FranconoRheinMain AG
FranconoRheinMain AG: FranconoRheinMain AG EBIT: EUR 5 million in HY1 2008 rental income doubled to over EUR 5.7 million
FranconoRheinMain AG / Half Year Results Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Frankfurt am Main (Germany), 29 August 2008 – FranconoRheinMain AG (ISN A0J2LC), a portfolio holder specialised in residential property in Southwest Germany, increased its rental income in the first half of 2008 to EUR 5.7 million against EUR 2.5 million in the first half of 2007. This is a reflection of the significantly expanded property portfolio of 2007 and the acquisitions of the current financial year. The value of the property portfolio thus rose as a result of new acquisitions to the end of June 2008 to EUR 169 million (IFRS), equivalent to growth of around EUR 22 million over the value at the beginning of the year. Due to the now advanced expansion of the property portfolio, FranconoRheinMain is concentrating on selective portfolio extensions and on the optimisation of the property portfolio. Earnings from the higher valuation of property in line with IAS 40 on the basis of independent expert appraisals thus amounted to EUR 2.4 million, following the EUR 4.8 million posted in the previous year. This effect was to a large extent offset by improved earnings from letting of EUR 4.4 million against EUR 1.4 million in the first half of 2007, resulting in EBIT for the first 6 months of 2008 of EUR 5 million against EUR 5.8 million in the fist half of 2007. In addition to the higher interest expenses from the expansion of the property portfolio, in particular income taxes of EUR 2 million (including deferred taxes in line with IFRS and effects due to the discontinuation of loss carryforwards following the change of shareholder) led to a reduction of the net income for the period to EUR 0.1 million after EUR 3.2 million in the previous year's period. In addition, extraordinary effects occurred as a result of the utilisation of consultation services as part of the change in shareholders amounting to EUR 0.34 million as at the reporting date. For the second half of 2008, FranconoRheinMain expects that the rental income will continue to increase its contribution to earnings and that the result from valuation changes in line with IAS 40 will lose significance due to the largely concluded portfolio expansion. It is expected that net income for the year as a whole before the profit transfer agreement currently in implementation in line with IFRS will be generated. After two properties were sold in the first half of 2008 with positive earnings contributions, FranconoRheinMain now intends to carry out more property sales, and more sales are possible in 2008 as a whole than in the previous year. The complete financial statements for the second quarter of 2008 can now be downloaded from the Company’s website at www.frm.ag. --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: About FranconoRheinMain AG: FranconoRheinMain AG is a listed real estate company investing mainly in residential property in south-western Germany, with particular emphasis on the Rhine-Main region. FranconoRheinMain AG acquires individual apartment buildings based on strict investment criteria and active asset management, and seeks above-average, sustained returns. FranconoRheinMain AG (Securities ID No. A0J2LC) is listed in the Prime Standard segment of the Frankfurt Stock Exchange. Contact: FranconoRheinMain AG Alexander Heinz Börsenstraße 2-4 60313 Frankfurt am Main Telefon: +49 (69) 920 374 200 Fax: +49 (69) 920 374 201 alexander.heinz@frm.ag edicto GmbH Dr. Sönke Knop/ Eva Ehmke Zeißelstr. 19 60318 Frankfurt am Main Tel. +49(0)69-90550551 sknop@edicto.de 29.08.2008 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: FranconoRheinMain AG Börsenstr. 2-4 60313 Frankfurt Deutschland Phone: +49 (0)69 920 374 200 Fax: +49 (0)69 920 374 201 E-mail: info@frm.ag Internet: www.frm.ag ISIN: DE000A0J2LC4 WKN: A0J2LC Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
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