The Board of Directors of Aedes has approved the quarterly report as at 31.12.2005 prepared on a IAS-IFRS basis. In general, the quarter closed as of December 31, 2005 benefits from the conclusion of important joint venture operations with strategic partners, which allowed to reach some of the main objectives of the 2005-2007 industrial plan ahead of schedule.
In the fourth quarter of 2005, revenues were 116.95 mln, more than doubled with respect to the 56 mln of the same period of 2004, and they brought progressive revenues as of December 31, 2005 to 216.3 mln. The growth in gross revenues is mainly due to the capital gains attained by transferring the portfolios in the joint ventures with REIT AM and IVG Immobilien AG, while rent revenues decreased as effect of the de-consolidation of Aedilia Nord Est and of Centro, and of the transfer of 11 supermarkets to Aedilia VIC (now Dante Retail real estate fund).
Revenues from services, net of general contractor activities, were 6.3 mln, substantially in line with the same period of last year. The first effects of the gradual shift to the new business models should be visible starting from the current half-year.
Operating and non operating costs exhibited, during the quarter, an increase of 1.9 mln, to 20.9 mln (66.2 mln the annual progressive value), mainly due to increased personnel costs connected with the process of strengthening operating and staff organizations. The lower real estate assets management costs are in line with the reduction in asset ownership.
Gross operating margin in the fourth quarter of 2005 was 54.8 mln (+ 51.7% QoQ), bringing the annual progressive value to 91.5 mln. The operating result in the fourth quarter of 2005 was 51.5 mln, as opposed to 30.4 mln the previous year; the annual progressive operating result was 76.5 mln.
Financial management shows marked improvement, with financial costs of 1.7 mln during the quarter, as opposed to 24 mln in the fourth quarter of 2004, with an average net debt cost of 4.0% (without the effect of derivatives evaluation).
This improvement is due to the strong reduction in the Groups net debt, more than halved from 776mln in December 2004 to 338 mln at the end of 2005.
This achievement, whereby the goal of a debt/equity ratio lower than 1, set for 2007, was in fact attained two years ahead of schedule, will fully deploy its economic effects in 2006. The incidence of the net financial position on invested capital (considering the real estate at book value) is 39.1%, as opposed to 63% as of September 30, 2005.
A second element that positively influenced financial expenses was the mark to market evaluation of derivative instruments, which had a positive effect for 3.8 mln during the quarter, as opposed to the negative effect for 5.4 mln of the fourth quarter 2004.
The Groups earnings before taxes for the fourth quarter 2005 was 39.7 mln versus 5.7 mln of the same period of 2004, while the progressive value as of December 2005 was 29.3 mln.
As of December 30, 2005 the invested capital amounts to 863.8 mln, compared to 1,201.7 mln as of September 30, 2005, while, the Groups shareholders equity (gross of taxes of fiscal year 2005) is 348.5, compared to 307.3 mln as of September 30, 2005.
The Groups real estate assets amount to 593.0 mln at book value, whereof 184.2 mln relate to building and land stocks and trading activities, as opposed to 1,003.6 as of September 30, 2005.
The Board of Directors, in execution of previous resolutions, has finalized the CEOs four years stock options plan. Such a plan grants 7.500.000 options that can be exercised at a price of 4,547.