IVG shows a leap in results and heightened NAV (DE)

The Bonn-based real estate investment group was able to substantially increase its profits in 2005. The post tax consolidated net profit increased some 47% from €74.9 m. to €110.1 m. Other results also showed double figure upswings: cash flow (EBITD) to €298.7 mln. (264.7), operating earnings (EBIT) to €242.6 m. (202.6) and the results per share by 36 percent to €0.83. The total operating performance increased to €640.1 m. (613.0).

Contributing to the upswing in results were:

  • New long-term tenancy agreements and an even more improved tenancy rate in its own real estate portfolio from 93 to 94.5 percent
  • Sale of real estate from its own portfolios in Brussels, Helsinki, Milan and Nuremberg
  • Sale of project developments in Geneva and Helsinki
  • Development of the business in funds for private and institutional investors.

In 2005 IVG again invested more than it sold. Investments of €534.9 mln. (398.5) were made in Brussels, Budapest, Düsseldorf, Hamburg with the Etzel Cavern Facilities, London, Munich and Paris. IVG sold buildings for €451.3 m.
Net Asset Value increased some 18.4 percent to €18 per share.

The board of directors and supervisory board propose a dividend raise from 35 cents to 38 cents per share at the annual general meeting on 30 May 2006.

For 2006 IVG expects post tax consolidated net profit of between €115 m and €125 m, operating earnings of between €255 m and €265 m and total operating performance of between €700 m and €750 m.

By the end of March 2006 IVG was already able to contractually secure real estate sales of over €420 m. This generates a pretax profit of €105 m for 2006. Another important value driver will be the development of the Cavern Facilities. The demand for these high-volume warehouse facilities for oil and gas has clearly risen due to the increasing scarcity of resources and volatility of energy prices.

IVG currently manages real estate assets of €18.5 bn (16.5) and intends to build this up to €25 bn by the end of 2008. In 2005 volume of transactions amounted to €3 bn (€1.8 bn in purchases and €1.2 bn in sales). Up to the end of 2008 IVG wants to realize a volume of transactions amounted to €10 bn (€8 bn in purchases and €2 bn in sales).

The IVG business model integrates the expertise of the real estate and capital markets alike:

* In the real estate market IVG acquires property and real estate portfolios. Its subsidiaries in 14 European metropolises look after the real estate on location and add value through appropriate development measures like renovation, leasing and upgrading the tenant portfolio. In favorable market situations IVG sells property. In past years the proceeds from sales were continuously above the market values assessed by independent experts.

* In the capital markets IVG provides real estate funds for private and institutional investors. With its "EuroSelect" product line IVG boosted the capital resources distributed to private investors by 92.3 percent to €170 m. This leads IVG into the TOP 10 of German based closed ended funds providers. The volume of funds in trust for institutional investors rose from €8.8 bn to €9.7 bn. For the increased investment demands of international capital collection agencies, like pension funds, IVG will in the future provide further structured real estate funds.

The IVG share increased last year by 52 percent and by additional 36
percent since January 1st, 2006.

IVG Immobilen AG oversees property investments of €18.5 bn in the business sectors of portfolio management, project development and funds.

The investments are concentrated in office and logistics real estate in significant metropolises and growth centers growth in Europe.

Source: IVG

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