2004 was a successful year for IVG. âAt â¬74.9 million, the Group result was up significantly on the previous year,â reported Chairman of the IVG Board Eckart John von Freyend. After adjustment, operating earnings (EBIT) for the property group rose by 55% to â¬202.6 million (PY: â¬130.5 million). Earnings per share rose to 61 cents (PY: 45 cents). Total operating income increased to â¬613.0 million (PY: â¬589.8 million).
Net Asset Value (NAV), the key ratio for the valuation of public property companies that reflects the intrinsic value of shares, rose to â¬15.20 per share (+ 5.5 %).
The Annual General Meeting on 31 May 2005 will propose a dividend increase to 35 cents per share.
Each business area contributed to the Groupâs strong result:
- In Portfolio Management, IVG boosted its portfolio with investments totalling â¬153 million, in locations including DÃ¼sseldorf and Helsinki. Net rents rose by 5 percent to â¬227.2 million (PY: â¬217.4 million) as a result of good rental performance and new investments. Properties were sold in Brussels, DÃ¼sseldorf, Helsinki, London, Munich and Paris. The gross gains on disposals rose to â¬79.3 million (PY: â¬64.5 million). Operating earnings increased to â¬191.5 million (PY: â¬152.3 million).
- In Project Development, the result was influenced largely by disposals from the Axa/IVG joint venture in Paris and the âNordbahnhofâ project in Berlin. In Paris, IVG expanded its cooperation with AXA Real Estate Investment Managers (AXA REIM) in 2004. By 2011, investments are planned in the greater Paris area totalling â¬1.2 billion; further cooperation projects are currently in development. Project Development increased its operating earnings to â¬24.7 million (PY: â¬14.4 million)
- Earnings also improved significantly in Funds. Key factors here included the acquisition of a majority holding in OIK (Oppenheim Immobilien - Kapitalanlagegesellschaft), the market leader for special funds, in 2004 and the rise in volume for closed-end funds. Operating earnings rose to â¬16.8 million (PY: minus â¬2.7 million). IVG managed property funds with a value of â¬12 billion, â¬8.8 billion of which for institutional investors and â¬3.2 billion of which for private investors.
In total, IVG manages property assets of â¬16 billion. In 2004, the transaction volume amounted to â¬2.7 billion (â¬1.6 billion in purchases and â¬1.1 billion in disposals).
As the 2005 financial year began, the Company continued this successful development:
- Acquisition of the German Federal cavern facility in Etzel/Wilhelmshaven with considerable expansion potential in the gas storage growth market
- Management mandate for the â¬170 million property portfolio of a professional pension scheme
- Full placement of the EuroSelect 08 fund in February and the launch of the new London fund EuroSelect 09
- Good start to the 2005 transaction programme: purchases of â¬500 million in locations including London, Paris and Wilhelmshaven (caverns), sales of â¬60 million Brussels and Munich
âStrategically, IVG is excellently positioned as a European investment house for property investments. Our performance in all business segments has been extremely presentable, and we are assuming that we will further increase earnings and net asset value in 2005,â explains Chairman Eckart John von Frey-end.
IVG Immobilien AG manages property investments of â¬16 billion in its business areas of Portfolio Management, Project Development and Funds. Investments focus on office and logistics properties as well as business parks in key European cities and growth centres.