The Board of Directors of Pirelli & C. Real Estate met last Friday to examine and approve the Group's operating results for the six months ended 30 June 2005, which report another set of strong results.
The figures for the first half of 2005 are compared with those for the same period of 2004, after reclassification in accordance with international accounting standards.
Highlights
- Aggregate revenues amount to 1,741.7m, marking a 44% improvement on the 1.213.5m of the first half of 2004.
- Operating profit including income from equity participations amounts to 80.3m, rising 38% on the 58.2m of the previous first half.
- Net profit for the first half of 2005 has risen to 59.8m, up 25% on H1 2004.
- The Group's share of shareholders' equity amounts to 454m as at 30 June 2005 compared with 485.5m at the end of 2004.
- The value of assets under management has risen to 12.1bn compared with 10.7bn at the end of 2004.
- As at 30 June 2005, 69% of assets under management regard the trading portfolio (8.4bn) and 31% the long-term portfolio (3.7bn).
- As at 30 June 2005, Pirelli RE's share of managed assets (excluding the FIP portfolio) amounts to 2.5bn, representing 23% of the total (22% at the end of 2004), including 29% of the trading and 3.7% of the long-term portfolio.
- The Group's Net Asset Value, represented by the sum of its share of shareholders' equity, the value of own shares held and its share of unrealised capital gains, amounts to 1,045m. This is substantially in line with the end of 2004.
- Net debt stands at 42.6m, representing an improvement compared with the 46.3m of June 2004 (12.4m at 31 March 2005).
- Adjusted net debt (before shareholder loans to companies in which the Group has minority stakes) totals 273.3m, compared with 281.2m at 30 June 2004 (200.1m at the end of March 2005). The Group's gearing is 0.60 compared with the 0.69 of June 2004.
Subsequent events
- The Global Offering of shares in the Berenice Offices Fund was closed on 14 July, well ahead of the original closing date of 26 July.
- On 14 July Pirelli RE announced that it had presented the winning bid for the former Tobacco Factory in Milan, having offered a price of approximately 56m.
- On 19 July the Group completed its first purchase of residential property for trading purposes using the real estate fund tool, with a view to increasing its real estate activities in regulated markets. To this end the Diomira Fund has been established via the contribution of 19 properties with a value of 149m by Enpam.
- On 28 July 2005 the joint venture between Pirelli RE and Lehman Brothers, together with Roev Italia, completed the acquisition of Castello Srl (formerly Immobiliare Serico), a Banche Popolari Unite Group company that owns 150 mainly residential properties, for a sum of approximately 150m; the purchased properties are to be transferred to the Diomira Fund.
- On 28 July 2005 Pirelli RE purchased building land of approximately 1.5 million m² in the Portogruaro area of the Province of Venice, which is to be the site for an integrated industrial park. Work is scheduled to start during the first quarter of 2006 and will require investment of an estimated 150m over the next four years.
- On 28 July 2005 Orione Immobiliare Prima signed a preliminary agreement regarding the purchase of a number of primarily commercial properties from Spinoffer Real Estate for a price of approximately 29m. The transaction is expected to be closed by 31 October 2005.
- On 29 July the Group agreed to acquire an interest in Turismo&Immobiliare, which owns 49% of Italia Turismo, by purchasing stakes of 8.3% from each of the existing shareholders (Banca Intesa, the Ifil Group and the Marcegaglia Group); on completion of the transaction, Pirelli RE will have paid a total of 3.4m for a 25% stake in Turismo&Immobiliare. Implementation of the agreement is subject to authorization from the Antitrust Authority.
- On 3 August Pirelli RE signed a contract with a syndi
