The Züblin Immobilien Group more than doubled its net income in fiscal 2005/2006 from €5.77 million to €14.75 million. The stable operating result as well as the profit realized from the purchase of the minority shareholding in the Paris portfolio contributed considerably to this. In view of the good result, the Board of Directors will, at the Annual General Meeting, propose an increased payout of €0.32 compared with €0.29 in the previous year, once again in the form of a nominal value repayment. This equates to a dividend yield of 4.5%.
Consolidated net income more than doubled
Rental income for the Züblin Immobilien Group rose by 0.6% over the previous year's period to €70.04 million. At 0.2%, the reduction in market values was insignificant. However, whereas the improved market situation in France, the Netherlands and for the retail portfolio in Germany led to increases in value, the continuing difficult market climate for office real estate once again had a negative impact on market values in Germany, Belgium and Luxembourg. Consolidated net income increased by 160% on the previous year, from €5.77 million to €14.95 million. Consequently the return on equity rose from 2.6% to 6.8%.
Major contribution to net income made by the French portfolio
The purchase of the minority shareholding in the Paris portfolio contributed considerably to the good result. As the purchase price was significantly lower than the value of the reported minority shareholding, due to an option agreed in 2002, this resulted in a profit of €5.2 million.
Successful IPO of Züblin Immobilière France SA
The French subsidiary of Züblin Immobilien Holding AG, Züblin Immobilière France SA, was listed on the pan-European Euronext exchange on 22 March 2006. To accompany the successful stock market flotation, shares were placed for public subscription as part of a capital increase of €18.9 million. By taking this measure, as of 1 April 2006 Züblin Immobilière France SA also obtained the tax-efficient status of a REIT, which in France is termed a Société d'Investissements Immobiliers Cotée (SIIC).
Attractive financing of the Swiss portfolio
In Switzerland, a syndicate loan of up to €230,9 million arranged through UBS was used to repay mortgage loans in the year under review. The early repayment penalties associated thereto are burdening the net result to the tune of €2.44 million. However, these will be more than offset by substantially lower financing costs in future. Simultaneously, the duration of the financing of the Swiss portfolio was increased from 3.0 years as of 31 March 2005 to 5.7 years as of 31 March 2006.
Equity ratio at 31.5%
With allowance for 100% conversion of the two outstanding convertible bonds into shares, which may be assumed given the present share price, the equity ratio stands at 31.5% as at 31 March 2006. In view of rising interest rates the equity ratio is to be increased gradually to 35%.
Setting up of an international asset management team
Previously, the majority of the portfolio's asset management activities have been outsourced to third parties. Currently, Züblin is setting up its own organizations in individual regions, with a view to future steps for growth. An initial step has already been taken with the appointment of a CEO in France. Now Züblin's aim is also to establish its own teams in Germany and the Netherlands during the first six months of fiscal 2006/2007.
Nominal value repayment of €0.32 proposed
In view of the good result, the Board of Directors will, at the Annual General Meeting, propose an increase of 11% in the nominal value repayment from €0.29 to €0.32. At the current share price this equates to a dividend yield of 4.5%.
Positive Züblin share price performance The value of Züblin shares rose by 10% in the year under review, from €6.77 to €7.47. The net asset value (NAV) was increased by 2.1% from €7.44 to €7.59. Taking into account the ou