for the “Der Kirschgarten” residential project in Geretsried (Munich) was also started on schedule. As a result of the high demand it has already been possible to certify the sale of all of the 68 owner-occupied apartments – a result which exceeds expectations.
At the end of 2017 GIEAG had cash and cash equivalents of EUR 12.1 million after EUR 10.0 million at the end of 2016. Equity on the balance sheet date totaled EUR 37.0 million after EUR 40.0 million at the end of 2016. Successful project developments and acquired investment properties mean that both non-current assets and also total assets have increased significantly. Total assets at the end of 2017 amounted to EUR 243.1 million after EUR 185.6 million at the end of 2016.
Based on the reinforced project development activities, the larger investment portfolio and the positive growth since the start of 2018 with key rental successes and further progress in its projects, GIEAG is optimistic regarding the current fiscal year. The company is expecting significantly positive consolidated net income for the year and a further increase in sales.