- EBITDA of 118,2 million euros
- EBT of 87.3 million euros
- EAT of 74.3 million euros
- Rental earnings of 59.9 million euros; sales income of 370.7 million euros
- Favorable interest rates leveraged for refinancing of 530 million euros
The German real estate company Aurelis Real Estate GmbH & Co. KG ("Aurelis") successfully concluded fiscal year 2014. The company, which holds properties and specializes in asset management and real estate development, posted earnings before interest, tax, depreciation and amortization (EBITDA) of 118,2 million euros (2013: 70.7 million euros). Earnings before tax (EBT) amounted to 87.3 million euros (2013: 31.6 million euros), and net income (earnings after tax, or EAT) stood at 74.3 million euros (2013: 25.8 million euros). *
As of December 31, 2014, Aurelis' portfolio totaled approximately 10 million square meters of land. Over 80 percent of these properties are located in some of Germany's growth regions, including the metropolitan areas of Munich, Nuremberg, Stuttgart, the Rhine-Main region, the Rhine-Ruhr region and Hamburg.
Total revenues of 430.6 million euros
In 2014, Aurelis posted income from sales of 370.7 million euros (2013: 358.2 million euros) and income from rent of 59.9 million euros (2013: 70.2 million euros). The year-on-year decrease in rental income is largely attributable to the planned divestment of properties that did not conform with the defined strategic focus of the rental portfolio. A focus of the Aurelis portfolio is on "Unternehmensimmobilien" (light industrial real estate), which includes business parks, warehouses/logistics, light manufacturing, and open space. The high stability of this asset class is due to the tenant structure, which mainly comprises companies from the German Mittelstand that are typically location bound and show a high degree of creditworthiness.
In 2014, Aurelis concluded new and renewed existing leases worth 14 million euros in annual rent. These include the University for Public Administration in Cologne that is currently under construction, a distribution center for Deutsche Post DHL in Hanover, and several rental agreements with tenants of Munich's Triebwerk business park.
2014 acquisitions focus on the rental portfolio
Aurelis purchases commercial real estate in growth regions, which, through value creation processes and an active approach to management, promise to generate stable rental revenues. Furthermore, the company acquires land with project development potential. Throughout the entire process, the Aurelis experts for land development, project development and asset management work closely on the evaluation and concepts for these properties.
Aurelis purchased real estate with a value of 78.6 million euros in 2014. Of this, 58.7 million euros were spent on expanding the rental portfolio and 19.9 million euros on development land.
The vast majority of acquisitions in 2014 were made in the second half of the year; the results for fiscal year 2014 therefore only partially (pro rata) include rental income from these properties. These acquisitions include business parks in Böblingen and Ratingen, a mixed-use commercial property in Hanover, and warehouse and office space in Hilden.
Furthermore, in the reporting period, Aurelis concluded sales agreements for rental properties worth 54.1 million euros. Ownership of these properties was transferred in the first months of 2015. In cooperation with existing and future tenants, the company improves and revitalizes its rental properties, with the aim of holding the property.
In land acquisition, Aurelis focuses on brownfield sites, which are turned into development land, complete with infrastructure and planning permits. As of December 31, 2014, Aurelis has initiated the planning process for around 80 percent of its development portfolio, including these new acquisitions. This gives the organization a high security for gaining planning permission for these plots.
Construction work continues to gain in significance in the development portfolio
When there is sufficient demand, Aurelis extends the value creation process and builds properties on its own development land. Construction projects are increasingly sought after and are playing an important role – also for the extension of the rental portfolio. In 2014, the organization signed contracts for the development of around 83,000 square meters of floor space across Germany. In addition, around 39,000 square meters of floor space were extensively renovated during the reporting period. After construction or renovation is completed, Aurelis' asset management division continues to manage the properties.
Refinancing with a volume of 530 million euros concluded
At the end of March 2015, Aurelis took advantage of the favorable market environment to refinance its bank loans that mature in December 2016. The company agreed on a long-term syndicated loan with pbb Deutsche Pfandbriefbank as lead arranger. The loan totals 530 million euros and its maturity is staggered between three and seven years. The majority of the loan does not mature until 2022. Besides redeeming existing bank loans, this refinancing provides Aurelis with long term planning security and additional entrepreneurial and financial flexibility for acquisitions and investments into its rental and development portfolio.
* From 2014, financial KPIs will be reported according to IAS 40 based on fair value accounting (market value). The figures from 2013, which were previously reported using the cost accounting method, i.e. based on continuous acquisition costs, have been modified accordingly. Thus, Aurelis complies with reporting standards of companies of comparable size.