- Earnings before interest, tax, depreciation and amortization (EBITDA) is at 217.4 million EUR (previous year: 180.6 million EUR)
- Rental income increased from 86.1 to 94.3 million EUR, Sales revenues at 347.7 million EUR
- Acquisition volume of 169.4 million EUR (previous year: 143.8 million EUR)
- New and continued rental agreements totaling over 43.9 million EUR of annual rent concluded (previous year: 19.3 million EUR)
Aurelis Real Estate GmbH & Co. KG (“Aurelis”) again increased its result this year. For 2017, the real estate company generated earnings before interest, tax, depreciation and amortization (EBITDA) of 217.4 million EUR, thereby increasing its earnings by 20 percent over the previous year (2016: 180.6 million EUR). Earnings after taxes is at 161.0 million EUR (previous year: 123.4 million EUR). CEO Joachim Wieland names the key factors that have led to this record result: “In a positive market environment, we have revitalized properties or constructed new buildings, increased occupancy rates, and sold some of these projects ahead of schedule.”
Rental and sales earnings increase
In this reporting year, Aurelis continued to expand its rental portfolio by purchasing commercial properties and investing in its existing portfolio. Accordingly, the company’s rental earnings increased by 9.5 percent, from 86.1 million EUR to 94.3 million EUR. New and continued rental agreements totaling over 43.9 million EUR of annual rent were concluded (previous year: 19.3 million EUR). Among other things, a lease agreement with Deutsche Bahn AG for more than 50,000 square meters of rental space has had an effect here. Aurelis will erect two adjacent buildings in the Frankfurt Europaviertel for the company.
In 2017, sales revenues increased from EUR 331.9 million to EUR 347.7 million, partly due to the scheduled completion and handover of the office building “La Tête” with the main tenant Handelsblatt in Düsseldorf, as well as due to the sale of residential land.
Further mixed-use commercial properties purchased
Since 2014 Aurelis has been expanding its portfolio through acquisitions. The focus is on so-called mixed-use commercial properties in metropolitan areas, such as business parks or warehousing and logistics properties. In 2017, Aurelis acquired properties with a total volume of 169.4 million EUR, completing the purchases with notarial certification (previous year: 143.8 million EUR). For example, Aurelis acquired an 85,000 square meter commercial property in Neuss. The property has six buildings with a total of almost 40,000 square meters of rental space, of which around 29,000 square meters are warehouse space and 10,700 square meters are office space.
Basis for organic growth in the coming years
In the past fiscal year, Aurelis had projects with an investment volume of 210 million EUR (previous year: 275.5 million EUR) in the pipeline. These will be added to the portfolio following their expansion, refurbishment, or new construction. However, at 670 million euros (previous year: 485.2 million euros), the investment volume in new construction projects intended for sale was even greater. These volumes include all projects that were under contract or realized in 2017.
One significant part of Aurelis’s strategy is to purchase properties that have the potential to increase in value and to develop them for its own portfolio. By revitalizing locations, expanding and refurbishing commercial properties, and constructing new projects on own building plots, the company is able to grow significantly using its own portfolio.
However, asset management at Aurelis does not necessarily mean that all value-optimized real estate properties are held permanently in the portfolio. This year Aurelis is planning to realize the value of selected properties again, such as land ready for construction, development projects for third parties and portfolio properties with already exploited value-added-potential.
As part of development for third parties, Aurelis has already been able to secure a significant contribution to the sales volume for 2018 by forward selling the new building project for the North Rhine-Westphalian "Regional Office for Nature, the Environment and Consumer Protection (LANUV)" in Duisburg.