13 05 2013

Concluded Repositioning Drive Defines Nine-Month Result +++ Turnaround in Q4 and Positive Year-End Result Expected

  • Positive performance of strategic business lines “Privatisation” and “Portfolio”
  • Forecast for positive year-end result confirmed
  • Repositioning drive concludes with the sales of the remaining project developments in the ongoing quarter

Berlin, 13 May 2013 – During the first nine months of its 2012/2013 financial year, ESTAVIS AG completed its strategic repositioning drive, and achieved significant milestones in the drive to implement its new corporate strategy. In particular, the proprietary portfolio was substantially expanded. Also, the repositioning process of the ESTAVIS Group was successfully concluded during the ongoing fourth quarter with the wind-up of the discontinued project development activities, including the disposal of the last remaining plots and the corresponding receipt of payments.

Continued Positive Performance of the Business Lines “Portfolio” and “Privatisation”

The stable business performance in the company’s two strategic business lines “Portfolio” and “Privatisation” and the resulting positive contributions to operating income were offset during the reporting period by encumbrances incurred in conjunction with the wind-up of discontinued activities in the project development sector and expenditures for the premature repayment of a mezzanine loan. That being said, the Executive Board reaffirmed its expectation to see a clearly positive result in the ongoing fourth quarter and by the end of the 2012/2013 financial year as a whole.

Equity Ratio Raises to 35.1 Percent

Consolidated revenues during the first nine months added up to EUR 25.8 million (prior-year period: EUR 42.6 million); the total operating performance equalled EUR 27.5 million (prior-year period: EUR 39.1 million). The operating result amounted to EUR 0.3 million, whereas the consolidated income of the first nine months equalled EUR -3.5 million (prior-year period: EUR 0.5 million). The consolidated income at the end of the third quarter equalled EUR -0.9 million (prior-year period: EUR 0.3 million). The equity ratio rose to 35.1 percent as of 31 March 2013 (30 June 2012: 33.3 percent).

Said Torsten Cejka, Member of the Executive Board of ESTAVIS AG: “The development during the first nine months of the 2012/2013 financial year show that we are on the right track, now that the strategic realignment is in place. With the repositioning concluded, the financial structure optimised, and the portfolio significantly expanded, we have cleared the way for the future growth of ESTAVIS in its core business lines of Portfolio and Privatisation, and the fact will begin to be reflected in the positive result of the fourth quarter.”

“The parameters on the markets in which ESTAVIS is actively engaged remain favourable. In many places in Germany we noted that the demand for rental apartments by owner occupiers and private investors clearly exceeds existing supply, and that the construction pipeline will hardly accommodate it. At the same time, we registered a sustained interest in tangible asset, which has particularly positive ramifications for our privatisation business,” said Member of the Executive Board of ESTAVIS AG.

ESTAVIS AG is a listed property company focusing on residential properties. It is active in the two business lines of portfolio management and housing privatisation, and continuously expands these by acquiring interesting properties and portfolios. ESTAVIS AG is headquartered in Berlin, and is listed on the Prime Standard of the Frankfurt Stock Exchange (German Securities Code Number [WKN]: A0KFKB).

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