In the first nine months, IVG increased consolidated earnings after taxes by 67% to €55.9 million (3Q/2004: 33.5). Operating earnings before interest and taxes (EBIT) rose to €140.4 million (2004: 126.8). Total operating income remained almost unchanged at €377.3 million (2004: 381.3). This excellent result is the product of long-term stable revenues from rents, the new rental of caverns, book profits from the sale of real estate in Geneva, Helsinki and Milan as well as the growing funds business.
Excellent result expected for 2005
"We are expecting consolidated earnings of around 100 million for 2005 and an increase in the net asset value to more than 16.50", commented Eckart John von Freyend, Chairman of the Board of Directors at IVG Immobilien AG at a press conference given by the Bonn-based real estate group in Dusseldorf.
IVG continues on growth path
Between 2006 and 2008, IVG is planning a transaction volume of 10 billion. 8 billion of this will derive from property acquisitions, mainly in the fast-growing funds business; 2 billion from sales. According to planning, the net asset value per share is set to increase to more than 20 by the end of 2008 and managed property assets from 16.5 billion to over 25 billion.
Purchase and sale of real estate
The Bonn-based real estate group focuses on
- The cost-effective acquisition of real estate,
- The upward valuation of individual properties by modernisation and project development and
- the regular and selective sale of properties in beneficial market situations.
"Our transaction volume will be more than 3 billion compared with 2.7 billion last year, more than EUR2 billion of which will be due to acquisitions" is how John von Freyend explains the business model. The sales incomes of the Bonn-based group have been regularly well above book values in recent years and even higher than the current market prices of the properties as valuated by independent experts.
Strong fourth quarter
A property complex in Nuremberg's Nordostpark rented by Lucent Technologies was sold to an international investor for 81 million. The complex with 47,200 m² of office space was completed in 2000.
IVG achieved an international swap asset by selling its share in the Jumbo shopping center in Helsinki to the Dutch retailer REIT Rodamco Europe for 135 million. A further benefit from the transaction: in return, IVG is to take over three office properties in Paris and Munich for 80 million. Moreover, IVG received a cash compensation of around 55 million and a right of pre-emption on an office project development in Paris.
"With these sales, we took advantage of sharply rising sales prices on the European property markets and optimised our portfolio. The sale in Nuremberg is evidence of international investors' interest in our business parks. In Helsinki, we have generated first class yield while continuing to focus our portfolio on office properties" explained John von Freyend.
Investments of 271 million in the First Nine Months
- Property development acquired in Paris. In Paris, IVG acquired the "Parc Avenue" property development. The seven-storey office property, comprising 15,300 m² of office space, will be completed by the beginning of 2007 in the Rive Gauche district, the largest inner-city development project in Europe. The total investment volume will be 90 million.
- Cavern Business with Interesting Prospects. IVG bought 33 gas and oil caverns for 132 million in Etzel/Wilhelmshaven from the Federal Republic of Germany and is due to this the biggest owner of oil and gas storage facilities in Europe. The eleven oil caverns, which were standing empty at the time of acquisition, have now been let to E.ON Ruhrgas as gas caverns until 2043.
100 million investments in Munich
After the 3rd quarter IVG concluded office investments for more than 100 million in Munich. In doing so, the Bonn-based real estate group is increasing its commitment to the German re