IVG Immobilien first half year 2004 results (DE)

The six-month result shows IVG Immobilien AG to be on track. In the 2004 financial year, the company expects net income above the high level of the previous year. The operating result of € 59.5 million in the first semester was lower than the previous year. In its rental business, IVG let 104,000 m² space in the first six months of 2004.

Commenting the outlook in the 2004 financial year, Chairman of the IVG Board Eckart John von Freyend says: 'The most important European office markets of Paris, London and Brussels are showing clear signs of a recovery. In the course of the current year, this will benefit IVG in the rental business and in selling real estate.'

In the first six months, as scheduled the operating result of €59.5 million was lower than the previous year (€77.9 million). In the same period of the previous year, profits of €20.9 million had already been posted from the disposal of property in London, Brussels and Dusseldorf. In the first half of 2004, IVG made several smaller property sales with profits of €5.3 million. The forecast result for the whole financial year is based on a real estate disposal program which has already been largely implemented, with sales in London and Paris in August. A majority stake in Oppenheim Immobilien KAG (OIK) held since the middle of 2004 would also result in strong and positive earnings contributions. OIK will continue to assert its leading position on the growth market for open-end real estate funds.

Total operating performance increased by 1.4 % to €205.8 million. In its rental business, IVG let 104,000 m² space in the first six months of the year, up 49% on last year´s good performance of 70,000 m². In the current year, the economic letting ratio in the IVG portfolios is 93.4% (previous year 92.7%).

By acquiring entire portfolios - such as the takeover of Polar Real Estate - IVG is pursuing the objective of acquiring high-quality European property at favourable prices. The Finnish-based Polar Real Estate AG is now a 100% IVG subsidiary, Delisting took place in June. 'The complete acquisition and delisting thus was completed in a period of only eight months,' stated John von Freyend.

Source: IVG Immobilien

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