Summit Germany reports more than doubling of net profit – Summit Germany (SMTG) released its audited results for the year ended 31 December 2017
Summit Germany is focused on building a substantial portfolio of commercial properties. The company’s investments are primarily made in multi-let commercial office, retail and logistics properties situated mainly in Germany’s main financial centres and generating income by way of lettings to commercial, governmental/public sector and industrial tenants. Its objective is to deliver an attractive dividend yield with sustained growth in both income and capital value.
Headlines
Here are the headlines from the report:
Profits
- Net profit more than doubled to €113.0 million (FY 2016: €55.6 million)
- Earnings Per Share (EPS) of 21.6 cents (FY 2016: 10.5 cents)
- Profit Before Tax (PBT) of €128.7 million (FY 2016: €63.9 million)
- EBITDA up 93.9% to €146.0 million (FY 2016: €75.3 million) of which Revaluation Profit is €88.0 million (FY 2016: €28.2 million)
NAV
- EPRA NAV of €572.9 million increased by 22.9% compared with €466.3 million in 2016
- EPRA NAV per share of €1.23 (FY 2016: €1.00)
- Group’s NAV increased 21.8% to €533.3 million (FY 2016: €437.9 million)
- NAV per share of €1.15 (FY 2016: €0.94)
- Total Assets of €1,057.1 million (FY 2016: €882.3 million)
Rent
- Rental income increased by 5.8% to €60.5 million (FY 2016: €57.2 million)
- €64.7 million annualised net rent, equivalent to 6.9% rental yield
- Funds From Operations (FFO) up 4.6% to €36.5 million (FY 2016: €34.9 million)
- Average rent per sqm per month of €6.6 across the portfolio is lower than ERV
Dividend
- Total dividend distributions of €14.1 million were paid in 2017, reflecting 3.02 cents per share.
- Additional €4.65 million was paid post Reporting Period, reflecting 1.00 cents per share.
Portfolio
- Portfolio of 84 properties with a Net Market Value (NMV) of €939 million (FY 2016: 100 properties at €798 million NMV)
- In addition, €51.4 million is due following the sale of an office building at 2.3% yield, 24% above last valuation.
- Substantial further value in the portfolio due to:
- Rent lower than ERV
- 93,000 sqm of vacancy
- Additional building rights and surplus of land in many properties
- 92% occupancy over the portfolio’s majority (90% including properties for re-development)
Main Developments
- €100 million acquisition of a new portfolio; 80,000 sqm of fully let properties with net rent of approximately €7.9 million p.a.
- €17.6 million disposals of 19 non-strategic assets enhance average portfolio quality.
- New leases and renewals for approximately 162,000 sqm; representing total rental income of ca. €9.6 million p.a.
- Further activities to capitalise upon on-going demand for German residential:
- Two residential development projects for 132 apartments are under process on surplus land in two Group’s properties in Frankfurt
- Two JV projects for 95 residential units in Berlin
- Acquisition of 865,000 sqm of land for future development