DGAP-News: GAGFAH: Financial Restructuring Now Completed

DGAP-News: GAGFAH S.A. / Key word(s): Miscellaneous GAGFAH: Financial Restructuring Now Completed and Full Attention Back On Operations 21.10.2013 / 16:30 --------------------------------------------------------------------- Press Release: October 21, 2013 GAGFAH S.A. 2-4, rue Beck L-1222 Luxembourg ISIN: LU0269583422 Frankfurt Stock Exchange (Ticker Symbol: GFJ) Regulated Market (Prime Standard) GAGFAH: Financial Restructuring Now Completed and Full Attention Back On Operations - Closing of EUR 700 million CMBS with 2.71% coupon plus new EUR 91 million loan for OWG portfolio complete the refinancing process - Reduced overall interest expenses from 4.35% at year end 2012 to now 3.10% - FFO guidance for 2013 and 2014 confirmed GAGFAH has basically completed its financial restructuring by closing the EUR 700 million CMBS for which the pricing was announced on October 9. The transaction was 1.6 times oversubscribed. The CMBS has a 2.71% coupon and a five-year maturity plus a one-year extension option. GAGFAH also closed a new EUR 91 million loan for the OWG portfolio with a coupon of 3.54% and a seven-year maturity. With the closing of these transactions, GAGFAH has now fully resolved all of its 2013 and also the vast majority of its 2014 maturities by successfully refinancing more than EUR 4 billion in only nine months and at significantly better rates. The overall interest rate going forward will be 3.10%, more than 120 basis points lower than the 4.35% at the end of last year. At the same time, the LTV has been reduced from 65% to 62%. The average maturity more than doubled from less than three years to 6.2 years. The only loan left to be refinanced is the EUR 358 million Malibu loan which is set to mature in October 2014. A substantial amount of the properties secured by this loan are part of the regional non-core asset pool that we have identified. We intend to sell a large share of the regional non-core assets of the Malibu portfolio before we refinance the remainder in the second half of next year. With the increased headroom after the successful refinancings, the focus is now fully back on the operations side. GAGFAH has identified ~11% of the portfolio as regional non-core, meaning that those assets are in remote locations with regards to GAGFAH's top 30 locations and their respective commuter belts, and intends to dispose those assets in the next few years. Additionally, we have identified a EUR 250 million value-enhancing investment program that we will implement in the next five years and which we expect will add ~2 cents of incremental FFO per share and per year for the next five years. These investments will be largely financed through sales, which we expect will contribute ~50 million of net cash per year over the next years. The FFO per share guidance for this year is EUR 0.59 to EUR 0.61 (5% to 10% per share growth) and EUR 0.79 to EUR 0.82 for next year (30% to 35% per share growth). A concise, updated company presentation is available on http://www.gagfah.com/en/investor-relations/p...ations.htm l. Contact GAGFAH S.A. Investor Relations Rene Hoffmann 2-4, rue Beck L-1222 Luxembourg Tel.: +352 266 366 21 rhoffmann@gagfah.com www.gagfah.com R.C.S. Luxembourg B 109.526 Media Dirk T. Schmitt +49 175 721 4836 dschmitt@gagfah.de About GAGFAH S.A. GAGFAH S.A. is a joint stock corporation organized under the laws of the Grand Duchy of Luxembourg qualifying as a securitization company under the Luxembourg Securitization Law of March 22, 2004. The core business of GAGFAH S.A.'s operating subsidiaries is the ownership and management of a residential property portfolio located in Germany. GAGFAH's portfolio includes about 144,000 own residential units and more than 35,000 units under property and facility management for third parties. Our portfolio makes us one of the largest residential property companies listed in Germany, and we believe that our size, our significant presence in the key residential markets and our scalable operating platform make us one of the leading providers of housing for low- to medium-income households in Germany. Our operating subsidiaries are full-scale service providers for a broad range of property and facility management services with a clear focus on residential properties. The key elements of our strategy are (i) to create sustainable and increasing cash flows out of the existing asset base (rent, occupancy, property costs, platform), (ii) to invest in value-enhancing portfolio properties (iii) to pursue accretive growth opportunities and (iv) to realize value through asset sales. End of Corporate News --------------------------------------------------------------------- 21.10.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: GAGFAH S.A. 2-4, rue Beck 1222 Luxemburg Grand Duchy of Luxembourg Phone: + 352 266 366 1 Fax: + 352 266 366 01 E-mail: info@gagfah.com Internet: www.gagfah.com ISIN: LU0269583422, LU0269583422 WKN: A0LBDT Indices: MDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 235478 21.10.2013