21st Sep 2006 07:01
Dawnay, Day Treveria PLC 21 September 2006 Dawnay, Day Treveria PLC Interim Results For the period ended 30th June 2006 Highlights •Admitted to AIM market in December 2005, raising gross proceeds of €444 million •Property assets of €1,162 million, after revaluation, as at 30 June 2006 •Adjusted NAV per share increased to 106.5c from 96.6c at admission, an increase of 10.2%* •Adjusted EPS for the period of 2.41c* •Maiden interim dividend of 2.0c per share •Good progress towards full investment €202 million purchases completed since the half-year end €124 million notarised €451 million in solicitors' hands €50 new lettings and lease extensions generating an annual rent of €1.4 million * Adjusted EPS exclude revaluation surplus and deferred tax, and are based on the weighted average number of shares commencing from the date of admission to AIM. Adjusted NAV excludes deferred tax. Ian Henderson, Chairman of Dawnay, Day Treveria, said: "We have made good progress in delivering on our strategy outlined at the time of the flotation. To date Treveria has acquired or notarised €1.4 billion of properties and has a further €451 million in solicitors' hands. We remain confident of buildinga €2.3 billion portfolio of German predominantly retail properties within the timescale set. Despite the relatively short period of ownership, adjusted NAV has increased since admission by 10.2% to 106.5c, reflecting increased capital values and initial benefits from asset management activity." Enquiries: Dawnay, Day Treveria Real Robert Goldsmith 020 7834 8060 Estate Asset Management Limited www.dawnaydaytreveria.com Cardew Group Tim Robertson 020 7930 0777 Shan Shan Willenbrock Catherine Maitland Chairman's Statement I am pleased to announce the Group's first set of results since its successful admission to the AIM market in December 2005 when it raised gross proceeds of €444 million. This includes a €35.5 million subscription by Dawnay, Day as part consideration for the acquisition of a portfolio of properties. We have made good progress towards our target of building a €2.3 billion portfolio of German retail properties. The properties we have acquired are in sustainable locations with a strong mix of well-known tenants. As at 30 June 2006, we had completed the purchase of €1,100 million of properties with an annualised net rent roll of €73 million, after deducting ground rents and non-recoverable costs. Results The revenue for the period, being entirely rental income, was €26.7 million, and the adjusted operating profit before tax, which excludes any revaluation surplus, was €20.8 million which was after €0.8 million of non recurring setup costs for the admission to AIM. It is important to note that none of the properties in the portfolio has been owned throughout the entire period and in fact a number of purchases were completed towards the end of June. The adjusted profit after tax, which excludes revaluation surplus and deferred tax, was €10.7 million. The corresponding adjusted earnings per share were 2.41c. Adjusted earnings per share exclude revaluation surplus and deferred tax, and are based on the weighted average number of shares commencing from the date of admission to AIM. In accordance with IFRS, deferred tax liabilities of €57.5 million have been recognised relating to the potential tax on capital gains that may in the case of certain property disposals become payable. Revaluation & Net Asset Value The portfolio has been valued by DTZ Debenham Tie Leung Limited as at 30 June 2006 at €1,162 million, giving a net surplus of €31.6 million compared to the purchase price after taking into account the costs of acquisitions. Excluding acquisition costs, the corresponding surplus was €61.4 million, an uplift of 5.6%. The adjusted net asset value of the Group has risen to 106.5c from 96.6c at admission, an increase of 10.2%. This is very satisfactory considering the short period since the acquisitions were completed especially as it is after incurring the costs of acquisition. Financing As at 30 June 2006, the Group's borrowings totalled €902.1 million, all ofwhich were secured on the properties. The bank borrowings are on 5-year terms maturing in 2011. The loans are on a fixed interest rate basis, with an average weighted rate of 4.66%. Based on the revaluation, the loan to value ratio as at 30 June 2006 was 77.6%. After taking into account its cash position, the net debt of the Group as at 30 June 2006 was €683.2 million. Dividend I am pleased to announce an interim dividend of 2.0c per share. As set out in the AIM admission document the Group expects to distribute approximately 85% of its recurring net income to shareholders over the course of each financial year. Asset Management To support our rapidly expanding portfolio, Dawnay, Day, (the "Asset Manager") has expanded its Dusseldorf-based property management team to in excess of 50 staff. The enlarged team is a significant resource which is responsible for implementing a highly pro-active approach to managing the properties under our control. A key focus is on building tenant relationships and this is having a positive impact in achieving some early lease renewals. Since acquiring the properties good progress has been made enhancing the income and improving the tenant mix across the portfolio. Additional income has been secured from new lettings and lease extensions and up to the period end, there were 50 such lettings and lease extensions generating an annual rental income of €1.4 million. Further progress The Asset Manager continues to have access to a strong flow of acquisition opportunities originating from its large network of local contacts. Since the half-year end, we have completed the purchase of a further €202 million of properties bringing the total portfolio to €1,365 million. In addition, we have notarised €124 million of acquisitions which are awaiting completion and have a further €451 million of potential acquisitions in solicitors' hands. The blended gross and net initial yield on the acquisitions completed or notarised since 30 June 2006 are 7.3% and 6.7% respectively. As a result, we are confident of meeting our targeted investment size within the timescale set on flotation. Outlook The Board continues to believe that the attractive characteristics of the German retail property market that existed in December 2005 remain valid today, namely improving macro economic conditions, constrained retail property supply, a positive yield spread and opportunities created by the changing trends in German property ownership. The Group has made significant progress in its aim to acquire a substantial and diverse retail real estate portfolio in Germany. There are a number of value enhancing asset management opportunities within the existing portfolio and we have a strong pipeline of potential investments. We are on track to deliver on our strategy set out on flotation and look forward to the future with confidence. Ian Henderson Chairman Dawnay, Day Treveria PLC Unaudited consolidated income statement For the period ended 30 June 2006 Period ended 30 June 2006 Notes €000 Revenue 26,739 Direct costs 4 (3,538) ----------- Gross profit 23,201 Administrative expenses 5 (2,007) Other expenses (348) Revaluation surplus 6 31,577 ----------- Operating profit 52,423 Finance income 3,456 Finance costs (12,828) ----------- Profit before tax 43,051 Income tax expense Current (385) Deferred 7 (55,569) ----------- (Loss) for the period (12,903) =========== Attributable to: Equity holders of the parent (13,710) Minority interests 807 ----------- (12,903) =========== Loss per share (3.96)c An interim dividend of 2.0c per share was declared on 20 September 2006 Dawnay, Day Treveria PLC Unaudited consolidated balance sheet As at 30 June 2006 30 June 2006 Notes €000 Non-current assets Investment properties 6 1,162,486 ----------- Total non-current assets 1,162,486 ----------- Current assets Trade and other receivables 19,419 Prepayments 9,140 Cash and short-term deposits 213,698 ----------- Total current assets 242,257 ----------- Total assets 1,404,743 ----------- Current liabilities Trade and other payables 26,519 Interest bearing loans 8 1,209 Income tax payable 57 ----------- Total current liabilities 27,785 ----------- Non-current liabilities Interest bearing loans 8 895,707 Deferred tax liability 7 57,559 Other liabilities 1,424 ----------- Total non-current liabilities 954,690 ----------- Total liabilities 982,475 ----------- Net assets 422,268 ----------- Equity attributable to equity shareholders of the parent Issued capital 4,444 Share premium 336,776 Reserves 87,991 Retained earnings (13,710) ----------- 415,501 Minority interests 6,767 ----------- Total equity 422,268 ----------- Net asset value per share 93.50c Dawnay, Day Treveria PLC Unaudited consolidated cash flow statement For the period ended 30 June 2006 Period ended 30 June 2006 Notes €000 Operating profit 52,423 Revaluation surplus (31,577) ----------- Cash Flows from operations before changes in working capital 20,846 =========== Change in trade and other receivables (26,087) Change in trade and other payables 23,438 ----------- Movement on working capital (2,649) =========== Finance costs (7,047) Finance income 3,456 Tax paid (385) ----------- (3,976) ----------- Cash Flows from operating activities 14,221 =========== Cash Flows from investing activities Purchase of investment properties (1,090,393) ----------- (1,090,393) =========== Cash Flows from financing activities Issue of share capital 393,682 Net loans drawn down 896,188 ----------- 1,289,870 =========== Net increase in cash and cash equivalents 213,698 Cash and cash equivalents at beginning of period ----------- Cash and cash equivalents at 30 June 2006 213,698 =========== Dawnay, Day Treveria PLC Unaudited statement of changes in equity For the period ended 30 June 2006 Issued Share Reserves Retained Total Minority Total Capital Premium Earnings Interests Equity €000 €000 €000 €000 €000 €000 €000 Issue of share capital 4,444 439,956 444,400 444,400 Transaction costs relating to Admission to AIM (15,189) (15,189) (15,189) Reduction in share premium account (87,991) 87,991 0 0 Minority interests in companies acquired 5,960 5,960 Loss for the period (13,710) (13,710) 807 (12,903) At 30 June 2006 4,444 336,776 87,991 (13,710) 415,501 6,767 422,268 ======= ======= ======= ======= ======= ======= ======= Notes to the Consolidated Financial Statements For period from incorporation on 20 October 2005 to 30 June 2006 1. GENERAL INFORMATION Dawnay, Day Treveria PLC (the "Company") is a limited company incorporated in the Isle of Man on 20 October 2005. It was admitted to AIM on 14 December 2005. The Consolidated Financial Statements for Dawnay, Day Treveria PLC and its subsidiaries (the "Group") have been prepared for the period from incorporation on 20 October 2005 to 30 June 2006. The Consolidated Financial Statements are unaudited. The financial statements are presented in Euro. 2. SIGNIFICANT ACCOUNTING POLICIES (a) Basis of preparation The Income Statement and Balance Sheet have been prepared on the basis of recognition and measurement requirements of International Financial Reporting Standards (IFRS) issued by the International Standards Board that are expected to be adopted in the consolidated financial statements for the period ending 31 December 2006. The period from 20 October 2005 to 30 June 2006 is the first period of the Group's operation, and therefore no comparatives are presented. (b) Basis of consolidation The Consolidated Financial Statements incorporate the results of the Company and entities controlled by the Company (its subsidiaries) made up to 30 June. Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group's equity therein. Minority interests consist of the amount of those interests at the date of the original acquisition and the minority's share of changes in equity since the date of the acquisition. The results of subsidiaries acquired during the period are included in the consolidated income statement from the effective date of acquisition. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group. Intercompany transactions, balances and unrealised gains and losses on transactions between group companies are eliminated. Accounting policies of subsidiaries have been changed for the purpose of consolidation where necessary to ensure consistency with the policies adopted by the Group. (c) Revenue recognition Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. 3. SEGMENTAL ANALYSIS The Group has only one business segment, being the rental of commercial properties in Germany. 4. DIRECT COSTS €000 Non-recoverable property costs 1,403 Property management fee 736 Asset management fee 1,399 ------ 3,538 ====== 5. ADMINISTRATIVE EXPENSES €000 Transaction costs relating to AIM admission 801 Others 265 Legal & professional fees and other administration costs 747 Directors' fees and expenses 194 ------ 2,007 ====== The Group has one full-time employee. 6. INVESTMENT PROPERTY €000 At incorporation - Additions 1,130,909 Net revaluation surplus 31,577 --------- Value of investment properties at 30 June 2006 1,162,486 ========= The investment properties have been valued by DTZ Debenham Tie Leung Limited at 30 June 2006. A comparison with the purchase prices, excluding acquisition costs, as at the respective dates of acquisition, gives rise to a gross revaluation surplus of €61 million, based on the valuation as at 30 June 2006. 7. DEFERRED TAX At 30 June 2006, in accordance with IFRS, deferred tax liabilities of €57.5 million have been recognised relating to the potential tax on capital gains that may in the case of certain property disposals become payable. This comprises: €000 At incorporation 0 Deferred tax arising upon the acquisition of subsidiaries 41,134 Deferred tax arising on increase in value of properties since date of acquisition 14,435 --------- 55,569 Deferred tax liability of companies acquired 1,990 --------- At 30 June 2006 57,559 ========= 8. INTEREST-BEARING LOANS €000 The borrowings are repayable as follows: On demand or within one year 1,209 In the second year 2,331 In the third to fifth years inclusive 585,302 After five years 308,074 --------- 896,916 Less: Amount due for settlement within 12 months (shown under current liabilities) (1,209) --------- Amount due for settlement after 12 months 895,707 ========= Amounts due to bank 902,079 Finance costs to be amortized over the remaining period of the loans (5,163) --------- 896,916 ========= The Group has pledged properties to secure related interest bearing debt facilities granted to the Group for the purchase of such properties. 9. DIVIDEND The interim dividend will be payable to shareholders on the register on 29 September 2006 (ex-dividend date 27 September 2006) and will be paid on 24 October 2006. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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