Deutsche Immobilien Holding AG enjoys strong growth

Group profits have nearly tripled compared to 2008 /

Company is in a good position

Deutsche Immobilien Holding AG (DIH AG) has presented its group annual accounts for 2009 with a report on the hitherto unaudited and therefore provisional results. These reflect the strong growth still enjoyed by the company. DIH AG is an umbrella entity combining companies operating on a national scale in development (property project development and sales) and asset management (property management). Furthermore, DIH AG's fund business unit (structured holdings) offers capital investment opportunities for institutional and private investors. Through a holding company, DIH AG is currently involved in the Kö-Bogen shopping and office complex. This project with a total investment amount of around €300m is based on the plans of Daniel Libeskind and will be giving the city a new face through to 2013.

Annual results 2009
Group profits have nearly tripled compared to last year, now amounting to €3.1m. This comes above all from the marked increase in revenues from the project development business when it comes to selling and letting property. Sales revenues increased to €20.9m, thus growing by 29% compared to the financial year 2008.

Revenues for asset management remained stable on the 2008 level. Revenues for the funds business unit only featured sales up to 31 March 2009 on the group level. This was the point in time when the holding company Deutsche Fonds Holding AG, Stuttgart was hived off. Other operating revenues amounted to €5.5m, resulting primarily from the sale of shares in a property company.

Group expenditure in 2009 for operative business decreased clearly by about 32% compared to the previous year. However, in view of the de-consolidation activities, this only has limited relevance. For example, there is no comparable basis for personnel costs and other operational expenditure. A major decrease in expenses compared to the previous year that is not affected by de-consolidation comes from the fact that there were no exchange losses, compared to €1.3m in the previous year.

The company's operating results (EBIT) improved to around €5m by 31 December 2009 (€-1.3m last year). The balance sheet total for the group increased to €162m. With equity of €76.6m, the long-term liabilities amount to €53.8m with short-term liabilities of €29.4m. Referred to the balance sheet sum, thus results in an equity ratio of around 47%, which reveals the healthy structures of the group.

Outlook 2010
DIH AG is still expecting a difficult business environment in 2010. The strategy of further diversification, taking up activities in new business units to round off development to a complete property services provider on the investment sector, aims to use chances available on the market while spreading the risks. All in all, the company is in a good position, due among others to the project developments that are already being implemented. Altogether, DIH AG should be able to further improve the 2009 results during the on-going financial year.