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DGAP-News: GAGFAH Continues on Its Successful Path- Increase of Targeted Dividend by 35%

August 12, 2014

DGAP-News: GAGFAH S.A. / Key word(s): Half Year Results GAGFAH Continues on Its Successful Path- Increase of Targeted Dividend by 35% 13.08.2014 / 06:58 --------------------------------------------------------------------- Press Release: August 13, 2014GAGFAH S.A. 2-4, rue Beck L-1222 Luxembourg ISIN: LU0269583422 Frankfurt Stock Exchange (Ticker Symbol: GFJ) Regulated Market (Prime Standard) GAGFAH Continues on Its Successful Path- Increase of Targeted Dividend by 35% - Rent growth +2.4% compared to prior-year period - Vacancy rate of 3.7% at the end of Q2 after 4.1% at the end of Q1 - Adjusted EBITDA +7.3% compared to prior-year period - Recurring FFO increased by 95% to EUR 93.2 million in the first six months (EUR 0.43 per share) - Increased FFO guidance for 2014 and outlook for 2015 - Increase of targeted dividend by 35% to EUR 0.30 - 0.35 per share for 2014 - Outlook on key performance indicators for 2015 - 2017 shows substantial value enhancing potential and reflects the stability of the business model Luxembourg, August 13, 2014 - After the turnaround last year and the full exit of the private equity majority shareholder, GAGFAH continues on its successful path with substantial improvements especially in operations. The vacancy rate at the end of the first half year was 3.7%, which is 40 basis points below the vacancy rate at the end of Q1 this year. Rent growth was 2.4% compared to the prior-year period (2.1% on a like-for-like basis). In spite of 1.2% fewer units as a result of sales, the Adjusted EBITDA grew by 7.3% to EUR 178.3 million. The Recurring FFO almost doubled to EUR 93.2 million (EUR 0.43 per share) during the first six months of this year. The implementation of the non-core sales program is running according to plan with 3,086 sold units in the first half of this year, of which 1,490 were financially closed as of June 30. Condo sales remain strong with 549 sold units, of which 385 were financially closed as of June 30 and with a gross margin of 25.3% above their carrying values. The NAV per share as of June 30, 2014, was EUR 13.59, which is an increase of 4% compared to the end of 2013. In light of the positive development during the first six months, management has raised the guidance for Recurring FFO for 2014 to EUR 0.86 to EUR 0.88 per share. The previous target range was EUR 0.84 to 0.86 per share. The targeted dividend for 2014 has now been increased by 35% to EUR 0.30 to 0.35. Previously, the range for the targeted dividend was EUR 0.23 to 0.25 per share. Against the background of last year's successful turnaround, the complete exit of the former private equity majority shareholder earlier this year and the sustainable improvements in operations, GAGFAH has prepared an outlook for 2015 - 2017. It includes substantial value accretion potential for our shareholders from internally generated cash flow and underlines the stability and continuity of our business model. Having regained its strength, GAGFAH is well positioned. Thomas ZinnÖcker, CEO of GAGFAH GROUP commented: "The results during the first six months were in line with and in some cases even above our expectations. We are very confident regarding the remainder of the year and have therefore decided to enable our shareholders to participate even more in the company's success. That is why we have raised the targeted dividend for this year by 35% to EUR 0.30 to 0.35 per share. Our outlook on the KPIs for the years 2015 to 2017 underlines our stable business model and the additional value accretion potential we expect for our shareholders. We are confident to continue to deliver strong results and set standards in terms of transparency." The management will host an earnings call today at 12:00 noon Luxembourg time. All interested parties are welcome to participate in the live call. You can access the conference call by dialing - 1 8773 284 999 from the U.S. - 08000 730 438 from the U.K. - 8002 7956 from Luxembourg - 0800 5890 680 from Germany - +44 (0) 1452 561488 from all other countries ten minutes prior to the scheduled start of the call. Please refer to "GAGFAH S.A. 6M 2014 Earnings Call". The conference ID will be 77828223. A live virtual audio webcast of the conference call will be available at www.gagfah.com. A replay will be available for twelve months following the call. The 6M 2014 report and management presentation are available as PDF downloads on www.gagfah.com. Contact GAGFAH S.A. Investor Relations Rene Hoffmann 2-4, rue Beck L-1222 Luxembourg Tel.: +352 266 366 21 rhoffmann@gagfah.comwww.gagfah.com R.C.S. Luxembourg B 109.526 Media Dirk T. Schmitt +49 175 721 4836 dschmitt@gagfah.de 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 residential property portfolio located in Germany. GAGFAH is a leading owner and operator of residential real estate in Germany. Our portfolio includes more than 141,000 own residential units that are mostly located in the large German cities and their respective commuter belts. We believe that our size, our significant presence in the key residential markets and our scalable operating platform make us one of the leading providers of affordable housing for low- to medium- income households in Germany. Our operating subsidiaries are full-scale service providers for a broad range of property and facility management services. Our objective is to generate shareholder value through sustainable and growing cash flows, increasing net asset value and sustainable dividends by efficiently managing our portfolio, carrying out value-enhancing property investments, pursuing accretive growth opportunities, and realizing value through selected asset sales. --------------------------------------------------------------------- 13.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: GAGFAH S.A. 2-4, rue Beck 1222 Luxemburg Grand Duchy of Luxembourg Phone: + 352 266 366 1 Fax: + 352 266 366 01 E-mail: info@gagfah.com Internet: www.gagfah.com ISIN: LU0269583422, LU0269583422 WKN: A0LBDT Indices: MDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, DÜsseldorf, Hamburg, MÜnchen, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 282025 13.08.2014


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