DGAP-News: WCM Beteiligungs- und Grundbesitz-AG: WCM continues strong growth path after 9 months in 2016 and reaffirms FFO forecast

WCM continues strong growth path after 9 months in 2016 and confirms FFO forecast

- Rental income increases to EUR 23.8 million (prev. year: EUR 6.0 million)

- FFO I increases to EUR 12.9 million (prev. year: EUR 4.6 million)

- EPRA NAV rises to EUR 338.3 million or EUR 2.56 per share (year-end 2015: EUR 290.6 million or EUR 2.38 per share)

- Real estate portfolio expansion continues

- FFO 2016 forecast confirmed

Frankfurt, 25 November 2016 - WCM Beteiligungs- und Grundbesitz-AG (WCM AG, ISIN: DE000A1X3X33) continuous its growth path with its nine month results in 2016. The figures as of 30 September 2016 are not reflecting the contractually signed portfolio expansion with a real estate volume of approx. EUR 190 million that will close within the forthcoming months.

Rental income and FFO increased multifold

The rental income for the first nine months of 2016 rose to EUR 23.8 million versus EUR 6.0 million for the same period in 2015. WCM's funds from operations (FFO I), not including asset disposals, increased to EUR 12.9 million or EUR 0.10 per share in comparison to EUR 4.6 million or EUR 0.08 per share in the comparable period of the previous year. As of 30 September 2016, the EPRA Net Asset Value (NAV) rose to EUR 338.3 million or EUR 2.56 per share compared to EUR 290.6 million or EUR 2.38 per share at the year-end 2015. In addition, the net loan-to-value (Net-LTV) remained in WCM's lower target corridor at 50.3% compared to 50.0% at 2015 year-end.

Portfolio successfully managed and expanded

In the first nine months WCM aligned its portfolio with various disposal of several non-strategic assets above book value. WCM continued its acquisition growth with its portfolio focus on top-quality office and retail assets as the acquired retail park in Straubing for a gross purchase price of c. EUR 55 million. The value of WCM's portfolio as of 30 September 2016 amounted to EUR 576.4 million compared to EUR 505.7 million at the end of 2015. Successful leasing activities resulted in an EPRA vacancy decrease of 70 bps from 4.8 % at the end of 2015 to 4.1% at the end of September 2016 with the weighted average lease time (WALT) remaining stable at the high level of 9.3 years, compared to 9.4 years at the end of 2015. The average cost of debt decreased even further from 2.1% at the end of 2015 to 2.0% as of 30 September 2016.

FFO I increase and plan to pay out of dividend reconfirmed

After the first nine months in 2016, WCM's full-year 2016 target was already significantly exceeded in terms of NAV development. The Management Board reiterates the forecasts for 2016 on the basis of the positive business cycle and the already further contracted transactions. On the back of the published results, the company reaffirms the 2016 forecast with a FFO target range of EUR 18 to 21 million. At the same time, the Management Board and the Supervisory Board continue to seek the payment of a dividend for the current financial year.

Significant expansion of portfolio and profit potential after the reporting date

In the fourth quarter of 2016, WCM continued its portfolio expansion and acquired a retail portfolio consisting of three properties in Saxony-Anhalt and Baden-Württemberg. In addition, the closing of the acquisition portfolio announced on 27 September 2016 with four retail centers is expected before year end. On a pro forma basis, the portfolio grows to approx. EUR 766 million generating an annualised rental income of EUR 46.0 million, which represents a significant increase compared to the EUR 33.7 million from H1 2016. The annualized FFO I rises to EUR 25.5 million and the pro forma EPRA / NAV per share to at least EUR 2.85.

Stavros Efremidis, CEO of WCM AG: "We are very satisfied with the development of the first nine months of 2016. We were able to further expand WCM into one of the most effective listed companies in the German commercial real estate sector. Our portfolio and our earnings power developed positively and we have again carried out several value-enhancing transactions. We will continue this growth path consequently."

The complete quarterly report as well as the company presentation is available at www.wcm.de in the Investor Relations section.

WCM Key IFRS Figures

About WCM AG

WCM Beteiligungs- und Grundbesitz-AG (WCM AG), 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 more than EUR 700 M. The company has extensive loss carry forwards in corporate and commercial tax. Shares of WCM AG are listed in the SDAX of Deutsche Boerse since 21 December 2015.

Investor Relations:

Gunnar Janssen
Investor Relations
WCM Beteiligungs- und Grundbesitz-AG
+49 69 963 7319 10
[email protected]
www.wcm.de

Press contact:

edicto GmbH
Axel Mühlhaus/ Dr. Sönke Knop
Eschersheimer Landstraße 42
60322 Frankfurt am Main
+49 (0) 69-905505-51
[email protected]