IFM Immobilien AG / Half Year Results
25.08.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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IFM Immobilien AG Stands Out from Sector with Positive Performance for H1
2008 Consolidated revenues up 79% to EUR 6.75 million After-tax profit for first half level with last year, despite
one-time costs Highlights of year so far: change to Prime Standard, successful
capital increase, acquisition of 'Zeilgalerie'
Frankfurt am Main, August 25, 2008: IFM Immobilien AG, an investor and
project developer in commercial real estate, with an emphasis on office and
downtown retail uses, continued its record of success in the first half of
2008, and thus represented a positive exception from the rest of the
sector. Notwithstanding the more demanding economic environment, revenues
were up 79%. The consolidated profit maintained the same level as for the
comparable period last year, despite substantial one-time costs for the
Companys change to the Prime Standard segment of the Frankfurt Stock
Exchange. IFM Immobilien AG released its first-half report for 2008 on the
Internet today (www.ifm.ag).
Highlights of the year so far
On July 17, IFM Immobilien AG acquired the 'Zeilgalerie' in Frankfurt am
Main. This property is one of Germanys most famous shopping centers, and
is located in one of the countrys most heavily trafficked shopping
districts. The total investment of about EUR 59 million includes planned
revitalization measures for about EUR 8 million. The property was purchased
from the Signature Capital investment company. With an occupancy of about
95%, the property generates a rental yield of more than 6%.
On June 20, IFM Immobilien AG successfully carried out a capital increase
of about 10% of its share capital, in return for cash. Despite the
difficult environment in the financial and capital markets, the issue met
with heavy demand, and was significantly oversubscribed. The capital
increase generated proceeds of EUR 9.35 million for the Company, before
transaction costs. The share capital increased from EUR 8.5 million to
about EUR 9.35 million.
Since April 30, IFM stock has been listed on the regulated market (Prime
Standard segment) of the Frankfurt Stock Exchange. The change from the
Entry Standard segment to the Prime Standard segment is intended to
increase IFMs recognition in the capital market and make IFM stock even
more attractive, especially to international investors, because of the more
rigorous transparency requirements involved.
Said Georg Glatzel, CEO of IFM Immobilien AG: 'In a period with an
increasingly tough economic environment, IFM Immobilien AG has performed
very successfully. In that, weve set ourselves apart in a segment where
many investors are becoming more and more cautious, the number of
transactions is declining, and real estate stocks have undergone
substantial corrections. In this environment weve been able to make major
strategic choices. And by acquiring the famous `Zeilgalerie` shopping
center, weve also strengthened our portfolio of downtown retail
properties. We believe this real estate investment, like our others, has
substantial potential for appreciation that we will utilize to the fullest
over the next few years, thanks to our expertise in revitalization. So
were in an ideal position keep steady on our course for success both in
the second half of 2008 and in 2009.'
Group revenue and earnings performance
Consolidated revenue, which comes primarily from rental income, rose 79%
in the first half of 2008, to EUR 6.75 million (H1 2007: 3.77 million). The
increase was founded on additional rental income from several properties
acquired in 2007 'Maxxon' in Eschborn, 'Kureck' in Wiesbaden, and the
'Office Tower' in Darmstadt as well as the advancement of the leasing
process at the 'GutenbergPark property' in Mainz.
The profit before taxes was EUR 3.00 million, compared to EUR 3.76 for
the first half of 2007. The decrease derives mainly from one-time costs of
EUR 0.61 million to change IFM stock to the Prime Standard segment.
The consolidated profit after taxes and minority interests was EUR 2.30
million, almost constant from the first half of 2007 (EUR 2.33 million).
This is equivalent to earnings per share of EUR 0.27 (H1 2007: EUR 0.27).
Consolidated balance sheet performance
The Groups total assets at June 30, 2008, came to EUR 285.4 million, up
9.5% from the figure at December 31, 2007 (EUR 260.7 million).
Non-current assets at the end of the first half came to EUR 251.5 million
(December 31, 2007: EUR 233.6 million). The value of investment property
increased to EUR 141.6 million, particularly as a consequence of
appreciation of the 'Kureck' property in Wiesbaden (December 31, 2007: EUR
138.8 million). The recognized value of property under development rose to
EUR 92.8 million because of the progress of construction work at the 'Romeo& Julia' property in Frankfurt am Main (December 31, 2007 EUR 80.6
million).
After the first six months of 2008, the Group still had a solid equity
ratio of 37% (December 31, 2007: 36%).
Outlook
The Executive Board assumes that consolidated revenues will continue to
grow in 2008. Management believes the Companys successful performance in
the first half will be a good foundation for business in the rest of the
year.
By acquiring the 'Zeilgalerie' in Frankfurt am Main in July, IFM Immobilien
AG expanded its holdings in downtown retail properties, and diversified its
portfolio further. Additionally, it plans to expand its project development
business further. In this connection, the Executive Board expects the
'Romeo & Julia' high-rise project to be completed by the end of 2008. The
building permit consultations with authorities for the 'Kureck' project in
Wiesbaden will also continue.
The portfolio, including ongoing project development, has grown to more
than EUR 400 million, and is expected to reach the EUR 500 million mark in
the medium term. Additionally, management has not ruled out the possibility
of selling a property from the portfolio, as part of active portfolio
management.
About IFM Immobilien AG:
IFM Immobilien AG is an investor and project developer particularly engaged
in commercial real estate, with an emphasis on office and downtown retail
uses. In addition to conventional project development, its business also
includes redeveloping, restructuring and repositioning commercial
properties. The properties that IFM acquires generally stand out for what
IFM sees as an attractive risk-opportunity profile, extensive potential for
development and appreciation, and preferred locations. Applying this
strategy in combination with its core competences in redevelopment,
restructuring and repositioning, IFM Immobilien AG helps revitalize
properties, and thus generates what it believes will be sustainable
property values.
For inquiries, please contact:
Frank Elsner
Frank Elsner Kommunikation für Unternehmen
Phone: +49 (0) 5404 91 92 0
Fax: +49 (0) 5404 91 92 29
office@elsner-kommunikation.de
Corporate contact information:
Karl-Ludwig-Straße 2
69117 Heidelberg
Phone +49 (0) 6221 434098-0
Fax +49 (0) 6221 434098-66
info@ifm.ag, www.ifm.ag
Ulmenstraße 23-25
60325 Frankfurt
+49 (0) 69 7040386-0
+49 (0) 69 7040386-25
DGAP 25.08.2008
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Language: English
Issuer: IFM Immobilien AG
Karl-Ludwig-Straße 2
69117 Heidelberg
Deutschland
Phone: +49 (0)6221-434 098 0
Fax: +49 (0)6221-434 098 66
E-mail: info@ifm.ag
Internet: www.ifm.ag
ISIN: DE000A0JDU97
WKN: A0JDU9
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, Stuttgart
End of News DGAP News-Service
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DGAP-News: IFM Immobilien AG Stands Out from Sector with Positive Performance for H1 2008
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