IC Immobilien Holding AG
IC Immobilien Holding AG: Devaluation of Participations Impact the
2008 Result of IC Group, Dip in the Transaction Business
IC Immobilien Holding AG / Final Results Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- -Consolidated loss of 7.67 million Euros -Slight increase in sales proceeds to 19.99 million Euros -Further improvements to the cost structure -Cautiously optimistic outlook for 2009 Unterschleissheim near Munich, May 5, 2009, IC Group concluded its 2008 financial year with a consolidated loss of 7.67 million Euros (compared to a profit of 19,300 Euros the year before. The operative income (EBIT) equalled minus 2.93 million Euros (previous year: 4.53 million Euros). Sales proceeds increased slightly to 19.99 million Euros (previous year: 19.78 million Euros). The result was impacted in several ways by the difficult situation on the German real estate market, which developed in the wake of the so-called subprime crisis. While the ramifications in the operative area of the real estate management remained comparatively modest, the transactions business suffered heavily in the letting and investment segments. Moreover, the market development necessitated adjustments in the value of real estate investments, particularly of the interest that IC holds in Fair Value REIT-AG. 'The negative development on the markets has dramatically accelerated during the final months of 2008. Ultimately, this has had a much stronger impact on our business figures than we had anticipated as recently as the first semester,' said Dr. Oscar Kienzle, CEO of IC Immobilien Holding AG. For most of the member companies, the 2008 operative income undercut plans and expectations, making ICIS,a company specialising in property management and asset management,the only one to meet its targets. Essential deviations from the planning figures were reported from the funds, real estate, investment, and letting sectors. In the fund sector, planned sales were either shelved or implemented later than planned in face of the current market situation. In the real estate sector, the substantial losses in the value of the participation in BBV 8 that IC acquired in 2007 impacted the balance sheet. The investment sector suffered severely from the drastic drop in transaction volumes. An unbridgeable gap between the price targets on the buyer and seller side, respectively, that combined with the aggravated financing conditions caused activities in the real estate investment market to plummet. Improvements in Terms of Efficiency and Cost Structure: On the whole, the cost structure of IC Group has continued to improve slightly. During the 2008 financial year, additional efficiency-enhancing measures were implemented, and are planned to work a positive effect on the 2009 net income. Changing the SAP release has created the prerequisites for swift reporting in line with international standards, and upgraded the reporting flexibility by introducing a data warehouse. 'The associated costs admittedly added extra pressure on the income of the past financial year, while the gains in efficiency will not surface until 2009 and the years thereafter,' Dr. Oscar Kienzle elaborated. 'Yet we chose to accept the extra expense because these measures have helped us further to consolidate our sound market position in the asset management sector. This is all the more important as our professional asset management services are of the utmost importance for many investors in this crisis-ridden environment. Having upgraded our capabilities, we are now well set up to face the expected rise in demand.' Cautiously Optimistic Outlook for 2009: For 2009, the board of IC Immobilien Holding AG expects an increase in sales. Reasons for the positive outlook include the start of the property management account for a major building complex in Berlin, which has an annual rent volume of 14 million Euros, and the now year-round flow of remunerations from the property management of a real estate portfolio owned by a national institutional investors, which IC took over in September 2008, and which has a rent volume of approximately 32 million Euros. About IC Immobilien Gruppe: IC Immobilien Gruppe is a full-service provider whose various member companies offer real estate-related services as a one-stop shop to private and institutional investors. The group has been active in the real estate sector since 1988, both as asset/ property manager and as initiator of closed-end funds. It has a staff of currently 200 employees, working out of 9 locations in Germany and North America. The group currently manages an investment volume of approximately 5.3 billion Euros for about 28,000 private and institutional investors. When taking into account the international fund segment acquired from Westdeutsche Landesbank, IC Immobilien Gruppe looks back on more than thirty years of experience with real estate inside and outside Germany. Contacts: Stephan Holeczek IC Immobilien Holding AG Ohmstr. 4 85716 Unterschleissheim/Germany Tel.: +49 (0)89 / 55 22 7 - 362 Fax: +49 (0)89 / 55 22 7 - 355 E-mail: investor.relations@ic-group.de 05.05.2009 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: IC Immobilien Holding AG Ohmstraße 4 85716 Unterschleißheim Deutschland Phone: +49 (0)89 / 55227-362 Fax: +49 (0)89 / 55227-355 E-mail: stephan.holeczek@ic-group.de Internet: www.ic-group.de ISIN: DE0005632160 WKN: 563216 Listed: Freiverkehr in Berlin, Hamburg, München, Stuttgart; Open Market in Frankfurt End of News DGAP News-Service ---------------------------------------------------------------------------
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