Based on the current status of the still preliminary financial information, the management board of GIEAG Immobilien AG (GIEAG, ISIN DE0005492276) expects consolidated net income after taxes of around Euro 27 million for the 2018 financial year in accordance with HGB accounting principles. In 2017, the corresponding consolidated net income after taxes was minus 1.4 million euros. In its separate financial statements, GIEAG reported a profit after tax of Euro 37 million for 2018. A key driver of the profit jump in the past financial year was the successful sale of a logistics property in Erfurt to an institutional investor, announced in an ad hoc on July 2, 2018, which generated a profit contribution in the lower double-digit million euro range at Group level. GIEAG is expected to present the audited consolidated financial statements in the second half of May 2019. Based on the successful business development in 2018, the management and supervisory boards will propose the payment of a dividend of Euro 0.80 per share to the Annual General Meeting on June 6, 2019.
Category Archives: Ad-hoc
The nationwide project developer GIEAG Immobilien AG (GIEAG) is reacting to the significant changes in the current market and interest rate environment, which are accompanied by increasing short-term uncertainties and limited visibility. Against this backdrop, the GIEAG management board decided today to suspend the financial forecast for 2022. The revenue and profit expectations forecast for the current year can in all likelihood no longer be achieved. The reason for this is the current market development, which leads to a significantly slower transaction activity on the real estate market and thus also for GIEAG to significantly lower sales revenues. Further factors are the interest rate increases that have already occurred and are expected to continue, which will result in higher financing costs.
Thomas Männel, member of the management board of GIEAG Immobilien AG, today informed the company’s deputy chairman of the supervisory board that he would like to fulfill his contract, which runs until the end of September 2021, but does not wish to accept the offer of a contract extension. The Supervisory Board noted this with regret, but nevertheless expressed its respect for this decision and its high regard for Thomas Männel’s successful work. The Supervisory Board will initiate the search for a successor in the short term. During the transitional period, Thomas Männel’s duties will be performed by Philipp Pferschy, another member of the Executive Board. Thomas Männel will be available to the Company as an advisor during the transition period.
GIEAG Immobilien AG (GIEAG, ISIN DE0005492276) will publish its half-yearly consolidated figures for the first time. According to the current status of the still preliminary financial information, GIEAG expects a consolidated net profit after tax for the first half of the 2020 financial year as at 30 June 2020 according to HGB accounting of approximately EUR 12.9 million. Consolidated sales in the first six months of the 2020 financial year are expected to amount to approximately Euro 49.7 million. Comparative figures from the same period of the previous year are not available in each case, as half-yearly consolidated figures are being published for the first time. A key driver of the company’s success was the sale of the Erfurt II project, which was booked in the first quarter. The current economic and social situation continues to be characterised by considerable uncertainty and the long-term consequences of the Covid-19 pandemic are still not foreseeable. GIEAG continues to monitor the current development very closely. Despite the continuing difficult economic environment, GIEAG confirms at this point in time its forecast for the full year 2020 that the consolidated net profit (consolidated net profit) for the current financial year 2020 will be positive and thus the negative result from 2019 will most likely be exceeded with a positive consolidated net profit. The detailed half-year report is expected to be published in mid-October.
According to the current status of the still preliminary financial information, GIEAG Immobilien AG (GIEAG, ISIN DE0005492276) expects a negative consolidated net income after taxes of approximately EUR 6.3 million (EUR -1.51 per share) for the financial year 2019 according to HGB accounting. For 2018, the corresponding consolidated net income after taxes was around EUR 27 million. Based on the current status of the still preliminary financial information for the financial year 2019, GIEAG expects a negative net income after tax of EUR 0.05 million in the individual financial statements for 2019 in accordance with HGB accounting, after a positive result of EUR 37 million in the previous year. The negative consolidated result is due in particular to the fact that revenues in fiscal 2019 were lower than expected. One of the main reasons for this was the successful sale of a logistics property in Erfurt to a German special fund, which was announced on March 16, 2020, the effect of which on earnings could only be recognized in the first quarter of 2020. GIEAG will probably present the audited consolidated financial statements in the second half of June 2020. The dividend strategy remains unchanged, the company still plans to pay a dividend in the current year.
GIEAG Immobilien AG (GIEAG) has sold a logistics property in Erfurt with around 67,000 square meters to an investor in commercial real estate. The price is 53.9 Mio. Euro. GIEAG is expecting a contribution to profits in the low double-digit euros range at a group level as a result of the sale. The contract for the sale was certified by the notary today. GIEAG expects the transaction to be closed in July 2018.
EXPLANATION
This logistics property which has now been sold was built by GIEAG in 2010 and is located on the Internationales Logistikzentrum (ILZ) site in Erfurt. The property has an excellent traffic infrastructure thanks to its direct connection to the A71 motorway. The property has total usable space of almost 67,000 square meters and is broken down into 60,200 square meters of logistics space as well as additional mezzanine and office space and car parking. GIEAG Immobilien AG (GIEAG) concluded a long-term rental agreement at the start of 2018 for a total space of 55,000 square meters with LGI Logistics Group International GmbH (LGI).
Philipp Pferschy, a member of GIEAG’s managing board, commented: “We are very pleased with the profitable sale of our logistics property in Erfurt. This once again underscores our expertise in creating state-of-the-art commercial properties. The fact that we have now been able to leverage the increase in this property’s value on the market is another major success for us. The property’s quality, the long-term rental of more than 80 percent of its total space to a top quality tenant and, of course, the excellent location all had a positive impact.”
Jones Lang LaSalle and GSK STOCKMANN advised the seller.
GIEAG Immobilien AG (GIEAG) has acquired an approx. 19,480 square meter property with two fully leased commercial properties in a good location in Karlsruhe. The buildings with a total rental area of approx. 32,300 square meters are leased to a large German telecommunications company. The acquisition completed today will increase GIEAG’s annual rental income by around EUR 3.1 million. The total investment volume, including planned refurbishment costs, amounts to around 52 million euros for GIEAG.