BBI Bürgerliches Brauhaus Immobilien AG grows still further in H1
- Consolidated revenues in H1 2008 up 4.7% to EUR 11.17 million compared to H1 2007
- 14.5% revenue growth in the real estate segment to EUR 4.26 million
- Cash flow from operating activities up to EUR 2.25 million
- Rentable space increases by 12,902 m² in first six months
BBI Bürgerliches Brauhaus Immobilien AG (BBI AG), a real estate company specializing in portfolio management for retail property, again increased its revenues in H1 2008. BBI AG recorded revenues (IFRS) of EUR 11.17 million, up 4.7% compared to the previous year's figure of EUR 10.67 million. Growth in its core real estate business was particularly pronounced, with revenues up 14.5% compared to H1 2007. As a result, revenues in the first half of the current year amounted to EUR 4.26 million compared to EUR 3.72 million in H1 2007. The beverages segment contributed revenues of EUR 6.91 million (H1 2007: EUR 6.95 million).
EBIT totaled EUR 3.51 million compared to EUR 4.70 million as of June 30, 2007. This downturn is due to positive extraordinary factors last year. For example, BBI AG's existing portfolio was subject to a one-off write up in the first half of 2007. Peter Schropp, BBI AG's CEO commented: "If earnings are adjusted for extraordinary factors, we improved EBIT by 24.2% compared to the same period of the previous year. In addition, we are highly profitable with an EBIT margin of 31.4%." BBI AG recorded consolidated net income after taxes of EUR 1.12 million (previous year: EUR 2.23 million). This corresponds to earnings per share of EUR 0.21, after EUR 0.43 in the same period of the previous year. Net asset value (NAV)per share increased as a result of the positive earnings from EUR 14.59 per share(December 31, 2007) to EUR 14.84 on June 30, 2008.
The growth was clearly visible in the cash flow from operating activities, which improved from EUR -0.18 million in H1 2007 to EUR 2.25 million in H1 2008. This increase is due, in particular, to additional rental income from the expansion to the real estate portfolio. Peter Schropp believes that this confirms that the strategic re-orientation is on track: "As planned, business developed positively in the first half of the year. Our cash flow from operating activities at 'half time' in 2008 is already more than for the whole of 2007. That is evidence of BBI AG's success and operating strength."
Back in 2006 and 2007, BBI AG secured an attractive package of retail properties via both contracts and declarations of intent (in particular the "Bavaria" and "Bavaria-Westfalia" portfolios). BBI AG plans to further reinforce its real estate portfolio via the successive acquisitions of these properties. The company thus achieved key milestones in the first six months of 2008, acquiring three commercial properties with a total rentable area of 12,902 m². These new properties will allow BBI AG to generate annualized net annual rent of EUR 1.68 million in fiscal year 2008 (pro rata). A further five acquisitions are planned for the second half of the current fiscal year. On these grounds real estate with a volume of presumably around EUR 74.0 million including incidental acquisition costs will be acquired in 2008. This includes both the properties already acquired this year as well as the properties still to be transferred during the remainder of the year. In terms of purchase prices, the new properties will generate an annual rental return of approx. 6.5%.
The full report on the first half of the year, which is only published in German, is available on the internet from today at www.bbi-immobilien-ag.de.
BBI Bürgerliches Brauhaus Immobilien AG
The BBI Bürgerliches Brauhaus Immobilien AG (BBI AG) emerged in the year 2006 from the Bürgerliches Brauhaus Ingolstadt AG and its long-established subsidiary Herrnbräu.
Following the takeover of the property inventory of the brewery real estate, the BBI AG positioned itself as a company focusing on the asset management of commercial real estate in the segment close to the consumer. In this respect, specialist retailers, retail centres and supermarkets rank in particular among the holdings. A total of 14 properties from the previous stock balance and 19 newly acquired properties belong to the real estate portfolio.
As of June 30, 2008, these properties have provided a total of around 130,900 square metres of lettable area to third parties and they generate an average rental yield of 6.5% p.a. with reference to the book value of EUR 150 million. All of the properties are nearly full let when transferred to the company, most of them on a long-term lease.
In order to reinforce its growth, back in 2006 and 2007, BBI AG secured an attractive package of retail properties via both contracts and declarations of intent in the form of the "Bavaria" and "Bavaria-Westfalia" portfolios. The first two properties from these portfolios have already been transferred this year. In addition, a self-service department store in Pfaffenhofen/Ilm was also taken over this year, a specific individual investment. A further 14 properties currently under development in the "Bavaria" and "Bavaria-Westfalia" portfolios with a volume of approx. EUR 128 million are to be transferred successively to the company through to 2010. Five of these properties are to be transferred in the second half of 2008.
These new properties, most of which have already been let to well-known anchor tenants, will contribute to further increases in revenues and earnings at BBI AG from the date they are transferred.