In the first nine months, IVG Immobilien AG increased operating earnings (EBIT) by 9 percent to €111.2 million and net profit by 38 percent to € 38.2 million.
All divisions contributed to this earnings growth:
- Net interest in the portfolio improved by 11 percent to € 182.2 million,
- Attractive value appreciation was realised by disposing the properties Conduit Street in London and Boulevard Haussmann in Paris,
- Earning contributions from project development and higher earnings in the funds business round off the positive development
In the first three quarters, total operating performance improved by 11 percent to € 337.5 million.
In the first nine months, IVG invested € 283.9 million, 44 percent more than in the previous year. Examples are the majority holding in Oppenheim Immobilien KAG (OIK) for € 125 million and the purchase of a € 63 million property portfolio from Ilmarinen, the Finnish pension funds, in September 2004.
'For the whole of 2004, IVG expects net income to be EUR 66.5 million, up to previous year', stated Eckart John von Freyend, Chairman of the IVG Board of Directors, on the further outlook for 2004.
Successful project development in Europe
IVG is developing several promising projects in Brussels, London and Paris. The sale of the Paris project Périsud impacted earnings. The office building of 33,700 m² was developed together with AXA REIM and leased to the pharmaceuticals group Sanofi-Synthélabo. IVG und AXA sold the property to Commerz Grundbesitz Invest (CGI).
After many years of successful development cooperation with AXA, another project development was founded this year. Both AXA and IVG assume a 30 percent share of the equity of € 300 million, with the remainder being taken up by financial investors. To 2010, approximately EUR 1 billion is planned to be invested in the Paris conurbation.
In London, renovation of the famous Lloyds building opposite the Bank of England and the new building in the Caxton Hall office project have entered the construction stage.
Positive earnings contribution from the funds business
IVG is posting increasing revenues from the Property Funds sector. The majority holding in OIK, the market leader for property special funds for institutional investors, is already generating positive results. IVG is developing closed proerpty funds for private investors. With EuroSelect 07 and 08, IVG has already place more than € 60 million equity, so that the full placement is expected shortly.
Stronger upward trend on the European office markets
In the first three quarters of 2004, the positive trend on the European office property markets has improved against the previous year. The interest in property investments remains stable. With the overall improvement of the economic outlook, a large number of leasing markets have improved. In Germany, growth prospects remain modest. The rental level is beginning to stabilise at a low level.
Increasing new rentals and top rents in conjunction with lower vacancy levels are evident particularly in the West End of London, the Europe quarter in Brussels and the centre of Paris. IVG is participating from the upswing with project developments and portfolio appreciation.
Source: IVG Immobilien