DGAP-News: WCM Beteiligungs- und Grundbesitz-AG: WCM: testified 2016 results show profitable growth and confirm preliminary numbers - Dividend proposal of EUR 0.10 per share

WCM: testified 2016 results show profitable growth and confirm preliminary numbers -
Dividend proposal of EUR 0.10 per share

- EPRA Net Asset Value (NAV) increases to EUR 345.4m (plus 18.8 percent)

- Funds from operations (FFO I) more than doubled to EUR 18m

- FFO I for 2017 between EUR 23.0m and EUR 24.0m projected including recently closed transactions

- First dividend of EUR 0.10 for business year 2016 envisaged

Frankfurt am Main, 25 April 2017 - SDAX listed WCM Beteiligungs- und Grundbesitz-AG (WCM AG, ISIN: DE000A1X3X33) publishes its audited year end results for 2016. WCM confirms its pre-announced results from 21 March 2017.

According to the testified IFRS results rental income more than tripled to EUR 32.6m in 2016. Funds from operations (FFO I) rose to EUR 18.0m, up by more than 100 percent from 2015. The rentable space, despite some divestments, was increased to 324,031 m², an increase of 10.2 percent. Consolidated net income in 2016 amounts to EUR 18.6m or EUR 0.12 per share.
As of 31 December 2016, the EPRA Net Asset Value (NAV) stood at EUR 345.4m or EUR 2.62 per share after EUR 2.38 in the previous year. At the same time the number of outstanding shares went up by 11.2m to 131,964,552 in 2016.

Portfolio extended in line with strategy

In 2016 WCM has grown the portfolio to 53 commercial real estate assets with a market value of EUR 662.1m (as of 31 December 2016) compared to EUR 505.7m in 2015. This was achieved despite the fact that four non-strategic assets were sold successfully and as planned for a total of EUR 25m, notably above book value.

With this portfolio WCM achieves a gross initial yield of 5.8 percent. The WALT stood at 8.9 years and the EPRA vacancy rate at a low 3.8 percent per year end 2016. The rental income is complemented by attractive financing conditions. The portfolio was financed with an average interest rate of just 2.0 percent combined with an average loan maturity of 6 years. The net loan-to-value (LTV) of the portfolio equalled 53.1 percent.

Forecast for 2017

WCM plans to continue with its portfolio expansion in 2017 and projects a FFO I between EUR 23m and EUR 24m including the already executed transactions. Rental income is expected to grow to EUR 42m and EUR 44m. Furthermore the management and the board will propose to the shareholders at this year's AGM, a dividend of EUR 0.10 per share for the business year 2016. This will establish WCM as a regular dividend paying company also in the future.

Positive start into 2017 with first successful transactions

The targeted portfolio expansion for the current business year was already partially executed with a first, closed transaction. As of 1 February 2017 the new EUR 21.0m acquisition of a retail-centre in Jena was integrated into WCM's portfolio. As a result of this and the successful closing of the MIA transaction which was announced at the end of March this year, the current GAV already amounts to EUR 796,2m. Further acquisitions are envisaged for the remainder of the year.

Stavros Efremidis, CEO of WCM explains: "In 2016, we have extended our portfolio without compromising on our acquisition criteria. We want to continue our successful path also in 2017 and focus on profitable growth in line with our strategy. The deal pipeline to achieve this is there and our shareholders should, after a first dividend this year, continue to benefit from it in 2017, too."

The audited results including and a detailed company presentation are available for download at the Investor Relations section on the company's website www.wcm.de.

About WCM AG

WCM Beteiligungs- und Grundbesitz-AG (WCM AG), with headquarters in Frankfurt am Main, is a specialised commercial real estate company. As a real estate proprietor, the focus is on long-term rental of high-quality office and retail properties in the major office locations in Germany. Since the operational restart in 2014, WCM AG has focused on an extensive network for the acquisition of properties as well as on value-creating asset management, in order to generate attractive long-term rental income and a steady cash flow. The pro forma portfolio has a gross asset value of around EUR 800m. Shares of WCM AG are listed in the Prime Standard of Deutsche Boerse AG and are included in the SDAX index since 21 December 2015.

contact:

Gunnar Janssen
Investor Relations/Capital Markets
WCM Beteiligungs- und Grundbesitz-AG
Bleichstr. 64-66
60313 Frankfurt am Main
Telefon +49 69 963 7319 10
E-Mail [email protected]

press contact:

edicto GmbH
Axel Mühlhaus/ Dr. Sönke Knop
+49 (0) 69-905505-51
[email protected]

www.wcm.de