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GAGFAH S.A. / Final Results

10.03.2010 06:25

Dissemination of a Corporate News, transmitted by
DGAP – a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.

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Press Release: March 10, 2010

GAGFAH S.A.
2-4, rue Beck
L-1222 Luxembourg
ISIN: LU0269583422

Frankfurt Stock Exchange, Regulated Market (Prime Standard)

GAGFAH S.A. Financial Results for the Year 2009

Luxembourg, March 10, 2010 – GAGFAH S.A. (Frankfurt Stock Exchange: GFJ)
today announced its financial results for 2009.

William Joseph Brennan, CEO of GAGFAH S.A.’s German subsidiaries: ‘GAGFAH
has delivered another year of solid results, on target with our
expectations. Full year 2009, GAGFAH’s core Funds from Operations (FFO) per
share, derived from our rental business and excluding sales, were EUR 0.73,
versus EUR 0.67 for 2008. Including our sales contribution, we produced a
total of EUR 0.84 FFO. Operationally, profit from leasing was up 2.8%
versus 2008, on a base of 5,400 fewer units. Having sold over EUR 500
million in assets, we also achieved our sales goal for the year. Despite
challenging external economic conditions, our business held steady in 2009.
We are seeing increased activity in the German residential market and look
forward to a productive 2010.’

Highlights

– Profit from the leasing of investment property up 2.8% to EUR 486.3
million in 2009 from EUR 473.0 million in 2008 on a weighted average of
approximately 5,400 fewer units. On an average-per-unit-basis, the
profit from the leasing of investment property increased by 6.1%.

– NAV: Our asset value declined by 2% year-on-year, giving us an NAV of
EUR 12.60 per share and gross asset value of EUR847 per square meter as
of December 31, 2009.

– FFO in line with target at EUR 190.0 million or EUR 0.84 per share in
2009, from EUR 200.2 million or EUR 0.89 per share in 2008.

– Quarterly dividend for Q4 2009 of EUR 0.20 per share will be paid on
April 13, 2010.

Rents

– Our rental growth rate was 1.3% (1) for 2009, in line with our target.

Property sales

– In total we sold or contracted to sell 11,306 units for a total value
of EUR 519.9 million, in line with our target of EUR 500 million total
sales.

– Robust results in condo sales (2): 2,394 units sold at a margin of 27%
for a total value of EUR 137.0 million in 2009 and 1,143 units sold in
Q4 2009.

– Successful results for large multi-family home sales program: sale of
2,935 units closed in 2009 for a total volume of EUR 125.5 million and
another 5,977 contracted to sell for EUR 257.4 million.

Vacancy

– Overall vacancy of 4.9% at year end 2009, in line with our target.

– Excluding units held for condo sales, our vacancy rate was 4.8%.

Cost

– We reduced our average management cost per unit by 3.9% to EUR 391.

1) Same store basis: Residential units GAGFAH owned at both dates: As at
December 31, 2008 and as of December 31, 2009.

2) Privatization / small multi-family homes

Key Financial Information

FINANCIAL FIGURES

Income Statement (EUR                                   Q4         Q4
million)                        2009       2008       2009       2008
Income from the leasing of      976.8      979.3      227.1      237.5
investment property

Profit from the leasing of      486.3      473.0      114.4      120.1
investment property

Profit from the sale of         22.8       58.8        9.4       22.8
investment property

Loss from fair value               -          -       -51.2         -
measurement                     197.0      233.0                 223.0

EBITDA                          262.7      249.2      73.5       -85.9

EBIT                            237.1      216.6      55.8       -93.8

EBT                             -92.3         -       -20.7         -
                                           119.5                 204.6

FFO                             190.0      200.2      55.5       58.7

FFO in EUR per share            0.84       0.89       0.25       0.26

Group                 12-31-       12-31-            12-31-       12-31-
Capitaliz-              2009       2009              2008         2008
ation               EUR million       %           EUR million        %    

Total                2,457.7         25.2           2,733.6         26.4
Equity

Financial            6,525.3         66.7           6,732.5         65.2
liabilities

Other                  794.3          8.1             865.4          8.4
liabilities

Total equity         9,777.3        100.0          10,331.5        100.0
and
liabilities

OPERATIONAL FIGURES

                                       12-31-2009       12-31-2008
Group residential portfolio
Units                                     165,789          172,298
Sqm                                    10,008,818       10,394,302
Net cold rent/sqm (in EUR)                   5.02             4.95
Vacancy rate (in %)                           4.9              3.9
Sold units                                  5,329            4,777

FFO is a non-IFRS financial measure used by our Group’s management to
report the funds generated from continuing operations. FFO is an
appropriate measure of underlying operating performance of real estate
companies as it provides shareholders with information regarding the
Group’s ability to service debt, make capital expenditures or pay
dividends. The following is a reconciliation from EBIT to FFO for our
Group:

FUNDS FROM OPERATIONS – FFO (EUR MILLION)

                                  2009       2008         Q4         Q4
                                                        2009       2008

EBIT                              237.1      216.6      55.8       -93.8

Reorganization and                21.4       22.8       16.6        3.0
restructuring expenses

Depreciation and                   4.2        9.8        1.1        4.9
amortization

EBITDA                            262.7      249.2      73.5       -85.9

Loss from fair value              197.0      233.0      51.2       223.0
measurement

Realized valuation gains          21.2        9.9       12.8        5.2
through sales

Income / expenses for share-      -1.4        3.5       -0.6        0.7
based remuneration

Net interest expenses                -          -       -79.3      -74.4
(periodical)                      301.4      296.9

Current tax expenses              -10.8      -14.5      -7.7       -9.0

Property development               4.4       13.4       -1.5        2.3
projects

Elimination large multi-           5.8        n/a        2.3        n/a
family homes sales program

Other                             12.5        2.6        4.8       -3.2

FFO                               190.0      200.2      55.5       58.7

FFO in EUR per share              0.84       0.89       0.25       0.26

Conference Call

Management will host an earnings conference call today at 2:00 P.M. CET
(1:00 P.M. London time, 8:00 A.M. New York time). All interested parties
are welcome to participate in the live call. You can access the conference
call by dialing 1866 966 9439 from within the U.S., or +44 (0) 1452 555 566
from the U.K., or 8002 7512 from Luxembourg, or 0800 101 4960 from Germany
or +44 (0) 1452 555 566 from all other countries ten minutes prior to the
scheduled start of the call; please refer to ‘GAGFAH Earnings Call 2009′.

A webcast of the conference call will be available to the public on a
listen-only basis at www.gagfah.com. Please allow extra time prior to the
call to visit the site and download the necessary software required to
listen to the Internet broadcast. A replay of the webcast will be available
for twelve months following the call on www.gagfah.com.

About GAGFAH S.A.

GAGFAH S.A. is a joint stock corporation organized under the laws of the
Grand Duchy of Luxembourg qualifying as a securitization company under the
Luxembourg Securitization Law of March 22, 2004. The core business of
GAGFAH S.A.’s operating subsidiaries is the ownership and management of a
geographically diversified and well maintained residential property
portfolio located throughout Germany. With a portfolio of more than 165,000
apartments, GAGFAH is the largest German listed residential property
company.

The Annual Report for 2009 of GAGFAH is available on www.gagfah.com.

Contact:

GAGFAH S.A.

2-4, Rue Beck

L-1222 Luxembourg

Grand Duchy of Luxembourg

Tel: +352 266 366 1

Forward-Looking Statements

This press release contains statements that constitute forward-looking
statements. Such forward-looking statements relate to, among other things,
future commitments to acquire real estate and achievement of acquisition
targets, timing of completion of acquisitions and the operating performance
of our investments. Forward-looking statements are generally identifiable
by use of forward looking terminology such as ‘may’, ‘will’, ’should’,
‘potential’, ‘intend’, ‘expect’, ‘endeavour’, ’seek’, ‘anticipate’,
‘estimate’, ‘overestimate’, ‘underestimate’, ‘believe’, ‘could’, ‘project’,
‘predict’, ‘continue’, ‘plan’, ‘forecast’ or other similar words or
expressions. Forward-looking statements are based on certain assumptions,
discuss future expectations, describe future plans and strategies, contain
projections of results from operations or of financial conditions or state
other forward looking information. Our ability to predict results or the
actual effect of future plans or strategies is limited. Although we believe
that the expectations reflected in such forward-looking statements are
based on reasonable assumptions, our actual results and performance may
differ materially from those set forth in the forward-looking statements.
These forward-looking statements are subject to risks, uncertainties and
other factors that may cause our actual results in future periods to differ
materially from forecasted results or stated expectations, including the
risk that GAGFAH S.A. will be unable to extent existing financing at
suitable terms, be unable to increase rents and occupancy, to privatize
further units or further reduce management costs.

10.03.2010 06:25 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at

www.dgap-medientreff.de

and

www.dgap.de

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Language: English
Company: GAGFAH S.A.
2-4, rue Beck
1222 Luxemburg
Luxemburg
Phone: + 352 266 366 21
Fax: + 352 266 366 01
E-mail: info@gagfah.com, skliche@gagfah.com
Internet: www.gagfah.com
ISIN: LU0269583422, LU0269583422
WKN: A0LBDT
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Hamburg, Stuttgart

End of News DGAP News-Service

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