03. August 2012 
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Polis reports net income totalled €2.5 million
Polis Immobilien AG published the report on the first six months of 2012. The trend in the property market has a positive effect on the earnings position of Polis. Due to the successful letting activities, rental income was up by 4 percent on the prior year period to €7.8 million, while the result from property management climbed 2 percent to €5.6 million. The progress achieved in the modernisation projects and the letting activities led to a positive valuation result of €2.6 million for the investment properties. The previous year’s exceptional valuation result of €7.0 million was attributable to a one-time effect related to the revaluation of properties at the company’s new location in Dresden and could not be repeated, as had been expected. Accordingly, earnings before interest and taxes (EBIT) declined from €11.1 million in the prior year period to €6.7 million. Adjusted for the previous year’s positive effect of €6.0 million, EBIT were up by 34 percent on the first half of 2011. Moreover, the continued decline in market interest rates led to non-cash valuation losses of €1.2 million, compared to valuation gains of €1.2 million in the prior year quarter. The Group’s net income totalled €2.5 million (Prior year: €8 million).
Funds from operations (FFO), which represent the operating result adjusted for the result from revaluation and the sale of properties, the valuation result of financial derivatives and deferred taxes, was up by 12 percent on the previous year to €1.6 million. In view of the continued rise in rental income and declining costs for vacant offices, Polis Immobilien expects the funds from operations to increase in 2012. They are expected to double from the previous year to approx. €2.5 million in 2012.
Polis continued its good letting performance in the first half of 2012, when a total of 22,500 square metres were let, of which about 11,400 square metres were new leases and space extensions. The letting ratio increased by 2 percent on the first quarter to 80 percent at the half-year stage. The leases that have been signed but will become effective only after the reporting period will boost the ratio to 84 percent assuming no other change in the letting situation. Most notably, two modernisation projects, Konrad-Adenauer-Ufer 41-45 in Cologne and Büchsenstraße 26 in Stuttgart, are virtually fully let. The last offices are currently being completed and are to be handed over to the tenants in the third quarter. In the second quarter, Polis Immobilien achieved the biggest success in Stuttgart, where the company very quickly found a new tenant for the offices in the property at Tübinger Straße 31/33, which had only recently been vacated. The offices have been let to the federal state of Baden Württemberg for a period of ten years. Following completion of the reconstruction activities, the Baden-Wuerttemberg Cooperative State University (DHBW) will move into the property in the first or second quarter of 2013.
Funds from operations (FFO), which represent the operating result adjusted for the result from revaluation and the sale of properties, the valuation result of financial derivatives and deferred taxes, was up by 12 percent on the previous year to €1.6 million. In view of the continued rise in rental income and declining costs for vacant offices, Polis Immobilien expects the funds from operations to increase in 2012. They are expected to double from the previous year to approx. €2.5 million in 2012.
Polis continued its good letting performance in the first half of 2012, when a total of 22,500 square metres were let, of which about 11,400 square metres were new leases and space extensions. The letting ratio increased by 2 percent on the first quarter to 80 percent at the half-year stage. The leases that have been signed but will become effective only after the reporting period will boost the ratio to 84 percent assuming no other change in the letting situation. Most notably, two modernisation projects, Konrad-Adenauer-Ufer 41-45 in Cologne and Büchsenstraße 26 in Stuttgart, are virtually fully let. The last offices are currently being completed and are to be handed over to the tenants in the third quarter. In the second quarter, Polis Immobilien achieved the biggest success in Stuttgart, where the company very quickly found a new tenant for the offices in the property at Tübinger Straße 31/33, which had only recently been vacated. The offices have been let to the federal state of Baden Württemberg for a period of ten years. Following completion of the reconstruction activities, the Baden-Wuerttemberg Cooperative State University (DHBW) will move into the property in the first or second quarter of 2013.
