The real estate company Brack Capital Properties NV (Brack NV), which operates in the real estate field in Germany, which is controlled (approximately 70%) by Adler Real Estate (AG), a public real estate company traded on the German stock exchange, reported its business results. For the first nine months and the third quarter of 2021.
The Company’s total revenues from the rental of properties for the third quarter of 2021 amounted to approximately EUR 14.7 million, compared with approximately EUR 15.2 million in the corresponding quarter last year, a decrease of 3% attributed to the sale of the Company’s commercial real estate assets during the years 2019-2021.
The FFO for the third quarter of 2021 amounted to approximately EUR 6.2m, similar to the corresponding quarter last year, despite the decrease in the volume of income-producing assets resulting from the sale of the assets from the Company’s commercial real estate portfolio.
The growth in rent in the field of residential real estate in the third quarter of 2021 amounted to about 2.05% in the amount of identical properties compared to the corresponding quarter last year. The rent in new rentals in the housing market is about 14.3% higher than the average rent.
In the third quarter of 2021 the company did not recognize a profit from the Grafental project. This is due to the fact that during the second quarter of 2021, the company ended up recognizing the cumulative sale of all 96 units from Phase H at a weighted execution rate of 100%, in view of the completion of the project and the delivery of the entire apartments to buyers.
The average interest rate on bank loans is approximately 2.55% (with a maturity of 3.88 years). In addition, the cash balance (consolidated) as of September 30, 2021 amounted to approximately € 23.7 million.
Eran Edelman, CFO of Brac NV: “Brac NV continues to reap the benefits of its strategy of focusing on income-producing and entrepreneurial residential real estate, while we enjoy the increase in rents in the new agreements we sign, and at the same time, we continue the trend of strengthening buildings “Looking at the company’s capital and debt. Looking ahead, the gap between new rentals and the average rent continues to be about 14%, so we expect that we will continue to enjoy the positive trend in rents also in the future.”
The company continues to explore the possibilities of refocusing its business strategy into the field of income-producing and residential real estate activities, and as such, the company continues to carry out operations for the sale of additional properties from its commercial real estate portfolio.
In the third quarter, the company sold another asset from the company’s commercial real estate portfolio for a total of € 16.5 million. In addition, the company may be entitled to an additional consideration of up to € 1.5 million in the event that the buyer succeeds in improving the development plan. In a way that will allow him to utilize more space in the property. In November, the company sold another property from the company’s commercial real estate portfolio for a sum of approximately € 13.6 million. The sale of the property is expected to be completed in the first half of 2022.