Vivacon AG

euro adhoc: Vivacon AG
quarterly or semiannual financial statement
VIVACON AG generates EBIT of EUR 2.7m in Q1 2008

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3-month report


In Q1 2008, VIVACON AG (ISIN DE0006048911) sold 559 residential units with a total volume of EUR 37.3m. Sales volume of Q1 in the previous year amounted to EUR 65.8m and was positively influenced by the disposal of the future headquarter "Rheinauhafen" in the amount of approximately EUR 26m at that time. In Q1 2008, revenues amounted to EUR 39.0m, an increase of 59% in comparison to EUR 24.5m in Q1 2007. The share of recurring revenues (ground rents, rental income and property management) increased to 55% of group revenues in Q1 2008 (Q1 2007: 23%).

In Q1 2008, EBIT reached EUR 2.7m in comparison to EUR 6.2m in the previous year´s quarter. Interest rates as well as inflation developed favorably for Vivacon AG´s business model in the first quarter in principal. Due to non-cash expenses of counterbalancing hedging instruments, the quarterly results were affected by EUR -5.8m in total. A respective income from a higher valuation of the ground lease portfolio was not recognized. The further increasing inflation expectations led to an expense on EBIT level of EUR -2.3m, which results from a market valuation of the hedging instruments (inflation swaps). As a result of a declining interest rate, the financial result is additionally charged with an amount of EUR -3.5m from market valuation of interest hedging instruments (interest swaps). This led to a net income of EUR -5.9m in Q1 2008 (Q1 2007: EUR 3.3m). The earnings per share amount to EUR -0.30 in Q1 2008 (Q1 2007: EUR 0.17).

Since the IPO in 2001, the average net income of the first quarter accounts for -6.5% of the full-year net income due to the seasonality of the business model. The significant share of added value is consistently generated in the last three quarters of any year. The company expects a similar development in 2008.

The basis for positive earnings in the coming quarters was laid by the operating activities in Q1 2008. The company is in various negotiations of acquiring ground lease portfolios directly. Successful acquisitions are expected in the short term. Furthermore, Vivacon is currently preparing a major refinancing of recently generated and acquired ground leases.

In addition, intensive conversations with institutional direct investors about a long term co-operation along the complete value chain - from asset sourcing and structuring of the SPV to asset and property management - are being conducted. The asset management team is currently optimizing the portfolios on the balance sheet, which are already in the marketing process. The management reiterates the communicated full-year guidance of a net income in the amount of EUR 60m.

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ots Originaltext: Vivacon AG
Im Internet recherchierbar:

Further inquiry note:
Sven Annutsch
Head Corporate Finance / Investor Relations
Tel: + 49 221 130 5621 630

Branche: Real Estate
ISIN:      DE0006048911
WKN:        604891
Index:    SDAX, CDAX, Classic All Share, Prime All Share, DAX
              International 100
Börsen:  Börse Frankfurt / regulated dealing/prime standard
              Börse Berlin / free trade
              Börse Hamburg / free trade
              Börse Stuttgart / free trade
              Börse Düsseldorf / free trade
              Börse München / regulated dealing

Weitere Meldungen: Vivacon AG

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