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Summit Germany Ltd (SMTP)

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Thursday 26 April, 2018

Summit Germany Ltd

Annual Financial Report - 2017 Full Year Report

RNS Number : 1562M
Summit Germany Limited
26 April 2018



This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.

Summit Germany Limited

(the "Company")


2017 Full Year Results


We are pleased to present the audited results for the year ended 31 December 2017 ("the Reporting Period") of Summit Germany Limited and its subsidiaries ("the Group").



·    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)



·     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)



·    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



·     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:

o Rent lower than ERV

o 93,000 sqm of vacancy

o 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:

o Two residential development projects for 132 apartments are under process on surplus land in two Group's properties in Frankfurt

o Two JV projects for 95 residential units in Berlin

o Acquisition of 865,000 sqm of land for future development



·    €300 million bond placement post Reporting Period mainly refinanced medium term existing secured debt facilities; Senior fixed rate notes bear 2.00% p.a. for seven year term.

·    Deployment of bond proceeds post Reporting Period to refinance existing secured debt facilities:

o Repayment of ca. €220 million of debt facilities bearing average 3.62% interest p.a.; Interest saving of approximately €3.4 million p.a

o Acquisition of €12.2 million of existing debt bearing 3.7% interest p.a.; Interest savings of approximately €0.3 million p.a.

·    Following refinancing activities, average interest rate on Group facilities decreased to 2.17% with an average duration of seven years.



·    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.


Harry Hyman, Chairman commented: "In 2017 we succeeded to increase and improve our portfolio. In the beginning of 2018 we also restructured our financing. The impact of these actions was partly reflected in FY 2017 earnings and net asset value.  The group is well positioned for 2018, as the full benefit of those transactions and intensive asset management will flow this year.  With funds available for portfolio growth and debt refinance, we will pursue opportunities to further improve the stability and visibility of net rent and underlying earnings."



Zohar Levy, Managing Director commented: "The German real estate market remains very attractive, underpinned by strong tenant demand and a limited pipeline of new development. This plays well to our portfolio and skills. Our portfolio is under rented and almost every lease renewal is signed at substantially higher rent, increasing our cash flow and potential valuation. In addition, we are actively engaged in several developments using surplus building rights in our properties which we believe will have a significant upside. We expect that the combination of the under rented portfolio with the upside potential in our properties would have a massive contribution to our NAV in the near future."



For the full report please download the PDF.


For further information please contact:


Summit Germany Limited

Tel: +44 (0) 1481 700 300


Zohar Levy - Managing Director



Itay Barlev (Braun) - Finance Director






Non-Executive Chairman

Tel: +44 (0) 20 7451 7050


Harry Hyman






Carey Group, Company Secretary

Tel: +44 (0) 1481 700 300


Sara Bourne






Liberum Capital Limited, Nominated Adviser and Joint Broker

Tel: +44 (0) 20 3100 2222


Chris Clarke / Jill Li






Cenkos Securities, Joint Broker

Tel: +44 (0) 20 7397 8900


Mark Connelly



Russell Kerr / Selwyn Jones (Broking)











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