WCM Beteiligungs- und Grundbesitz-AG / Key word(s): 9-month figures/Real Estate 19.11.2015 08:30 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Ad hoc disclosure according to Section 15 of the WpHG WCM announces strong earnings of 17.6 million Euro for first 9 months 2015 - Earnings per share 0.29 Euro - Portfolio of more than 50 assets contractually secured with gross asset value of more than 500 million Euro - Average cost of debt at favorable 2.2% - Annualised rental income of 31.6 million Euro - Funds from Operations (FFO) of 20.2 million Euro expected for 2016 Frankfurt, 19 November 2015 - WCM Beteiligungs- und Grundbesitz-AG (WCM AG, ISIN: DE000A1X3X33) has continued its portfolio growth in the first 9 months 2015 and achieved a consolidated net income of 17.6 million Euro corresponding to an earnings per share of 0.29 Euro. In the same period of the previous year, WCM AG reported consolidated losses of 1.0 million Euro or earnings per share of -0.07 Euro. The contractually secured real estate portfolio includes more than 50 assets. As of 30 September 2015, WCM's equity has increased from 31.8 million Euro to 208.5 million Euro. WCM AG expects the remaining contractually secured assets to close in the fourth quarter, leading to a further growth of the net asset value by the end of the year. Portfolio Growth Over the recent months WCM AG has acquired office properties in Germany's major cities and areas such as the Rhine-Main region, Bonn, Dusseldorf and Berlin. In addition, it has acquired retail properties in the Rhine-Main region, Saxony-Anhalt, Lower Saxony and Berlin. As of 30 September 2015, the market value (GAV - Gross Asset Value) of closed assets amounted to 280.4 million Euro. In the first 9 months of 2015, the net rental income of the portfolio amounted to 6.0 million Euro. Over the last quarter, WCM AG has announced the acquisition of a DIY store in North Rhine-Westphalia for 10 million Euro and a fully let office property in the Frankfurt area for c. 49 million Euro. As a result of the portfolio growth, one-off transaction costs of 4.7 million Euro were accounted for in this period. Pro forma Portfolio The pro forma market value (GAV - Gross Asset Value) of the closed and contractually secured assets totals 501.3 million Euro. The market value of the third quarter 2015 portfolio amounts to 280.4 million Euro, while the remaining contractually secured assets will add further 220.9 million Euro to WCM's portfolio. The transfer of ownership is expected to be completed by the end of the fourth quarter, leading to a portfolio net yield 6.3%. The weighted average remaining lease term (WALT) over the total portfolio is at 9.4 years as of end of November 2015. Strong Asset Management and Leasing Activities WCM has taken advantage of the very liquid German letting market and signed new leases of 3,912 sqm, as well as lease extensions of around 14,530 sqm for the office properties in Berlin, Dusseldorf and Bonn. The low vacancy rate of 6.2% reflects the high attractiveness of WCM's real estate portfolio. Attractive Financing Structure The rental income is complemented by attractive financing conditions. The current portfolio is financed with an average interest rate of 2.2% and a loan maturity of 7.5 years. By 31 December 2015 the pro forma average interest rate for the entire portfolio is expected to stand at 2.1% with a loan maturity of 6.1 years. The third quarter's loan to value (LTV) equals 39.6%. The pro forma LTV for WCM's entire portfolio is expected to stand at 60.5%. At the end of the third quarter 2015, WCM has c. 29 million Euro in cash reserves. 2016 Outlook Given the strong growth of the portfolio, WCM AG will announce annualized rental income and FFO on a quarterly basis going forward. Based on the total contractually secured and closed portfolio, the annualized rental income amounts to 31.6 million Euro. WCM AG's funds from operations (FFO I), the result of operating activities, are expected to equal c. 20.2 million Euro or 0.18 Euro per share in 2016. The full nine month report is available for download in the investor relations section under www.wcm.de. Explanatory Part WCM's CEO Mr. Efremidis and CFO/CIO Mr. Frank Roseen would like to invite institutional investors, analysts and journalists to a conference call on Thursday, 19 November 2015 at 12.00h CET (Central European Time) to present the third quarter earnings and an outlook for 2016. Please register with edicto to receive further details regarding dial-in ([email protected] or +49 (0) 69905 505 50). About WCM AG WCM Beteiligungs- und Grundbesitz-AG (WCM AG), with headquarters in Frankfurt am Main, is a specialised commercial real estate company. As a real estate proprietor, the focus is on long-term rental of high-quality office and retail properties in the major office locations in Germany. Since the operational restart in 2014, WCM AG has focused on an extensive network for the purchase of properties as well as on value-creating asset management, in order to generate attractive long-term rental income and a steady cash flow. At October 2015, the property portfolio comprised of more than EUR 500 million. The company has extensive loss carry forwards in corporate and commercial tax. Shares in WCM AG are listed in the Prime Standard of Deutsche Borse. Press contact edicto GmbH Axel Mühlhaus/ Dr. Sönke Knop +49 (0) 69-905505-51 [email protected] 19.11.2015 The DGAP 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: WCM Beteiligungs- und Grundbesitz-AG Friedrich-Ebert-Anlage 36 60325 Frankfurt am Main Germany Phone: +49 (0)69 244 333 187 Fax: +49 (0)3212/4243 773 E-mail: [email protected] Internet: www.wcm.de ISIN: DE000A1X3X33 WKN: A1X3X33 Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Stuttgart; Regulated Unofficial Market in Munich End of Announcement DGAP News-Service ---------------------------------------------------------------------------