Ladies and gentlemen, good morning, everybody, and welcome to our Q1 2021 results presentation. Thank you for dialing in today. I trust you are all well and healthy. With me here, as always, is Tim Bruckner, our CFO and Michael Tegede, our Head of Investor Relations. And I'm looking forward to updating you about the Mira development in the 1st 3 months of 2021.
Like in many other results presentations these days, corona is still part of what has happened in recent time. The good news is that with declining incidences and increasing vaccination rates in Germany, it feels like the light at the end of the tunnel is getting brighter. And whether you agree with me on seeing an upcoming positive trend or not, more and more people and businesses have managed to live and work under the current circumstances. This applies for Dermira as well, as we see in our Q1 2021 figures. We remain being affected by the pandemic, and we will provide you with all the details in a minute on a separate slide, but Dermira was also able to reach a strong performance for our relevant KPI in a rather normal quarter.
In fact, the impact of corona has been and remains limited and is manageable for us. Our real life potential strategy has proven again being the right approach to the bigger picture at what we do. After being defined and invented back in 2019, it focuses on the main goals of portfolio optimization, financial strength, operational excellence and increased profitability, and that helped to make the mirror more resilient at all, even before the pandemic. All four pillars of our realized potential strategy, asset management, acquisitions, financials and processes have contributed again to the strong performance in Q1. And not only that, we are also benefiting from this strategic shift it helps us through the pandemic.
That encouraged us even more to keep on going this way. Let's look at it based on our set of results for the Q1 of 2021. Asset management. We have demonstrated a strong resilience and our asset management team delivered again a strong letting performance. 23,000 square meter is a strong result and absolutely in line with the Q1 2020 performance, which was positively affected by a single 20,000 logistic contract with 1 single tenant.
Hence EPRA vacancy remains satisfying at 7.8% and walls remains constant at 4.8 years. Acquisition and transactions. In a remaining cautious market environment, we were able to sign 2 deals. We have reported the signing of the Cielo office in Frankfurt at our annual result presentation already. And while I would love to tell you even more about this outstanding asset, I leave it with the remark that we were working steadily on the closing of this transaction.
In addition, we were able to sign the disposal of our asset in Ernstbach, a former single tenant telecom office building. After Tilikom left, we were able to successfully reposition the asset, attract new tenants like the local administration and the University of applied fine and sell it with a 30% premium to our latest valuation and even more if we compare it with the beginning of the repositioning process. So the transaction market is not really lively, but the dynamics in our segment are fully intact. Last week, we were able to sell another smaller asset in Cologne with a price to valuations of plus of 12%. These recent transactions underline the resilience of our portfolio again with stable values in windy times.
Financials. With the tailwind from our strong operational performance, the financials look promising as well. I mentioned the top line development already, but also reading between the lines, the earnings quality proved to be good. The profit from the rental improved despite lower income after last year's disposals to EUR 17,700,000. The FFO one increased even stronger to €10,800,000 and makes us very confident to reach our full year guidance.
Tim will speak about the contribution of the finance team, which was again able to further improve financing costs in a minute. Processes. In line with the market environment, we further improved our receivables management. This is driven by upscaling of our IT system, but also goes along with closer contracts to our tenant as part of our asset management and our pandemic program. Finally, the corona numbers.
Currently, there are 5.5 percent or 5,600,000 of our agreed rent outstanding since the beginning of the pandemic about a year ago. Although this sounds a lot, and it is a lot, we are keeping close contact to our tenants, especially those areas are in trouble. By that, we have already received about EUR 0.6000000 of outstanding rents from the last year in 2021 so far. Let's have a more detailed look at our KPIs and turn over to the Page number 6. This slide shows how excitingly boring our Q1 was in a positive sense.
As the portfolio is unchanged, the annualized rent remains almost unchanged as well at about €85,400,000 Not so boring were our letting activities. Despite corona influenced market environment, the letting result of 23,000 square meters is strong. Last year's letting performance was pushed by a single 20,000 contract. The letting activities in Q1 secured €2,200,000 rental income per year and awards of almost 5 years. New letting account for roughly 44 of leased space, 56% of the agreed contracts were renewed.
Our further leasing pipeline is filled properly, and we expect to report more from this slide in the next weeks. Following me on Slide number 7. EPRA vacancy increased slightly, but very much in line with our planning. It is moderately higher due to temporary vacancy in one asset in Bringsburg, which is being repositioned after Deutsche Telekom partly left. We have signed new rental contracts already that became becomes effective over the course of the year.
So we can expect the vacancy to decrease along with that. In line with the already reported strong Asset Management performance. The walls remained stable at 4.8 years, which is a good result. Portfolio development, rich to gross asset value. In line with the stable and rather silent development of the investment properties have not changed very much.
You see the reclassification of the Antwerp asset, which together with minor CapEx spending results in a slightly increased book value of our portfolio as of end of March. So Tim, please go along with the details about the financial performance.
Good morning, everybody. I will provide you with some more details on our Q1 financials as shown on Page 1011. On Page 10, you see our P and L showing lower rental income due to some disposals offset by reduced leakage and lower maintenance costs. Going down further, valuation gains due to the premium to the selling price for the assets in Ansbach. And I guess even more interesting, very moderate COVID related impairments, which are even lower in comparison to previous year.
But please have in mind that COVID related effects are not over yet. And even if we are quite positive on the reopening of the economy and the retail sector in Germany. You will see some further effects down the year. As Ingo elaborated on already, we have worked further on our debt book, which now pays off even further in lower financial costs and Overall, this results in a strong FFO, up about 12% versus previous year to now €10,800,000 for the Q1 in 2021. But please also have in mind that this cannot be simply quadrupled to derived the full year number.
Going to our balance sheet and having a quick look there. Not too much happened in the Q1. We see a slight balance sheet tension because of the before mentioned ANSBA revaluation and the new EUR 45,000,000 financing via a secured loan. A few words on Cielo maybe. As Ingo already said, we expect the closing later in Q2 or in Q3.
This will not have an effect on investment properties and on rental income, but it will increase other assets due to the before mentioned JV structure. We require about €77,000,000 in cash for closing, which is already available on our balance sheet even after the dividend payment conducted a week ago. Looking at Page 12, LTV and the cost of debt. We remain in line with our leverage target. At the end of Q1, we were at 49.5%, with our leverage target at 50%.
Post dividends, yellow and some disposals, we will be temporarily above our target at about 40% to 54%. The average cost of debt further improved. We moved it down to 1.69% on a nominal base. There is some more potential to reduce it further. But as you know, we are strongly financed with our bond and the potential is a bit lower in the future.
Back to you, Ingo.
Thanks, Tim. We have talked about the effects off the COVID pandemic already, and we highlighted our success of managing it. Here is how we have been affected in detail. Last year's rent suspensions amount in total to about 5% of target rent. In 2021, the 2nd lockdown in Germany is still ongoing since last December.
Also, we see light at the end of the tunnel with incidences improving and more and more people get vaccinated. Rent collections until end of April show suspension rates comparable to the Q2 of last year. Until yesterday, the name suspensions amount to circa $2,200,000 or 2.8 percent of the expected annualized rent in 2021. Looking at the sector distribution of the outstanding rents. They are obviously driven by business affected by the lockdown like retail and like hotels.
We expect those numbers to improve along the line of the lockdown relief and do not foresee substantial effects on our P and L as we expect to collect the rental backlog with the recovery of the markets. We are in close contact with all our tenants, especially those who have been affected. What we hear often is that the rent is part of the public pandemic society and will be reimbursed by the federal government together with other fixed costs. The payout process, which has not been very smooth so far, appears to improve slowly. Internally, we remain focused on our costs and believe that the positive Cielo impact and improved financial results will help to limit the negative effect the pandemic might cause and allows us to confirm our targets on rental income and FFO for 2021.
Let me end with a summary. Also, the pure numbers do not look utterly exciting. The strong results are driven by a well running team and organization that makes us optimistic for the further development of 2021 and beyond. Thank you very much for listening. We are now happy to answer questions you may have.
Thank you. Are. There are no questions in the queue. I would like to hand the call back over
so thank you again for dialing in and stay healthy in these times. Take care. Goodbye.