IVG Immobilien posts record earnings for 1H 2007

IVG Immobilien's net earnings rose from EUR 116.8 mln to EUR 188.5 mln in the first half of 2007, surpassing the company's performance for the full 2006 year, IVG said in a statement on Thursday. Net asset value increased from EUR 23.56 per share at the end of 2006 to EUR 27.43 per share at the end of June 2007.

'Our strategy of operating with four independent divisions in the market has proven to be successful in the first half of the year. Because of the strong business performance and the favourable setting in our core markets, we expect a substantial increase in our consolidated net earnings after taxes and before minorities to at least EUR 250 mln,' IVG's ceo Wolfhard Leichnitz said.

The company added it is planning to establish a real estate investment trust in order to take advantage of the 'strategic and fiscal benefits of the G-REIT.' IVG is planning to transfer all of its German office properties to the REIT subsidiary, which will be launched in 2008 in order to take advantage of the lower corporate income tax rates. The REIT will probably have a volume of more than EUR 3.5 bn, IVG said. 'Next year, we want to offer a jumbo REIT in the market, and we want to play an active role during the subsequent consolidation phase', Leichnitz said.