Summit Germany (SMTG), which operates a mixed portfolio of assets in Germany, continued to benefit from good demand for quality space in the office, retail and residential markets, and despite a number of disposals made in the six months to June 2017 net rental income held steady at €28.4m (£24.9m).
The key operational highlight came right at the end of the reporting period with the €100m acquisition of a property portfolio in Wolfsburg (60 per cent of which is let to Volkswagen), which will push the group’s contracted rent roll up from €58m to €67m. Adjusted net asset value (NAV) grew by 2 per cent from the year-end to 102¢, and the acquisition will have a marked beneficial effect on full-year valuations.
Over half of group rent is generated from assets in Germany’s five main cities, and while rents on retail assets were flat, average monthly rents on offices were up from €7.9 per square metre (sq m) to €8.1 per sq m, while rents on logistics warehouses grew from €3.6 per sq m to €3.8 per sq m. Overall occupancy remained strong at 92 per cent.
Analysts at Liberum forecast adjusted NAV per share at the December 2017 year-end of 111¢, up from 100¢ a year earlier.
| SUMMIT GERMANY (SMTG) | ||||
| ORD PRICE: | 109.5¢ | MARKET VALUE: | €510m | |
| TOUCH: | 107-112¢ | 12-MONTH HIGH: | 112¢ | LOW: 93¢ |
| DIVIDEND YIELD: | 3.7% | TRADING STOCK: | €15m | |
| PREMIUM TO NAV: | 14% | NET DEBT: | 85% | |
| INVESTMENT PROPERTIES: | €881m | |||
| Half-year to 30 Jun | Net asset value (¢) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢)* |
| 2016 | 88.0 | 8.2 | 1.6 | 1 |
| 2017 | 96.0 | 12.9 | 2.6 | 1 |
| % change | +9 | +58 | +63 | - |
| Ex-div: | 5 Oct | |||
| Payment: | 16 Nov | |||
| *Dividends paid quarterly £1=€1.1408 | ||||
