Homburg Invest Inc. has released the December 31, 2005 financial results prepared under International Financial Reporting Standards (IFRS). 2005 results under IFRS are the best ever in the Companys history. Earnings per share (EPS) for the year under IFRS were $0.71 compared to $0.46 in 2004, an increase of 54%.
Funds from operations for the fourth quarter was $1.9 million or $0.03 per share compared with $211 thousand in 2004, $0.004 per share. Funds from operations were up $1.7 million or 822% on revenue of $65.7 million in 2004 versus $12.4 million in 2004. The funds from operations were positively impacted in the fourth quarter by the revenue increase related to the purchase of $487 million in commercial assets in Europe in June 2005. Net earnings for the fourth quarter of 2005 was $43.8 million or $0.58 per share, up 729% when compared with net earnings of $3.6 million, $0.07 per share for the fourth quarter of 2004. The total unrealized valuation gains for 2005 were $50.4 million of which $47.2 million was recognized as income in the fourth quarter of 2005. This compares to $2.9 million in unrealized valuation changes in 2004s fourth quarter and $23.0 million for the 2004 year.
Funds from operations for the twelve month period was $9.7 million in 2005 or $0.13 per share compared with $4.8 million in 2004, $0.10 per share. Revenue under IFRS was $112.9 million in 2005 versus $60.6 million in 2004, an increase of 86%. Net earnings for the year ended 2005 was $53.6 million or $0.71 per share, up 133% when compared with net earnings of $23.0 million, $0.46 per share for the year ended 2004.
The Companys strategy of growing its asset base with quality income properties, strategic development opportunities and the realization of inherent value in our assets has allowed us to achieve our 2005 objectives on all aspects of our business and the groundwork has been set for 2006 and beyond to maximize shareholder value.
At the February 11, 2006 Directors Meeting, it was decided to proceed with the semi-annual dividend at March 31, 2006 of $0.12 per share. However, in consideration of the excellent funds from operations being generated and the significant opportunities for future profits from our development projects, the Directors have passed a resolution to increase the annual dividend to $0.36 commencing with the first semi-annual dividend of $0.18 being paid to shareholders on September 30, 2006. This represents the fourth increase in the semi-annual dividend rate since dividends commenced in September 2004. This dividend can be taken in cash, in new shares of the Company through our Dividend Reinvestment Plan or in a combination of shares and cash.
The declaration of this dividend illustrates the faith that management and the Board have in its strategic plan which will allow the earnings to be realized through operations, sales of specific assets and redevelopment opportunities and paid out as dividends in 2006 and the years beyond.
Source: Homburg Invest Inc.