ERWE Immobilien AG: ERWE Immobilien AG posts profit for first financial year

Frankfurt (pta009/08.04.2019/08:53 UTC+2) ..
* Quality of investments reflected in earnings
* Total assets of Euro 127.1 million
* LTV at just 36.8 percent - scope for growth
* Very good start to new 2019 financial year

Frankfurt/M., 8 April 2019. ERWE Immobilien AG (ISIN DE000A1X3WX6, ERWE), Frankfurt am Main, concluded the first financial year in its new constellation with a profit already. Based on preliminary figures for the 2018 annual financial statements, the Group's income statement showed annual net income of Euro 4.913 million. This figure is for the eight-month reporting period. After all, ERWE Immobilien AG took its present form upon the contribution of ERWE Retail Immobilien GmbH. This was executed by way of a capital increase in kind resolved at the end of 2017 and taking effect at the beginning of May 2018. This way, the former Deutsche Technologie Beteiligungen AG, Munich, became the company now known as ERWE Immobilien AG and was relocated to Frankfurt am Main. The company focuses on the acquisition, development and management of commercial property.

The contribution of a shopping centre in central Speyer and acquisition of a further commercial property in the heart of the north German city of Lübeck, also at the beginning of May 2018, are reflected in ERWE's total assets of Euro 85.9 million as of 2 May 2018. By the end of 2018, total assets had already risen to Euro 127.1 million. This was due to the implementation of two further investments and execution of a cash capital increase at the end of December. The share capital increased in two stages in 2018, namely from Euro 1.1 million to Euro 10.162 million and then to Euro 16.562 million at the end of the year.

ERWE'S annual net income chiefly comprises the result of the measurement of financial investments, amounting to Euro 9.47 million. Gross rental income came to Euro 2.752 million. This amount will rise significantly in future, as the investments were only included during the financial year. Not only that, all properties acquired harbour enormous development potential. This remains to be fully exploited by investing in conversion and modernisation measures and organising new lettings.

"We made good investments", comments Axel Harloff, a member of ERWE's Management Board. "The market value survey revealed additional value across the board. IFRS fair value measurement means that this is clearly reflected in our income statement." The balance sheet also shows the considerable efforts ERWE has made to implement investments and exploit the opportunities identified and available at the properties. As a result, funds from operations (FFO) for the eight-month period in 2018 still amount to minus EUR 2.645 million.
Along with positive fair value measurements, the high-quality investments are also reflected in the strength of ERWE's equity position. The loan-to-value figure came to just 36.8 percent at the end of 2018. ERWE therefore has significant scope for implementing further growth financing. The measurement of ERWE's assets is reflected in a net asset value per share of Euro 4.03, which is significantly higher than the company's listed share price.

ERWE has begun the new 2019 financial year on a very successful note. The reclassification of a site in Friedrichsdorf in the Greater Frankfurt region from farmland to commercial space has now been achieved after the long lead time needed for the land-use plan. As a result, ERWE has now taken over 33 hectares of contractually secured land by settling the purchase price. There is strong demand from potential users for the planned business park with its 58,000 m^2 of useful space. For the year as a whole, ERWE expects to generate operating earnings growth and has planned further growth with new high-value investments.

ERWE Immobilien AG focuses on developing promising downtown commercial real estate in prime locations in small and medium-sized towns and cities with more than 10,000 inhabitants. Projects include office and hotel use, as well as downtown retail space. The company is listed in the Regulated Market (General Standard) in Frankfurt and in the open market on the stock exchanges in Frankfurt am Main (XETRA), Berlin, Düsseldorf und Stuttgart (ISIN: DE000A1X3WX6). ERWE Immobilien AG works on its own account and on behalf of third parties to develop projects whose value can be released or significantly enhanced by working with new concepts. As well as recovering the value growth achieved in individual projects, ERWE Immobilien AG also aims to sustainably expand its portfolio and generate substantial revenue growth.

Contacts for enquiries:

german communications AG
Jörg Bretschneider
Milchstr. 6 B
20148 Hamburg
T. +49-40-4688330, F. +49-40-46883340
presse@german-communications.com

Investor Relations:
Hillermann Consulting e. K.
Christian Hillermann
Streit´s Hof, Poststraße 14-16
20354 Hamburg
T.+49-40-32027910, F. +49-40-320279114
office@hillermann-consulting.de

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Emitter:	ERWE Immobilien AG Herriotstraße 1 60528 Frankfurt Germany
Contact Person:	Christian Hillermann
Phone:	+49 40 320 279-10
E-Mail:	office@Hillermann-Consulting.de
Website:	www.erwe-ag.com
ISIN(s):	DE000A1X3WX6 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Stuttgart