IMMOFINANZ, Austria’s biggest listed real estate company, had a strong start to the new 2007/08 business year. In the first quarter (1 May to 31 July 2007) the company showed vigorous profit and company growth, thereby continuing the successful 2006/07 business year.

Earnings before tax (EBT) rose 43.5 percent from EUR 119.4 million to EUR 171.3 million compared to the same period the year before. Operating profit (EBIT) reached EUR 183 million, up from EUR 144.9 million. This means an increase of 26.3 percent. At EUR 43.4 million gross cash flow was also up, increasing 21.6 percent compared to EUR 35.7 million in the first quarter of 2006/07.

The company’s pace of growth remained high as well. Revenues increased 29.8 percent from EUR 117.8 to EUR 152.9 million. At EUR 7.97 billion, equity approached the threshold of EUR 8 billion at the end of the quarter, 40.7 percent up from 2006/07.

That the high equity ratio remained virtually unchanged in spite of the strong growth is particularly satisfying. At 52.4 percent, the equity ratio clearly remained above the medium- and long-term target of 50 percent. “We have very sound financing and the current difficulties on the capital market, which certainly are not making credit financing any easier at the moment, are not a problem for us,” says Director General Karl Petrikovics. “We even view it as an opportunity, as highly leveraged competitors are having increasing difficulties in obtaining project financing at all or at least in raising it fast enough. This improves the competitive situation and as a result will have a positive impact on our operations.”

“Our business is running extremely smoothly at the moment,” Petrikovics says. “Revenues and profit have grown to a similar extent and the high degree of profitability therefore maintained. This performance unmistakeably shows that with its strategy of concentrating on clearly defined core markets as well as broadly diversifying on a regional and sectoral basis within its core markets, IMMOFINANZ is truly able to optimally combine dynamic profit performance and high stability.”