PRESS RELEASE: ORCO Germany S.A.: Thanks to higher operational and financial profitability, ORCO Germany ends H1 with EUR 21.6m net profit

29.08.13 18:15
Dow Jones Newswires

PRESS RELEASE: ORCO Germany S.A.: Thanks to higher operational and financial profitability, ORCO Germany ends H1 with EUR 21.6m net profit

DGAP-News: ORCO Germany S.A. / Key word(s): Half Year Results
ORCO Germany S.A.: Thanks to higher operational and financial
profitability, ORCO Germany ends H1 with EUR 21.6m net profit

29.08.2013 / 20:15


H1 results 2013

Thanks to higher operational and financial profitability, ORCO Germany ends
H1 with EUR 21.6m net profit

Half year financial results and outlook:

- Improved operational and financial result lead to significantly
improved KPIs

Berlin, 29 August 2013. Higher occupancy and higher average rent led to an
increased turnover of EUR 30.0 million for the Property Investments. The
Development business line contributed to the revenue only for EUR 0.3
million in the absence of Sky Office sold in 2012. EBITDA is standing at
EUR 14.4 million. With high valuation gains and lower interest expenses,
ORCO Germany ended H1 with a net profit of EUR 21.6 million, following a
loss of EUR 12.3 million in H1 2012. This leads to a significantly improved
loan to value ratio of 51.7% and an increased NAV per share of EUR 1.13

- ORCO-GSG portfolio performs - all time highs on average rents and

Repeatedly, ORCO-GSG has been successful in overcompensating major move
outs by acquiring new tenants and consequently was able to improve rental
revenues. Since December 2012, ORCO-GSG has managed to increase the average
commercial net rent from EUR 5.18 per sqm to EUR 5.29 per sqm, raised the
overall occupancy rate from 80.2% to 81.6%, thus increasing total revenues
year on year by EUR 1.9 million, or 7.4%, to EUR 28.1 million.
- Reduced Overhead Costs

Compared to H1 2012 the salary spending reduced by EUR 0.2 million and the
other operating expenses reduced by EUR 0.8 million. Excluding costs for
utility supplies and taxes other than income tax - which both are mainly
charged to tenants thus leading to higher service charges income -
operating expenses reduced by EUR 1.3 million year on year.

- Financial result improved significantly

ORCO Germany was able to significantly reduce its interest expenses from
EUR 14.0 million to EUR 6.8 million, as a result of (i) the successful bond
restructuring, (ii) the GSG refinancing at better rates and (iii) the
repayment of the Sky office loan. In addition, the other net financial
result improved due to gains on the revaluation of interest rate

Key and post-closing events:

- Successful launch of sale of Naunynstrasse

ORCO-GSG's first conversion project (Naunynstrasse in Berlin-Kreuzberg) has
been successfully launched. Until the end of August 2013, 36% of total
units have been sold for an average price of approximately 2,880 EUR/sqm,
with an average refurbishment cost of 1,130 EUR/sqm. At the end of 2011,
i.e. before the conversion project had been initially discussed, the asset
had been valued at below 600 EUR/sqm. The value of the remaining Kreuzberg
portfolio is at approx. 860 EUR/sqm, which shows the value generation
potential of the conversion strategy.

- Capital increase on 6 June 2013

On 6 June 2013, ORCO Germany increased its share capital by approximately
EUR 2.8 million or 13.9% at a subscription price of EUR 0.712 per new
share. The new shares will not be listed and will not be tradable before
approval of the approval of the market regulations. The capital increase
was made against the conversion and contribution in kind of 22,885 OG bonds
by ORCO Property Group S.A.

- New Shareholder

On 3 June 2013, ORCO Germany has been informed by Kamoro Ltd. that the
company holds 19.9 million shares representing 8.65% of ORCO Germany's new
total share capital after the capital increase of 6 June. ORCO Property
Group remains the largest and main shareholder with 88.2% of ORCO Germany.


For the second half of 2013, ORCO Germany will further profit from higher
revenue and lower interest costs compared to the previous year. In addition
to further improving Berlin's business park section, ORCO Germany will
focus on small to medium sized developments of its own portfolio, starting
with a development on its Gebauer land, and opportunistically review
acquisitions of undermanaged assets to profit from our leasing and asset
management competitive advantages.

Quote from management

'We have an excellent Berlin portfolio, with lots of operational and
development upside. We have been successful at extracting profitability out
of our assets and this trend is set to further improve over the coming
semesters with all asset management and development initiatives under way.
We have therefore good visibility to drive up values, which are standing
today at only 620EUR per m².'

Jean-François Ott & Nicolas Tommasini

About ORCO Germany

ORCO Germany S.A. is a property company that is listed in the General
Standard on the Regulated Market at Frankfurt Stock Exchange and has its
registered office in Luxembourg. The ORCO Germany Group, which acts
consistently under its registered name of ORCO Germany, has been operating
in Germany since 2004 and concentrates on commercial property and project

ORCO Germany is a subsidiary of the ORCO Property Group, which is one of
the leading Central European property companies. The ORCO Property Group,
established in 1991, is based in Luxembourg and has listings on NYSE
Euronext Paris, Prague and Warsaw stock exchanges.

For further information please contact:

Kirchhoff Consult AG
Sebastian Bucher
Herrengraben 1
20459 Hamburg
T +49 (0)40 609186 18
F +49 (0)40 609186 60

End of Corporate News


29.08.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements,
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Language: English
Company: ORCO Germany S.A.
42, rue de la Vallée
L-2661 Luxembourg
Grand Duchy of Luxembourg
Phone: +49 (0)30 390 93 116
Fax: +49 (0)30 390 93 199
ISIN: LU0251710041
Listed: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in Düsseldorf, Stuttgart

End of News DGAP News-Service
228228 29.08.2013

(END) Dow Jones Newswires

August 29, 2013 14:15 ET (18:15 GMT)

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Kurs Vortag Veränderung Datum/Zeit
0,62 € 0,62 € -   € 0,00% 19.06./09:04
ISIN WKN Jahreshoch Jahrestief
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Frankfurt 0,63 € 0,00%  08:09
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