- First interim financial results of Geneba, with updated property valuations by external valuers
- Direct investment result of € +6.2 million
- Indirect investment result of € -5.6 million, primarily based on updated valuations of the portfolio and related to specific property issues
- Management in close contact with key tenants and lending banks
- Seven-year lease extension with major tenant and development of a new storage facility in Germany
- Rental income full year 2014 expected to remain stable
- Management is preparing rights issue prospectus to raise new equity for new real estate acquisitions and deleveraging
Wulf Meinel, CEO of Geneba:
“Today, Geneba presents its first interim financial results, since we have become operational on 27 March 2014, following the AIFMD license we obtained, as one of the first Dutch real estate companies. From the start, it has been our goal to be close to our tenants. We have met with a substantial number of tenants personally, discussing their business needs and opportunities to help them drive their business objectives. This active asset-management approach has been well received and has so far led to an important seven-year lease extension of over 50,000m² in our German and Dutch portfolios, signed in July.
In addition, it is our goal to create a transparent and fair valuation of our portfolio. We follow a thorough asset valuation approach and have instructed external valuers to assess all properties within our portfolio.
The financial results we present today show a positive direct investment result, which is the reflection of the business operations. However, the indirect investment result is negatively impacted by the fair value adjustment we made as per the end of June 2014. For the remainder of the year we expect a stable rental income.
In the mid- to long term we will explore market opportunities in order to diversify our portfolio, mainly through new property acquisitions, with a focus on our key markets Germany and the Netherlands. For this purpose, as well as to refinance some of the loans that will expire, Geneba is preparing to raise new equity through a rights issue, once the prospectus is approved by the AFM.
We are confident that the team’s hard work, thorough, client-centric approach and realistic market view will contribute to creating a solid real estate company for investors, tenants and lenders in the long term. We are strongly committed to achieving that objective.”