DGAP-News: WCM continues growth path with half-year results and plans dividend pay-out for 2016

WCM continues growth path with half-year results and plans dividend pay-out for 2016

- Real estate portfolio grew by 13.8% to EUR 575.6 million (year-end 2015: EUR 505.7 million)

- FFO I stands at EUR 8.3 million (prev. year: EUR 0.2 million)

- Annualised rental income increased to EUR 33.7 million (year-end 2015: EUR 31.5 million)

- EPRA NAV rose to EUR 335.0 million or EUR 2.54 per share (year-end 2015: EUR 290.6 million or EUR 2.38 per share)

- First dividend pay-out since operational restart planned for full year 2016

- Management board reaffirms 2016 forecast

Frankfurt, 22 August 2016 - WCM Beteiligungs- und Grundbesitz-AG (WCM AG, ISIN: DE000A1X3X33) continued its growth path with the 2016 half-year results. The company reaffirms its forecast and expects to pursue additional acquisitions in the forthcoming months. As a consequence of the half-year results, WCM is planning to pay out a dividend for the full year 2016 for the first time since its operational restart. The dividend amount will be proposed following the conclusion of the 2016 fiscal year.

Earnings and EPRA NAV substantially increased

The earnings of WCM rose significantly to EUR 13.4 million compared to EUR 0.8 million in the previous year. The improved results were driven by an increase in rental income, successful divestments and revaluation of the portfolio. For the first time the 2015 acquired assets were fully reflected in the half-year results. WCM's funds from operations (FFO I) increased to EUR 8.3 million or EUR 0.07 per share in comparison to EUR 0.2 million or EUR 0.01 per share for the period of the previous year. The FFO II including the divestments in the first six months stands at EUR 9.1 million or EUR 0.08 per share.

As of 30 June 2016, the EPRA Net Asset Value (NAV) rose by 15.3% to EUR 335.0 million compared to EUR 290.6 million at the year-end 2015. In addition, the net loan-to-value (Net-LTV) remained in WCM's lower target corridor at 50.1% compared to 50.0% at 2015 year-end.

Portfolio successfully managed and expanded

WCM's portfolio amounted to EUR 575.6 million despite the disposal of several non-strategic assets above book value. In addition to two newly acquired assets, WCM reports additional value-enhancing measures for the portfolio resulting in a moderate uplift in valuation. The newly acquired retail park in Straubing, closed at the end of June 2016 for a gross purchase price of c. EUR 55 million, is adding annual rental income of EUR 3.5 million and will positively contribute to the FFO in the second half of the year.

The rental income for the first six months of the current year rose significantly to EUR 15.4 million versus EUR 2.2 million for the same period in 2015. The annualised rental income of WCM's portfolio amounts to EUR 33.7 million and is EUR 2.2 million p.a. higher than the reported figures at the end of 2015. New and extended leases were successfully signed and added additional value to WCM's portfolio. The successful leasing activities resulted in an EPRA vacancy decrease of 70 b.p. from 4.8 % at the end of 2015 to 4.1% at the end of June 2016 with the weighted average lease time (WALT) remaining stable at the high level of 9.4 years. The average cost of debt decreased slightly from 2.1% to 2.0% and is expected to further decrease with new acquisitions in the forthcoming months.

Further acquisitions anticipated - Forecast reaffirmed

WCM will continue its investment strategy and build-up of the portfolio with the focus on top quality office and retail assets. The management board is confident to further acquire a substantial number of assets during the remainder of the current year. On the back of the published results, the company reaffirms the 2016 forecast with a FFO target range of EUR 18 to 21 million.

The half-year report including a detailed company presentation is available for download at the Investor Relations section on the company's website www.wcm.de/en.

WCM Group Key IFRS Figures

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 portfolio has a gross asset value of c. EUR 600 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.

Press contact:

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