Friday, August 15, 2008
IC Increases Turnover and Operating Income, Depreciation on Real Estate Stocks Causes Mid-Year Loss
- Asset and Property Management Keep Growing
- Investment Business Falls Short of Forecasts
Unterschleissheim near Munich, August 15, 2008 – IC Immobilien Holding AG raised its turnover to 9.716 million Euros during the first semester of 2008 (compared to 9.533 million Euros for the same period last year). The decisive factor here was the continued growth in the area of property and asset management services above all. The operating profit rose from 1.482 million Euros to 2.604 million Euros (+75.7%). On the whole, however, the result was burdened by another downward adjustment of the interest the company holds in Fair Value REIT-AG, as well as by the investment business which fell short of the forecasts due to the current market situation, causing a mid-year loss of 1.949 million Euros (compared to +1.180 million Euros after the first semester of 2007).
Overview of the 1st Semester, 2008
1st Sem./EUR x1000
Jan. 1 - Jun. 30, 2008
Jan 1 - Jun. 30, 2007
Mid-year net income / net loss
“The balance of the first semester of 2008 is ambiguous from our perspective. On the one hand, we have reason to be happy with the current business trend, because we have further growth to report in our core business as a property and asset management service provider. On the other hand, the extremely negative stock market environment in the real estate stocks segment has not spared us, as we had to undertake another adjustment in the value of our interest in Fair Value REIT-AG. This has meant a considerable burden on our profits. For Q3 and Q4, we will concentrate above all on the intensification of the investment activity, and on the development of Fair Value REIT-AG,” said Dr. Oscar Kienzle, Management Spokesman of IC Immobilien Holding AG.
In the property and asset management sector, IC was able to acquire prestigious institutional customers, even if the corresponding income effect will not impact the result before the second semester of 2008. As of September 2008, IC Group will take on the management of a real estate portfolio with a volume of about 700 million Euros. As far as the managed investment volume is concerned, the company will cross back into the range of 5 billion in assets under management sometime in Q4. On April 1, 2008, IC Group opened a branch office in Frankfurt / Main.
About IC Real Estate Group:
IC Real Estate Group has been internationally active as service provider in the real estate sector, and as initiator and manager of closed-end funds since 1988. When taking into account the international fund segment acquired from Westdeutsche Landesbank, IC Real Estate Group looks back on more than thirty years of experience. The group currently has a staff of about 200 professionals, deployed at eleven locations in Germany and North America (where the group has been active since 1974). The group currently manages an investment volume of approximately Euro 4.5 billion for about 28,000 private and institutional investors. IC Real Estate Group is a full-service provider, using the various group companies to offer its private and institutional investors real estate-related services as a one-stop shop.
IC Immobilien Holding AG
Tel.: +49 (0)89 / 55 22 7 - 362
Fax: +49 (0)89 / 55 22 7 - 355