Colonia Real Estate AG / Quarter Results/Profit Warning
10.11.2008
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Colonia Real Estate AG reports temporary figures for third quarter of 2008
Consolidated loss of EUR of -49.8 million caused by substantial
devaluation of interest rate securities and properties
Strong increase in letting and rental income
Negative full year figures of EUR 55 - 60 million expected for 2008
Cologne, November 10, 2008 Colonia Real Estate AG (ISIN: DE0006338007;
WKN: 633800) reported a consolidated loss of EUR -49.8 million at the end
of the third quarter of 2008. The figures include unrealized, not
cash-effective losses of valuation adjustments of the real estate portfolio
in the amount of EUR 44 million and EUR 9 million for interest rate swaps.
In the same period last year, group net income - influenced through
unrealized profits of valuation adjustments of the real estate portfolio of
EUR 61.5 million - added up to EUR 54.3 million. At September 2008, EBIT
was EUR -34.7 million compared to EUR 77.1 million in the same period of
2007. The NAV decreased to EUR 11.96 per share by September 30th.
Rental income increased year-on-year by just under one-third (31.1 percent)
to EUR 45.5 million (Q3 2007: EUR 34.7 million). Just in the third quarter
of 2008 the property net operating income increased to EUR 16.6 million.
Year-on-year property net operating income grew by 9.4 percent to EUR 25.5
million (Q3 2007: EUR 23.3 million). Even though the general administrative
expenses increased from EUR 12.2 million to EUR 19.9 million compared to
the period last year, as a proportion of total costs these expenses are
still declining. The administrative expenses decreased in the third quarter
2008 to EUR 4.2 million compared to EUR 9 million in the second quarter and
EUR 6 million in the first quarter of 2008. Thus, first effects of the cost
reduction program introduced by the management board last month can be
recognized.
Revenues from the Asset and Fund Management division reached EUR 6.4
million compared to EUR 10.2 million at the end of the third quarter of
2007. Net income for the division was EUR 0.9 million (Q3 2007: EUR 4.7
million). The critical factors in this decline were the current financial
crisis and the sharp decline in transactions in the German market as well.
Management expects no significant turnaround in this segment before the
second half of 2009.
On the basis of the third quarter figures for 2008 and the ongoing
difficult market environment for transactions the management board adjusts
their forecast for the year and expects a negative annual result of EUR 55
- 60 million. It is therefore unlikely that a dividend will be paid for
2008. Following the recent re-evaluation of the real estate portfolio in
the third quarter 2008 the management board expects that all negative
influences of the markets and the financial crisis are reflected in the
balance sheet. However, with a positive development of the rental income
and the cost reduction program it is planned to achieve profit from
operations in 2009.
The final figures as well as the report on the third quarter will be
published Friday the 14th of November 2008. A conference call for analysts
will take place at 2pm CET the same day.
Contact:
Stephan Rind
CEO
Colonia Real Estate AG
Zeppelinstr. 4-8
50667 Köln
Telefon: +49 (0)221 71 60 71 0
Fax: +49 (0) 221 71 60 71 99
E-Mail: ir@cre.ag
PR and Press Contact:
Thomas Busch
Leiter Marketing und Kommunikation
Telefon: +49 (0)221 71 60 71 0
Fax: +49 (0) 221 71 60 71 99
E-Mail: pr@cre.ag
edicto GmbH
Axel Mühlhaus
Telefon: +49 (0) 69/ 90 55 05-50
E-Mail: kontakt@edicto.de
DGAP 10.11.2008
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Language: English
Issuer: Colonia Real Estate AG
Zeppelinstr. 4 - 8
50667 Köln
Deutschland
Phone: +49 221-716071-0
Fax: +49 221-716071-99
E-mail: info@cre.ag
Internet: www.cre.ag
ISIN: DE0006338007
WKN: 633800
Indices: SDAX, GPR 250, MSCI Germany Small Cap Index, FTSE EPRA/
NAREIT, E&G DIMAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, München, Hamburg, Düsseldorf, Stuttgart
End of News DGAP News-Service
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DGAP-Adhoc: Colonia Real Estate AG reports temporary figures for third quarter of 2008
| Source: EQS Group AG