The Board of Directors of Aedes S.p.A. in yesterday's meeting have approved the quarterly report as at 31.03.05 prepared on a consolidated basis. Value of production doubled to 48.2 million compared to the first quarter of 2004. Net operating income amounting to 16.4 million compared to 3.4 million in the first quarter of 2004.
Value of production in the first quarter of 2005 was 48,2 million, amount more than doubled as compared to 23,0 million of first quarter 2004. This increase is primarily due to net proceeds from the sale of properties to third parties and joint ventures, in agreement with the industrial plan recently approved.
The operating income for the first quarter of 2005 is 16.4 million compared to 3.4 million in the first quarter of 2004. The substantial growth is mainly due to an increase of the value of production with operating costs for 20.6 million, rising from the 11.8 million over the same period of the previous year. These increasing expenses are due to the efforts to enhance the operating structure of the Group and include non-recurring costs for 6.9 million, related to the sale of the properties to Fiat Partecipazioni, whose related revenues for a similar amount are accounted in the value of production.
Group pre-tax earnings for the first quarter of 2005 amount to 6.6 million (loss of 7.8 million in the first quarter of 2004), after net financial charges of 9.4 million (10.2 million in the first quarter of 2004), adjustments and net extraordinary charges of 0.8 million (1.5 million in the first quarter of 2004).
Invested capital at 31 March 2005 amounted to 1,193.2 million, essentially stable compared with 1,218.1 million at 31 December 2004, while the Group's net equity increased from 336.8 million at 31 December 2004 to 343.4 million at 31 March 2005.
Net assets amounted to 962.4 million, increasing over 31 December 2003 by 49.7 million .
In the first quarter 2005, net financial debts amounted to 737.8 million decreasing from 779.7 million at 31 December 2004.
Net financial debt as a percentage of invested capital is equal to 61.2% (considering the properties at book value) as of March 31, 2005, compared to 64.0% as of 31 December 2004.
Operations carried out
In January 2005 Aedes Servizi S.r.l. starts its activity aimed to provide services to the real estate industry. The creation of this company is a further step in the implementation of Aedes' new strategic plan aimed at transforming itself from a "property company" to a "fund investor and management company".
On February 2005 a joint venture agreement was entered into with a leading real estate operator from Rome, Promozioni Immobiliari Generali S.p.A., for the enhancement of a property located in Rome.
A 13.8 million down-payment has already been paid to Aedes until now.
In March 2005, Aedes transferred the 49,75% of Aedilia Nord Est to Valbruna Holding .
Aedilia Nord Est portfolio currently consists of 4 prestige buildings in the northeast. According to the valuation by REAG, the property portfolio was calculated to be 64.3 million.
This transaction enabled Aedes Group to generate a positive cash flow of 7.3 million, to reduce debt for an amount of 56 million, of which 51.7 million for debt deconsolidation and the remaining for bank reimbursement, and to realize a gross gain of 18.5 million. Following to contractual commitments, charges for 1.7 million has been recorded for guarantees on portfolio value of Aedilia Nord Est given to the buyer of the 49,75%.
Sale of properties
On 10 March 2005, Fiat Partecipazioni and Aedes Group entered into an agreement in December 2004 whereby Fiat Partecipazioni will exercise its call option on the Lingotto Congress Center in Turin and on the business and technology districts (Centro Direzionale and Centro Tecnico) in Arese (Milan) at a contractual price of 140 million.
On March 2005 the 100% ownership interest in Sagittaria S.r.l., a company which owns a property in Milan, was disposed of at a price of