Colonia Real Estate AG (ISIN DE0006338007) achieved a strong
increase in revenues from its fast growing asset and fund management
business and a jump in rental income from its expanding residential
real estate portfolio in the first quarter of 2007. The dynamic growth
of the asset and fund management is reflected by the increase in
assets under management to EUR 2.3bn in the first 12 months since
starting this business unit. Total revenues in the asset and fund
management climbed to EUR 6.08mn with an EBIT of EUR 4.81mn. Total
revenues from rental income almost tripled to EUR 7.54mn (Q1 06: EUR
2.83mn) with an EBIT of EUR 6.94mn due to the strong increase in
residential units and the better then expected vacancy reduction.
In the absence of any revaluation or trading gains the Group's
total operating performance increased considerably to EUR 14.09mn (Q1
06: EUR 8.86mn including IAS40) with EBIT jumping to EUR 9.70mn (Q1
06: EUR 6.88mn). Net income climbed to EUR 5.18mn (Q1 06: EUR 4.06mn).
Earnings per share propelled to EUR 0.27 (Q1 06: EUR 0.26). Operating
costs only increased underproportional achieving an EBIT margin of
69%. Funds from operations jumped to a record EUR 7.61mn.
Colonia's balance sheet almost doubled as of end of the first
quarter 2007 to EUR 872.7mn (full year 2006: EUR 420.2mn). The company
could increase its head count to handle the growing business in all
segments.
Due to the closed transactions in the last quarter, the
significantly enhanced rental income and the high number of current
acquisition projects on residential portfolios as well as the
continuing strong demand from investors for asset management services
in a very positiv market surrounding, leads the management to the
decission to increase the guidance significantly. The Executive Board
increases its net profit after tax guidance for the full year 2007
from currently EUR 50 to 54mn by 20% to now EUR 62 to 65mn.
Information and Explaination of the Issuer to this News:
The single business units:
The residential real estate portfolio consolidated for the first
time the acquisition of 51% on two residential housing companies with
9,857 units at the end of March 2007. Colonia Real Estate has a call
option to purchase the outstanding 49%. Furthermore, last years
high-yielding acquisitions are reflected by the sharp increase in
rental income in the first quarter. An efficient management, further
improvement of the occupancy rate and economies of scale are the
drivers for further future optimization of the margins in this sector.
The management expects further acquisitions in 2007. Due to the full
sourcing pipeline, the company expects to hold approximately 30,000
residential units by the end of this year.
With Merrill Lynch International, Colonia welcomed a new, well
renowned partner for opportunistic commercial real estate portolios. A
first portfolio transaction has taken place in February 2007 with a
total volume of more then EUR 140mn. Colonia Real Estate holds a 10%
stake as co-investment. The majority owned Resolution GmbH signed an
exclusive five year contract for the asset management of this
portfolio. The asset and fund management's growth in assets under
management to EUR 2.3bn was reflected in the first quarter 2007 by a
growing and recurring revenue and earnings contribution. Colonia Real
Estate is by volume - after only 12 months since starteing this
business - one of the leading German players on asset management for
third parties. Selective acquisitions of focused, local asset managers
for enhancing the pan German network might be part of the future
growth. The management expects at least EUR 3bn assets under
management for the full year 2007 due to the continuing strong demand
in the asset and fund management, mainly from foreign investors, and
Colonia's excellent position in the German real estate market. The
first structured closed-end fund product 'Careinvest1' with a focus on
nursery homes has been succesfully placed in in the first three
months. The demand for structured speciality funds is currently very
high. Follow-up products are in the pipeline.
'Our aggressive acquisition strategy and the expansion of the
asset management capacities over the last months is paying out in the
first quarter 2007 by a clearly improved net earnings result', says
Stephan Rind, CEO of Colonia Real Estate AG. 'Lean management by
outsourcing personal intensive duties and the focus on the profitabel
core businesses enabled us to achieve an extraordinary performance
with high margins. The strong earnings growth is a dynamic indicator
for the successful transformation to an integrated investment and
asset manager with sustainable, recurring earnings. With the effective
placement of the capital increase in May this year, we raised around
EUR 180mn as a cornerstone to maintain further profitable growth.'
Colonia Real Estate's freefloat improved to 73.6% (as of end of May)
with the closing of the capital increase at a market capitalization of
around EUR 770mn. The Cologne based real estate company aims to become
medium-term a member of Deutsche Borses' mid cap index MDAX.
About Colonia Real Estate AG
Colonia Real Estate AG (Reuters: KBUG.DE / Bloomberg: KBU GY) is a
listed real estate investment and management company focusing on the
German market. Its integrated business model consists of three
synergistic cornerstones: The Investment Division focuses on
high-yield residential property portfolios held for the company's
account and opportunistic co-investments in commercial real estate
together with prominent partners. Resolution GmbH has operations
across Germany and specializes in asset management for the Group as
well as for supraregional real estate portfolios held by international
investors, whom it also advises on transactions. The focus is on yield
optimization and the realization of appreciation potential. CRE Fonds
Management GmbH's core business is the conception, marketing and
management of structured investment products such as closed-end real
estate funds for institutional investors and private clients.
This release is not a prospectus and, to the extent that it may
constitute an advertisement, does not constitute an offer to sell or
the solicitation of an offer to purchase the shares or other
securities of Colonia Real Estate AG. This release is not an offer of
securities for sale in the United States of America. Securities may
not be offered or sold in the United States of America absent
registration or an exemption from registration under the U.S.
Securities Act of 1933, as amended. Any public offering of securities
to be made in the United States of America will be made by means of a
prospectus that may be obtained from Colonia Real Estate AG and that
will contain detailed information about the company and management, as
well as financial statements. The information contained in this news
release is not for publication or distribution in the United States of
America. The information contained herein is not for publication or
distribution in Canada, Australia or Japan and does not constitute an
offer of securities for sale in Canada, Australia or Japan. This news
release contains forward-looking statements based on current
assumptions and forecasts made by the management of Colonia Real
Estate AG. Various risks, uncertainties and other factors could lead
to material differences between the actual future results, financial
situation, development or performance of Colonia Real Estate AG and
the estimates given here. Colonia Real Estate AG assumes no liability
whatsoever to update these forward-looking statements or to conform
them to future events or developments.
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Language: English
Issuer: Colonia Real Estate AG
Zeppelinstr. 4 - 8
50667 Koln Deutschland
Phone: 0221-716071-0
Fax: 0221-716071-99
E-mail: info@cre.ag
www: www.cre.ag
ISIN: DE0006338007
WKN: 633800
Indices: SDAX, GPR 250, MSCI Germany Small Cap Index, FTSE EPRA/
NAREIT, E&G DIMAX
Listed: Amtlicher Markt in Berlin-Bremen, Frankfurt (Prime
Standard), Dusseldorf; Freiverkehr in Hamburg, Munchen,
Stuttgart
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