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Nine months report 2006
Bau-Verein zu Hamburg reporting a further substantial increase in consolidated profit
(Hamburg, November 29, 2006). In the third quarter of 2006, Bau-Verein zu Hamburg continued the favourable performance which it had achieved in the first half of the year. Thus, earnings before tax (EBT) in the first nine months of 2006 rose to EUR 5 million, reversing the year-ago loss of EUR 1 million. As planned, revenues contracted to EUR 37 million in the first nine months of 2006 in favour of an increase in portfolio holdings. The recent investments in select residential property portfolios will generate value enhancement.
The sustained positive market conditions as well as active asset management resulted in fair value gains of EUR 7 million from the revaluation of real estate assets. Expenditure on properties held for sale as well as facility management dropped sharply in the first nine months by EUR 11 million to EUR 27 million. Net borrowing costs declined from EUR 9 million in the previous year to EUR 6 million.
The Company´s ongoing growth strategy will be focusing on the acquisition of further residential property portfolios offering development potential and high-yielding residential construction projects. Bau-Verein expects to be able to report a substantial year-on-year increase in earnings towards the end of 2006.
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Bau-Verein zu Hamburg Aktien-Gesellschaft
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Kirsten Schleicher
Tel +49 (0)40 380 32 140
Fax +49 (0)40 380 32 388
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