Homburg Invest Inc. ("HII") announces its revised forecast for $0.24 in earnings per share for the last three quarters of 2005 calculated under Canadian Generally Accepted Accounting Principals. This will result in 2005 EPS of $0.25 per share before considering the effects of new acquisitions which have been announced and which will be completed prior to year end. All new acquisitions are made on the basis that they are accretive to shareholder value.
HII feels that it is important for shareholders to know this at this time. The company is going through a fast expansion of asset acquisitions in Europe and has commenced the development of a number of commercial and residential properties in western Canada. The recently completed acquisitions in Europe will be substantial contributors to HII's overall profitability in the remainder of this year and in the years to come, as will the recently announced acquisition of residential and commercial properties in Germany and The Netherlands which are expected to close in November 2005.
This expected increase in earnings per share for 2005 and onward also justifies an increase in dividends starting with a dividend increase of 50% from $0.16 per share annually to $0.24 per share annually effective with the semi-annual payment of $0.12 per share on September 30, 2005. The forecasted EPS is based on all assets in place as at June 30, 2005 and the results of operations to that date including the gain realized on the sale on the Vintage properties in Calgary.
HII's earnings forecasts for 2006 and 2007, when announced, will include all acquisitions confirmed under agreements to close before year end December 31, 2005, and its development earnings expected to be realized from the development and sales efforts in Western Canada, mainly Calgary and Edmonton.
HII intends to complete a new equity issue to be raised in Canada and in Europe in order to finance its expansion plans and to lower its debt to equity ratio. The company intends to hold presentations and breakfast road shows for investors in the third and fourth quarter of 2005 across Canada. Furthermore, HII intends to apply for a secondary listing in Europe on the Euronext Frankfort Exchange. This will be done to accommodate our European shareholders as well as increase our liquidity in trading volumes for our shareholders.