CA Immo Annual Report 2008 (.pdf)
CA Immo Annual Report 2008 (.pdf)
CA Immo Annual Report 2008 (.pdf)
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eDItoRIAl<br />
DeAR SHAReHolDeRS<br />
AnD ReADeRS,<br />
04<br />
Bruno ettenauer, Wolfhard Fromwald<br />
the <strong>2008</strong> business year will long be remembered<br />
for the impact of the global financial crisis on the real<br />
estate sector. Despite this highly challenging set of<br />
circumstances, we scored some striking operational<br />
successes in <strong>2008</strong>, including a rise in rental income<br />
and satisfactory levels of new lettings. However, these<br />
achievements were counteracted by significant value<br />
adjustments to the property portfolio, a development<br />
that led to the unfortunate result of clearly negative<br />
consolidated net income.<br />
What were the causes of this result? A great deal has<br />
been written about the general economic situation, so<br />
we will content ourselves with offering a summary of<br />
the key factors and their impact on our sector.<br />
In the second half of <strong>2008</strong>, the drastic distortion on<br />
the capital markets produced a clear rise in refinancing<br />
costs for banks as risk surcharges on loans hit new<br />
highs. As a highly capital-intensive sector, the real<br />
estate industry segment was directly and adversely<br />
affected by the tightening of loan terms and the higher<br />
cost of credit. Restricted access to debt financing was<br />
also the main reason behind the sharp fall from the<br />
third quarter onwards in the volume of transactions<br />
on the property investment market. the decline in the<br />
number and volume of real estate transactions across<br />
europe also put severe pressure on property prices.<br />
needless to say, we regard it as our duty to value our<br />
properties in line with market realities. even when<br />
real estate prices are falling, this market trend is reflected<br />
in our portfolio in the shape of depreciation<br />
and revaluation losses.<br />
Focus on strengthening cash flow<br />
As the Management Board of <strong>CA</strong> <strong>Immo</strong>, we are not<br />
prepared to hide behind the effects of macroeconomic<br />
factors and sectoral trends. Instead, we will utilise all<br />
possible scope for action in order to ensure <strong>CA</strong> <strong>Immo</strong><br />
is positioned as strongly as possible within the challenging<br />
environment. In 2009, the clear operational
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