DGAP-News: Consus Commercial Property AG

CONSUS Commercial Property AG records profits of EUR 5.1 million in H1 2017

- CONSUS records profits of EUR 5.1 million in H1 2017

- Outlook: CONSUS is forecasting a significant increase in revenues and operating EBIT for H2 2017

Leipzig, 27 September 2017 - CONSUS Commercial Property AG ("CONSUS", ISIN DE000A2DA414), an opportunity-oriented investor in German office properties recorded profits of EUR 5.1 million in the first six months of 2017. As the company was recently re-oriented there are no comparable figures available for H1 2016. According to IFRS accounting, the company's EBIT totaled EUR 9.1 million. The course of the company's business in H1 2017 was characterised by initial property purchases. These allowed CONSUS to already record rental income of around EUR 1.1 million. This was coupled with income of EUR 10.4 million from the first-time valuation of the properties - and substantially overcompensated for the operating EBIT of EUR -1.3 million. Operating EBIT includes one-off expenses of TEUR 570 for the stock market listing. As of 30 June 2017 the real estate portfolio had a value of EUR 103.8 million.

In order to significantly drive its further growth, CONSUS is planning an indirect interest of 50.0 percent in the CG Group (see press release dated 23 August 2017). This transaction aims to supplement CONSUS's existing legacy business in commercial real estate with the CG Group's extensive activities in developing residential and commercial properties in German A cities, with a current project volume of around EUR 4.7 billion. As a listed company, CONSUS also offers the CG Group direct access to the capital market to develop new sources of financing for its projects, so that its further growth potential can be built up both rapidly and effectively.

The General Meeting in Leipzig on 28 September 2017 will vote on the planned participating interest and a non-cash capital increase. In total, 55,650,383 new CONSUS shares and a bond with a volume of EUR 150.0 million are to be issued to Aggregate (the seller) to settle the purchase price. The total value of the contribution is around EUR 743.4 million. At the same time, the General Meeting is also to consider changing the company's name to "CONSUS Real Estate AG".
Norbert Kickum, CEO of CONSUS Commercial Property AG commented: "Our growth in H1 2017 gives me great confidence in CONSUS's further growth potential. Our planned participating interest in CG Group, one the largest and most attractive project developers in Germany, means that in the future national and international investors will be able to invest in a company which unites high potential returns with stable cash flows. This combination of commercial real estate and property development does not yet exist in Germany in this form."

CONSUS is forecasting a substantial increase in revenues and operating EBIT in the second six months of 2017.

The interim report will be published on 27 September in the investor relations section of CONSUS Commercial Property AG's Web site www.consus-cp.de.

Press contact 

edicto GmbH

Axel Muehlhaus/ Dr. Soenke Knop

Telephone: +49 69 905505-52

E-mail: Consus@edicto.de

About CONSUS Commercial Property AG
CONSUS Commercial Property AG ("CONSUS") is an opportunity-oriented commercial real estate investor focused on dynamically building an office property based portfolio. With a value-add approach and acquisitions resulting from unique situations, CONSUS looks to achieve an above-average increase in value and rental returns. Specializing in properties that have a market value of between 10 and 25 million Euros CONSUS is able to profit from a less competitive environment compared to other property sizes. With the attractive initial net yields that can be realized in the value-add segment of this size category, CONSUS believes it is very well positioned for different market cycles and financing environments. Active asset management serves to further increase property values, as well as higher rental income of the portfolio. Having developed professional, efficient business structures and liaising with leading partners for property acquisition, deal processing, and asset management, CONSUS expects to generate substantial funds from operations (FFO).