TIDMSMTP
RNS Number : 5564W
Summit Properties Limited
18 April 2019
This announcement contains inside information which is disclosed
in accordance with the Market Abuse Regulation.
Summit Properties Limited
(the "Company")
2018 Full Year Results
We are pleased to present the audited results for the year ended
31 December 2018 ("the Reporting Period") of Summit Properties Ltd.
and its subsidiaries ("the Group").
Profits
-- Net profit up by 156% to EUR289.6 million (FY 2017: EUR113.0 million)
-- Earnings Per Share (EPS) up 162% to 56.6 cents (FY 2017: 21.6 cents)
-- Profit Before Tax (PBT) of EUR334.2 million (FY 2017: EUR128.7 million)
-- EBITDA up 136.6% to EUR345.4 million (FY 2017: EUR146.0
million) of which Revaluation Profit is EUR296.8 million (FY 2017:
EUR88.0 million)
NAV
-- EPRA NAV of EUR866.0 million increased by 51.2% compared with EUR572.9 million in 2017
-- EPRA NAV per share of EUR1.89 (FY 2017: EUR1.23)
-- Group NAV increased 46.6% to EUR782.0 million (FY 2017: EUR533.3 million)
-- NAV per share of EUR1.71 (FY 2017: EUR1.15)
-- Total Assets of EUR1.6 billion (FY 2017: EUR1.1 billion)
Rent and operations
-- Rental income increased by 11.4% to EUR67.4 million (FY 2017: EUR60.5 million)
-- Annualised net rent of EUR81.3 million, equivalent to 5.4% rental yield
-- Funds From Operations (FFO) up 21.4% to EUR44.3 million (FY 2017: EUR36.5 million)
-- Average rent per sqm per month of EUR7.0 across the portfolio is lower than ERV
-- 92% occupancy over the portfolio's majority (90% including properties for re-development)
-- New leases and renewals for approximately 163,000 sqm,
securing rental income of ca. EUR13 million p.a.
Portfolio
-- Portfolio of 103 properties with a Net Market Value (NMV) of
EUR1.5 billion (FY 2017: 84 properties at EUR938.7 million NMV)
-- Acquisition of controlling stake in Frankfurt-listed real estate company, including:
o EUR167 million office portfolio of 12 properties located in
German major cities
o Total lettable area of 106,700 sqm, 89% let
o Rent of approximately EUR10.8 million p.a.
-- EUR85 million portfolio acquisition of eight multi service
centres in major cities in Germany; 58,000 sqm of fully let
properties with net rent of approximately EUR5.8 million p.a.
-- Acquisition of additional 9.1% of minority shares of Deutsche
Real Estate AG, resulting in total holdings of 89.9% as of the end
of the Reporting Period
-- Disposal of a non-strategic property for EUR3.5 million
-- Further progress on the residential development projects; 54
apartments sold (ca. 90%); EUR2.5 million profit recognised in
2018.
Financing
-- EUR300 million placement of senior fixed rate notes at 2.00% p.a. for seven-year term.
-- Refinancing EUR232 million of medium term existing secured
debt facilities using bond proceeds:
o Repayment of ca. EUR220 million of debt facilities bearing
average 3.62% interest p.a.;
o Acquisition of EUR12.2 million of existing debt bearing 3.7%
interest p.a.;
-- EUR27 million refinancing of short term debt facilities post
Reporting Period. New loan is for 20-year term at fixed interest
rate of 2.70% p.a. and annual amortisation of 3.00%
-- Following refinancing activities, the average duration of the
Group facilities extended from 6.0 to 6.8 years with an average
interest rate of 2.2% p.a.
Equity and dividend
-- Total dividend distributions of EUR14.0 million were paid in
2018, reflecting 3.00 cents per share.
-- EUR9.5 million share Buy-back shortly before Reporting Period
end, representing 8.1 million shares at EUR1.17 each.
Harry Hyman, Chairman, commented: "2018 was another strong year
where intensive asset management ratcheted up returns from the
existing portfolio, supported by two major acquisitions and major
improvements to the terms of debt facilities. The performance of
the portfolio in combination with our skilled asset management
enabled us to achieve significant portfolio growth and we intend to
continue to carefully review further transactions to maintain this
growth momentum over the medium term, while also returning capital
to our shareholders".
Zohar Levy, Managing Director, commented: "Growth in key
portfolio performance and valuation measures reflects our team's
ability to identify and implement strategies which enhance asset
quality, rental values and asset level returns. We acquired EUR252
million of new properties, improved our debt structure considerably
and made significant progress in the development of existing
surplus building rights to unlock further inherent value of the
portfolio. The German real estate market remains very attractive
and our under-rented portfolio contains multiple opportunities for
intensive asset management driven improvements over the next few
years. We fully intend to continue and capitalise upon these and
optimise our portfolio to drive substantial shareholder
returns".
For the full report please download the PDF.
http://www.rns-pdf.londonstockexchange.com/rns/5564W_1-2019-4-17.pdf
For further information please contact:
Summit Properties Limited Tel: +44 (0) 1481
700 300
Zohar Levy - Managing Director
Itay Barlev (Braun) - Finance Director
Non-Executive Chairman Tel: +44 (0) 20 7451
7050
Harry Hyman
Carey, Company Secretary Tel: +44 (0) 1481
700 300
Chris Le Page / Nikolett Mezei
Liberum Capital Limited, Nominated Adviser Tel: +44 (0) 20 3100
and Joint Broker 2222
Chris Clarke / Gillian Martin / Owen
Matthews
Cenkos Securities, Joint Broker Tel: +44 (0) 20 7397
8900
Mark Connelly
Russell Kerr / Selwyn Jones (Broking)
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR UBOWRKUASAAR
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