Prime Office REIT-AG
Prime Office REIT-AG: Business development in H1/2013 influenced by effects from the valuation of the property portfolio and expenses for the due diligence carried out in connection with the merger talks with OCM
Prime Office REIT-AG / Key word(s): Half Year Results 07.08.2013 22:28 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Business development in H1/2013 influenced by effects from the valuation of the property portfolio and expenses for the due diligence carried out in connection with the merger talks with OCM Prime Office REIT-AG's business development in the first half of 2013 was influenced by special and one-off effects. The adjustment of the property portfolio's value after the scheduled valuation as at 30 June 2013 had a major impact, not cash-relevant affecting profits by about -60.9 million Euro. The downward adjustment of the property portfolio's fair value by -6.7 per cent to about 848 (31 December 2012: 909) million Euro is mainly a reflection of the changes in the market environment, since subdued demand for office space in the locations requiring re-letting (Frankfurt, Dusseldorf and Stuttgart) has so far led to delays in re-letting and, as a consequence, to prolonged vacancies. Furthermore, the cautious outlook on the future development of the letting market leads to a more guarded assessment of individual portfolio properties' potential. The increase in vacancies to about 22 (31 December 2012: 16) per cent as well as the sale of a property in Hamburg at year-end 2012 led to an about 28 per cent decline in revenues to 26.5 (H1/2012: 36.6) million Euro. In addition to the effects from the revaluation of the property portfolio, additional one-off and special effects in connection with the merger negotiations with OCM German Real Estate Holding AG (German Acorn) and the by now completed due diligence process took their toll on the Company's business development in the first half of 2013. As per the preliminary numbers, Prime Office REIT-AG will report a loss of -59.8 (H1/2012: 2.4) million Euro for the first half of 2013 as at 30 June 2013. The REIT equity ratio as at the reporting date on 30 June 2013 amounted to 40.6 (30 June 2012: 42.9) per cent. After the balance sheet date 30 June 2013 and consequently after the adjustment of the property portfolio's value, Prime Office was already able to partially offset a re-letting requirement for the property in Stuttgart/Moehringen. Prime Office concluded a long-term lease for about 11,300 sqm with Daimler AG, Stuttgart. This increases occupancy in the property from approximately 39 per cent on 30 June 2013 to about 85 per cent on 01 January 2014. Prime Office REIT-AG's half-yearly report as at 30 June 2013 will be published on 8 August 2013. Contact Prime Office REIT-AG Richard Berg Director Investor Relations / Corporate Communications Hopfenstrasse 4 80335 Munich Telephone +49. 89. 710 40 90 40 Facsimile +49. 89. 710 40 90 99 Email richard.berg@prime-office.de 07.08.2013 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Prime Office REIT-AG Hopfenstraße 4 80335 München Germany Phone: +49 (0)89 7104090 40 Fax: +49 (0)89 7104090 99 E-mail: richard.berg@prime-office.ag Internet: www.prime-office.ag ISIN: DE000PRME012 WKN: PRME01 Indices: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard), München, Stuttgart; Freiverkehr in Berlin, Düsseldorf End of Announcement DGAP News-Service ---------------------------------------------------------------------------
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