IMMOEAST Annual Report 2006/07

100 IMMOEAST Annual Report 2006/07
7. Outlook
The successful conclusion of the capital increase gives IMMOEAST impressive liquidity reserves of
approximately EUR 3 billion, which will guarantee the implementation of the EUR 6 billion investment
programme that is planned for 2007/08. Of this total, EUR 2.3 billion were realised by the end
of June 2007. The property portfolio, including contracted investments, will therefore increase to at
least EUR 13 billion by the end of April 2008.
The extensive investments that are planned for the 2007/08 financial year will also lead to a significant
change in the structure of the IMMOEAST portfolio, both from a geographic and a sector
standpoint. The focal point of investment activity will move to South-eastern Europe, Russia and
Ukraine, while the sector diversification will show a shift toward retail properties. The share of
development projects will also continue to increase, and thereby safeguard the long-term earning
power of IMMOEAST.
The high volume of development projects will make an important contribution to the expected
increase in net asset value per share to EUR 11.50. That represents an increase of approx. 13% in
the inherent value of the company compared with the 2006/07 financial year.
Only part of the 2007/08 investment programme will be reflected in the financial statements for that
year because of the high share of development projects. Roughly two-thirds of these investments
will begin to generate earnings and cash flow in the following two financial years. However, these
investments will form a sound basis for the positive and sustainable development of IMMOEAST in
the future.
Gross cash flow should reach nearly EUR 100 million for the first time in 2007/08, and revenues will
exceed EUR 300 million. A further goal is to raise the cash EBIT margin to 40% over the mid-term.