PresseBox
Press release BoxID: 178511 (FranconoWest AG)
  • FranconoWest AG
  • Bahnstraße 3
  • 40212 Düsseldorf
  • http://www.franconowest.de
  • Contact person
  • Christiane Möller
  • +49 (211) 90996-200

FranconoWest AG: A successful start to 2008

IFRS net income in Q1: EUR 1.5 million

(PresseBox) (Düsseldorf (MedienHafen), ) FranconoWest AG (WKN A0KFRM), a real estate portfolio company specialising in residential property in the German state of North Rhine-Westphalia, further increased its property portfolio in the first quarter of 2008 and generated net income, calculated in accordance with IFRS, of EUR 1.5 million. In the first quarter of 2007, net income was EUR 0.4 million. EBIT was EUR 2.8 million in Q1 2008 (Q1 2007: EUR 0.6 million). Around EUR 0.3 million of this figure had no impact on cash flows. EBIT was influenced by non-recurring expenses of around EUR 0.1 million. Based on an independent appraisal by Jones LangLaSalle, EBIT includes unrealised gains of EUR 2.5 million under fair value accounting for investment property in accordance with IAS 40. Earnings per share were EUR 0.05.

Gross rental income was EUR 1.4 million in Q1 2008, giving rental income after expenses of EUR 1.2 million, up from just EUR 0.04 million in the comparable prior-year quarter. The increase was due to the steady expansion of the real estate portfolio in recent quarters.

The real estate portfolio increased to EUR 72 million in the reporting period. A further EUR 9.3 million had been invested in high-earning apartment buildings and housing complexes by the reporting date but will only be reflected in the financial statements after the end of the period.

FranconoWest's objective is to continue to grow this year. It plans to build up a real estate portfolio totalling EUR 120-140 million by year-end 2008. At the same time, selective portfolio sales should generate added value. FranconoWest sold a property portfolio to a British residential real estate company for around EUR 9 million in February 2008.

The complete quarterly report (in German) will be available in the Investor Relations section the company's website www.Franconowest.de.

FranconoWest AG

FranconoWest AG is a listed real estate company that acquires residential property such as apartment blocks and residential facilities in the German state of North Rhine-Westphalia. The company creates the basis for sustained above-average returns by purchasing real estate on the basis of strict investment criteria and active asset management. FranconoWest AG(WKN No. A0KFRM) is listed in the Prime Standard segment of the Frankfurt Stock Exchange.