With its half-year result, IVG Immobilien AG remains on success track. Compared to the first half of 2004, EBIT improved this year from 65.3 to currently 87.5 million. Earnings after interests and tax doubled from 11.5 million to the current figure of 24.8 million.
With 113 million of equity placed for the EuroSelect funds in the first half-year, IVG has already surpassed the volume for the whole of the previous year. In the same period, the volume of managed properties for institutional investors increased by 800 million.
Disposals in Brussels, Milan, Geneva, Helsinki and Paris generated positive earnings contributions. Acquisitions were made in London, Paris and at the caverns location, Wilhelmshaven. At 320,000 m², the space let since the beginning of the year tripled against the equivalent period of the previous year (104,000 m²).
The very long-term lease contracts concluded in the caverns business, more recently with E.ON and the Norwegian Statoil, secures stable revenues with considerable growth potential. Caverns are large subterranean oil and gas storage facilities.
Since the beginning of the year, the IVG share has increased by 47%. It has thus outperformed the DAX (+16%), the MDAX (+25%) and other European property shares (EPRA Index: +17%). There is further upside potential with the good strategic positioning as European investment house for real estate: The expected increase in results and net asset value, the ongoing recovery of the European property markets, the expansion of the cavern business and the rapidly growing funds business. Further momentum on the German property market - for example the launch of Real Estate Investment Trusts (REITs) - offers additional opportunities for profitable growth.
Eckart John von Freyend, IVG CEO, states: "The indirect investment in real estate with shares and funds is a growth market. As a European real estate manager, IVG has good prospects in both markets."
Overview: half-year result
01.01. - 30.06.2005 in million (01.01. - 30.06.2004 in million)
Total operating income: 246.3 (228.8)
EBIT: 87.5 (65.3)
Half-year result: 24.8 (11.5)