DJ DGAP-IRE: HAHN-Immobilien-Beteiligungs AG: Interim Notification per November 10
HAHN-Immobilien-Beteiligungs AG / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act] 10.11.2008 Interim report according to Article 37x of the WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement.=--------------------------------------------------------------------------
Interim notification of the HAHN-Immobilien-Beteiligungs AG per November
10, 2008
Successful start of the HAHN FCP-FIS - German Retail Fund;
Sale of properties valued at around Euro 190 million per October 1
completed
- Successful placement of the HAHN FCP and transfer of the secured
pipeline
- 87 per cent increase in sales revenues to Euro 51.6 million
- Operating profit (EBIT) almost trebled, at Euro 17.7 million
- Income from management services stable at Euro 5.2 million
- One-off expenses related to launch of HAHN FCP adversely affect
earnings
- Forecast for the full fiscal year 2008: earnings well below previous
year
Bergisch Gladbach, November 10, 2008 - The Hahn Group was able to increase
its sales revenues to Euro 51.6 million in the first nine months of the
current fiscal year. Compared to the previous fiscal year (Euro 27.6
million) this equates to a rise of approx. 87 per cent. Factors which have
particularly contributed to this rise have been an increased rental income
from properties held for sale and the sale of the co-investment shares in
the joint venture portfolio with Capital & Regional plc. The transfer of
the secured property pipeline for the HAHN FCP-FIS - German Retail Fund has
not yet been taken into account in the sales figures: seven properties with
a total value of about Euro 160 million were transferred onto the HAHN FCP
as of October 1. A further three properties, with a volume of Euro 80
million, are scheduled to be transferred as of December 31, 2008 and
February 28, 2009 respectively.
Until November Hahn Group acquired retail properties with a total volume of
Euro 140 million. The investments that were made, totaled at Euro 190
million, with Euro 10 million placed with private and Euro 181 million with
institutional investors.
As a result of the sales increase, the operating profit (EBIT) showed a
clear positive development, at Euro 17.7 million. This was almost treble
the figure for the same period of the previous fiscal year (6.2 million).
The negative financial earnings, at Euro -21.4 million, reflect the higher
financial expenses for assets held for sale, corresponding with the higher
rental income. However, they were more than compensated for by the rise in
rental earnings. Rental income surpassed financial expenses for the
financing of the properties by Euro 2.8 million.
As of October 1, the balance sheet total has been significantly decreased,
due to the reduction in the assets held for sale. Taking into account the
transfer of the HAHN FCP-properties, the debt level has been significantly
reduced and the equity ratio correspondingly raised as against June 30,
2008.
The after-tax result declined to Euro -2.4 million as of September 30, 2008
(previous fiscal year: Euro -0.38 million). Earnings were adversely
affected by high one-off expenses, already announced, for the conceptual
work and marketing for the new institutional fund, HAHN FCP-FIS German
Retail Fund. The fund has a target volume of Euro 750 million. Earnings per
share equaled Euro -0.20 (previous fiscal year: Euro -0.03).
'We have made good progress in the course of the second half of the year.
The successful first closing of the HAHN FCP showed that, even in the
current market environment, there is major institutional interest in real
estate investments. There is a clear preference for managed vehicles, as
opposed to direct investments. Our evaluation is that, in the present
economic environment, this trend will gain in strength. Therefore, we also
expect there to be a rapid placement of the next tranches of the fund. This
confirms the sustainable extension of our business model,' notes Bernhard
Schoofs, CEO of HAHN-Immobilien-Beteiligungs AG. 'A further important
event, the ending of the joint venture with our English partner Capital &
Regional, was the right step to realize considerable increases in value and
simultaneously clear the way for new, attractive institutional
partnerships.'
Business Segments
The Trading segment attained sales revenues of Euro 33.3 million. Compared
to the previous fiscal year period (Euro 21.0 million) this was a 58.6 per
cent increase. The sales revenues are comprised of revenues from the sale
of real estate and investment properties, income from commissions and
rental revenues. A new Pluswert fund was placed on October 23. The
closed-end property fund for private investors is investing in a property
located in Landstuhl, comprised of a hypermarket and a DIY store, with a
total investment volume of around Euro 24 million. The income from
commissions in the private customers segment is generally below the
previous year's level, due to reduced margins.
The sales revenues in the business segment Management showed mostly stable
development, at Euro 5.2 million (previous fiscal year: Euro 5.6 million).
Asset Management raised sales by Euro 0.2 million against the previous
fiscal year's level, to Euro 1.2 million. In Property Management, sales
were at Euro 2.7 million, around 4 per cent above the previous fiscal
year's level (Euro 2.6 million). At Euro 1.3 million, Fund Management
recorded sales matching the previous fiscal year's level. From 2009 on a
marked rise in sales will take effect here, due to the commissions for fund
management on the HAHN FCP. In the previous fiscal year, performance fees
of Euro 0.7 million were earned.
At Euro 13.8 million, sales revenues in the business segment Investment
were well above the previous fiscal year's level (Euro 1.7 million). The
sale of the co-investment shares in the joint portfolio of Capital &
Regional plc. contributed around Euro 12 million. This transaction meant
that a value increase of around Euro 4 million with an impact on earnings
could be realized in less than four years. Both the rental income from the
existing portfolio and the further co-investment income showed positive
development. From 2009, due to the ten per cent co-investment in the HAHN
FCP, this income from equity investments will also flow into the earnings
of the Investment segment.
Outlook
Conditions in the financial markets and in the real economy have become
even more challenging in the last quarter. The medium-term future is
fraught with major uncertainty. Nor can the Hahn Group fully escape the
negative consequences of the finance crisis in its operative business.
In view of the market environment we do not expect to attain the placement
volume of Euro 80 million targeted for the private customer business at the
start of the year. However, even in these extreme financial markets we will
successfully place an estimated volume of around Euro 50 million in 2008.
But due to the increased interest in indirect property investments we
expect demand to show a clear increase again in the coming year. A further
positive effect will result from the introduction of the German capital
gains compensation tax, which will reduce the after-tax returns of many
forms of investments - but not of closed-end property funds.
On the financing side we expect more difficult conditions for the time
being, as the credit markets are still only functioning subject to certain
constraints.
The Hahn Group's sole investments and the externally-managed institutional
investment vehicles are not affected by the present financing environment,
as the commitments for loan provision were secured long-term, with terms of
5 years and longer. The Hahn Group's short-term financed assets held for
sale will, for the most part, be placed before the year-end. In the case of
a scheduled reduction, there are no refinancing risks here either for the
coming year.
Particularly with regard to the mentioned one-off expenses we expect full
year results to be well below the previous year's level.
The Hahn Group manages retail properties with a total volume of Euro 2.4
billion, with continuous management-services revenues. The properties under
management have a 96.9 per cent letting rate and are let out long-term to
retail companies with high levels of credit-worthiness. This guarantees
long-term secured cash flows, even in the case of difficult economic
conditions.
As a specialized property manager, the Hahn Group with its business model
is well positioned to generate stable income, even in recessionary economic
conditions. The foundation of the institutional fund HAHN FCP with a target
volume of Euro 750 million, will sustainably contribute to this. Therewith
the Hahn Group will generate an even bigger proportion of recurring sales
revenues, ensuring a high earnings quality, even when markets are volatile.
Hahn Group
For more than 25 years the Hahn Group has specialized in investments in
large-scale retail properties. With a rental space of around 1.5 million m²
under management at more than 170 locations and assets under management of
about Euro 2.4 billion, the Hahn Group is Germany's market leader in the
management of large-scale retail real estate. With its extensive asset,
property and fund management services for private and institutional
investors the Hahn Group taps all sources of revenues and potentials for
value increase connected with real estates and additionally acts as
investor. The Hahn Group is listed on all German Stock Exchanges. Further
information is available under www.hahnag.com
Contact
Hahn Group
Marc Weisener
Investor Relations / Press
Buddestrasse 14
51429 Bergisch Gladbach
Phone: 02204-94 90-118
Fax: 02204-94 90-139
Email: mweisener@hahnag.de
10.11.2008 Financial News transmitted by DGAP
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