December 6, 2017 | Author: Bertina Hardy | Category: N/A
1 Brüssel Lissabon Hamburg ANNUAL REPORT 2001 Passion for Real Estate.2 I V G G R O U P I N F I G U R E S m Change ...
Brüssel
Lissabon
Hamburg
ANNUAL REPORT 2001
Passion for Real Estate.
I V G
G R O U P
I N
ANNUAL REPORT 2001
€m
2001
2000
Change
1999
1998
1997
TURNOVER
319,3
321,3
– 0,6 %
423,6
388,3
399,9
T O TA L O P E R AT I N G P E R F O R M A N C E
486,6
434,7
11,9 %
543,6
505,3
464,6
NET INCOME FROM ORDINARY ACTIVITIES
90,0
91,1
– 1,2 %
80,1
60,5
45,3
NET INCOME FOR THE YEAR
68,1
61,9
10,0 %
53,9
46,9
32,1
O P E R AT I N G E A R N I N G S
165,8
147,7
12,3 %
96,4
70,6
50,6
EBIT
161,7
147,7
9,5 %
114,9
80,2
46,4
EBITD
259,8
201,0
29,3 %
172,8
168,7
112,9
INVESTMENTS
432,2
306,5
41,0 %
1.179,9
430,9
246,9
T O TA L A S S E T S
3.021,9
2.585,4
16,9 %
2.520,7
943,4
728,4
FIXED ASSETS
2.441,5
2.112,6
15,6 %
2.070,5
601,3
594,9
96,2
91,1
5,6 %
90,0
106,7
83,8
758,4
690,4
9,8 %
659,7
356,1
334,5
24,3
27,4
– 11,3 %
25,3
34,9
42,5
714
709
1,0 %
747
2.268
2.150
0,33
3,0 %
0,31*
0,29
0,27
FIXED ASSETS COVER % SHAREHOLDERS’ EQUITY E Q U I T Y R AT I O ( B O O K VA L U E S ) % Brüssel
Lissabon
Hamburg
EMPLOYEES DIVIDEND PER SHARE € * Excluding special dividend (€ 0.20 per share) ** Proposed
ANNUAL REPORT 2001 IVG Holding AG Zanderstraße 5/7 53177 Bonn Germany
Public Relations Telephone: +49 (0)228 / 844-300 Telefax: +49 (0)228 / 844-337 E-Mail:
[email protected] Investor Relations Telephone: +49 (0)228 / 844-137 Telefax: +49 (0)228 / 844-372 E-Mail:
[email protected] Internet: www.ivg.de
Passion for Real Estate.
F I G U R E S
0,34**
O V E R V I E W
2 0 0 1
p. 26
P O R T F O L I O M A N A G E M E N T
N E T I N C O M E P O S T- T A X P R O J E C T
€ million
p. 31
D E V E L O P M E N T
1996
N E T A S S E T VA L U E 16,33 in € je Aktie
E U R O P E
G E R M A N Y
7,92
p. 58
p. 38
S O U T H E R N
p. 54
G E R M A N Y
11,16 1.894,0
15,15
1996
1997
1998
1999
2000
2001
(Total € 1,013 thousand, Total investment € 385 million) E U R O P E
1996
1997
1998
1999
2000
p. 47
London 18 % Hamburg/ Düsseldorf 5 % München 9 %
R E A L E S TAT E H O L D I N G S AT M A R K E T VA L U E , B Y T Y P E O F U S E
(Total € 3,189,120 thousand)
Gewerbe, Logistik und Handel 9 %
Brüssel 12 % Paris 7 %
Businessparks 24 % Sonstiges 7 % Büro 62 %
Berlin 13 %
L E T T E R
T O
O U R
S H A R E H O L D E R S
p. 2
S T R AT E G Y
p. 6
D I V I S I O N A L
S H A R E S
p. 12
R E V I E W
p. 26
M A R K E T
R E P O R T S
I V G - F I N A N C I A L S
O F
T H E
S U P E R V I S O R Y
B O A R D
Frankfurt/ Hannover
Sonstiges 5 %
%
R E A L E S TAT E H O L D I N G S AT M A R K E T VA L U E , B Y R E G I O N
(Total € 3,189,120 thousand)
R E N TA L I N C O M E , B Y T Y P E O F U S E
(Total € 196,000 thousand without gas and oil storage)
Brüssel/Antwerpen/ Luxemburg 25 % Berlin/Dresden 13 %
R E P O R T
2001
* before deferred taxes and selling costs
P R O J E C T D E V E L O P M E N T, B Y R E G I O N
S O U T H E R N
5,55
W E S T E R N
W E S T E R N
2001
€
p. 51
E U R O P E
2000
15,91
5,27
A N D
N O R T H E R N
1.356,8
C E N T R A L
A N D
1.308,3
C E N T R A L
14,59
1999
9,22
15,73 14,07
1998
9,20
p. 64
1.845,0
G E R M A N Y
1.793,8
N O R T H E R N
1.408,5
A N D
1997
A V E R A G E M O N T H LY R E N T R E C E I V E D PER SQUARE METRE
€ million E A S T E R N
53,9
46,9
p. 35
F U N D S
32,1
E S TAT E
22,8
R E A L
61,9
68,1
p. 38
Sonstiges 6 %
p. 73
Frankfurt/Hannover/ Kassel 5 % Paris 11 %
p. 74
Businessparks 26 % Hamburg/ Düsseldorf 10 % London 6 %
Büro 60 %
Gewerbe, Logistik und Handel 12 % Sonstiges 2 %
München 21 %
O V E R V I E W
2 0 0 1
p. 26
P O R T F O L I O M A N A G E M E N T
N E T I N C O M E P O S T- T A X P R O J E C T
€ million
p. 31
D E V E L O P M E N T
1996
N E T A S S E T VA L U E 16,33 in € je Aktie
E U R O P E
G E R M A N Y
7,92
p. 58
p. 38
S O U T H E R N
p. 54
G E R M A N Y
11,16 1.894,0
15,15
1996
1997
1998
1999
2000
2001
(Total € 1,013 thousand, Total investment € 385 million) E U R O P E
1996
1997
1998
1999
2000
p. 47
London 18 % Hamburg/ Düsseldorf 5 % München 9 %
R E A L E S TAT E H O L D I N G S AT M A R K E T VA L U E , B Y T Y P E O F U S E
(Total € 3,189,120 thousand)
Gewerbe, Logistik und Handel 9 %
Brüssel 12 % Paris 7 %
Businessparks 24 % Sonstiges 7 % Büro 62 %
Berlin 13 %
L E T T E R
T O
O U R
S H A R E H O L D E R S
p. 2
S T R AT E G Y
p. 6
D I V I S I O N A L
S H A R E S
p. 12
R E V I E W
p. 26
M A R K E T
R E P O R T S
I V G - F I N A N C I A L S
O F
T H E
S U P E R V I S O R Y
B O A R D
Frankfurt/ Hannover
Sonstiges 5 %
%
R E A L E S TAT E H O L D I N G S AT M A R K E T VA L U E , B Y R E G I O N
(Total € 3,189,120 thousand)
R E N TA L I N C O M E , B Y T Y P E O F U S E
(Total € 196,000 thousand without gas and oil storage)
Brüssel/Antwerpen/ Luxemburg 25 % Berlin/Dresden 13 %
R E P O R T
2001
* before deferred taxes and selling costs
P R O J E C T D E V E L O P M E N T, B Y R E G I O N
S O U T H E R N
5,55
W E S T E R N
W E S T E R N
2001
€
p. 51
E U R O P E
2000
15,91
5,27
A N D
N O R T H E R N
1.356,8
C E N T R A L
A N D
1.308,3
C E N T R A L
14,59
1999
9,22
15,73 14,07
1998
9,20
p. 64
1.845,0
G E R M A N Y
1.793,8
N O R T H E R N
1.408,5
A N D
1997
A V E R A G E M O N T H LY R E N T R E C E I V E D PER SQUARE METRE
€ million E A S T E R N
53,9
46,9
p. 35
F U N D S
32,1
E S TAT E
22,8
R E A L
61,9
68,1
p. 38
Sonstiges 6 %
p. 73
Frankfurt/Hannover/ Kassel 5 % Paris 11 %
p. 74
Businessparks 26 % Hamburg/ Düsseldorf 10 % London 6 %
Büro 60 %
Gewerbe, Logistik und Handel 12 % Sonstiges 2 %
München 21 %
M I S S I O N
S TAT E M E N T
|
IVG is now one of Europe’s major listed real estate companies, with property worth some € 3.2 billion in eleven European countries. We pursue a clear strategy in our core activities of portfolio management and project development: Focus on commercial properties in selected major cities and European growth regions Exploitation of cyclical differences between European real estate markets Upgrading of the existing real estate portfolio Project development in line with user and market needs Combined with our value-driven corporate philosophy, this is a strategy for continued profitable growth.
p. 1
p. 2
|
L E T T E R
T O
O U R
S H A R E H O L D E R S
Core focus and European strategy paying off
Dear shareholders and friends of the company, With record earnings for the seventh year in succession, IVG has more than held its ground in the past financial year despite the fraught state of the economy as a whole. This is due in no small part to the strictly quality-driven, Europe-wide growth to which IVG owes
Seventh record year in sequence: Net income up 10% to € 68.1 million Total real estate assets up 8% to some € 3.2 billion
its outstanding competitive position. Operating earnings rose 12.3% in 2001 to € 165.8 million. Net income rose 10% to € 68.1 million. The good earnings position allows us once again to propose an increased dividend of € 0.34 per share for your approval at the
Shareholders to receive dividends of € 0.34 per no-par-value share
Annual General Meeting while retaining a suitable portion to reinvest for future growth.
New company name:
Active portfolio management increases value
IVG Immobilien AG
Our business is founded on letting out our portfolio worth € 3.2 billion. The rental income amounted to some € 196 million in 2001 excluding oil and gas storage caverns. Rents per square metre have doubled since 1997. In portfolio management, we broadened our future earnings base in 2001, primarily with purchases of top-quality properties in Brussels, Stockholm and Milan. We realized handsome gains on the sale of our Long Acre and Gran Vía properties in London and Madrid. In line with IVG’s focus on major European cities, we streamlined our portfolio in Belgium and France by selling properties in Antwerp and Sophia Antipolis. We serve the real estate needs of major companies throughout Europe, with new tenants in 2001 including the 17,000 m2 German headquarters of the global Universal Music group in Berlin. Earnings potential from project development IVG is currently engaged in development projects with a total value of some € 1.8 billion; its own share in these projects amounts to approximately € 1 billion. Out of this total, € 385 million has already been invested, half of which in projects that have already been sold. We made a healthy profit on our Leipziger
L E T T E R
T O
O U R
S H A R E H O L D E R S
|
p. 3
Dr. Dirk Matthey, Dr. Eckart John von Freyend and Dr. Bernd Kottmann in front of the new IVG headquarters building in Bonn.
IVG Immobilien AG Platz project in Berlin by selling the development
There is no question that IVG’s business performance
to an institutional investor before construction had
of the last few years makes it one of the most success-
even commenced. Our properties in Lisbon (Sony) and
ful former German state corporations to have under-
London (Gresham Street, which we sold to Lloyds TSB
gone privatization. After listing on the stock exchange
Bank in March 2001) received awards as outstanding
in a full flotation that was taken up by a broad inve-
development projects. In Paris, IVG will be undertaking
stor public, the company adopted a management hol-
future project development work in a joint venture
ding structure in 1996 to guarantee flexibility and clo-
with the international AXA insurance group. IVG is
seness to market for our highly diversified group. The
continuing to bid as part of a high-calibre consortium
holding structure is no longer necessary. IVG is a pure-
for privatization of the Berlin airports system and con-
play real estate company with a new, efficient organi-
struction of the new Berlin Brandenburg International
zational structure. Accordingly, we will be proposing a
Airport.
motion at the Annual General Meeting to change the company name to ”IVG Immobilien AG”.
IVG shares: Sound asset base with earning power
A highly committed team
Shares in IVG are an attractive investment, especially
IVG's excellent performance is largely due to the hard
for investors with a long-term horizon. Since the end
work and commitment of our highly qualified and
of 1997 – when IVG began focusing on commercial
motivated employees, to whom we extend our thanks
property and European markets – the dividend-adju-
and recognition. We anticipate earnings growth to
sted share price has risen by almost 75%, clearly out-
continue in the current financial year. We will conti-
performing Germany’s DAX and MDAX. The decline
nue to work as a team to raise the earning power and
in the share price during 2001 stands in contrast to the
value of your company. Europe offers many opportuni-
fundamental performance of IVG. We are confident
ties for us to realize this goal.
that the quality of our business will once again be reflected in the price of IVG shares on a sustained basis.
Eckart John von Freyend
Yours sincerely,
Bernd Kottmann
Dirk Matthey
S U C C E S S F U L I M P L E M E N TA T I O N O F O U R B U YA N D - S E L L S T R A T E G Y . C O V E N T G A R D E N is a
lively location that over the last two decades has become a major tourist attraction full of upmarket restaurants, fashionable clothes outlets, arts and crafts markets and almost non-stop street entertainment. Until last year, IVG owned 62.5% of a Covent Garden office property built in 1982. When we put the building on the market, highly effective upgrading, extended tenancy agreements and P R O M I N E N T N E W T E N A N T S like Cable & Wireless gave a
London real estate company ample reason to buy. The outcome for us was a foregone conclusion: we stood to realize a handsome profit on the sale. A 3 8 % V A L U E G A I N in the space of only three years delivers positive proof of our successful buy-and-sell strategy.
London, Long Acre This unusual building was successfully sold in 2001.
p. 6
|
S T R AT E G Y
We manage our portfolios around Europe with a passion for real estate and aim for profitable growth in this core business.
C O M M E R C I A L
R E A L
E S T A T E
I N
E U R O P E
Real estate has a long tradition in Europe: as an inflation-proof investment, as an architectural witness to history, and of course as the buildings in which we work and live. By professionally managing real estate, we create value for our shareholders. Focus IVG focuses on: . Office properties, business and technology parks, and logistics real estate . Major European cities and growth regions . Portfolio management and project development Success in the real estate business is achieved by combining local expertise and market knowledge with global financing and control strategies. Our key strength lies in systematically matching these two components: we manage and control capital risk exposure in real estate ownership – for our own portfolio and for others. Value growth and stability We increase the value of our real estate assets by: . Letting: Within market constraints, we set the duration of tenancy agreements to take best advantage of local growth prospects and to fit in with the term structure of the portfolio as a whole. Our letting business also includes modernization in line with demand. In this way, we continuously adapt our real estate to changing needs and optimize its earning power.
S T R AT E G Y
|
p. 7
Sharp focus: Commercial real estate in major European cities and growth centres Value growth through active portfolio management: Letting, modernization and marketdriven buy-and-sell strategy Attractive earnings opportunities from project development
. Active buy-and-sell strategy: We obtain attractive purchase prices by acquiring and restructuring major portfolios. This allows growth from a low base, either by buying properties on the open market or by corporate acquisitions – as with the takeover of the Asticus real estate company. We make use of cyclical differences between the real estate markets in major European cities when buying and selling properties. We can thus immediately follow
Combination of global financing and investment control with local market expertise
up a sale in a mature market with an acquisition in a particularly promising location elsewhere. . Project development: IVG develops new high-yield properties on newly acquired and portfolio sites. Project development provides us with substantial
Profitable growth in European real estate markets set to continue
extra earnings leverage. IVG likes to achieve major projects in cooperation with highly reputable partners. We can thus undertake larger, more complex projects that offer good earnings opportunities with limited capital outlay. With our activities in different markets, we create lasting sources of revenue that are cyclically offset to achieve a stable cash flow for IVG overall.
p. 8
|
S T R AT E G Y
Global investmentcontrol IVG has invested over € 2.3 billion in real estate since 1997. We secure lasting increases in our return on capital employed by requiring specific minimum rates of return when assigning funds. In portfolio business, the cash flow return on investment (CFROI) must be between at least 5% and 10% depending on the nature of the investment. Development projects must yield between 10% and 20%. Risk control through growth on familiar territory We aim to achieve further growth primarily in the European regions where IVG already has branch offices. This allows us to make particularly effective use of our risk-minimizing combination of local market knowledge with global financing and control capabilities.
Brussels, Sweden House IVG acquired this centrally located building as part of a share deal in 2001.
S T R AT E G Y
Customer satisfaction The stability of our earnings is strongly dependent on tenant loyalty. The true value of a property is not measured in tons of concrete; it reflects the quality of the tenant portfolio. As buildings are increasingly acknowledged as a key production factor, real estate concepts are increasingly defined by tenants’ exacting requirements. Customer satisfaction is thus a high priority for IVG. Our local customer relationship managers offer individually tailored services based on global quality standards. For example, IVG tenants can obtain special purchasing terms with the IVG Value Card. Organizational flexibility Creativity, flexibility and transparency are major factors in achieving our strategic goal of profitable growth while working directly with discerning tenants. We thus consider it crucial for IVG to remain a fast-learning organization capable of fast response to changing market challenges. At the end of 2001 we strengthened the operating responsibilities of our local branch offices while more tightly integrating cross-sectional functions such as controlling and investment management. The resulting extra boost in market focus is aided by ongoing refinement of our management information system, cooperation in market research with international real estate brokers Healey & Baker, and continuous training for IVG employees in both job knowledge and social skills. Broad access to the capital market IVG currently owns properties worth some € 3.2 billion in eleven European countries. It also has stakes worth some € 1 billion in development projects. This is the solid business foundation on which we will continue to build. Competition for equity capital nowadays transcends sectoral and geographical boundaries and exclusively centres on yield/risk profiles. This makes financing additional growth one of the greatest challenges facing any capitalintensive firm. We will continue to finance investment out of our own cash flow supplemented by borrowing. The current average rate of interest on capital borrowed by IVG is well below the rate of return on our portfolio; debt finance thus helps to create value.
|
p. 9
Budapest, Andrássy út
H I S T O R I C A L F L A I R I N T H E ” PA R I S O F T H E E A S T ” . Its picturesque location on the Danube and impo-
sing turn-of-the-century architecture make Budapest one of the world’s most beautiful cities. Entire streets in this ”Paris of the East” have been designated part of the World Cultural Heritage. A stroll down Andrássy út – A G R A N D L Y P R O P O R T I O N E D B O U L E V A R D and a fitting counterpart to
the Champs-Elysées – resembles a journey back through centuries past: carefully restored old-style and neo-renaissance palaces, almost every last stone of which is protected by law. Working with painstaking attention to detail, IVG has given back these art-nouveau gems their historical flair. The result is highly popular among tenants: With some 7 , 7 0 0 M 2 of exclusive office space adorned by lovingly reclaimed frescoes, the F O R M E R P O L I C E Q U A R T E R S is now home, among others, to Budapest Bank and ARAG.
p. 12
|
S H A R E S
IVG shares allow investors to take a stake in a high-quality pan-European real estate portfolio worth some € 3.2 billion.
S H A R E S
I N
I V G
The downturn in the world’s major stock markets that had begun a year earlier continued into 2001. The main causes of the downward trend in share prices were the recessionary climate and the accompanying drop in corporate profits in the USA. Uncertainty regarding the future after the terrorist attacks of 11 September compounded the situation. Despite a slight recovery beginning in the fourth quarter of 2001, all major international share indices took a sharp knock overall, with the Dow Jones down some 3% and the EuroStoxx 50 losing 17% by the close of 2001. The European stock markets were unable to break away from the American trend. The downward adjustment in prices affected all sectors of the market, German real estate shares included. The EPRA Germany index, which tracks the performance of German real estate shares, fell by 12%, although the EPRA Total Return index representing Europe’s major listed real estate companies was only down by 0.5% over the year. This mainly reflected the good performance of Dutch and French real estate shares.
IVG Investor relations team
S H A R E S
| p. 13
IVG'S SHARE PRICE % 200
150
100
IVG DAX
50
EPRA Total Return Index
0
– 50 2.1.1998
15.1.1999
4.2.2000
23.2.2001
Quelle: Bloomberg
IVG shares: Share price performance IVG shares were unable to break free from the general stock market trend. After a good start with marked gains at the beginning of the year, the IVG share price moved sideways with fluctuations confined to a narrow band. The price of IVG shares dropped markedly in line with the international stock markets following the events of 11 September. Year-on-year, the IVG share price (dividend-adjusted) fell by just under 16% (DAX: down 18%). The decline stands in contrast to the fundamental performance of IVG. The profitable core growth and the strong momentum within the company are well evidenced in the doubling since 1997 of a number of key performance indicators such as investments, earnings after taxes, operating earnings, rental income and rents per square metre. Share prices can temporarily diverge from the fundamental performance of a company. In the medium and long run, however, the quality of our business will come out in the price of its shares. Shares in IVG are an attractive investment, especially for investors with a long-term horizon. Since the end of 1997 – when IVG began its systematic focus on commercial property and European markets – the (dividend-adjusted) share price has risen almost 75%. It has thus performed significantly better than the DAX, MDAX and EPRA Total Return, which rose by only 25%, 20% and 45% respectively.
15.3.2002
p. 14
|
S H A R E S
DIVIDEND PER SHARE € 0,34
0,26
1996
1997
1998
1999
2000
2001
* Excluding special dividend (€ 0.20 per share) ** Proposed
IVG shares: Sound asset base with earning power IVG shares allow investors to take a stake in a high-quality pan-European real estate portfolio worth some € 3.2 billion and containing substantial development reserves, as well as an attractive project development portfolio. Shareholders profit from long-term value and yield management with increasing rental income as we upgrade our real estate portfolio, from additional cash flows and profits generated by active buying and selling, and from special earnings opportunities generated through project development with strict risk control. Systematic investment in top-quality properties located in major European cities further broadens the basis for future earnings and creates additional upward potential. IVG shares thus combine a sound asset base with attractive growth prospects. Liquidity and market capitalization IVG is in all major international real estate share indices, including EPRA, EPRA/NAREIT and GPR 250, and is also included in Germany’s MDAX, a mid-cap index comprising the 70 largest German quoted companies not in the DAX 30. IVG now ranks 24th in MDAX by market capitalization and 37th by trading volume. IVG shares have thus gained five places in terms of liquidity and six places in terms of market capitalization over the last year. From January to December 2001, an average of 63,000 IVG shares changed hands every day. Of this total, 67% was traded on the Xetra electronic trading system, 30% on Frankfurt Stock Exchange and 3% on the remaining German stock markets. Good liquidity is an important criterion for any investment in shares. Dresdner Bank, IVG’s designated sponsor on the Xetra electronic trading system, further boosts the liquidity of IVG shares by setting binding bid/ask limits.
S H A R E S
| p. 15
R E C O N C I L I A T I O N O F D V F A / S G * E A R N I N G S T O N E T I N C O M E € ,000
Consolidated net income for the year Adjustments for consolidation changes Adjustments to assets Adjustments to depreciation periods or methods (claw-back effect) Other adjustmets Adjusments to liabilities Special tax-allowable reserves Other adjustmets DVFA/SG* consolidated earnings for the entire Group Minorities’ share of earnings/losses Share of parent company shareholders in DVFA/SG* consolidated earnings Number of shares outstanding (thousand) DVFA/SG* earnings per share (€)
* See below
Resolutions of the Annual General Meeting The Annual General Meeting in May 2001 granted the company the power to buy back its own shares by 29 November 2002 up to a maximum of 10% of the capital stock. As this authorization is due to expire, a proposal will be submitted at the Annual General Meeting on 23 May 2002 to approve a new share buy-back scheme to run over 18 months. This will give IVG the flexibility to adjust its equity base in line with business needs and to take advantage of favourable situations on the stock market. Repurchased shares can be used as currency to acquire stakes in companies and to provide for subscription rights under the stock options scheme operated by IVG. IVG made no use of the buy-back authorization in 2001. Dividends The Board of Management and the Supervisory Board will be submitting a proposal at the Annual General Meeting to pay out an increased dividend of € 0.34 per share for the 2001 financial year. The total amount paid out in dividends will be € 39.44 million. This puts the dividend yield at 3.16%. DVFA/SG earnings The DVFA/SG earnings figure shows the year's earnings with extraordinary influences stripped out. It additionally includes book profits realized on property sales in Germany; while these are an essential component of our normal business operations, they are neutralized in net income by applying special depreciation allowances as provided by Sec. 6b of the German Income Tax Law (EStG). DVFA/SG earnings are down on the previous year because IVG postponed sales of real estate in Germany in view of the new tax framework.
2001
2000
68,106 – 2,800
61,901 – 5,624
21,265 7,949
– 2,434 9,500
– 33,998 4,882 65,404 1,479 63,925 116,000 0.55
14,638 6,842 84,823 591 84,232 115,300 0.73
p. 16
|
S H A R E S
I V G S E C U R I T I E S D ATA € Per share
No. of shares at year end (million) Market capitalization (€ m) (based on year-end price) Year’s highest price Year’s lowest price Year’s closing price DVFA/SG earnings*** DVFA/SG cash earnings*** Dividend per share Total dividend distribution (€ m) Dividend yield (year-end share price) (%) Price/earnings (P/E) ratio (year-end share price) MDAX P/E DAX P/E
1993
1994
1995
1996
1997
1998
1999
2000
2001
72
78
78
93
93
93
114
116
116
819 12.35 6.82 11.37 0.21 0.76 0.20 14.73 1.76 54.1 17.9 16.4
691 11.30 8.50 8.85 0.36 0.82 0.22 17.28 2.49 24.6 20.2 20.5
622 9.52 7.23 7.97 0.39 0.94 0.24 18.61 3.01 20.4 18.4 16.0
750 9.47 6.98 9.00 0.32 0.77 0.26 20.91 2.89 28.1 14.9 15.6
731 10.65 7.68 7.87 0.45 1.21 0.27 25.36 3.43 17.5 17.3 17.2
1,300 15,08 7,35 13,97 0,52 1,24 0,29 26.95 2.08 26.9 16.7 20.9
1,761 18.86 12.94 15.45 0.62 1.17 0.31 * 35.34 * 2.01 24.9 22.4 30.2
1,507 15.35 12.55 12.99 0.73 1.40 0.33 38.28 2.54 17.8 18.7 20.4
1,247 15.80 9.40 10.75 0.55 1.06 0.34** 39.44 3.16 19.5 17.5 30.0
* Excluding special dividend (€ 0.20 per share) ** Proposed *** see p.15
Pattern of shareholdings WCM Beteiligungs- und Grundbesitz AG gave notice in an ad-hoc announcement on 12 November 2001 that it had increased its stake in IVG shareholder SIRIUS Beteiligungsgesellschaft mbH to 87%. SIRIUS continues to own 50% of IVG minus one share and is thus our largest shareholder. IVG’s free float remains at 50.1%. Stock options The IVG stock options scheme aims to create performance incentives that are tied to gains in the value of the enterprise. IVG once again operated a stock options scheme for senior management in 2001 and issued entitlements to purchase a total of 410,497 shares. The exercise price of € 14.127 per IVG share represents the average closing price over the ten days of trading on Frankfurt stock exchange immediately following the Annual General Meeting in 2001. The options mature after seven years. The subscription rights under the stock options scheme cannot be exercised before expiry of a three-year blocking period. Employee share ownership As an additional means of boosting value awareness, we systematically encourage employees to become shareholders in our company. Our employees were once again able to purchase IVG shares at a discount as part of the IVG VALUE programme in the past year. IVG grants an interest-free loan to cover part of the purchase price. After two years, participating employees have the choice of either retaining the shares and repaying the loan from their own funds or of selling a portion of their shares to cover the loan. Take-up of the IVG VALUE programme remains high.
S H A R E S
Investor relations Investor relations activities form an integral part of our value-driven corporate philosophy. We actively communicate information on value growth and future value-creating potential on a comprehensive and timely basis. Our goal is to provide shareholders, potential investors, financial analysts and banks with the fullest possible information. We provide them with all the data they need to make a well-founded judgement of the value of IVG shares. Quarterly and segmental reports, analysts’ conferences, road shows and one-to-one meetings are integral to our investor relations activities. We have stepped up these activities considerably over the past year, with a marked increase in the number of presentations both in Germany and abroad. In March we presented our company to the financial community in Paris. In spring and summer, IVG held road shows in London and Amsterdam. We also took the opportunity to present IVG at property conferences organized by Morgan Stanley Dean Witter and UBS Warburg in London, specifically targeting investors and analysts who focus on real estate. IVG is already a regular guest at the German Mid Cap Conference (GMCC) in Frankfurt. We were once again able to gain substantial additional research coverage for IVG in 2001. International investment banks like HSBC, Credit Suisse First Boston and Credit Lyonnaise have added IVG to their analysis. More than 20 international banks now report on IVG. Numerous positive investment studies on IVG appeared over the course of the year. We also expanded our investor relations activities for private investors in 2001. Our web site (www.ivg.de) has been well frequented and many have taken the opportunity to contact us by e-mail (
[email protected]).
STOCK SYMBOLS
Reuters
IVG F
Bloomberg
IVG GR
WKN
620 570
ISIN code
DE 0006205701
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S H A R E S
As part of our drive to raise public awareness regarding share ownership and shareholder communication, we are active in the Deutscher Investor Relations-Kreis (DIRK) and the Deutsches Aktieninstitut (DAI). IVG is also a Corporate Member of the German Society of Investment Analysts and Asset Managers (DVFA), and is a member of the DVFA Efficient Communication Commission and the Real Estate Companies Subcommittee of the DVFA Methodology Commission. In keeping with our position as a pan-European real estate company, we have joined forces with Bau-Verein zu Hamburg, Deutsche Euroshop and Deutsche Wohnen to launch ”Initiativkreis Immobilien-Aktie” – the Real Estate Shares Initiative. The initiative aims to raise awareness of real estate shares among investors, banks and the public. On 26 and 27 September 2001, the initiative held a conference on real estate shares in Frankfurt to great acclaim, attracting over 100 investors, analysts, journalists and asset managers. IVG is also active at European level in the European Public Real Estate Association (EPRA), where it has a place on the Management Board and in the Best Practices Committee covering real estate shares and the publicly quoted real estate sector. Providers of outside capital are an important focus group for our information policy. Accordingly, we have substantially expanded our credit relations work in the past year. In spring 2001, we presented our company to capital backers at a credit road show in Frankfurt. We will continue to build upon our investor relations and credit relations activities for all investor groups.
Madrid, Gran Vía This centrally situated office building was sold at a profit in 2001.
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S H A R E S
A D D I T I O N A L D I S C L O S U R E S R E Q U I R E D B Y E P R A The European Public Real Estate Association (EPRA) is an industry association of publicly quoted European real estate companies. Its 100-plus members also include many of the leading banks, investors and auditing firms. One of the tasks of this major industry lobby is the international harmonization of reporting standards. IVG is an EPRA member and supports this harmonization process. The majority of the information required by EPRA for international comparison purposes appears in IVG's annual financial statements. Please see www.epra.com for details of the Best Practices Recommendations. Additional disclosures required by EPRA: . Net asset value . EPRA income presentation . Risk management policies
N E T A S S E T VA L U E € m 2001
Market values Logistics assets and project development Current assets (excluding own shares)* Financial assets** Other assets Total assets Liabilities Capitalized leasing costs/other liabilities Provisions Deferred income Total borrowing Net Asset Value NAV per share (€) EPRA net asset value Deferred taxes (going concern) Selling costs NAV (going concern) (€) NAV per share (going concern) (€)
* Net of assets already included in the market values ** Net of companies whose real estate holdings are already included in the market values
3.189,1 292,3 551,0 167,6 11,5 4.211,5 2.072,5 75,0 152,1 18,0 2.317,6 1.894,0 16,33 48,3 35,4 1.810,3 15,61
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S H A R E S
Deferred taxes on hidden reserves The going-concern value incorporates deferred taxes and selling costs discounted over 25 years at a discount rate of 8%. It is additionally assumed that book gains on sales of German properties can be transferred to newly acquired properties under Sec. 6b of the German Income Tax Law and thus remain untaxed. Development assets Development projects are recognized at their discounted contribution margin. The discount rate used is 15%. Fair market value of real estate assets The real estate portfolio was valued, for the most part by independent experts, as at 30 September 2001. The valuations were performed in Germany by PriceWaterhouseCoopers, in Spain and Portugal by CB Richard Ellis, in Belgium by DTZ Wissinger and King Sturge, in France by GVA Alban Cooper and Jones Lang LaSalle, in the UK by FPD Savills, and in Italy by REAG. German properties are valued by the investment method as usually practised in Germany; most properties outside Germany are valued on the basis of the RICS Appraisal and Valuation Manual published by the Royal Institution of Charted Surveyors (”Red Book”). The properties acquired by IVG during 2001 in Geneva, Budapest and Stockholm are carried at purchase price plus incidental costs. Valuation of real estate in Germany Under the investment method as practised in Germany, the gross rental value for the period is first calculated from the rental income obtainable in the long term. Running costs that cannot be charged on to tenants are then deducted to arrive at a net rental value. The net rental value is made up of a land component and a building component. The land component is the value of the land multiplied by a fair market interest rate (”land” interest rate). The land value is based on purchase prices for comparable plots or on guidance tables. The building component is the net rental value minus the land component. The building component is capitalized over the building’s remaining useful life at the ”building” interest rate, yielding the building value.
S H A R E S
If the actual rental income under the tenancy agreements in force on the valuation cut-off date deviates from the rental income obtainable in the long term according to the expert appraisal, the difference is recognized by marking up or marking down the investment value for the probable duration of the deviation. Finally, the land is added in to obtain the investment value. Valuation of real estate abroad The actual net rent (gross rent less running costs that cannot be apportioned among tenants) is ascertained for each tenancy agreement. The net rent is capitalized as an annuity up to the estimated date of the next rent adjustment. Rent adjustments are accounted for at the estimated rental value on renewal and are capitalized as a perpetuity after deduction of running costs and incorporated into the valuation.
Brussels, North Gate This ultra-modern office building near Gare du Nord is home to various Belgian ministries.
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S H A R E S
E P R A I N C O M E P R E S E N TAT I O N € m 2001
Gross rental income Gains on sales of real estate Unrealized gains on revaluation of property investments Total revenues from property investments Earnings from development activities Earnings from real estate management Earnings from other operating activities Total revenues Property operating expenses Personnel expenses Other expenses Depreciation Expenses Net operating income Net income on ordinary activities before finance costs Net interest payable Net income before tax Income tax Deferred income tax on revaluation gains Net income (including unrealized gains and deferred tax) Net income per share (including unrealized gains and deferred tax)
211.9 50.2 24.2 286.3 57.5 57.6 120.5 521.9 85.8 48.3 103.8 94.0 331.9 190.0 190.0 – 88.4 101.6 9.3 7.5 84.8 0.73
Risk management policies Derivatives As an internationally operating company, IVG is exposed in its operational business to risk from changes in exchange rates and interest rates. Systematic use is made of derivative financial instruments to reduce this risk. The Group Treasury makes exclusive use of marketable instruments with adequate market liquidity for this purpose. When using derivative financial instruments, IVG is also exposed to the risk of counterparty default. In view of this, contracts are entered into solely with major European banks of immaculate credit standing. The use of derivative instruments is subject to uniform internal guidelines and strict controls. Derivative financial instruments are used exclusively to hedge risks in connection with specific underlying transactions. Together with the corresponding hedged item they form an integrated valuation unit. Gains and losses on the hedge and the hedged item are offset and are highly likely to cancel each other out so that the valuation unit is risk-neutral for IVG.
S H A R E S
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Currencies Foreign-currency positions arising through investments in non-euro countries are matched by refinancing in the same currency. Unmatched foreign-currency positions and exchangerate risks are thus avoided at Group level. Interest rate exposures and loan maturities Interest rate exposures and loan maturities are geared to the investment portfolio, reflecting the long-term nature of most investments in real estate. In this way we achieve congruence in both interest rate exposures and loan maturities. Active management of our portfolio on the basis of our buy-and-sell strategy results in short-term cash flows over periods of less than twelve months and hence in a relatively minor exposure (in terms of total volume) that is purposefully financed on a short-term basis. Calculated over the entire year, the earnings effect of a 1% change in interest rates would be approximately € 1.5 million.
Paris, Place Vendôme IVG owns this attractive office building in one of the finest parts of Paris.
London, Gresham Street
A ”PEARL” IN THE HEART OF LONDON’S B A N K I N G D I S T R I C T . When Sir Thomas Gresham
founded the Royal Exchange in 1567 – now London Stock Exchange and one of the most important trading establishments in the world – he could hardly have foreseen that a street named in his honour would one day be the top address for financial service firms from all over the world. Here on Gresham Street, in the midst of the closely built F I N A N C I A L D I S T R I C T with such venerable institutions
as the Guild Hall and the Bank of England, Architect Nicholas Grimshaw has created an A R C H I T E C T U R A L T O U R D E - F O R C E on behalf of IVG. Planted terraces lead up to
the building, extend beyond the glass frontage and continue upwards to the roof through the entire height of the atrium. When it is completed in summer 2002, the free-standing edifice will offer 1 1 , 0 0 0 M 2 O F F I R S T - C L A S S O F F I C E S P A C E on ten floors. Lloyds Bank purchased the
building for its new headquarters in mid-March.
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D I V I S I O N A L
R E V I E W
IVG’s portfolio management activities comprise managing our portfolio consisting of € 3.2 billion-worth of real estate in Europe’s major cities. Our success in this business is largely achieved by combining global strategic functions local branch offices.
P O R T F O L I O M A N A G E M E N T Our objective in global portfolio management is to achieve lasting yield and value growth across the entire portfolio. Accordingly, this is the level at which investment, divestment and the associated financing decisions are made as part of our European buy-and-sell strategy, and where we decide about major modernization work on properties in the portfolio. Other global activities in this connection also include multi-site tenant services provided by central customer relationship management to guarantee customer satisfaction in all regions. IVG’s eleven regional branch offices perform local property management, carry out modernization work, look after tenants and ensure that properties are re-let. In this way, aided by their proximity to local markets, the branch offices optimize our existing portfolio of real estate properties. Our branch offices also have a regional network that furnishes IVG with attractive real estate investment and divestment opportunities. The 2001 financial year was a year of selective investment in top-quality European office properties and business and technology parks, further development and upgrading of the real estate portfolio, and profitable sales.
R E A L E S T A T E P O R T F O L I O T O T A L : Monthly rent per m2 Tenancies with monthly rents from/to
15 €
Rental income
%
4.8
25.0
25.1
45.1
Rental income
€ ,000
729.8
3,854.4
3,873.2
6,957.8
%
24.3
37.3
23.3
15.1
Let space
D I V I S I O N A L
Buy-and-sell strategy In our buy-and-sell strategy, we take advantage of market cycles and emerging opportunities to rearrange our portfolio, buying as markets begin to rise or when a good opportunity presents itself and exploiting periods of high prices and good sale opportunities to make disposals. Cyclical differences between markets within Europe allow us to invest and divest on an ongoing basis. Acquisitions in the 2001 financial year included: . Headquarters of the Vattenfall energy group, Stockholm . Office building in Cernusco sul Naviglio, Milan (bought at low price in compulsory auction) . Office building on Rue de Lausanne, Geneva (debt purchase) . Office building on Rue de Luxembourg, Brussels (share deal)
Paris, Place de la Madeleine IVG has owned this elegant office and commercial property in the midst of the Centre Financier since 1997.
R E V I E W
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D I V I S I O N A L
R E V I E W
I V G T E N A N C I E S B Y E X P I R Y D AT E
€ m / year 106,2
24,9
2002
17,7
12,4
10,4
15,7
2003
2004
2005
2006
2007 ff.
Sales of properties enabled us to realize value gains optimize the portfolio. Examples of sales from the portfolio: . Office building on Long Acre, London (62.5%) . Office building on Gran Via, Madrid . Four office buildings in Brussels and Antwerp . Two complexes in the Sophia Antipolis Technology Park, southern France Portfolio upgrading Our upgrading strategy involves the ongoing development of sites already in the portfolio – modernizing buildings, redeveloping built sites and developing unbuilt ones. We invested some € 100 million in work of this kind in the 2001 financial year alone. Major projects included: . First construction phase (10,000 m2) of the Global Gate development in Düsseldorf completed and fully let . Full modernization of the Soho Square office building in London . Ongoing upgrading of the IVG business and technology parks The IVG business parks in Düsseldorf, Hamburg and Dresden are located in the immediate vicinity of airports. The remainder are only a few minutes’ drive away from the nearest airport. All belong to the global ‘it-parcs’ network of business parks, which was co-initiated by IVG and Deutsche Telekom.
D I V I S I O N A L
Some milestones in upgrading IVG business parks during the 2001 financial year: . Commencement of construction work on a 20,000 m2 office and production facility for Bosch Telecom in the TIP business park outside Munich . Construction of a research complex for the Fraunhofer Institute for Integrated Circuits and the Institute for Manufacturing Automation and Production Systems at the University of Erlangen-Nuremberg, plus a further office property and an infrastructure building on the Nuremberg Nordostpark development . Preparatory work on the central area of the business park at Düsseldorf Airport for an additional 36,000 m2 of office space in four buildings. Customer relationship management Besides upgrading and enlarging its properties to increase their value, it is important for IVG to raise customer satisfaction among tenants by providing a full range of high-quality services. Our tenants can obtain services from well-known companies at preferential rates as part of our IVG Value Service.
Berlin, Leibnizkolonnaden IVG has developed top-quality apartments and offices in the immediate vicinity of Berlin's Kurfürstendamm.
R E V I E W
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D I V I S I O N A L
R E V I E W
Logistics real estate In addition to office properties and technology and business parks, IVG's portfolio management activities focus on logistics-oriented specialized properties. These primarily consist of storage and transhipment facilities used mostly by the petroleum and gas industry. The largest storage facility operated by IVG is the Etzel caverns complex in Lower Saxony. The subterranean caverns can store some 500 million m3 of gas and some 13 million m3 of crude oil. Our logistics real estate activities also extend to tank farms. In this field, IVG owns storage facilities with a total capacity of just under 800,000 m3. A tank farm in the industrial district around Katowice in southern Poland was completed in 2001. The facility is used by international petroleum companies and is operating at full capacity. The oil and gas storage caverns are owned in part by the German federal government and in part by IVG. Portfolio management business performance The earnings growth of recent years continued through 2001 with successful letting activity and profitable sales. Turnover grew 7.2% to € 269.5 million, € 196 million of which comprised rental income (excluding oil and gas storage caverns). An even stronger increase was achieved in total operating performance, which in 2001 includes book gains on disposals of properties in London and Madrid and rose 19.9% to € 401.2 million (2000: € 334.7 million). Operating earnings increased accordingly, by over € 40 million to € 197.1 million. Under our buy-and-sell strategy, the disposals were offset by investment to acquire new properties and modernize the portfolio. At some € 381.3 million (including logistics), investment spending was almost treble the previous year's figure. Investment activity, value gains and disposals raised the value of IVG real estate by 8% (net) to € 3.189 billion.
Stockholm, Vattenfall Sold and leased back by the Swedish energy utility.
D I V I S I O N A L
P R O J E C T
R E V I E W
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D E V E L O P M E N T
IVG has many years of experience and expertise in developing its own properties and in project development for third parties. We focus on projects in European growth regions; the most important project locations are currently Frankfurt, Berlin, Munich, London, Paris and Brussels. Such projects mostly involve office buildings, followed by business parks, logistics properties, and large-scale projects for the rededication or development of inner-city sites, for example to revitalize centrally located former industrial land. IVG is currently engaged in development projects with a total value of some € 1.8 billion; its own share in these projects amounts to approximately € 1 billion. Out of this total, € 385 million has already been invested, half of which in projects that have already been sold. IVG project development follows clear strategic business principles: . Project development must not exceed one third of the value of the real estate portfolio. . Ongoing development projects are monitored by an additional, global project controlling system and are subject to continuous risk assessment, the results of which are taken into account in the annual financial statements. . The criteria that apply for investments in our own portfolio must also be satisfied by development projects. In particular, this means adequate levels of pre-letting.
Berlin, Leipziger Platz IVG is developing and has already sold this 11,000 m2 office building in the heart of Berlin, between Potsdamer Platz and the government quarter.
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D I V I S I O N A L
R E V I E W
R E A L E S TAT E D E V E L O P M E N T P R O J E C T S Place
Project
Type of use
Lettable space m2
Due for completion
IVG share
Progress
Status
Berlin Berlin Berlin Berlin Düsseldorf Frankfurt Frankfurt Frankfurt Hamburg Hamburg Hanover Fürth Munich Nuremberg Nuremberg Paris Paris Milan Lodz London London Brussels Budapest
Dorotheenstr. 33–37 Leipziger Platz 9 Niederlehme; Liepnitzenberg Salzufer 6–8 Global Gate, Phase 2; Grafenberger Allee AIRRAIL; Frankfurt Airport Airbizz; Frankfurt Airport ComConCenter; Goldsteinstr. 235 Glinde; An der Möllner Landstraße Glockengießerwall 19 Lilienthal Centre, Ph. A–F; Kugelfangtrift City Limit Fürth; Waldstraße New Bosch Telecom building; Ottobrunn New research centre; Nordostpark Buildings 32–34; Nordostpark M1H; Avenue de France Perisud; Rue Edmond Rolland Centro Edilmarelli; Sesto San Giovanni Lodz Shopping Centre; Aleja Pilsudskiego Gresham Street 29 Soho Square 20 Madou Tower; Madou Plaza Infopark, Buildings B and I
Office 8.310 Office, retail a. residential 11.831 Site development Office a. site development 81.951 Office 12.614 Office, hotel a. retail 116.012 Office a. cargo 29.919 Office a. site development 68.200 Site development Office 3.004 Office a. logistics 14.456 Retail 22.198 Office 20.508 Office 9.400 Office 6.294 Office a. retail 12.695 Office a. retail 33.740 Office 16.512 Retail 39.847 Office 10.976 Office 5.643 Office 41.500 Office 18.803
2001/2002 2003 2004 2005 2003 2005 2003 2005 2002 2003 2002 2002 2003 2002 2002 2003 2003 2002 2002 2002 2002 2004 2002
50% 100% 47% 32% 100% 31% 80% 48% 100% 100% 100% 95% 100% 100% 100% 30% 30% 45% 33% 100% 100% 100% 100%
Part finished Under const. Preliminaries Under const. Under const. In planning In planning Under const. Complete Under const. Under const. Under const. Under const. Under const. Under const. Under const. Under const. Under const. Under const. Under const. Under const. Under const. Under const.
Sold Sold Partly sold Partly sold For portf. Letting For portf. Letting Partly sold Sold For portf. Letting For portf. For portf. For portf. Letting Let Letting Letting Sold Letting For portf. For portf.
Total lettable space 100% in m2 Total value 100% (€ m) IVG share of total value (€ m) IVG share of total value (%) Portion of IVG share sold (€ m) Total current IVG investment (€ m)
584.413 1.848 1.013 55 189 385
. Prior investment appraisal for all projects is backed by external market analysis in conjunction with in-house research by our branch offices. . The greatest possible certainty regarding costs is obtained by working with highly capable general contractors. . The total return on capital employed must be between 10% and 20% depending on a project’s location type of use and degree of advancement. The IVG portfolio contains a development reserve comprising more than 750,000 m2 of gross floor area.
D I V I S I O N A L
R E V I E W
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This forms an essential part of the IVG project development strategy. Management and implementation are carried out jointly with IVG affiliate TERCON Group and associates Wert-Konzept and CI Projektmanagement. In line with our strategic focus, we also develop projects in partnerships and joint ventures. Current partnerships include AXA, Bilfinger & Berger, ECE, and Deutsche Bank. Milestones in the 2001 financial year included the commencement of work on new projects and the continuation and completion of existing developments. Major projects include (see the Project Development table and the Markets section for further information): . The largest project development package is our joint venture with AXA Real Estate Investment Managers (AXA REIM). Projects will be developed in Greater Paris with a total value of some € 800 million by 2007 . Preparatory work on modernizing and simultaneously extending the former Madou Tower in Brussels to become Madou Plaza . A particularly spectacular individual project is the AIRRAIL airport city above the ICE long-distance rail station at Frankfurt Airport . An architectural highlight in London’s Square Mile is the Gresham Street project. This free-standing building is being erected from plans by the renowned British architect Nocholas Grimshaw . At a prominent historical location in the heart of Berlin, the Leipziger Platz project is taking shape with offices, retail space and apartments
Frankfurt, AIRRAIL (model) At the interface between air and rail travel, IVG is developing a futuristic 660-metre complex on the roof of the ICE rail terminal, due for completion in 2004.
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D I V I S I O N A L
R E V I E W
P R O J E C T D E V E L O P M E N T, BY TYPE OF USE
(Total investment € ,000 1,013)
P R O J E C T D E V E L O P M E N T, BY REGION
(Total investment € ,000 1,013) London 18 % Hamburg/ Düsseldorf 5 %
Businesspark 20 % München 9 %
Brüssel 12 % Paris 7 % Sonstiges 7 %
Büro 78 % Sonstiges 2 %
Berlin 13 %
Frankfurt/ Hannover 29 %
A number of projects were brought to a successful close in the 2001 financial year and in some cases sold ahead of completion: . Düsseldorf, Global Gate: First construction phase (10,000 m2) completed, fully let and retained in the IVG portfolio . Hamburg, Glockengießerwall: Sold before commencement of construction to Grundeigentümer-Verband Hamburg von 1832 e.V. . Berlin, Dorotheenstraße 33 – 37: Near-completion and sale to RHEINTOR Vermögensverwaltung and CGI COMMERZ Grundinvest . Berlin, Leipziger Platz 9: Sale of an office and commercial building with approximately 11,800 m2 to Commerz Grundbesitz-Investment GmbH . Berlin, Salzufer: Sale of an office building to be built with 16,000 m2 GFA to Ärzteversorgung Niedersachsen . Berlin, Industriegebiet Niederlehme: : Units sold to individual users . Budapest, Andrássy út 11 und 12: Refurbished historical buildings incorporated into the IVG portfolio . Hamburg, Gewerbegebiet Glinde: Units sold to individual users and for the development of business properties Business performance The 2001 financial year brought successes in project marketing and scheduled progress in technical project implementation. As IVG does not recognize gains on the sale of projects until they have been completed or handed over to customers, the division returned only a balanced operating result in 2001 (2000: + € 25.8 million). Profits on project sales prepared for in 2001 will be recognized in 2002. Accordingly, turnover fell by € 20 million to € 21.6 million. Due to an increase in work in progress, total operating performance remained roughly constant at € 57.5 million (down € 0.4 million on the year before).
D I V I S I O N A L
R E V I E W
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C L O S E D - E N D R E A L E S TAT E F U N D S U N D E R M A N A G E M E N T A N D O N S A L E Total
Pro-rated IVG
Funds under management (as at 31 December 01) Funds under management (as at 31 December 01)
Number € bn
115 5,0
40,3 1,6
Sales activities 2001 Funds on sale Funds sold
Number €m
20 716
6,8 256
R E A L
E S T A T E
F U N D S
IVG is outstandingly well qualified to issue and manage real estate funds in its own right and to provide services for third-party funds, thanks to: . An extensive network and considerable experience in buying real estate. The ability to acquire entire real estate portfolios at reasonable prices, from which suitable properties can be transferred to funds. . Experience in managing commercial properties and business parks throughout Europe that can be put to use both in managing our own funds and in providing management services for other funds companies. . Systematic focus on real estate yields and value growth. This is essentially the key to the successful performance of IVG european funds. IVG will step up its real estate fund issuance and management activities. We already have stakes in two successful and experienced funds companies: Hannover HL Leasing GmbH & Co. KG in Munich and Wert-Konzept GmbH in Berlin and Cologne; Wert-Konzept will be fully owned by IVG by 2004 at the latest. The two companies placed fund units with a combined value of some € 491 million in 2001. Equity amounted to some 50%. IVG was additionally able to place more than 80% of the units in ”actioplus”, its own closed-end real estate fund.
Munich, TIP (model) An office and production building is currently being developed for Bosch Telecom in the Technology and Innovation Park.
Munich, MEDIA WORKS MUNICH Right: Historical photograph of the former textile factory
FROM TEXTILE FACTORY TO ”IDEAS F A C T O R Y ” . In 1996 we were faced with the big question
of what to do with 50,000 m2 of empty lettable space on the edge of central Munich. A textile factory built between 1925 and 1960 stood idle, and the challenge for IVG was to find a modern use for it that served regional market needs. The search was on for new ideas. With Kunstpark Ost having advanced to become the meeting point of the media and creative scene, the time and place was just right. The new development provides young, innovative people with space that offers a wide range of catering and leisure facilities as well as an inspiring working environment. The hallmark of the M E D I A W O R K S M U N I C H M E D I A C E N T R E is loft offices in the look and style of the young media industry. An old, empty textile factory has metamorphosed into an ”ideas factory” – and a modern success story fully let.
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M A R K E T
R E P O R T S
W E S T E R N
E U R O P E
B R U S S E L S The Brussels office market was characterized in 2001 by opposing trends: . A shortage of space, rising demand and premium rents in Quartier Leopold, the home of the European Commission. . Good demand and slightly rising rents in the inner city and the district surrounding the Gare du Nord. Most demand comes from Belgium’s ministries and public agencies and from the two Belgian states of Flanders and Wallonia. . A steady market on Avenue Louise to the south-east of the centre and in the ”greenbelt” to the east of town. . Falling demand, an increase in the vacancy rate (17%) and declining rents in the Zaventem office district around the airport, where most demand in past years had come from communication companies.
Brussels, Madou Plaza (model) With its 32 floors, this building on Place Madou is the tallest and most prominent building in the IVG portfolio. IVG Team Brussels
M A R K E T
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R E P O R T S
T O P M O N T H LY R E N T F O R O F F I C E S P A C E , B R U S S E L S € / m2
I V G T E N A N C I E S B Y E X P I R Y D AT E , B R U S S E L S / L U X E M B O U R G € m / year
1,5
1,5
1,7
2,1
2002
2003
2004
2005
2006
4Q96
2007 ff.
17,0
3,7
16,9
17,4
4Q97
4Q98
4Q99
4Q00
Quelle: Healey & Baker, IVG
19,6
19,1
18,6
18,1
44,8
4Q01 e4Q02 Stand: Feb. 2002
IVG in Brussels Portfolio: Brussels is our most important location outside Germany with IVG properties at around 20 addresses around the city. The two largest office buildings – North Gate in Espace Nord and Square de Meeus to the east of the EU quarter – are on lease to three Belgian ministries and the European Commission respectively. IVG’s remaining properties are concentrated in Quartier Léopold, the eastern greenbelt, and Avenue Louise. Project development: The most important project is the refurbishing and extension of Madou Plaza, which with 32 floors is Brussels’ tallest building. First erected in the 1960s, the building is being demolished down to its concrete shell and supports and completely rebuilt. A V-shaped annex is being added with an imposing atrium and a conference centre, expanding the lettable space from about 32,000 m2 today to 41,500 m2. Rents per square metre are expected to almost double following completion at the end of 2003/2004.
R E A L E S T A T E P O R T F O L I O B R U S S E L S I N C L . L U X E M B O U R G : Monthly rent per m2 Tenancies with monthly rents from/to
15 €
Rental income
%
2.7
7.4
17.1
72.8
Rental income
€ ,000
130.6
354.4
809.6
3,463.6
%
35.4
13.6
19.2
31.8
Let space
p. 40
|
M A R K E T
R E P O R T S
Buy-and-sell strategy: In the process of concentrating our portfolio and to exploit the good market situation, we sold three portfolio properties in Antwerp (Ensis-Rijnpoort, Ensis-North Trade Building, and Groenhoek) that have been managed in the past from our Brussels office, and one property (Howald) in Luxembourg. We acquired an office and commercial building in Rue de Luxembourg by way of a share deal, which in Belgium involves lower ancillary costs than a direct purchase.
I V G R E A L E S TAT E P O R T F O L I O I N B R U S S E L S / A N T W E R P / L U X E M B O U R G Market value: 819.8 € m
Sweden House, Rue du Luxembourg 3 North Gate, Bd. Roi Albert II, 6, 8, 16 Diegem, Rue Bessenveld 9 Tour Leopold, Rue de Geneve 10 Sq. de Meeus 8 Oaktree, Dreve de Bonne Odeur 20 Louise Village, Avenue Louise 29–31/Rue Dejonker 34–36 Le Croissant, Avenue Beaulieu 24–26 Place St Lambert Chaussée de la Hulpe 154 Rue de Trèves 59–61 Madou Plaza, Place Madou* Président, Avenue Louise 106 Tervuren Plaza/Rue Gribaumont 1 Pléiade A–C, Avenue des Pléiades 11–15–19 Twin House, Rue Neerveld 105 Other Total Brussels Total Antwerp Total Luxembourg Total Brussels/Antwerp/Luxembourg
Lettable space 1,000 m2
Rental income 2001
7.3 77.0 27.1 27.3 50.2 5.2 16.7 10.1 6.2 6.0 10.8 40.0 7.9 14.2 20.4 11.4 90.6 428.4 31.5 31.4 491.3
665 15,791 2,264 1,777 8,915 615 1,867 1,544 751 690 1,428 1,933 723 2,339 1,851 1,273 4,613 49,039 1,385 5,136 55,560
Lettable space 1,000 m2
IVG share
41.5
100
€ ,000
IVG PROJECT DEVELOPMENT IN BRUSSELS
Madou Plaza, Place Madou*
* Let through 2001 and vacated for development from end of year.
%
M A R K E T
R E P O R T S
| p. 41
L O N D O N The real estate market saw consolidation at high levels in 2001. New lettings and rents remained stable or were slightly down after the rapid growth of earlier years. . Monthly rents in the West End fell by up to 7% after peaking at the equivalent of almost € 130/m2 in earlier years. In spite of this, the area between Hyde Park, Soho and the City of Westminster with Parliament and the principal government offices remains Europe’s most expensive office location. The vacancy rate increased slightly to around 4%. . The City of London continues to build on its position as the world’s second most important financial centre; rents remained stable. The vacancy rate rose slightly to about 4%, although top-quality buildings were barely affected. New buildings up to 60,000 m2 were let even before construction work was complete. . Top rents declined in the Docklands and other out-of-centre locations, and the vacancy rate rose to about 7%.
IVG team London London, St. James Street Banque Nationale de Paris (BNP) and GE Capital are the tenants of this building in St. James Street.
p. 42
|
M A R K E T
R E P O R T S
I V G R E A L E S TAT E P O R T F O L I O I N L O N D O N Market value: 177.2 € m
20 St. James Street 40/41 Conduit Street 18 Great Marlborough Street Total London
Lettable space 1,000 m2
Rental income 2001
5,1 2,8 10,4 18,3
3.236 1.734 6.330 11.300
Lettable space 1,000 m2
IVG share
11,0 5,6
100 100
€ ,000
IVG PROJECT DEVELOPMENT IN LONDON
Gresham Street 29 Soho Square 20
%
IVG in London Portfolio: IVG currently owns three fully occupied office buildings in the West End. The prestige tenants include companies such as Banque Nationale de Paris, GE Capital, CNN Turner, and a subsidiary of British Steel.
London, Great Marlborough A third of the new development in the Soho media district near Oxford Circus has already been sold.
M A R K E T
R E P O R T S
0,0
0,4
0,0
0,0
2002
2003
2004
2005
2006
2007 ff.
4Q96
4Q98
110,0
94,0
70,0
4Q97
53,0
67,0
123,0
10,5
4Q99
4Q00
Quelle: Healey & Baker, IVG
102,6
T O P M O N T H LY R E N T F O R O F F I C E S P A C E , L O N D O N € / m2
I V G T E N A N C I E S B Y E X P I R Y D AT E , L O N D O N € m / year
0,0
| p. 43
4Q01 e4Q02 Stand: Feb. 2002
Development projects: The topping-out ceremony for the Gresham Street project was held in September 2001. The eleven-storey building by renowned architect Nicholas Grimshaw is on a prime city centre site near the Guild Hall, the Bank of England and the Stock Exchange. It was sold to Lloyds TSB Bank in March 2002 and will be completed to schedule in summer 2002. The development received the Lord Mayor of the City of London’s Considerate Contractors Gold Award. A portfolio building with outdated amenities on Soho Square is being completely refurbished and will be re-let from 2002. Disposals: IVG sold its 62.5% share in the Long Acre office building in two transactions in 2001. This was the most expensive building IVG has ever sold. It was purchased at the beginning of 1999 at a far lower price; IVG realized 38% value growth on the property in the space of three years.
R E A L E S T A T E P O R T F O L I O L O N D O N : Monthly rent per m2 Tenancies with monthly rents from/to
15 €
Rental income
%
0.0
–
–
100.0
Rental income
€ ,000
0.0
–
–
907.7
%
1.8
–
–
98.2
Let space
p. 44
|
M A R K E T
R E P O R T S
P A R I S The upward trend in office rents has temporarily slowed, top rents have fallen slightly and the vacancy rate has marginally increased to 3.8%. The cause is the weakening in business activity. The city still has Europe’s second-highest rent levels after London, however; with a total exceeding 40 million m2, the office market in the city centre and its satellites is the largest in continental Europe. . Top rents have fallen slightly in prime locations within the Triangle D’Or (the ”Golden Triangle”) near the Champs Elysées and the 8th Arrondissement; the vacancy rate increased slightly to around 2.5%. Demand is still high for prime-site office space, but there is little remaining development potential. . In Le Croissant, the office belt to the west of Paris city centre, the top monthly rent is € 44/m2 and the vacancy rate about 3%. Major users of office space include international companies, consultancies and the media.
Paris, Boulevard Haussmann Classic charm in the financial district.
M A R K E T
R E P O R T S
| p. 45
I V G R E A L E S TAT E P O R T F O L I O I N PA R I S Market value: 358.3 € m Lettable space 1,000 m2
Rental income 2001
11.0 1.9 2.7 3.3 15.1 20.8 54.8
5,805 676 1,057 2,076 6,627 3,030 19,271
Lettable space 1,000 m2
IVG share
12.7 33.7
30 30
7, Place Vendôme 42, Rue de Bassano 55, Avenue Hoche 21, Place de la Madeleine 173–175, Bd Haussmann 121–123, Rue d'Aguesseau Total Paris
€ ,000
I V G P R O J E C T D E V E L O P M E N T I N PA R I S
M1H; Avenue de France Perisud; Rue Edmond Rolland
. Office quarters adjoining the city and Le Croissant such as Montrouge and Bois-Colombes have top monthly rents of about € 25/m2 and are still sought-after – both for corporate headquarters and for back-office functions of banks, insurance companies and the like. IVG in Paris Portfolio: IVG has office buildings at a total of six locations in Paris, five of which are in the central ”Golden Triangle” and one in the upcoming Boulogne-Billancourt district. All buildings are fully let. Negotiations are well advanced for extension of a major tenancy in Boulogne-Billancourt (Rue d’Aguesseau).
IVG team Paris
%
p. 46
|
M A R K E T
R E P O R T S
T O P M O N T H LY R E N T F O R O F F I C E S P A C E , P A R I S € / m2
I V G T E N A N C I E S B Y E X P I R Y D AT E , P A R I S € m / year
2002
2003
0,2
2004
2005
2006
34,0
1,8 0,2
30,9
1,2
2007 ff.
39,4
5,0
4Q96
4Q97
4Q98
62,3
63,5
44,5
63,5
10,4
4Q99
4Q00
Quelle: Healey & Baker, IVG
4Q01 e4Q02 Stand: Feb. 2002
Development projects: IVG set up a joint venture with AXA in December 2001. The two companies each hold a 30% share and further passive investors are being taken on board. At least four projects will be developed with an estimated total investment volume of € 800 million: . The Périsud office and retail building on the boundary between the City of Paris and Montrouge, near Porte d’Orléans. The office space (30,000 m2) was let before construction began. . The M 1 H office and retail building on the Left Bank, near the Gare d’Austerlitz. The building will be completed at the end of 2003, and part of the retail space is already let. . The Paris Oise logistics centre to the north of Paris, on the autoroute to the city’s future major airport. . The ZAC de la Bruyères urban development in Bois-Colombes, five kilometres to the north-west of Paris city centre. Disposals: Two building complexes located in the Sophia Antipolis business park in the South of France and formerly managed from our Paris Office were sold at a profit during 2001 in the process of streamlining our portfolio.
R E A L E S T A T E P O R T F O L I O P A R I S : Monthly rent per m2 Tenancies with monthly rents from/to
15 €
Rental income
%
–
–
0.1
99.9
Rental income
€ ,000
–
–
1.0
1,568.4
%
–
–
0.2
99.8
Let space
M A R K E T
S O U T H E R N
R E P O R T S
| p. 47
E U R O P E
I V G R E A L E S TAT E P O R T F O L I O I N M I L A N Market value: 85.2 € m
S. Giovanni, Via Carducci 125 Via Dione Cassio 13 Palazzi Fermi & Galeno, Basiglio Palazzo dei Cigni, Basiglio Via Cascia 5 Cernusco sul Naviglio, Via Gobetti 2 Total Milan
Lettable space 1,000 m2
Rental income 2001
13.0 10.2 19.3 2.7 5.4 8.4 59.0
1,190 853 1,949 506 553 432 5,483
Lettable space 1,000 m2
IVG share
16.5
45
€ ,000
IVG PROJECT DEVELOPMENT IN MILAN
Centro Edilmarelli; Sesto San Giovanni
%
M I L A N Demand for office space remains lively, space in the city centre is in noticeably short supply, and top rents increased by a further 9% in 2001. The companies sustaining the demand include banks, pharmaceutical groups and multinationals in various sectors. The vacancy rate has remained stable at about 4.5% and vacancies are concentrated in outdated units. In view of the overcrowding in the centre, potential occupants are increasingly turning to locations such as Sesto San Giovanni outside the city.
IVG team Milan
p. 48
|
M A R K E T
R E P O R T S
I V G T E N A N C I E S B Y E X P I R Y D AT E , M I L A N € m / year
T O P M O N T H LY R E N T F O R O F F I C E S P A C E , M I L A N € / m2
19,7
21,5
2007 ff.
4Q96
4Q97
4Q98
0,5
2002
23,7
0,7
19,8
1,5
0,1
47,3
32,3
43,0
2,5
0,0 2003
2004
2005
2006
4Q99
4Q00
Quelle: Healey & Baker, IVG
4Q01 e4Q02 Stand: Feb. 2002
IVG in Milan Portfolio: Stodiek Europa Immobilien AG, an IVG subsidiary, owns six office buildings in Milan and the surrounding region. Two are located in the north-east of the city, on Via Carducci and Via Dione Cassio. Both are fully let on a long-term basis. Three buildings are in the Milano 3 office district in the south of town. Two of these are let to a bank and the third to various retail businesses. A further building is on Via Cascia in the north of Milan. This building is used by IBM as a data centre. At a compulsory auction sale in 2001, IVG acquired an additional office building located in the suburb of Cernusco sul Naviglio. Development project: Working in a joint venture with Pasini, IVG is currently developing the Centro Marelli in Sesto San Giovanni, one of the region’s main new office districts about ten kilometres north-east of the centre. The well-appointed complex will have 16,512 m2 of lettable space and 200 underground parking spaces. The value of the project is some € 35 million.
R E A L E S T A T E P O R T F O L I O M I L A N : Monthly rent per m2 Tenancies with monthly rents from/to
15 €
Rental income
%
–
57.0
24.4
18.6
Rental income
€ ,000
–
247.7
106.1
80.9
%
–
67.2
21.8
11.0
Let space
M A R K E T
R E P O R T S
| p. 49
16,4
4Q96
4Q97
4Q98
4Q99
4Q00
Quelle: Healey & Baker, IVG
33,1
37,3
27,0
19,5
15,5
39,1
T O P M O N T H LY R E N T F O R O F F I C E S P A C E , M A D R I D € / m2
4Q01 e4Q02 Stand: Feb. 2002
I V G R E A L E S TAT E P O R T F O L I O I N M A D R I D / B A R C E L O N A Market value: 43.6 € m Lettable space 1,000 m2
Rental income 2001
3.4 11.6 11.7 16.6 43.3
234 616 1,637 731 3,218
Madrid, Calle Isla de la Palma Madrid, Calle Fuerteventura 9 Madrid, Calle Santiago de Compostella Sur Barcelona, San Esteve de Sesrovires Total Madrid/Barcelona
€ ,000
M A D R I D After rising from about € 15/m2 to just under € 40/m2 in little more than four years, top monthly rents in Madrid had fallen perceptibly by the beginning of 2002. The decline is a consequence of the period of overheating rather than an indication of a weakening market. Demand from banks, insurance companies and the like remains strong and exceeds supply at some locations in the city centre. IVG in Madrid Portfolio: IVG subsidiary Stodiek Europa Immobilien AG owns and lets an office building in the north of town on Avenida Monforte de Lemos, two logistics and distribution centres in San Sebastián de los Reyes near Barajas International Airport, and a distribution centre in the Barcelona region. Disposals: The positive market trend allowed us to realize significant gains on the sale of a 14-storey office building acquired in 1998 on Gran Vía in the historic centre of Madrid.
R E A L E S T A T E P O R T F O L I O M A D R I D I N C L . L I S B O N : Monthly rent per m2 Tenancies with monthly rents from/to
15 €
Rental income
%
24.0
5.1
28.7
42.2
Rental income
€ ,000
111.9
23.9
134.1
196.8
%
52.6
7.5
19.3
20.6
Let space
M A R K E T
R E P O R T S
I V G T E N A N C I E S B Y E X P I R Y D AT E , M A D R I D / L I S B O N € m / year
T O P M O N T H LY R E N T F O R O F F I C E S P A C E , L I S B O N € / m2
0,2 2002
2003
2004
4Q97
4Q98
21,4
4Q96
20,5
19,5
0,7
19,3
0,8
19,7
3,6
23,0
|
22,4
p. 50
0,4 0,0 2005
2006
2007 ff.
Quelle: Healey & Baker, IVG
4Q99
4Q00
4Q01 e4Q02 Stand: Feb. 2002
L I S B O N The extent of letting activity has declined due to the persistent shortage of high-quality office space in the Portuguese capital. Rents continued to rise slightly. The vacancy rate is about 2%. IVG in Lisbon IVG subsidiary Stodiek Europa Immobilien AG owns two office buildings in Lisbon: . The Sony building on the site of Expo 1998 is let to the Portuguese subsidiary of Japan’s Sony group and has received awards as the ”best office building” and ”best development” in Portugal. . The Omni building in the city centre is fully let to international companies such as the Gerling insurance group and recruitment consultants Egon Zehnder.
Lisbon, Sony This unusual new building with its elliptical corner tower is used by the Sony corporation.
M A R K E T
C E N T R A L
A N D
N O R T H E R N
R E P O R T S
| p. 51
E U R O P E
4Q96
4Q97
4Q98
4Q99
Quelle: Healey & Baker, IVG
4Q00
15,9
16,4
16,9
18,9
19,2
19,9
21,9
T O P M O N T H LY R E N T F O R O F F I C E S P A C E , B U D A P E S T € / m2
4Q01 e4Q02 Stand: Feb. 2002
B U D A P E S T Rents have now stabilized after going into decline for several years following the early 1990s boom. The vacancy rate amounts to about 20% and vacancies are not solely concentrated in old and low-quality units. Only high-quality office space in good locations is in demand. This works in favour of properties on the Buda side of the river, while unrefurbished office units in the business centre of Pest are becoming increasingly hard to let. Budapest is increasingly strengthening its position as a commercial centre for Hungary and its neighbours in south-eastern Europe. International firms prefer to establish operations serving this part of the continent in the Hungarian capital.
IVG team Budapest
p. 52
|
M A R K E T
R E P O R T S
IVG in Budapest Infopark, IVG’s Budapest business and innovation park, is being developed on the banks of the Danube near to the University of Technology and offers space for international companies and Hungarian high-technology firms. Hungary’s leading national telecommunications company Matáv has already moved in, as have companies such as IBM, ICL, Panasonic and Hewlett Packard. Two stylishly restored historical buildings at Nos. 11 and 12 Andrássy út in the centre of Budapest have now been incorporated into IVG’s own portfolio.
Budapest, Infopark International high-tech firms have already moved into the business park near Budapest's University of Technology. Budapest Andrássy út These stylishly restored historical buildings form part of IVG's portfolio on attractive Andrássy út.
M A R K E T
R E P O R T S
| p. 53
I V G R E A L E S TAT E P O R T F O L I O I N B U D A P E S T Market value: 17,7 € m Lettable space 1,000 m2
Rental income 2001
7.7
476
Lettable space 1,000 m2
IVG share
18.8
100
Total Budapest
€ ,000
IVG PROJECT DEVELOPMENT IN BUDAPEST
Infopark Geb. B u. I
%
P O L A N D In Poland, IVG has stakes in two shopping centres that will counter the current severe shortage of modern retail space. They are being developed jointly with ECE Projektmanagement GmbH, Europe’s largest operator of shopping centres, and Deutsche GrundbesitzManagement GmbH, a subsidiary of Deutsche Bank. Wroc_aw saw the official opening of Galeria Dominikanska to great public interest in August 2001. The retail units, offices and parking facilities are let in their entirety to international and regional retailers. Lodz, Poland’s second largest city, will see completion of Galeria Lódzka, a 39,800 m2 retail development, in 2002. More than 50% of the space had been let before construction work commenced.
Katowice IVG opened Europe’s most advanced tank farm for petroleum products close to the southern Polish industrial centre of Katowice in autumn 2001. The storage facility’s main customers include Aral, BP, Ceská Rafinérská, DEA, Preem, Shell and Statoil. The facility also supplies Conoco and Esso filling stations. There is ample scope for additions to capacity, which are being planned among other things to store Poland’s national fuel reserves.
p. 54
|
M A R K E T
R E P O R T S
S O U T H E R N
G E R M A N Y
M U N I C H Munich was once again Germany’s leading city in terms of office space turnover in 2001. Some 900,000 m2 was let, although the space turnover and rents no longer continued to rise as they had done in previous years. The reason for this was a fall in demand from the information and communications sectors, which form a major part of the city’s economy. This was partly offset, however, by demand from financial services, industrial and other firms. The vacancy rate remained extremely low, at barely more than 1%. Surplus demand was only partly satisfied; most newly built properties and units that were set to come free in the foreseeable future were pre-let on a long-term basis.
IVG team Munich Munich (Dornach), Escada Home to prominent tenants including ESCADA and HypoVereinsbank.
M A R K E T
R E P O R T S
| p. 55
T O P M O N T H LY R E N T F O R O F F I C E S P A C E , M U N I C H € / m2
I V G T E N A N C I E S B Y E X P I R Y D AT E , M U N I C H / N U R E M B E R G € m / year
2004
2005
2006
2007 ff.
4Q96
4Q97
4Q98
4Q99
4Q00
Quelle: Healey & Baker, IVG
30,2
30,2
28,6 3,6
25,6
2,7
25,3
2003
3,7
26,1
7,6 4,9
2002
30,7
17,8
4Q01 e4Q02 Stand: Feb. 2002
IVG in Munich Media Works Munich is an office centre for creative and communications sectors on Rosenheimer Straße and one of Germany’s largest office properties with 146,000 m2 of lettable space. The complex is fully let. A planned ”Media Bridge” will add another 22,000 m2. Following the successful concept used at Media Works Munich to date, this will comprise loft offices that users can partition, fit and furnish to suit their needs.
R E A L E S T A T E P O R T F O L I O M U N I C H I N C L . N U R E M B E R G : Monthly rent per m2 Tenancies with monthly rents from/to
15 €
Rental income
%
4.8
47.0
42.8
5.4
Rental income
€ ,000
150.8
1,486.8
1,357.9
171.0
%
15.4
51.2
31.2
2.2
Let space
p. 56
|
M A R K E T
R E P O R T S
I V G R E A L E S TAT E P O R T F O L I O I N M U N I C H / N U R E M B E R G Market value: 657.2 € m
Munich, MMW Media Works Munich, Rosenheimer- /Anzinger Straße Munich, Dornach, Margaretha-Ley-Ring 1–14 Munich, Ottobrunn, TIP Technik & InnovationsPark vor München, Einsteinstraße Nuremberg, Nordostpark 14 Puchheim, Benzstraße 11, Siemensstraße 4 Other Total Munich/Nuremberg
Lettable space 1,000 m2
Rental income 2001
146.4 38.6 69.8 162.7 22.0 19.9 459.4
12,621 2,808 11,421 12,922 2,027 2,390 44,189
Lettable space 1,000 m2
IVG share
22.2 20.5 9.4 6.3
95 100 100 100
€ ,000
IVG PROJECT DEVELOPMENT IN MUNICH/NUREMBERG
Munich, City Limit Fürth; Waldstraße Munich, Neubau Bosch Telecom; Ottobrunn Nuremberg, Neubau Forschungsfabrik; Nordostpark Nuremberg, Gebäude 32–34; Nordostpark
%
The Technology and Innovation Park (TIP) outside Munich saw work commence in 2001 on an office and production building for Bosch Telecom. From 2003, the company will produce security systems in the building, which has some 20,000 m2 of floor space. Bosch Telecom already has other premises on the TIP site and chose to expand in its existing location. A seven-year tenancy agreement has been signed for the new building. Tercon Bau Projektentwicklung GmbH is currently working on two phases of a turnkey development as general project contractor at the Siemens location on Sankt-Martin-Straße.
Team TERCON Munich
M A R K E T
R E P O R T S
| p. 57
N U R E M B E R G High-quality office space in Nuremberg was in short supply and highly sought-after in 2001 due to strong demand. According to the head of the city’s trade and industry office, the ”vacancy rate for office space with up-to-date facilities is practically no longer measurable”. Newly built office units are quickly taken up; the top monthly rent is currently about € 12/m2. IVG in Nuremberg The Nordostpark development is increasingly becoming a major high-tech research hub. In 2001, Lucent Technologies Inc. moved into a new building with over 20,000 m2 of usable space, designed by New York architect Kevin Roche. The building houses one of Lucent’s four global competence centres, or ”Bell Labs”, in this case focusing on optical communication technologies. A further new development, a 9,400 m2 research building, will be completed in mid-2002. Its occupants will include competence centres belonging to the Fraunhofer Institute for Integrated Circuits and the Institute for Manufacturing Automation and Production Systems at the University of Erlangen-Nuremberg.
Nuremberg, Nordostpark The architecturally spectacular telecommunications park in the north-east of the city has been home to a Lucent Technologies think-tank since 2001.
IVG team Nuremberg
p. 58
|
M A R K E T
R E P O R T S
C E N T R A L
A N D
W E S T E R N
G E R M A N Y
F R A N K F U R T The Frankfurt office market continues to be sustained by banks and other financial services. More than half of all space let in 2001 went to companies from this sector. The vacancy rate increased slightly to 2.4%. Top-quality modern office units remain in demand, while outdated properties can only be let at a substantial discount in most cases or must be demolished if complete modernization is not viable.
Frankfurt, ComConCenter (model) A modern high-quality complex with 70,000 square metres of office space is being developed in several phases close to the A5 motorway.
M A R K E T
I V G T E N A N C I E S B Y E X P I R Y D AT E , FRANKFURT/KASSEL/HANOVER
R E P O R T S
| p. 59
T O P M O N T H LY R E N T F O R O F F I C E S P A C E , F R A N K F U R T € / m2
€ m / year
2002
2003
0,7
0,5
0,5
2004
2005
2006
2007 ff.
4Q96
4Q97
4Q98
Quelle: Healey & Baker, IVG
Mainzer Landstraße surpassed the € 50/m2 mark. . Some out-of-centre locations away from the main financial hub suffered a drop in demand from companies in the information and communications sectors. Top monthly rents fell slightly from the heights attained during the year 2000 boom, but still reach about € 20/m2. . Properties around the airport occupy a special position. This is increasingly becoming a sought-after location for offices, hotels, logistics premises and other aerospace-related commercial buildings.
R E A L E S T A T E P O R T F O L I O F R A N K F U R T : Monthly rent per m2 15 €
Rental income
%
–
61.9
38.1
–
Rental income
€ ,000
–
113.9
70.0
–
%
–
71.7
28.3
–
Let space
4Q00
53,7
4Q01 e4Q02 Stand: Feb. 2002
. Top monthly rents in the banking quarter comprising the city centre, West End and
Tenancies with monthly rents from/to
4Q99
46,0
40,9
35,8
1,2
34,1
0,9
33,9
53,7
5,9
p. 60
|
M A R K E T
R E P O R T S
I V G R E A L E S TAT E P O R T F O L I O I N F R A N K F U R T / K A S S E L / H A N O V E R Market value: 143.7 € m
Frankfurt Flughafen, Cargo City Süd Wiesbaden, Otto-von-Guericke-Ring 13–15 Hanover, Lilienthal-Center, Kugelfangtrift 4–8/Lilienthalstraße 300 Kassel-Waldau, Falderbaumstraße 7–13 Kassel, Lohfelden, Otto-Hahn-Straße 26, 28, 34, 36 Other (mainly forst) Total Frankfurt/Kassel/Hanover
Lettable space 1,000 m2
Rental income 2001
11.7 11.1 16.8 23.2 25.7 80.1 168.5
1,220 1,167 645 1,264 1,787 3,676 9,759
Lettable space 1,000 m2
IVG share
116.0 29.9 68.2 14.5
31 80 48 100
€ ,000
IVG PROJECT DEVELOPMENT IN FRANKFURT/HANOVER
Frankfurt, AIRRAIL; Flughafen FFM Frankfurt, Airbizz; Flughafen FFM Frankfurt, ComConCenter; Goldsteinstr. 235 Hanover, Lilienthal Center BA A-F; Kugelfangtrift
%
IVG in Frankfurt Work commenced in 2001 on the ComConCenter in the Niederrad office district close to the A5 motorway between the city centre and the airport. The ComConCenter will offer high-quality office units at relatively low prices for the Frankfurt area. The first building will be completed in spring 2003; tenants already include Lufthansa Gebäudemanagement GmbH. Construction work is due to begin in 2002 on AIRRAIL, a 660-metre-long complex on the roof of the new ICE long-distance rail terminal. AIRRAIL is being developed by IVG/TERCON, Bilfinger + Berger and Adler Real Estate. At the interface between air and rail travel, it will offer space for hotels, offices, retail units, a health centre and catering establishments. In the airport’s ”Cargo City South”, IVG subsidiary TERCON is developing airbizz, which will offer 14,600 m2 office space plus 15,300 m2 for logistics. More than 65% of the office space had already been let before construction began; the building will become part of the IVG portfolio in 2002. IVG owns a building on Otto-von-Guericke-Ring in Wiesbaden. Its tenants include Ikea Deutschland, MTI Technology GmbH and Wigra Marketing GmbH.
M A R K E T
R E P O R T S
| p. 61
H A N O V E R Four out of six construction phases have now been completed at the Lilienthal Center for innovative businesses and are almost entirely let. The tenants include administrative offices of the Bahr do-it-yourself chain, office furnishers SSI Schäfer Shop GmbH, HEW-Contract Gesellschaft für Energie und Service mbH, and a golfing equipment mail order firm. The wellappointed units with excellent connections to the city centre, motorway and airport are heavily in demand; in its final form, the Lilienthal Center will offer some 15,000 m2 of usable space.
K A S S E L . A warehousing and office development has been completed in the Lohfelden Business Park. . On Otto-Hahn-Straße in Lohfelden, buildings used by Winkler, a supplier of commercial vehicle spares, have been extended for extra office and warehousing space. . In Fuldabrück, a production, logistics and office extension to the premises of plastics manufacturers Technoform Caprano + Brunnhofer was completed in July 2001.
IVG team Frankfurt IVG team Kassel
p. 62
|
M A R K E T
R E P O R T S
I V G R E A L E S TAT E P O R T F O L I O I N D Ü S S E L D O R F / D O R T M U N D Market value: 242.0 € m Lettable space 1,000 m2
Rental income 2001
53.8 7.7 13.4 24.1 6.7 10.8 116.5
6,600 1,413
Düsseldorf, Businesspark am Flughafen, Heltorfer Straße 1–22 Düsseldorf, Fashion Plaza, Karl-Arnold-Platz 2 Düsseldorf, Global Gate, Grafenberger Alle 293–297 Dortmund, Gothic-Haus, Westfalendamm 94–100 Dortmund, Stockholmer Allee 32 Other Total Düsseldorf/Dortmund
€ ,000
2,688 550 889 12,140
IVG PROJECT DEVELOPMENT IN DÜSSELDORF Lettable space 1,000 m2
IVG share
12.6
100
Düsseldorf, Global Gate 2. BA; Grafenberger Allee
D Ü S S E L D O R F
A N D
%
D O R T M U N D
Düsseldorf set a new local record in 2001 with some 370,000 m2 of new lettings. Firms in the financial sector played a major part in this, together with consultancies, international law firms, and media and advertising companies. The market remained in equilibrium, however, due to strong development activity. Top rents remained at existing levels; the vacancy rate increased only slightly.
Dortmund, Stockholmer Allee This newly developed office property in the upcoming Stadtkrone Ost district was acquired in 2001. IVG team Düsseldorf
M A R K E T
2004
2005
1,2
2002
2003
2006
2007 ff.
4Q96
23,0
4Q00
23,0
4Q99
20,5
2,1
18,9
19,6
2,2
23,0
3,7 2,9 1,8
| p. 63
T O P M O N T H LY R E N T F O R O F F I C E S P A C E , D Ü S S E L D O R F € / m2
23,0
I V G T E N A N C I E S B Y E X P I R Y D AT E , D Ü S S E L D O R F / D O R T M U N D € m / year
R E P O R T S
4Q97
4Q98
4Q01 e4Q02
Quelle: Healey & Baker, IVG
Stand: Feb. 2002
IVG in Düsseldorf and Dortmund The first construction phase of the Global Gate office complex on Grafenberger Allee was let in its entirety prior to completion to Deutsche Telekom, Finland’s Rautaruukki steel group, and insurance brokers Oskar Schunk KG. Work on the second phase began in November 2001; in its completed form, the office complex will offer a total of 33,000 m2 with a full range of services and up-to-the-minute communications facilities. Additional office units with up to 36,000 m2 in four buildings of individual design are under construction in a phased development project at the heart of the Airport Business Park. An extension being added to the Gothic Haus office complex on Westfalendamm in Dortmund will be completed in 2002. The existing Gotic Haus is let to various prominent companies including Gothaer Versicherung, software producers Dr. Materna GmbH, and Alstom. Gotic Haus is centrally situated with excellent transport links on Westfalendamm, Dortmund’s main office axis. IVG has acquired an 11,000 m2 office building on Dortmund’s Stockholmer Allee, part of the Stadtkrone Ost development off Westfalendamm.
R E A L E S T A T E P O R T F O L I O D Ü S S E L D O R F : Monthly rent per m2 Tenancies with monthly rents from/to
15 €
Rental income
%
1.7
10.4
76.1
11.7
Rental income
€ ,000
19.6
119.0
868.5
133.7
%
4.6
15.0
72.2
8.2
Let space
p. 64
|
M A R K E T
R E P O R T S
E A S T E R N
A N D
N O R T H E R N
G E R M A N Y
B E R L I N The office market in the German capital quietened down in 2001; new lettings were down to about 390,000 m2. The cause was a marked drop in demand from dot-coms, banks, and financial and business services, which had still been expanding a year earlier. Rather than being dominated by a specific group, new lettings came from various sectors of the economy, industry associations and public institutions. Demand was strongest for smaller units with less than 1,000 m2; new lettings of large units above 10,000 m2 were the exception. The leading submarket in quantitative terms was not in the prime sites around Unter den Linden, Friedrichstraße and Potsdamer Platz, but on a broad semicircular belt to their eastern flank where newly built properties are on offer alongside numerous office units in modernized former industrial premises. These are valued by innovative firms for their creative atmosphere and spatial flexibility, relatively modern prices, generally lively surroundings and good transport links.
Berlin, Spree Granaries Attractive loft offices in former corn and cold stores provide a creative working environment for companies such as Universal Music.
M A R K E T
2002
2003
2004
0,9
2005
2006
16,4
0,8
2007 ff.
4Q96
4Q97
28,1
30,7
17,9
23,5
1,9 1,1
24,5
3,5
1,7
| p. 65
T O P M O N T H LY R E N T F O R O F F I C E S P A C E , B E R L I N € / m2
28,1
I V G T E N A N C I E S B Y E X P I R Y D AT E , B E R L I N / D R E S D E N € m / year
R E P O R T S
4Q98
4Q99
4Q00
Quelle: Healey & Baker, IVG
4Q01 e4Q02 Stand: Feb. 2002
IVG in Berlin Under management of IVG associate Wert-Konzept, conversion work continued apace on the Spree Granaries, two historical former warehouses (comprising some 40,000 m2) in the Osthafen docklands. The entire 17,000 m2 former cold storage warehouse was let to the German headquarters of Universal Music Group, the world’s largest music firm. The new tenants will be moving from Hamburg to the new premises, which have been refurbished in accordance with their own wishes, in summer 2002. On Leipziger Platz, work began on the construction of an eleven-storey commercial and residential building. Located between Potsdamer Platz and the Bundesrat building (the upper house of the German parliament), Leipziger Platz is the last large unbuilt site in the centre of Berlin and is currently being redeveloped in its historical layout. Designed by architect Christoph Langhof and containing six office and four residential floors as well as retail units, the building is due to be completed in mid-2003; IVG has already sold it to an openend real estate fund; the project is being undertaken by IVG associate WERT-Konzept.
R E A L E S T A T E P O R T F O L I O B E R L I N I N C L . D R E S D E N : Monthly rent per m2 Tenancies with monthly rents from/to
15 €
Rental income
%
11.8
30.3
40.4
17.5
Rental income
€ ,000
86.1
220.6
294.4
126.9
%
30.7
37.6
28.6
3.1
Let space
p. 66
|
M A R K E T
R E P O R T S
The consortium led by IVG and Hochtief has submitted a bid for the privatization of Berlin Brandenburg International Airport. The owners of Berlin Brandenburg Flughafen Holding GmbH (the states of Berlin and Brandenburg plus the German government) resolved on 12 March 2002 to enter into negotiations with the consortium on the basis of the submitted bid. The official planning procedure is running in parallel to the privatization process so that the airport can still open in 2007. One of Berlin’s largest development projects in the next few years will be Spreestadt in Charlottenburg, attractively located between the Spree river and the Landwehr Canal and close to the Tiergarten and the Technical University. IVG subsidiary TERCON is developing office and service units there.
IVG team Berlin Berlin Schönefeld, Airport Center With this building, IVG already has a presence at the future Berlin International Airport.
M A R K E T
R E P O R T S
| p. 67
I V G R E A L E S TAT E P O R T F O L I O I N B E R L I N / D R E S D E N Market value: 369.1 € m
Carossa Quartier, Streitstraße 5–19 Airport Center Schönefeld, Mittelstraße 5/5a Bundesallee 204–206 Hafenplatz 6/7, Köthener Str. 29 Joachimstaler Str. 1–3 Montanstraße 18–26 Spreespeicher, Stralauer Allee 1–2 Leibnizkolonnaden, Walter-Benjamin-Platz 6, Leibnizstr. 53 Other Total Berlin Total Dresden Total Berlin/Dresden
Lettable space 1,000 m2
Rental income 2001
22.0 14.8 25.0 21.4 6.7 7.5 41.0 12.5 29.3 180.2 33.4 213.6
1,190 2,364 2,883 1,461 2,118 846 332 300 530 12,024 1,829 13,853
Lettable space 1,000 m2
IVG share
8.3 11.8
50 100 47 32
€ ,000
IVG PROJECT DEVELOPMENT IN BERLIN/DRESDEN
Dorotheenstr. 33–37 Leipziger Platz 9 Niederlehme; Liepnitzenberg (Grundstücksentwicklung) Salzufer 6–8
82.0
%
The lakeside borough of Spandau saw the opening of the Carossa Quartier shopping centre in the listed Hertlein Building. The shopping centre is fully let, as is approximately 5,000 m2 of office space on the floors above. Two development projects on Dorotheenstraße in Berlin’s Mitte district have been handed over to RHEINTOR Vermögensverwaltung and CGI COMMERZ Grundinvest. In the same road, TERCON is converting a historical postal building for the Romanian embassy, which is due to open in 2003. To the south-east of the city, TERCON is developing the Niederlehme Industrial Estate on behalf of IVG beside the circular motorway around Berlin. A DaimlerChrysler used commercial vehicle dealership and an ARAL truck stop began trading from premises totalling 30,000 m2 on the site in 2001. Another major new user is the Südbrandenburgischer Abfallzweckverband waste disposal corporation.
IVG team Dresden
Wert-Konzept management with Tim Renner (Universal Music).
R E P O R T S
T O P M O N T H LY R E N T F O R O F F I C E S P A C E , H A M B U R G € / m2
2002
0,8
2003
0,0
0,2
0,4
2004
2005
2006
4Q96
2007 ff.
19,4
0,7
19,2
20,9
4,4
4Q97
4Q98
4Q99
4Q00
27,1
I V G T E N A N C I E S B Y E X P I R Y D AT E , H A M B U R G € m / year
28,1
M A R K E T
25,6
|
24,5
p. 68
4Q01 e4Q02
Quelle: Healey & Baker, IVG
Stand: Feb. 2002
H A M B U R G The office market in the Hanseatic city state was calmer after a very busy year in 2000; new lettings were a little under 380,000 m2. Rents maintained their high level, however, and the vacancy rate stands at 2.2%. Vacancies may rise yet further as current development projects are completed, but the surplus is likely to be concentrated in older, low-quality properties. A lot of new space is due to come onto the market in 2002 and 2003, though the majority has already been pre-let. Hamburg is also home to HafenCity, scheduled for completion in 2025 and one of the biggest developments in Europe. IVG in Hamburg All space in the IVG Nord Business Park is fully let, including an extension built for tenants Yxlon International X-Ray. Discussions are underway with existing and prospective tenants for further expansion of the site. After two changes of occupants, the office building on Habichtstraße is once again fully let. The tenants include CENTRAL Krankenversicherungs AG, Aura Light Deutschland GmbH, and Bürgschaftsgemeinschaft Hamburg GmbH.
R E A L E S T A T E P O R T F O L I O H A M B U R G : Monthly rent per m2 Tenancies with monthly rents from/to
15 €
Rental income
%
6.9
49.6
43.2
0.3
Rental income
€ ,000
35.6
256.6
223.4
1.6
%
46.3
45.5
8.1
0.0
Let space
M A R K E T
R E P O R T S
| p. 69
On Glockengießerwall in Hamburg city centre, IVG is developing an office building that will be completed by spring 2003 and has already been purchased by Grundeigentümerverband Hamburg von 1832 e.V. and Grundeigentümer-Versicherung (Hamburg) for their own use. Some two thirds of the net building land on the Gewerbegebiet Glinde business park ten kilometres east of the city centre have been marketed in the space of two years.
E T Z E L At Etzel near Wilhelmshaven, IVG operates a subterranean caverns facility where it stores gas and crude oil on behalf of industrial clients and bodies responsible for maintaining strategic petroleum reserves. Some of the caverns are owned by the German federal government and have been operated by IVG on a fiduciary basis for 26 years. The government plans to privatize the caverns it still owns; IVG has applied to acquire them.
Hamburg, Lilly This attractive, ultra-modern office complex for high-tech industries has been used by pharmaceuticals group Eli Lilly since 1999. IVG team Hamburg
G L O B A L G AT E : G AT E W AY T O G L O B A L M A R K E T S . The area surrounding Grafenberger Allee is now
one of Düsseldorf’s upcoming office districts. In close proximity to major companies such as Metro, ThyssenKrupp and BMW, IVG is creating an U L T R A - M O D E R N O F F I C E C E N T R E based on the latest smart building technologies.
Catering to the needs of international firms, the complex offers top standards in terms of both facilities and services. Optional extras include a central, multilingual secretary service for all tenants, conference facilities, and ”value partners” providing exclusive services for tenants on special terms. With 3 3 , 0 0 0 M 2 of space in T H R E E R O U G H L Y E Q U A L L Y S I Z E D B U I L D I N G S , Global Gate will literally be a gate-
way to world markets. The first phase has already been completed and let to tenants including the Deutsche Telekom group.
Düsseldorf, Global Gate
I V G - F I N A N C I A L S
|
p. 73
H I G H L I G H T S
2001 another successful year for IVG. Core focus and European strategy paying off.
C O N T E N T S R E P O R T
O F
T H E
G R O U P
F I X E D
C O N S O L I D AT E D N O T E S
T O
T H E
S U M M A R Y
I V G
O F
C O N S O L I D AT E D
T H E
I V G
G R O U P ´ S
TA B L E
O F
A N D
T H E
p. 76
S H E E T
p. 82
S C H E D U L E
p. 84
S TAT E M E N T
p. 86
S TAT E M E N T S
p. 87
A S S E T
I N C O M E
F I N A N C I A L M A J O R
S H A R E H O L D I N G S
p. 104
R E M U N E R AT I O N
p. 106
A U D I T O R S ’ B O A R D
R E P O R T
B A L A N C E
T O TA L
S U P E R V I S O R Y
p. 74
M A N A G E M E N T
C O N S O L I D AT E D C O N S O L I D AT E D
B O A R D
S U P E R V I S O R Y
B O A R D
R E A L
O F
C E R T I F I C AT E
p. 107
M A N A G E M E N T
p. 108
G L O S S A R Y
p. 112
P O R T F O L I O
p. 114
E S TAT E
C H A R T
p. 118
C A L E N D A R
p. 119
O R G A N I S AT I O N F I N A N C I A L
p. 74
|
R E P O R T
REPORT
O F
OF
T H E
THE
S U P E R V I S O R Y
B O A R D
SUPERVISORY
BOARD
Dear shareholders,
Other focal points
The development of IVG’s European real estate portfolio suc-
Other issues focused on at the Supervisory Board's meetings
cessfully continued in 2001. Sales opportunities were reali-
included the business situation of the Group’s companies,
zed in various regional markets and value gains achieved. A
further development of the organizational structure, and
modified corporate structure in effect from 1 January 2002
the medium-term plans for 2002-2004 together with the
reflects IVG’s concentration in recent years on its core busi-
long-term corporate strategy. In March 2001, the Super-
ness of commercial real estate focused on portfolio manage-
visory Board extensively discussed a resolution granting the
ment and project development.
company powers to acquire some of its own shares. This resolution was approved by a large majority at the Annual
High-quality European portfolio extended
General Meeting on 30 May 2001.
IVG has made use of opportunities presented by regional
In June 2001, the Supervisory Board appointed Dr. Bernd
German and European markets to optimize the real estate
Kottmann as an additional member of the Board of
portfolio. The Supervisory Board approved investments
Management.
adding to the portfolio in Berlin, Düsseldorf, Frankfurt, Geneva and Stockholm. The Supervisory Board additionally gave its approval for
Composition of the Supervisory Board – meetings and committees
major project developments in Berlin, Frankfurt, London,
In accordance with the Industrial Constitution Law
Milan and Paris.
(Betriebsverfassungsgesetz) of 1952, the Supervisory Board
To supplement the Group’s project development expertise, TERCON acquired a major stake in and has taken over executive management of SIAT Bauplanung und Ingenieurleistungen GmbH & Co. OHG. Active buy-and-sell strategy
is composed of four shareholder representatives and two employee representatives. The Supervisory Board’s Personnel Committee is empowered to take decisions affecting the contracts of the managing directors of IVG Holding AG, and regarding all other personnel matters referred to the Supervisory Board by statutory requirement. No other committees have been formed.
An important element of IVG’s operations is its active buyand-sell strategy. IVG made use of regional market opportu-
Due to changes in the shareholder structure, Karl Ehlerding,
nities in 2001 to realize value gains through sales of port-
Klaus Peter Schneidewind and Dr. Bernd Thiemann retired
folio properties. The Supervisory Board gave the go-ahead
from the Supervisory Board on 14 November 2001. The
to sell properties in Brussels, London, Madrid and Munich.
Board would like to express its gratitude to the retiring members for their constructive and authoritative input. By providing expert advice with the interests of the entire business in mind, they have helped pave the way for IVG’s successful onward development. As successors for the retiring shareholder representatives, Roland Flach, Karl-Ernst Schweikert and Franz-Josef Seipelt were appointed by court order with effect from 22 November 2001.
R E P O R T
O F
T H E
S U P E R V I S O R Y
B O A R D
|
p. 75
At its meeting on 4 December 2001, the Supervisory
The report on relations with affiliated companies prepared
Board elected Roland Flach as its Chairman and Karl-Ernst
by the Board of Management for the year 2001 in compli-
Schweikert as Deputy Chairman. The Supervisory Board
ance with Sec. 312 of the German Stock Corporations
would like to express its sincere thanks to Dr. Manfred
Law (AktG) was supplied to the Supervisory Board along
Lennings for his highly committed work as Chairman of
with the auditor’s appraisal of it. The Supervisory Board
the Supervisory Board for the last 14 years. His vigour and
has itself examined the Board of Management’s report, and
initiative played a major part in the development of IVG
has approved it together with the auditor’s findings. The
into a successful European listed real estate company.
auditor’s certificate for the Board of Management’s depen-
The Supervisory Board held seven meetings in all to discuss
dent company report reads as follows:
the progress of the business and other specific matters
”Having examined and appraised this report as by duty
of importance, and to deal with the transactions presented
bound, we hereby confirm that:
to it for appraisal and approval in accordance with general legislation or the Articles of Association. Three of the meetings were attended by all members and three by five
1. the facts stated in the report are correct 2. the Company did not render unduly high remuneration
members of the Supervisory Board. Four members were in
in any of the legal transactions documented in the
attendance at the remaining meeting. The Personnel
report.”
Committee additionally held three meetings, which were
In its conclusive findings from its own examination, the
attended by all committee members.
Supervisory Board has no objections to make to the Board
Annual financial statements The annual financial statements of IVG Holding AG and the consolidated financial statements for the year ended 31 December 2001 have been duly audited, together with the Board of Management’s report on the business situation of the Company and the Group (the Management Report) for the 2001 financial year, by PwC Deutsche Revision Aktiengesellschaft, Wirtschaftsprüfungsgesellschaft, of
of Management's declaration on relations with affiliated companies covering the financial year 2001. At its meeting on 25 March 2002, the Supervisory Board issued its approval of the financial statements which are therefore deemed final. It also concurred with the Board of Management's proposed appropriation of net income, and finalized the motions to be put to the Annual General Meeting.
Düsseldorf, who have awarded a clean auditors’ certificate
The Supervisory Board wishes to sincerely thank the Board
in each case. The chief auditor was present at our meeting
of Management and all of the Group's employees for their
to discuss the company’s and the consolidated financial
successful work.
statements on 25 March 2002. He gave an extensive account of the conduct and findings of the audit, and was available to provide additional information. The Supervisory Board has scrutinized the two sets of finan-
Bonn, 25 March 2002 On behalf of the Supervisory Board:
cial statements, the Management Report and the proposed appropriation of net income. It concurs with the findings of the audit and, following the conclusive findings of its own examination, it has no objections to any of these documents and reports.
Roland Flach (Chairman)
p. 76
|
G R O U P
GROUP
M A N A G E M E N T
R E P O R T
MANAGEMENT
Group performance
€m
REPORT
2001
2000
Group total operating performance
486.6
434.7
Group turnover
319.3
321.3
68.1
61.9
Operating earnings
165.8
147.7
Investments
432.2
306.5
Shareholders’ equity
758.4
690.4
3,021.9
2,585.4
in Brussels and London. Modernization enhances the quality of our real estate holdings and so generates significant increases in rental income over the medium to long term.
Consolidated net income
Total assets
Investments IVG invested € 432.2 million in its fixed assets in 2001. Of this total, € 381.3 million went on portfolio properties. Modern office properties were acquired in the following cities: In Brussels, IVG purchased the Sweden House office building (7,200 m2) in the city’s central business district as part of a share deal. There are long-term tenancy agreements with prominent names including Microsoft, Ericsson and
Business performance
the Swedish Embassy.
. 2001 another successful year for IVG . Core focus and European strategy paying off
In Stockholm, IVG acquired the 80,000 m2 headquarters
Active portfolio management with healthy gains on the
utility, under a sale-and-leaseback agreement. A ten-year
sale of properties led to a new post-tax earnings record for
tenancy agreement combined with attractive development
the seventh year running. Group net income increased by
reserves made for a successful entry to the Stockholm mar-
10% to € 68.1 million. Operating earnings rose 12.3% to
ket.
€ 165.8 million. IVG has also broadened its future earnings base with purchases of top-quality properties in Brussels,
of the Vatenfall power group, Europe’s fifth largest energy
In Milan, IVG bought a modern office building under longterm tenancies in compulsory enforcement proceedings.
Stockholm, Milan and Dortmund. In Dortmund, IVG purchased a new high-yield office builSizeable disposals were more than offset by value growth and investment, increasing the total market value of our real estate portfolio by some 8% to € 3.2 billion.
ding (6,700 m2) that is favourably situated between the city centre and the airport. In Geneva, IVG secured a well-situated office building by
Turnover matched the previous year’s level even though, as
way of a compulsory debt purchase.
planned, no major development projects were completed and billed in 2001. IVG also modernized various buildings
Over and above this, IVG invested in upgrading its portfolio
within its portfolio, which meant vacating large properties
in Berlin, Düsseldorf, Hamburg and Munich.
G R O U P
Disposals
M A N A G E M E N T
R E P O R T
|
p. 77
In 2001, IVG again borrowed exclusively for terms above
IVG realized handsome gains on the sale of its Long Acre
five years, and only from major banks. In particular, IVG
and Gran Vía properties in London and Madrid.
took out a new € 100 loan in tranches over 5 to 10 years
In line with IVG’s focus on major European cities, the port-
Investments in foreign currency locations during the 2001
folio was streamlined in Belgium and France by the sale of
financial year were refinanced by taking out corresponding
properties in Antwerp and Sophia Antipolis.
foreign currency loans to eliminate currency risk.
Financing
IVG Holding AG provides funding to companies in the
to fund short-term bank borrowing within the Group.
Group via a central treasury function. The purpose of this New borrowing largely served to refinance maturing shortterm liabilities on a longer-term basis and to further optimize the Group’s debt structure. The total value of loans increased by roughly € 170 million on incorporation of the Stodiek group into the consolidated financial statements. A total of € 57 million in authorized capital is available for
central funding network is to lower the cost of capital throughout the Group. The treasury function also guarantees the solvency of each of the companies involved, and monitors interest and currency risks in the Group as a whole.
future expansion of the capital base.
Consolidated cash flow statement
€m
2001
2002
138.2
– 17.6
Cash used for/provided by investing activities
– 257.7
2.9
Cash provided by/user for financing activities
83.7
– 14.2
– 35.8
– 28.9
Cash and cash equivalents generated by consolidation changes
16.2
10.1
Cash and cash equivalents at the start of the period
39.8
58.6
Cash and cash equivalents at the end of the period
20.2
39.8
Cash provided by/used for operating activities
Net change in cash and cash equivalents
The full cash flow statement appears in Section III of the Notes to the Consolidated Financial Statements (p. 101).
p. 78
|
G R O U P
M A N A G E M E N T
R E P O R T
IVG Holding AG – Annual financial statements for 2001
IVG Holding AG – Balance Sheet
€m
31.12.2001
31.12.2000
0.4
0.5
Financial assets
1,335.2
1,403.4
Total fixed assets
1,335.6
1,404.5
698.8
346.8
85.6
224.9
783.4
571.6
2,120.0
1,976.2
692.4
685.4
50.6
51.3
193.9
316.6
Other liabilities
1,183.1
922.9
Total liabilities and shareholders’ equity
2,120.0
1,976.2
Assets Property, plant and equipment and intangible assets
Receivables from affiliated companies Other assets Total current assets Total assets
Liabilities and shareholders’ equity Shareholders’ equity Provisions Liabilities to affiliated companies
Liabilities to affiliated companies increased as a result of
loans. In consequence, the ‘other liabilities’ item (in which
the investing activities of subsidiaries. The means used by
bank loans are contained) likewise increased.
IVG Holding AG to finance these investments included bank
G R O U P
IVG Holding AG – Income Statement
M A N A G E M E N T
€m
R E P O R T
|
p. 79
2001
2000
106.9
90.3
Net interest payable
– 32.2
– 2.1
Other income and expenses
– 33.6
– 27.8
41.1
60.4
4.1
– 10.9
45.2
49.5
0
0.5
– 5.8
– 11.7
39.4
38.3
Net income from participating interests
Net income from ordinary activities Taxation Net income for the year Withdrawal from reserves Transfers to reserves Net income available for distribution
The IVG Group restructured in 2000 in response to changes
The complete financial statements of IVG Holding AG, as
in Germany’s Law to Prevent International Fiscal Evasion. In
issued with their clean auditors’ certificate by PwC Deutsche
the course of this restructuring, IVG Holding AG acquired
Revision Aktiengesellschaft, Wirtschaftsprüfungsgesellschaft
eight companies from subsidiaries at market prices at the
of Düsseldorf, are published in the Federal Bulletin (Bundes-
end of 2000. As a result, the ‘net interest payable’ item was
anzeiger) and deposited at Bonn Local Court under the
greater than in the previous year.
registration number HRB 4148.
We shall be submitting a proposal to the Annual General Meeting on 23 May 2002 to raise the dividend to € 0.34 per share. This will be the thirteenth consecutive dividend increase.
p. 80
|
G R O U P
M A N A G E M E N T
R E P O R T
Dependent company report
Risk management system
The Board of Management has issued a separate report
Our policy is to make the best possible use of available
on relations with affiliated companies, in accordance with
opportunities while taking only those risks that are quanti-
Sec. 312 of the German Stock Corporation Law (AktG).
fiable. Thus risk management forms an integral part of the
This report includes the following statement:
business and investment decision-making.
”In the circumstances known to us at the time legal trans-
As risk raises the cost of capital, we account for it by requi-
actions were undertaken, our company was appropriately
ring a higher minimum rate of return on an investment.
remunerated for such transactions in all instances. We
We only invest if the anticipated rate of return exceeds this
did not take or omit to take any measures at the behest
minimum and so covers the built-in risk premium.
of or in the interests of WCM Beteiligungs- und GrundsitzAG, Hamburg or Sirius Beteiligungsgesellschaft mbH, of Wackerow.”
The Board of Management has drawn up basic principles for dealing with risk and has put them into practice in the organization of IVG’s operations. IVG continually identifies, evaluates, monitors and manages risk positions. All subsidiaries report on these to the Board of Management via a standardized planning, controlling and monitoring process. IVG has further refined its risk management system during the 2001 financial year and has instituted opportunity/risk reports as part of its monthly reporting system. The risk management system is subject to ongoing improvement and is continuously monitored by internal and external auditing.
G R O U P
IVG largely eliminates country and market risk by regionally diversifying its activities among Europe’s major cities.
M A N A G E M E N T
R E P O R T
|
p. 81
Outlook IVG generates stable results and returns by active manage-
The focus of IVG’s real estate portfolio management activi-
ment of its real estate portfolio and by undertaking project
ties is on optimizing the portfolio of tenancy agreements
development in Europe’s major cities.
and maintaining high occupancy rates.
We are confident that the positive trend of recent years will
In project development, IVG concentrates on high-quality
continue in 2002 and we will be able to achieve once more
projects that are suitable for incorporation into the Group’s
increases in operating earnings and net income.
own portfolio. IVG uses hedging transactions to limit interest-rate and exchange-rate risks. Derivative financial instruments are
Bonn, 18 March 2002
used solely to the extent necessary to hedge against adverse movements in such rates or prices. The instruments used are listed in the Notes to the Consolidated Financial
Eckart John von Freyend
Statements. To counter the risks which may arise from the wide variety of tax, competition and environmental laws and regulations within which IVG operates, we base our decisions on extensive legal and technical consultation. The review of the risk situation shows that no risks were present in the 2001 reporting year that could threaten the continued existence of the business. All identified risks are adequately covered by balance-sheet provisions and, looking ahead, there are no recognizable risks that pose a threat to survival.
Bernd Kottmann
Dirk Matthey
p. 82
|
C O N S O L I D AT E D
B A L A N C E
S H E E T
C O N S O L I D A T E D B A L A N C E S H E E T A S A T 3 1 D E C E M B E R 2 0 0 1
Assets
See note
€
As at 31.12.2001
€
As at 31.12.2000
€ ,000
A. Fixed assets I. Intangible assets 1. Patents, trademarks, licences and similar rights 2. Goodwill 3. Advance payments made II. Property, plant and equipment 1. Real estate (land, leasehold rights and buildings, including buildings on land held by third parties) 2. Technical equipment, plant and machinery 3. Other fixtures and fittings, tools and equipment 4. Advance payments made and construction in progress
1. 8,415,735.05 3,076,868.58 0.00
11,492,603.63
1. 2,046,683,430.23 56,077,145.16 19,109,007.03 85,931,076.24 2,207,800,658.66
III. Financial assets 1. Shares in affiliated companies 2. Long-term loans to affiliated companies 3. Shares in associated companies 4. Participating interests 5. Long-term loans to companies linked via participating interests 6. Long-term securities 7. Other long-term loans
9,691 2,411 169 12,271
2.
1,627,220 47,645 19,860 90,234 1,784,959
50,842,780.92 5,647,340.59 32,033,478.82 32,631,160.81
127,753 21,033 26,160 30,167
13,032,894.38 633,683.35 87,429,898.78 222,251,237.65 2,441,544,499.94
15,343 0 94,914 315,370 2,112,600
134,076,975.60
3,513 19,059 5 22,577
B. Current assets I. Inventories 1. Raw materials and supplies 2. Work in progress 3. Advance payments made II. Receivables and other assets 1. Trade recevaibles 2. Receivables from affiliated companies 3. Receivables from companies linked via participating interests 4. Other assets
3.
3,557,024.78 130,427,089.29 92,861.53
44,395,396.66 91,372,979.68
54,025 59,296
40,461,240.96 232,049,827.94 408,279,445.24
69,476 188,884 371,681
1,342,719.12 20,187,197.54 563,886,337.50 16,510,279.07
22,672 455 2 23,129 39,776 457,163 15,621
Total assets
3,021,941,116.51
2,585,384
Trust assets
199,115,855.37
199,026
III. Securities available for sale 1. Shares in affiliated companies 2. Own shares 3. Other securities
4.
5.
IV. Liquid assets
6.
C. Prepaid expenses
7.
0.00 1,341,073.25 1,645.87
C O N S O L I D AT E D
Liabilities and shareholder´s equity A. Shareholders' equity
See note
€
B A L A N C E
S H E E T
|
p. 83
As at 31.12.2001
As at 31.12.2000
€
€ ,000
8.
I. Subscribed capital
8.1
116,000,000.00
116,000
II. Additional paid-in capital
8.2
458,897,264.95
458,897
III. Revenue reserves 1. Reserve required by law 2. Reserve for own shares 3. Other revenue reserves
8.3
IV. Consolidated net income available for distribution
8.4
115,860,815.99 39,440,000.00
2,557 455 71,097 74,109 38,337
V. Minority interests
8.5
28,154,260.04 758,352,340.98 20,917,101.30
3,088 690,431 78,835
152,070,042.87
11,785 46,600 89,124 147,509
B. Special tax-allowable reserve C. Provisions
2,556,459.41 1,341,073.25 111,963,283.33
9. 10.
1. Provisions for pensions and similar obligations 2. Provisions for taxes 3. Other provisionsn
13,014,439.78 52,176,033.24 86,879,569.85
D. Liabilities 11. 1. 2. 3. 4. 5. 6.
Bank loans Advance payments received for orders Trade acccounts payable Liabilities on bills accepted and drawn Liabilities to affiliated companies Liabilities to companies linked via participating interests 7. Other liabilities E. Deferred income Total liabilities and shareholders' equity Trust liabilities
12.
1,908,140,544.80 2,564,179.93 19,381,960.94 10,000,000.00 11,823,370.83
1,522,967 3,227 20,200 0 17,316
29,781,348.14 90,840,699.26 2,072,532,103.90 18,069,527.46
19,194 59,689 1,642,593 26,016
3,021,941,116.51
2,585,384
199,115,855.37
199,026
p. 84
|
C O N S O L I D AT E D
CONSOLIDATED
F I X E D
A S S E T
FIXED
S C H E D U L E
ASSET
SCHEDULE
Financial year 2001 € ,000
Cost of acquisition or construction
01.01.01
Consolidation changes
Additions
Reclassifications
Currency influences
Disposals
31.12.01
I. Intangible assets 1. Patents, licences, trademarks and similar rights 2. Goodwill 3. Advance payments made
13,987 14,379 169
2,898
817 462
169 980 – 169
34
17,837 15,821
(Total intangible assets)
28,535
2,898
1,279
980
34
33,658
2,086,072 125,466
386,222 12,769
222,360 1,910
93,236 146
20,701
155,213
783
2,492
179
3,916
752
161,831
90,882
6,934
86,795
– 93,563
151
5,268
85,931
(Total property, plant and equipment)
2,457,633
406,708
313,557
– 2
24,768
221,471
2,981,193
Running total
2,486,168
409,606
314,836
978
24,768
221,505
3,014,851
Shares in affiliated companies Long-term loans to affiliated companies Shares in associated companies Participating interests Long-term loans to companies linked via participating interests 6. Long-term securities 7. Other long-term loans
129,342 21,033 26,159 30,480
– 68,258 – 3,569
18,876
– 980
26,549 11,817
52,431 5,647 32,033 36,718
(Total financial assets)
II. Property, plant and equipment 1. Real estate (land, leasehold rights and buildings, including buildings on land held by third parties) 2. Technical equipment, plant and machinery 3. Other fixtures and fittings, tools and equipment 4. Advance payments made and construction in progress
215,320 * 131
2,593,271 140,160
III. Financial assets 1. 2. 3. 4. 5.
(Total fixed assets) * of which € m 105.7 is reclassified in inventories
5,874 11,842
5,604
2,112
4,422
94,914
634 5
59,880
2
67,281
13,033 634 87,520
317,271
– 71,188
98,584
– 978
115,673
228,016
2,803,439
338,418
413,420
337,178
3,242,867
15,343
24,768
C O N S O L I D AT E D
F I X E D
A S S E T
Depreciation, write-ups and write-downs
01.01.01
Consolidation changes
Additions
Write-ups
Reclassifications
Currency influences
S C H E D U L E
|
Book values
Disposals
31.12.01
31.12.01
31.12.00
4,296 11,968
2,049
3,103 777
27
9,421 12,745
8,416 3,076
9,691 2,411 169
16,264
2,049
3,880
27
22,166
11,492
12,271
458,852 77,822
16,789 717
79,079 5,675
135,353
409
5,411
74
647
651
4,783
13,463 131
546,587 84,083
2,046,684 56,077
1,627,220 47,644
– 4
2,139
586
142,722
19,109
19,860
85,931
90,235
– 647
672,674
17,915
90,135
74
6,922
14,180
773,392
2,207,801
1,784,959
688,938
19,964
94,015
74
6,922
14,207
795,558
2,219,293
1,797,230
1,588
4,087
50,843 5,647 32,033 32,631
127,754 21,033 26,159 30,167 15,343
90
90
13,033 634 87,430
3,864
5,765
222,251
315,370
801,323
2,441,544
2,112,600
1,588
313
3,774
1,901 690,839
19,964
97,879
74
6,922
14,207
94,914
p. 85
p. 86
|
C O N S O L I D AT E D
CONSOLIDATED
I N C O M E
S TAT E M E N T
INCOME
STATEMENT 2001
€
2000
€ ,000
See note
€
1. Turnover 2. Net change in inventories of finished goods, work in progress and work not yet billed 3. Other own work capitalized 4. Other operating income
1.
319,290,364.25
321,302
2.
29,685,011.10 971.75 137,618,398.39 486,594,745.49
– 11,765 2,962 122,250 434,749
5. Material expenses a) Cost of raw materials, supplies and acquired merchandise b) Cost of acquired services
4.
– 67,906,522.28
– 10,069 – 29,651 – 39,720
6. Personnel expenses a) Wages and salaries b) Social security levies, and costs of retirement pensions and other welfare benefits
5.
for the year ended 31 December 2001
7. Depreciation and write-downs on intangible assets and property, plant and equipment 8. Other operating expenses 9. Income from participating interests 10. Income from long-term loans 11. Other interest and similar income 12. Write-downs on financial assets and securities available for sale 13. Interest and similar expenses
3.
– 16,362,824.65 – 51,543,697.63
– 48,283,004.07
– 8,906 – 42,237
6. 7. 8. 9. 9.
– 94,015,135.05 – 109,099,096.26 11,061,206.34 8,230,292.20 25,911,670.12
– 53,306 – 161,699 20,657 3,013 26,489
9. 9.
– 4,052,216.75 – 118,445,185.62
– 288 – 96,577
89,996,754.12
91,081
– 9,327,516.50 – 12,563,025.82
– 18,429 – 10,751
68,106,211.80
61,901
– 1,479,446.02 57,337.95
– 509 45
– 5,849,404.57 0.00 – 21,394,699.16
0 – 11,700 – 11,700 482 – 11,882
39,440,000.00
38,337
– 9,196,514.17
14. Net income from ordinary activities 15. Income taxes 16. Other taxes
10. 10.
17. Consolidated net income for the year 18. Minority interests 19. Net income brought forward 20. Transfer to other revenue reserves a) to the reserve for own shares b) to other revenue reserves 21. Withdrawals from the reserve for own shares 22. Changes in revenue reserves 23. Consolidated net income available for distribution
– 33,331
– 39,086,489.90
– 886,142.78 – 4,963,261.79
N O T E S
NOTES
TO
THE
T O
T H E
IVG
I V G
C O N S O L I D AT E D
CONSOLIDATED
F I N A N C I A L
S TAT E M E N T S
FINANCIAL
|
p. 87
STATEMENTS
I. General principles applied to the Consolidated Financial Statements
As in previous financial years, the Consolidated Financial Statements of the IVG Group have been drawn up in accordance with the German Commercial Code (Handelsgesetzbuch – HGB), Stock Corporations Law (Aktiengesetz – AktG), and Principles of Orderly Accounting (Grundsätze ordnungsmäßiger Buchführung – GoB, also known as ”German GAAP”). The financial statements of all the companies included in these Consolidated Financial Statements are prepared using uniform accounting and valuation principles. The financial statements and the lists of participating interests of IVG Holding AG and the IVG Group are deposited at Bonn Local Court (Amtsgericht), registered as HRB no. 4148, and are published in the Federal Bulletin (Bundesanzeiger).
Scope of consolidation
The Consolidated Financial Statements include the parent company, IVG Holding AG, together with all major subsidiaries. These are the companies that fall, directly or indirectly, under IVG’s uniform control. As a general rule, associated companies are valued at equity if IVG holds a stake between 20% and 50% and exerts a significant influence over them. Other participating interests are reported at acquisition cost. Subsidiaries which are non-operating or which conduct only a small volume of business have not been consolidated because they are of minor significance for conveying a true and fair view of the Group’s assets and financial affairs, as provided by Sec. 296 (2) of the Commercial Code. In addition, under Sec. 296 (1) 3, 46 subsidiaries have not been included in the consolidated statements because the stakes in them are held solely for the purpose of their onward sale. Inclusion in the consolidated statements was abstained from for two companies due to organizational difficulties, in accordance with Sec. 296 (1) 2 of the Commercial Code. In all, 75 domestic and 92 foreign-domiciled companies were consolidated in the 2001 financial year, 20 more than in the year 2000 Consolidated Financial Statements. Eight associated companies were valued at equity. Stodiek Europa Immobilien AG, which had previously been valued at equity, was fully consolidated for the first time in the 2001 financial year following the decision to retain IVG’s stake in the company on a long-term basis.
Number of fully consolidated companies Number of participating interests valued at equity Number of other affiliated companies and participating interests Total number of companies
Domestic
Foreign
Total as at 31.12.2001
Total as at 31.12.2000
75
92
167
147
7
1
8
8
102 184
30 123
132 307
128 283
p. 88
|
N O T E S
T O
T H E
Comparability of the 2001 and 2000 Consolidated Financial Statements
I V G
C O N S O L I D AT E D
F I N A N C I A L
S TAT E M E N T S
The consolidation changes made (excluding companies consolidated for the first time) have had varying impacts on the Group’s assets and profitability. The absolute and relative effects of these changes on key items in the 2001 Consolidated Financial Statements (in € million and as a percentage, respectively) are:
Property, plant and equipment Financial assets Other assets Provisions Payable to banks Trade accounts payable Turnover Depreciation Net interest income (balance of interest paid and received) Net income for the year
Consolidation methods
€m
%
316.2 0.6 34.1 10.3 176.1 3.0 25.8 5.4 – 13.2 2.8
14.3 0.3 5.8 6.8 9.2 15.43 8.1 5.8 – 14.3 4.2
The capital of consolidated affiliated companies was incorporated into the Consolidated Financial Statements in former periods according to the book-value method, by offsetting the purchase prices of the subsidiaries with the shareholders’ equity obtained by the parent company at the date when each affiliate was acquired and/or was first consolidated. The capital of companies first consolidated on or after 1 January 2001 is incorporated into the Consolidated Financial Statements by the fair purchase value method in accordance with GAS 4. The comparative figures for previous years have not been adjusted retrospectively through reserves. If the date of consolidation coincides with the parent company’s balance-sheet date, the balance sheet only is incorporated. If an existing Group company is deconsolidated, this invariably takes effect at the start of a new financial year. Hidden reserves and encumbrances recognized on application of the fair purchase value method are counted towards the company’s equity. Any residual amount is recognized as goodwill and invariably. amortized over a useful life of 15 years. For companies consolidated in earlier periods by the book-value method, any discrepancy between a subsidiary’s acquisition cost and the attributable proportion of shareholders’ equity is counted, in whole or in part, towards the subsidiary’s assets. If there is a residual amount on the assets side of the balance sheet, this is reported as goodwill, and amortized on a scheduled basis in accordance with its anticipated useful life (normally 15 years). If the residual amount arising from capital consolidation is a liabili-
N O T E S
T O
T H E
I V G
C O N S O L I D AT E D
F I N A N C I A L
S TAT E M E N T S
|
p. 89
ty, depending on its nature it is charged to the real estate assets item, or else added either to provisions or to reserves. The same consolidation principles apply to shareholdings in associated companies valued at equity. Intra-Group lending and all other receivables, liabilities, turnover, expenses and income arising within the Group are eliminated. Deferred taxes arising from timing differences in the values that individual companies have reported in their commercial and tax financial statements are lumped together with those arising in consolidation processes, and are carried on the balance sheet as provisions for taxes. Deferred taxes are computed on the basis of tax rates in force or expected to apply in the country concerned as of the balance-sheet date. The future rate applying to dividend distributions is normally used as the basis in Germany. Beyond that, all tax regulations in force or enacted by the balance-sheet date are observed. Transactions between consolidated Group companies are eliminated in IVG’s Consolidated Financial Statements, in accordance with Sec. 304 of the Commercial Code. Supplies and services are exchanged within the IVG Group at normal market terms and conditions.
Currency translation
The balance sheets of foreign subsidiary companies have been translated into euros using the exchange rate on the balance-sheet date, while their income statements have been translated at average exchange rates for the whole financial year. This means that assets, provisions and liabilities are all valued using the middle rate of exchange on the balance-sheet date. Income and expenses and the net income for the year are translated at the average exchange rate during the year. Items falling under shareholders’ equity are translated at the historic exchange rates applying when these items were added to the balance sheet. Discrepancies between these values and those arrived at using the exchange rate on the balance-sheet date are added to or offset against revenue reserves without affecting the income statement. The exchange rates used for translation purposes were:
Currency
Country
1 GBP 100 SEK 100 HUF 100 PLN
United Kingdom Sweden Hungary Poland
Exchange rate on 31.12.2001 €
Average exchange rate in 2001 €
Exchange rate on 2000 €
1.6434 10.7513 0.3899 28.6098
1.6100 10.8271 0.4079 27.2123
1.6023 11.3234 – –
Currency translation differences are added to or offset against revenue reserves without affecting the income statement.
p. 90
|
N O T E S
Accounting and valuation policies
T O
T H E
I V G
C O N S O L I D AT E D
F I N A N C I A L
S TAT E M E N T S
For the purposes of inclusion in these Consolidated Financial Statements, the individual Group companies’ own financial statements are prepared according to the IVG Group’s accounting and valuation policies. This involves a process of adapting financial statements prepared under other countries’ rules whenever they do not conform to the principles of the parent company and substantial valuation differences arise. The ”type of expenditure” (”cost summary”) presentation format is used for the income statement. Intangible assets are valued at acquisition cost less scheduled depreciation charges. Property, plant and equipment is valued at the cost of acquisition or construction and, where depreciable, recorded net of scheduled depreciation. The manufacturing costs of self-constructed assets also include a proportional allocation of overhead. As a general rule, buildings throughout the Group are depreciated on a straight-line basis, assuming a normal useful life of either 50 or 66.67 years. In the case of buildings owned by German Group companies, a changeover was effected in the 2001 financial year from the tax depreciation rates used in financial statements prepared by such companies on a separate-entity basis to uniform rates used throughout the Group in financial statements prepared for incorporation into the consolidated accounts. After deducting deferred taxes (25%), this change has a € 5.6 million affect on earnings. Movable assets are invariably depreciated over the shortest useful life permissible under tax law in each instance, using either the straight-line method or else the decliningbalance method switching subsequently to straight-line; additions made during the first half-year are depreciated as if for a full year, while those made during the second half are depreciated by half of the first year’s permissible amount. Low-value assets are depreciated fully in the year of acquisition. They are recorded as additions in the fixed assets movement schedule, and are always recorded as disposals after their assumed useful life of four years has elapsed. Shares in affiliated companies and other participating interests are recorded on the balance sheet at the lower of their acquisition cost or current resale value. Shareholdings valued at equity are included in the Consolidated Financial Statements using the book-value method stipulated in Sec. 312 (1) 1 of the Commercial Code. As a general rule, associated companies apply IVG’s valuation principles. Loans to employees – including interest-free and low-interest loans – are booked at their nominal value. Long-term loans to affiliated companies or to companies linked via participating interests are reported strictly according to the lower-of-cost-or-market principle.
N O T E S
T O
T H E
I V G
C O N S O L I D AT E D
F I N A N C I A L
S TAT E M E N T S
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p. 91
Inventories are valued at the lower of their cost of acquisition or construction (the tax-law capitalization requirement) or their current market price. Raw materials and supplies are normally valued on the basis of updated average acquisition costs. Work in progress, finished goods and merchandise are valued at their cost of construction. In addition to unit material and production costs, this is invariably also taken to include the proper allocation of material and production overheads and depreciation charges. The principle of loss-free valuation has been observed. For receivables and other assets, recognizable risks are taken into account by writing down the individual items concerned. General bad-debt risk is adequately allowed for by means of a lump-sum write-down on receivables. Own shares held by the Group are reported at their (below-cost) market value as of the balance-sheet date. Provisions for pensions and similar obligations are reported at the going-concern value. That going-concern value is calculated on an actuarial basis using an interest factor of 6%, in accordance with Sec. 6a of the German Income Tax Law (Einkommensteuergesetz – EStG). The provisions are calculated using Prof. K. Heubeck’s 1998 actuarial tables. Provisions for taxes not only include deferred taxation from Group companies’ individual financial statements, as provided by Sec. 274 of the Commercial Code, but also deferred taxation arising from consolidation as per Sec. 306. All liabilities or entitlements associated with the taxation of income, capital and asset values arising during the financial year are fully accounted for in the Consolidated Financial Statements, based on the tax regulations applying to individual Group companies. Other provisions account for all recognizable risks and uncertain obligations to the full extent necessary, in line with prudent business judgement. Liabilities are reported as the amount due. Turnover is reported once supplies of goods and/or services have been completed and risk has passed to the customer. Turnover in project development is not declared in the income statement until a contract is fulfilled or a distinct part of the work already performed for, or delivered to, the customer can be billed. The ancillary letting costs (excluding taxes on land and buildings) reported in the previous year as part of other operating expenses are now reported in material expenses for greater clarity of the earnings position.
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N O T E S
T O
T H E
I V G
C O N S O L I D AT E D
F I N A N C I A L
S TAT E M E N T S
II. Notes to the 2001 consolidated balance sheet and income statement Consolidated balance sheet
Movements in the individual items of fixed assets (disclosed in the Consolidated Fixed Asset Schedule) are accounted for on the basis of their historic cost of acquisition or construction.
1. Intangible assets, and property, plant and equipment
Acquisition and production costs reported for intangible assets and property, plant and equipment are historic costs, which in some cases originate from the deutschmark opening balance sheet of 1948. Intangible assets are made up of goodwill and of patents, trademarks, licences and similar rights. Property, plant and equipment consists of both real estate and movable items, also including advance payments made and construction in progress.
2. Financial assets
The additions to shares in affiliated companies are a result both of purchases of stakes in existing companies and the foundation of new ones. The changes in the shares in associated companies are substantially due to the acquisition of a 41.1% stake in FDV Venture S.A., Luxembourg (a project development joint venture with AXA). The updated valuation, using the equity method, of the Group’s holdings in associated companies was € 32.0 million as of the balance-sheet date. The increase in participating interests was primarily due to the acquisition of shares in Siat Architekten & Ingenieure GmbH, Munich. The long-term loans to companies linked via participating interests chiefly involve loans by IVG Holding AG to ING Leasing GmbH & Co Delta oHG (Oststeinbek) (€ 7.7 million), to fund capital investment. The other long-term loans reported include a mortgage-secured loan from IHC (€ 44.8 million), a loan to the IVG fund 78 K.u.K. Grundstücksverwaltungs GmbH & Co. KG (€ 19.9 million), a deposit lodged by IVG Logistik GmbH to finance property, plant and equipment, housing loans provided to employees, and a loan from IVG Service GmbH to finance a shopping centre in Lodz (€ 14.2 million).
N O T E S
3. Inventories
T O
T H E
I V G
C O N S O L I D AT E D
F I N A N C I A L
S TAT E M E N T S
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p. 93
Most (€ 3.4 million) of the € 3.6 million in raw materials and supplies are attributable to IVG Logistik GmbH (specifically, the Oberhausen repair works). The Group’s work in progress (€ 130.4 million) is largely connected with project development, accorded to the Services Division. Certain properties in development, being earmarked for sale on completion, have been transferred from fixed assets to current assets. After allowing for this reclassification, the change in inventories matches the change in work in progress.
4. Receivables and other assets
Receivables € ,000 Trade receivables (of which: amount not due for more than 1 year) Receivables from affiliated companies (of which: amount not due for more than 1 year) Receivables from companies linked via participating interests (of which: amount not due for more than 1 year) Other assets (of which: amount not due for more than 1 year)
31.12.2001
31.12.2000
44,395 3,932 91,373 663
54,025 (0) 59,297 (0)
40,461 (0) 232,050 (11,173) 408,279
69,476 (22) 188,883 (780) 371,681
Most of the receivables from affiliated companies result from Group financial transactions. Receivables from companies linked via participating interests are mainly attributable to short-term loans by IVG Holding AG to Leibniz-Kolonnaden mbH & Co. KG (Berlin) and to Bürohaus Schönefeld ORISO Verwaltungsgesellschaft mbH & Co KG (Munich) for the purposes of funding capital investment. The ‘other assets’ item includes sums owed to IVG Holding AG by the IVG fund 78 K.u.K. Grundverwaltungs GmbH & Co. This item also includes refund entitlements for overpaid taxes, totalling € 35.0 million (2000: € 39.0 million).
5. Own shares
IVG Holding AG once again issued shares to employees to allow them to accumulate financial assets. The IVG VALUE programme continues to be as well received as ever, with 50,000 shares issued to employees in 2001. In this connection, 124,751 no-parvalue shares (2000: 50,559), constituting 0.11% of the total capital stock, remained in the Group’s ownership on 31 December 2001.
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N O T E S
T O
T H E
I V G
C O N S O L I D AT E D
F I N A N C I A L
S TAT E M E N T S
6. Liquid funds
The item consists of cash in hand and bank accounts in credit.
7. Prepaid expenses
This item primarily comprises payments made – mainly by Asticus GMS Ltd. (London) – which will not be recognized as expense until later financial years. It also contains deferred discounts on long-term bank loans (€ 0.8 million).
8. Shareholders’ equity Changes in shareholders’ equity € ,000
Shares issued 31.12.2001
Subscribed capital Additional paid-in capital Revenue reserves Consolidated net income available for distribution Minority interests Total shareholders’ equity
8.1 Subscribed capital
116,000 458,897 115,861 39,440 28,154 758,352
Reserve for Use of net income Foreign exchange own shares differences Changes during the financial year
886
886
4,963
4,963
31.12.2000
11,049
23,968
116,000 458,897 74,109
11,049
1,103 25,066 50,137
38,337 3,088 690,431
The capital stock of IVG Holding AG amounts to € 116,000,000.00, apportioned as 116 million no-par-value shares. Categories of authorized capital in existence as of the balance-sheet date: . Class I authorized capital . Class II authorized capital . Class III authorized capital
€ 24 million € 9 million € 24 million
Sirius Beteiligungsgesellschaft mbH (Wackerow) – an 87% subsidiary of WCM Beteiligungs- und Grundbesitz-Aktiengesellschaft (Hamburg and Frankfurt) – continues to hold 50% of IVG Holding AG minus one voting share. A dependence report relating to WCM AG, this being the ultimate controlling company, has therefore been submitted as required by Sec. 312 of the Stock Corporations Law (AktG).
8.2 Additional paid-in capital
Additional paid-in capital remains unchanged at € 458.9 million.
N O T E S
8.3 Revenue reserves
T O
T H E
I V G
C O N S O L I D AT E D
F I N A N C I A L
S TAT E M E N T S
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€ 5.0 million were transferred to other revenue reserves from IVG Holding AG’s net income for the year; € 886,100 were transferred to the reserve for own shares, as holdings of such shares had increased by 31 December 2001. Consolidated net income was adjusted to that of IVG Holding AG by making a transfer to its other revenue reserves.
8.4 Consolidated net income
The 2001 consolidated net income of IVG Holding AG available for distribution was € 39.4 million. The Board of Management and Supervisory Board will propose to the Annual General Meeting on 23 May 2002 that a dividend of € 0.34 (2000: € 0.33) per no-par-value share be distributed out of that sum.
8.5 Minority interests
The main component of the interests of minority shareholders in the equity of consolidated IVG Group companies (totalling € 28.2 million) is their stake in Stodiek Europa Immobilien AG (Bonn), K. u. K. Zweite Grundverwaltungs-GmbH & Co. Spreespeicher KG (Berlin), and FvH Grundstücksverwaltungs GmbH & Co. (Berlin). Minority shareholders are entitled to a positive share of net income totalling € 1.5 million.
9. Special tax-allowable reserves
The book profit arising from the disposal of real-estate limited partnerships was placed in a tax-allowable reserve as provided by Sec. 6b of the Income Tax Law (EStG), and part of it redeployed in the purchase of other limited partnerships; in such cases, the special item is released to match the depreciation charge on the limited partnerships’ assets.
10. Provisions
Provisions have been made for all pension commitments on an actuarial basis. Provisions for taxes have substantially been made to cover the current year, earlier years for which tax liabilities have not yet been finally settled, and deferred taxes (€ 8.1 million). Other provisions cover such matters as personnel expenses, outstanding suppliers’ invoices, omitted maintenance work, anticipated losses on pending transactions, restructuring and potential litigation costs. Additional provisions of € 6.9 million are maintained to cover land rehabilitation and other environmental measures.
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N O T E S
T O
T H E
I V G
C O N S O L I D AT E D
F I N A N C I A L
S TAT E M E N T S
11. Liabilities
Liabilities € ,000
Bank loans Advance payments received for orders Trade accounts payable Liabilities on bills accepted and drawn Liabilities to affiliated companies Liabilities to companies linked via participating interests Other liabilities (of which: tax liabilities) (of which: for social security)
Totals as at 31.12.01
Up to 1 year to maturity
1–5 years to maturity
More than 5 years to maturity
Total as at 31.12.00
1,908,141 2,564 19,382 10,000 11,823 29,781 90,841 (11,408) (767) 2,072,532
285,011
861,657 2,564 56
761,473
2,490
981
866,767
762,454
1,522,967 3,227 20,199 0 17,317 19,194 59,689 (8,003) (605) 1,642,593
19,326 10,000 11,823 29,781 87,370 (11,408) (767) 443,311
The bank loans are secured by mortgages on real estate of € 297.4 million and a pledged fixed-term deposit of € 4.3 million. The other liabilities are secured in the amount of € 11.5 million.
12. Deferred income
13. Contingent liabilities
This item consists primarily of advance rent payments in the Real Estate Division.
Contingent liabilities € ,000
31.12.01
31.12.00
Guarantees Other contingent liabilities
259,300 86,488 345,788
84,134 46,414 130,548
The ”guarantees” category consists of guarantee obligations IVG Holding AG has entered into with third parties on behalf of affiliated companies. The other contingent liabilities include IVG’s share of joint-and-several debt obligations to leasing companies which IVG subsidiary undertakings use to finance some of their investment, its obligation to pay residual-liability deposits in connection with the real-estate limited partnerships, and letters of comfort.
N O T E S
14. Other financial obligations
T O
T H E
I V G
C O N S O L I D AT E D
F I N A N C I A L
S TAT E M E N T S
p. 97
Obligations from rental and leasing agreements € ,000
31.12.01
due 2002 due 2003 – 2006 due after 2006
11,713 28,045 32,281 72,039 17,100 28,500 117,639
Undertaking to contribute capital Loan obligation
15. Derivative financial instruments
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The international focus of its operating business exposes IVG Holding AG to interestrate and exchange-rate risk. These risks are hedged using derivative financial instruments. Risk of default and market risk were negligible both in the year under review and the financial year preceding it. The derivative financial instruments current as at the balance-sheet date were as follows:
Derivative financial instruments € m
Interest-rate swaps Foreign exchange interest swaps
Nominal amount 2000 2001 340.9 131.5 472.4
372.6 126.8 499.4
The nominal volume of the hedging contracts in the table is not netted out. It is the total of all buy and sell amounts underlying the contracts.
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N O T E S
T O
T H E
I V G
C O N S O L I D AT E D
F I N A N C I A L
S TAT E M E N T S
Consolidated income statement 1. Turnover
Turnover includes net rental income, prepayments of ancillary costs by tenants, and revenue from sales of development projects. In accordance with the Commercial Code, book gains on the sale of portfolio properties are recognized not as turnover but as other operating income. Turnover is deemed to have been realized when performance has been rendered and the risk passed on. Turnover in project development is not declared in the income statement until a contract is fulfilled or a distinct part of the work has been handed over to the customer. A breakdown by divisions and regions is presented in Section IV (Key Figures by Segment) of these Notes.
2. Net increase in inventories of finished goods, work in progress and work not yet billed
3. Other operating income
The changes in inventories of finished goods (€ 29.7 million) primarily relate to two development projects in London.
Other operating income € m Transfers from special tax-allowable reserves Disposals of property, plant and equipment Release of provisions Other
2001
2000
60.7 50.2 9.2 17.5 137.6
1.2 83.3 7.0 30.8 122.3
Book gains on sales of properties in Germany are neutralized by applying special depreciation allowances and transfers to special tax-allowable reserves, as provided by Sec. 273 of the Commercial Code concurrent with Sec. 6b of the Income Tax Law (EStG).
4. Material expenses
Material expenses (€ 67.9 million) chiefly derive from raw materials and supplies, from production inputs for the completion of orders, and from purchased services. They break down on a segmental basis to € 29.3 million for real estate portfolio management, € 35.5 million for real estate project development, and € 3.1 million for noncore operations.
N O T E S
5. Personnel expenses
T O
T H E
I V G
C O N S O L I D AT E D
F I N A N C I A L
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S TAT E M E N T S
Personnel expenses € ,000 Wages and salaries Social insurance levies, and costs of retirement pensions and other welfare benefits (of which: for retirement pensions)
p. 99
2001
2000
39,086
33,331
9,197 (3,386) 48,283
8,906 (3,483) 42,237
The wages and salaries item includes employer’s matching contributions to the ”employee-loan” asset participation model for employee wealth creation. The total cost in the 2001 financial year was € 42,000 (2000: € 42,000). The costs of retirement pensions and other welfare benefits include the pension entitlements of employees whose contracts are made with IVG Holding AG arising from a special contributory agreement with the state pension agency Versorgungsanstalt des Bundes und der Länder (VBL). The contribution rate applicable in 2001 was 7.7% of the wages and salaries covered by this supplementary plan (€ 16.61 million); 6.45% is payable by the employer and 1.25% by the compulsorily insured employees. On the basis of figures current at the 1995 year end, it is estimated that some 620 former employees will be entitled to or are already receiving these supplementary pensions.
6. Depreciation and write-downs on intangible assets, property, plant and equipment
Depreciation and write-downs on fixed assets € ,000
2001
2000
Scheduled depreciation charges Non-scheduled depreciation or write-downs Special depreciation allowances permitted by tax law Total depreciation on fixed assets
42,457 756 50,802 94,015
42,752 9,583 971 55,306
The special depreciation allowances arose under the terms of Sec. 6b of the Income Tax Law (EStG). Additional depreciation charged up to the end of 2001 as permitted by tax law ultimately had a negative influence on the Group net income for the year, after taking account of income taxes, amounting to € 45.2 million. The future tax burden resulting from the omission of otherwise scheduled depreciation charges is distributed over a long future period based on the useful lives of the assets involved.
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N O T E S
T O
7. Other operating expenses
T H E
I V G
C O N S O L I D AT E D
F I N A N C I A L
S TAT E M E N T S
The main items of other operating expenses (totalling € 109.1 million) are as follows:
Other operating expenses € m
2001
2000
Maintenance and upkeep Auditing, consultancy and legal fees Lease rentals payable Cost of external services Communication/marketing Ground rents or lease payments Travel expenses Transfer to special tax-allowable reserves
17.9 13.5 10.9 8.7 4.5 3.7 1.9 0.4
19.5 14.7 10.8 9.0 4.2 4.4 1.5 27.3
47.6
70.3
109.1
161.7
2001
2000
4,602 3,341 3,118 11,061
8,479 4,757 7,420 20,656
2001
2000
8,230 (683) 25,912 (36)
3,013 (680) 26,489 (4,532)
– 4,052 – 118,445 (– 5,446) – 88,355
– 288 – 96,577 (– 5,138) – 67,363
As provided by Sec. 6b of the Income Tax Law (EStG), book profits on the sale of real properties have been neutralized by this item
Other This sub-item includes allocations to provisions, write-downs on assets, write-ups on liabilities, etc.
8. Income from participating interests
Income from participating interest € ,000 Income from non-consolidated affiliated companies Income from associated companies Income from other participating interests
9. Financial earnings
Financial earnings € ,000 Income from long-term loans (of which: from affiliated companies) Other interest and similar income (of which: from affiliated companies) Write-downs on financial assets and securities available for sale Interest and similar expenses (of which: to affiliated companies)
N O T E S
T O
10. Taxation
T H E
I V G
C O N S O L I D AT E D
F I N A N C I A L
Taxation € ,000 Income taxes Other taxes
S TAT E M E N T S
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p. 101
2001
2000
9,328 12,563 21,891
18,429 10,751 29,180
Income taxes were reduced by making use of the ability to bring forward losses in foreign operations. Additionally, € 5.8 million was released from the provision for deferred taxes at IVG Holding AG. € 1.8 million was transferred to the provision for deferred taxes to provide for changes in accounting treatment in subsidiary financial statements prepared for incorporation into the consolidated accounts; € 0.9 million of accrued taxes were attributable to consolidation.
III. Consolidated cash flow statement
Consolidated cash flow statement € m Net income for the period, before extraordinary items +/– Depreciation and write-ups/write-downs on fixed assets +/– Other non-cash items – Profits from the disposal of fixed assets + Decrease/Increase in provisions Changes in current assets and liabilities: – Inventories (increase/decrease) +/– Receivables and other assets (decrease/increase) +/– Trade accounts payable/other liabilities (increase/decrease) Cash provided by/used for operating activities Proceeds from the disposal of property, plant and equipment/intangible fixed assets Cash used for investments in property, plant and equipment/intangible fixed assets Proceeds from the disposal of financial assets Cash used for investments in financial assets Cash used for/provided by investing activities Proceeds from capital increase – Payments made to IVG shareholders and other equity partners Proceeds from new borrowing Payments to service existing loans Cash used provided by/used for financing activities Net change in cash and cash equivalents Cash and cash equivalents generated by consolidation changes Cash and cash equivalents at the start of the period Cash and cash equivalents at the end of the period
2001
2000
68.1 97.8 – 55.9 – 50.0 – 0.2
61.9 53.6 27.5 – 77.4 38.1
– 2.0 75.0 5.4 138.2 56.1 – 312.3 96.4 – 97.9 – 257.7 0.0 – 38.3 420.0 – 298.0 83.7 – 35.8 16.2 39.8 20.2
22.8 – 89.7 – 54.4 – 17.6 235.2 – 150.7 91.0 – 172.6 2.9 23.0 – 58.1 173.1 – 152.2 – 14.2 – 28.9 10.1 58.6 39.8
The cash flow statement has been broken down to cover cash used for and provided by operating, investing and financing activities. The effects of consolidation changes have been eliminated; their effect on cash and cash equivalents is shown separately. Cash and cash equivalents are defined in the same way as liquid funds. € 4.3 million of cash and cash equivalents is pledged as security.
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N O T E S
T O
T H E
I V G
C O N S O L I D AT E D
F I N A N C I A L
S TAT E M E N T S
Depreciation and write-downs 2001 2000
Income from associated companies 2001 2000
IV. Key figures by segment Key figures by segment € m
Real Estate Portfolio Management Other/Consolidation Total Real Estate Portfolio Management Real Estate Project Development Other/Consolidation Total Real Estate Project Development Total Non-Core Operations Holding Company/Consolidation Group
Liabilities 2001
2000
816.7 7.3
718.2 15.2
84.4 4.4
40.8 5.0
– 0.4 0.0
824.0 126.8 5.3
733.4 66.6 3.2
88.8 1.3 0.1
45.8 0.8 0.0
132.1 10.0 1,176.4 2,142.5
69.8 20.4 928.6 1,752.2
1.4 3.6 4.2 98.0
0.8 4.2 2.5 53.3
Investment 2001
2000
– 3.7 0.0
380.0 1.3
127.0 6.0
– 0.4 0.3 3.4
– 3.7 – 0.1 5.5
381.3 37.5 0.2
133.0 58.2 0.7
3.7 0.0 0.0 3.3
5.4 0.0 3.1 4.8
37.7 0.8 12.4 432.2
58.9 0.7 113.9 306.5
The segmental breakdown shows the performance of the Group’s various types of operations. The operational and regional segmentation is based on internal reporting, in which the primary focus is on core activities. Operating earnings are derived from the net income from ordinary activities by eliminating interest (paid and received) and extraordinary influences (in 2000), and by including other taxes. The investments category also includes investments in financial assets. The Real Estate Portfolio Management segment covers the operations managed by IVG Immobilien GmbH in Germany and abroad, plus the storage business sector (caverns and tank farms). IVG Service GmbH heads the Real Estate Project Development segment. The Non-Core Operations segment includes the remaining chemicals logistics and rail operations, managed by IVG Logistik GmbH. The ”holding company/consolidation” category includes items attributable directly to the holding company, activities not falling within just one of the areas delineated, and consolidation effects.
Regions Geographical segments € m External turnover Assets Investments
UK
France
Benelux
Germany
Other
Group
13.0 243.8 0.4
21.5 258.9 11.6
67.7 830.0 96.6
192.6 1,139.9 242.0
24.4 432.1 81.6
319.2 2,904.7 432.2
The segmental breakdown into regions reflects the geographical location of IVG’s real estate holdings.
N O T E S
Employees (number) 2001 2000
T O
T H E
I V G
Inter-segmental turnover 2001 2000
C O N S O L I D AT E D
2001
External turnover 2000
F I N A N C I A L
Total operating performance 2001 2000
S TAT E M E N T S
Operating earnings 2001 2000
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p. 103
Assets (at book value) 2001 2000
233 161
185 168
1.3 0.0
1.1 0.0
223.0 46.5
205.4 45.9
354.4 46.8
288.7 46.0
181.0 16.1
140.3 16.0
2,437.0 64.9
1,877.7 54.0
394 116
353 98
1.3 0.3 0.0
1.1 0.7 0.4
269.5 21.6 0.0
251.3 41.7 0.0
401.2 57.3 0.2
334.7 57.8 0.1
197.1 3.5 – 3.6
156.3 25.1 0.7
2,501.9 217.7 72.1
1,931.7 130.4 59.0
116 132 72 714
98 187 71 709
0.3 0.0 0.0
1.1 0.0 0.0
21.6 25.9 2.2 319.2
41.7 28.9 – 0.6 321.3
57.5 27.7 0.2 486.6
57.9 40.8 1.3 434.7
– 0.1 2.0 – 33.2 165.8
25.8 6.4 – 40.8 147.7
289.8 34.4 78.6 2,904.7
189.4 37.5 306.7 2,465.3
V. Other disclosures
Employees
The average number of employees working for the companies consolidated into the IVG Group, showing the Group companies with which employment contracts are signed in their appropriate divisions, is as follows.
Company
IVG Holding AG of which: on secondment IVG InfoTec IVG Immobilien GmbH IVG Belgium, France, England, Sweden Total for Real Estate Division IVG Service GmbH TERCON Jenoptik Total for Services Division IVG Logistik GmbH IRO Total for Logistics Division Group total
Salaried staff
Trade employees
Total 2001
Total 2000
235
174
22 52
0 4
409 337 22 56
430 374 15 57
22 74 34 64 30 128 19 5 24 483
0 4 0 0 0 0 49 4 53 231
22 78 34 64 30 128 68 9 77 714
25 82 13 53 32 98 73 11 84 709
Number of trainees and apprentices in the Group as at 31 Dec. 2001: 33 (2000: 34)
The petroleum haulage group, which is no longer consolidated, had 1,204 employees in the 2001 financial year.
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I V G
G R O U P ´ S
SUMMARY
OF
M A J O R
THE
S H A R E H O L D I N G S
IVG
GROUP´S
MAJOR
Voting rights %
Shareholders' equity € ,000
Net income € ,000
0 80 100
0 80 100
100 80 100 99 100 100 100 100 100 81.97 86.48 81.97 81.97 81.97 81.97 81.97 81.97 81.97 81.97 82.15 81.97 81.97 82.15 81.97 81.97 81.97 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
100 80 100 99 100 100 100 100 100 81.97 86.48 81.97 81.97 81.97 81.97 81.97 81.97 81.97 81.97 82.15 81.97 81.97 82.15 81.97 81.97 81.97 100 100 100 100 100 100 99 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
692,367 3,817 43,328 413,133 166 848 21,239 1,958 100,196 829 2,555 1,022 5,289 82,848 12,887 26 – 31 330 156 80 16,033 –8 508 2,959 0 – 992 2,933 1,584 – 246 2,509 – 1,143 63,755 167,810 – 245 3,772 395,638 52 – 252 3,354 9,351 13,543 – 239 92 48,978 – 1,014 19,971 4,946 17 11,810 5,612 32,897 22,610 – 1,000 30,780 381 16,119 59,519 10,362 26,766
45,235 2,770 658 90,869 – 90 – 284
Proportion of capital held %
I. Affiliated companies (consolidated, as per Sec. 271 [2] of the Commercial Code) IVG Holding AG, Bonn TERCON Immobilien Projektentwicklungsgesellschaft mbH, Munich IVG Immobilien GmbH, Bonn 56 Immobilienbestands- und Projektentwicklungs-KG MMD Bauträgergesellschaft mbH, Bonn JOBAU Immobilienmanagement GmbH, Jena IVG Service GmbH, Bonn Párizs 2000 Investitions- und Immobilien- Vertriebs GmbH, Budapest IVG Logistik GmbH, Bonn IVG InfoTec GmbH & Co KG, Bonn IVG Schienenfahrzeuge GmbH & Co Güterwagen KG, Bonn IVG Schienenfahrzeuge GmbH & Co Kesselwagen KG, Bonn IVG Tanklager Silesia, Radzionków, Poland Stodiek Europa Immobilien AG, Bonn Property Secrurity Belgium SA, Brussels Stodiek Immobilien- und Verwaltungs GmbH, Bonn Stodiek Wohnpark Kaarst GmbH & Co. KG, Bonn Stodiek Ariane I S.A., Luxembourg Stodiek Ariane II S.A., Luxembourg Stodiek Arianne III S.A. Luxembourg Stodiek ESPANA S.A., Madrid Stodiek Immobilien GmbH & Co. – Objekt München I – KG, Bonn Stodiek London GmbH; Bonn Stodiek Italia S.r.l., Milan Stodiek Lisboa – Promocao e Construcao de Imóveis, S.A., Lisbon Stodiek France SAS, Paris Stodiek Immobiliare S.r.l., Milan SCI 121/123 Rue D'Aguesseua, Paris Stodiek Immobiliaria S.A., Madrid Stodiek Portugal – Sociedade Imobiliaria S.A., Lisbon IVG European Real Estate S.A., Brussels IVG European Properties AB, Göteborg Asticus AB, Göteborg Ada SA, Brussels Arpo SA, Brussels Asticus (Belgium) SA, Brussels Beaulieu SPV SA, Brussels Beeda SA, Brussels Bolet SA, Brussels Bonne Odeur SA, Brussels Bosquet Immobiliere SA, Brussels Ceda SA, Brussels Demot SPV SA, Brussels Ekster SA, Brussels Ensis SA, Brussels Gertrud SA, Brussels Groenhoek SA, Brussels Hibou SA, Brussels Immobilière Groenveld SA, Brussels Immobilière Tour Leopold SA, Brussels Kobben SA, Brussels Kolla SA, Brussels Korpen SA, Brussels Madou Plaza SA, Brussels Praten SA, Brussels Slot SA, Brussels Spannen SA, Brussels Spoor SA, Brussels Storken SA, Brussels
SHAREHOLDINGS
35 130 2,352 2,466 – 300 5,784 2,255 0 – 397 225 152 95 5,877 – 59 –3 209 109 – 371 – 973 621 – 87 66 – 1,035 43,051 – 9,510 – 42 – 3,664 10,822 – 26 – 43 265 584 498 – 42 – 10 – 397 4,463 1,056 49 – 27 393 – 1,452 1,458 315 – 158 – 657 – 127 910 2,723 538 954
Remarks
1) 4)
1) 4)
1) 1) 1) 1)
1) 1) 1) 1) 1) 1) 1)
1) 1) 1) 4) 4) 4) 4) 1) 1) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4)
I V G
G R O U P ´ S
Proportion of capital held %
1) 2)
M A J O R
S H A R E H O L D I N G S
Shareholders' equity € ,000
Net income € ,000
Remarks
702 – 81 1,347 301 – 515 – 149 – 441 2,341 –9 – 188 354 7,800 3,635 –2 –3 – 134 – 97 487 – 623 1,399 2,424 0 4 1,157 4,452 0 423 434 1,101 0 0 865 3,860 4,029 42 – 770 151 4 348 2,665 3,418 6,530 2,369 7,642 – 124 4,145 129 512 1,300
4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4) 4)
100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 88,7 100 100 71,69
100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 88,7 100 100 71,69
– 6,009 12,212 4,980 10,772 – 7,859 – 1,282 – 6,655 4,598 – 405 – 2,747 449 143,469 – 57,877 17,034 – 41 – 2,138 82,143 7,818 – 9,921 – 22,277 – 38,594 –2 284 2,378 59,448 15 2,115 2,183 16,438 15 15 4,117 62,080 59,864 87,584 1,013 160 166 980 11,158 39,520 18,878 78,413 73,745 758 22,604 144 1,320 4,253
II. Associated companies, valued at equity (Secs. 311, 312 Commercial Code) CI Projektmanagement GmbH, Cologne FDV Venture S.A., Luxembourg ”Fernleitungs-Betriebsgesellschaft mbH, Bonn” IDC Generalübernehmer f. Bauprojekte d. öffentl. Hand GmbH, Munich Bürohaus Schönefeld GRISO Verwaltungsges. mbH & Co. KG, Munich Hannover HL Leasing GmbH & Co KG, Munich Hannover HL Leasing Verwaltungs-GmbH, Munich Wert-Konzept Berlin Holding GmbH & Co. Beteiligungs KG, Berlin
50 41,1 49 50 100 25 25 40
50 41,1 49 50 49 25 25 40
528 12,960 369 – 168 – 18,549
3) 4)
Results not disclosed, as per Sec. 286 (3) 2, Commercial Code As disclosed in the financial statements prepared for consolidation purposes
p. 105
Voting rights %
Svanen SA, Brussels Valen SA, Brussels Varla SA, Brussels Zesmeer SA, Brussels Cabrera SA, Luxembourg Edison SA, Luxembourg Morella SA, Luxembourg Sanara SA, Luxembourg Serenade SA, Luxembourg Sierra SA, Luxembourg Thomas SA, Luxembourg Aranäs International NV, Amsterdam Auletta BV, Amsterdam Bygg Bouw BV, Amsterdam Daler BV, Amsterdam Sophia Antipolis BV, Amsterdam Stockned Holding BV, Amsterdam Swedium BV, Amsterdam Zevenazur BV, Amsterdam Zevenhaven BV, Amsterdam Zevenshop BV, Amsterdam Zevenspant BV, Amsterdam C:ie Foncière Sophia, Paris C:ie Foncière Mistral, Paris Asticus International SAS, Paris C:ie Foncière Chaveaux Lagarde, Paris C:ie Foncière De Bssano, Paris C:ie Foncière Etoile, Paris C:ie Foncière Le Vermont, Paris C:ie Foncière Malesherbes 14, Paris C:ie Foncière Malesherbes 16, Paris C:ie Foncière Vendome, Paris Asticus (GMS) Ltd, London Asticus (UK) Ltd, London Asticus International AB, Göteborg Immobilière Sweden House SA, Brussels IVG Real Estate Stockholm AB, Göteborg IRO Industriereinigung Oberhausen GmbH, Oberhausen IHC Immobilien AG, Luxembourg Sociéte Immobiliére de la place de la Madeleine S.A.S, Paris Sociéte Immobiliére 173–175 Boulevard Haussmann S.A.S, Paris IVG Société Immobilière Holding S.A., Brussels IVG Real Estate Belgium, Brussels Batipromo S.A., Brussels Bonn Kft., Budapest K.u.K. Zweite Grundverwaltungs GmbH & Co. Spreespeicher KG, Berlin IVG Italia S.r.l., Milan BOTAGRUND Verwaltungs GmbH, Berlin FvH Grundstücksverwaltungs-GmbH & Co. Hardenbergstr. 28 KG, Berlin
First consolidated in 2001 Provisional net income figures
|
–
– –
–
–
–
1,138 0 40 – 20 34
1) 4) 1) 1)
2)
3) 3) 512
947
The full list of participating interests is deposited at Bonn Local Court, registration number HRB 4148.
p. 106
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T O TA L
R E M U N E R AT I O N
TOTAL REMUNERATION OF THE A N D B O A R D O F M A N A G E M E N T,
SUPERVISORY BOARD AND LOANS GRANTED
The remuneration paid to members of the Board of
exchange over the ten trading days following the 2001
Management at IVG Holding AG in the 2001 financial year
Annual General Meeting.
was € 1,175,032.33. Remuneration paid at IVG Holding
The share options are again valid for seven years beginning
AG to retired members of the Board of Management, general managers and their surviving dependants was € 590,098.08. A provision of € 5,958,777.00 has been made for pension obligations to former members of the Board of Management, general managers and their surviving dependants. Total remuneration paid to members of the Supervisory Board at IVG Holding AG amounted to € 196,000 in the 2001 financial year.
from the setting of the base price on 14 June 2001 and ending on 14 June 2008. The subscription rights cannot be exercised before expiry of a three-year blocking period on 15 June 2004. The exercising of the subscription rights is additionally conditional upon prior fulfilment of two performance goals: . The share price must have increased at an average annual rate of at least 7.4% from the € 14.127 base price for the options. That is, the share price must exceed € 17.264
No advances or loans had been granted to members of the
when the rights are first exercisable on expiry of the
Board of Management as at 31 December 2001.
three-year blocking period, and must exceed € 20.40 in
Similarly, no advances or loans had been made to members of the Supervisory Board. The Annual General Meeting on 27 May 1999 adopted a resolution to create € 2,790,000 in conditional capital. This capital serves the sole purpose of issuing up to 2,790,000 ordinary (no-par-value) shares to provide for subscription rights under a share options scheme operated by IVG Holding AG.
the seventh year. . The IVG share price on the exercise date must have outperformed the EPIX 50 European real-estate share index, covering the main competitors of IVG Holding AG. The insider-trading rules, which forbid the exploitation of an information advantage based on as-yet unpublished facts, apply to the scheme participants in full. Furthermore, the subscription rights cannot be exercised during the ten stock
The options scheme is open to the members of the Board
market trading days preceding the press conference on the
of Management of IVG Holding AG, general managers of the
annual financial statements or preceding a quarterly report
divisional operating companies, and other senior managers
publication date, nor during the time between the end of a
of these companies and the holding company. The Board of
financial year and the next Annual General Meeting.
Management (and the Supervisory Board in respect of the Board of Management’s options) have been authorized to issue non-transferable subscription rights to members of the aforementioned groups under the adopted share options scheme. The scheme was made use of for the first time in 1999, when 403,256 such options were issued; these were
On the balance-sheet date, the Board of Management held non-transferable subscription rights under the 1999, 2000 and 2001 share option schemes to 370,941 ordinary shares in IVG Holding AG. Bonn, 1 March 2002
followed by 385,583 further options in 2000 and 410,497 in 2001. For the options issued in accordance with the underlying
Eckart John von Freyend
rules of the 2001 business plan, the price that scheme participants are required to pay per IVG share is € 14.127. This is the average of the closing price on the Frankfurt stock
Bernd Kottmann
Dirk Matthey
A U D I T O R S ´
AUDITORS’
C E R T I F I C AT E
|
p. 107
CERTIFICATE
Having concluded our audit, we issued the following clean Audit Report on 18 March 2002: ”Certificate of the Auditors of the Consolidated Financial Statements”
ling system (in so far as it applies to accounting) and the proof of the disclosures made in the accounts, the Consolidated Financial Statements and the Group Management Report are largely tested by taking representative samples. The audit includes assessments of the annual financial state-
”We have duly audited the Consolidated Financial State-
ments drawn up by consolidated Group companies, of the
ments and the Board of Management’s Report on the
criteria for determining the inclusion of companies in the
Business Situation of the Group prepared by IVG Holding
Consolidated Financial Statements, of the general accoun-
AG, of Bonn, for the full financial year ended 31 December
ting and consolidation principles applied, and of the materi-
2001. The responsibility for preparing consolidated annual
al judgments made by the Board of Management; it also
financial statements and the accompanying management
involves an evaluation of the overall adequacy of the pre-
report conforming to German commercial law lies with
sentation of information in the Consolidated Financial
the company’s Board of Management. Our task is to form,
Statements and Group Management Report. We believe
on the basis of our audit, an independent opinion on the
that the audit we have conducted provides an adequately
Consolidated Financial Statements and Group Manage-
secure basis for our professional opinion.
ment Report, and to declare our opinion to you. We conducted our audit of the Consolidated Financial Statements as required by Sec. 317 of the German Commercial Code (HGB), paying due regard to the Principles of Orderly Accounting drawn up by the Institute of German Certified Public Accountants (Institut der Wirtschaftsprüfer – IDW). These stipulate that each audit should be planned and executed to allow the auditors to identify with reasonable assurance any errors, omissions or breaches of rules that may have had any material impact on the presentation of the Group’s assets and liabilities, financial position and results in the Consolidated Financial Statements and Group Management Report. In determining our auditing procedures and
We have no objections to raise following our audit. It is our opinion that the Consolidated Financial Statements, having due regard to the German Principles of Orderly Accounting, convey a true and fair view of the assets and liabilities, financial position and results of the Group. The Group Management Report provides an accurate overall picture of its situation, and properly portrays the risks inherent in future developments.” Düsseldorf, 18 March 2002 PWC Deutsche Revision Aktiengesellschaft Wirtschaftsprüfungsgesellschaft
what specific checks to make, we take account of our ppa.
knowledge of the Group’s business and of the economic and legislative environments in which it operates, together with our expectations as to where possible errors may occur. During the audit, the efficacy of the internal control-
Kaiser (German Chartered Accountant)
Leifels (German Chartered Accountant)
p. 108
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S U P E R V I S O R Y
SUPERVISORY
B O A R D
A N D
BOARD
B O A R D
AND
Supervisory Board Roland Flach (from 22 November 2001) Chairman (from 4 December 2001) Chief Executive Officer of WCM Beteiligungsund Grundbesitz AG, Frankfurt Notification of seats on other supervisory boards
O F
M A N A G E M E N T
BOARD
OF
MANAGEMENT
GEHAG AG Gladbacher Aktienbaugesellschaft Aktiengesellschaft KHS Maschinen- und Anlagenbau AG Klöckner-Werke AG MATERNUS-Kliniken AG NB Beteiligungs AG (Chairman) RSE Grundbesitz und Beteiligungs AG YMOS AG
as per Sec. 285 (10) of the Commercial Code: Allboden Allgemeine Grundstücks-Aktiengesellschaft
Dr. Bernd Thiemann (until 14 November 2001)
GEHAG AG
Deputy Chairman
Gladbacher Aktienbaugesellschaft Aktiengesellschaft
Member of the Supervisory Board of Rothschild GmbH,
(Chairman)
Frankfurt (until 14 November 2001)
KHS Maschinen- und Anlagenbau AG (Chairman) Klöckner-Werke AG (Chairman) MATERNUS-Kliniken Aktiengesellschaft RSE Grundbesitz und Beteiligungs-AG RSE Projektmanagement AG YMOS AG (Chairman) Dr. Manfred Lennings Chairman (until 4 December 2001) Industrial consultant, Kettwig, Essen
Notification of seats on other supervisory boards as per Sec. 285 (10) of the Commercial Code: Bankhaus Hallbaum AG & Co. Berentzen-Gruppe AG EM.TV & Merchandising AG (Chairman) M.M. Warburg Bank & Co. KgaA Nordland Papier AG Thyssen Krupp Steel AG VEBA OEL AG WestHyp Westfälische Hypothekenbank AG
Notification of seats on other supervisory boards
Wilhelm Friedrich Corneli
as per Sec. 285 (10) of the Commercial Code:
Salaried corporate lawyer,
Bayer AG
IVG Holding AG,
Deutsche Post AG
Bonn
Gildemeister AG (Chairman) Heitkamp-Deilmann-Haniel GmbH (Chairman) Karl-Ernst Schweikert (from 22 November 2001) Deputy Chairman (from 4 December 2001) Member of the Board of Management of WCM Beteiligungs- und Grundbesitz AG, Frankfurt Notification of seats on other supervisory boards as per Sec. 285 (10) of the Commercial Code: Bremisch-Hannoversche Eisenbahn AG
Notification of seats on other supervisory boards as per Sec. 285 (10) of the Commercial Code: None Karl Ehlerding (until 14 November 2001) Company managing director, Hamburg Notification of seats on other supervisory boards as per Sec. 285 (10) of the Commercial Code: Beamten-Baugesellschaft Bremen GmbH Deutsche Bank AG (Hamburg Region Advisory Committee)
S U P E R V I S O R Y
B O A R D
A N D
B O A R D
O F
M A N A G E M E N T
|
p. 109
Deutsche Real Estate AG
Notification of seats on supervisory boards as per Sec. 285
Getreideheber-Gesellschaft mbH
(10) of the Commercial Code:
GLADBAU Baubetreuungs- und Verwaltungs-
BONN-INNOVA GmbH & Co. Venture Beteiligungs KG
Gesellschaft mbH
BOTAG Bodentreuhand- und Verwaltungs AG (Chairman)
Kieler Wohnungsbaugesellschaft mbH
(until 31 December 2001)
Klöckner-Werke AG
DBI Dortmunder Beteiligungs- und Immobilien AG*
SSW Fähr- und Spezialschiffbau GmbH
(Chairman) (until 31 August 2001)
(Advisory Committee)
Gerling Konzern Lebensversicherungs AG
WCM Beteiligungs- und Grundbesitz Aktiengesellschaft
IABG Industrieanlagen-Betriebsgesellschaft mbH (Chairman) Infopark Fejlesztési Rt.*
Franz Florian
SIBRA Beteiligungs AG* (Chairman)
Driver,
Stodiek Europa Immobilien AG* (Chairman)
TALIS GmbH,
VNR Verlag für die Deutsche Wirtschaft AG
Gelsenkirchen Notification of seats on other supervisory boards as per Sec. 285 (10) of the Commercial Code: None
Dr. Bernd Kottmann (from 1 July 2001) Portfolio Management, Pech, Wachtberg Notification of seats on supervisory boards
Klaus Peter Schneidewind (until 14 November 2001)
as per Sec. 285 (10) of the Commercial Code:
Business economist,
BOTAG Bodentreuhand- und Verwaltungs AG
Düsseldorf
(until 31 December 2001)
Notification of seats on other supervisory boards as per Sec. 285 (10) of the Commercial Code: B.U.S. Berzelius Umwelt-Service AG Franz-Josef Seipelt (from 22 November 2001) Vorstand der Klöckner-Werke AG Duisburg Angaben nach § 285 Nr. 10 HGB: KHS Maschinen- und Anlagenbau AG Klöckner KHS, Inc. (USA) MPI International, Inc. (USA)
Bonn Kft.* Infopark Fejlesztési Rt.* Parisz Kft.* Dr. Dirk Matthey Chief Financial Officer, Bad Godesberg, Bonn Notification of seats on supervisory boards as per Sec. 285 (10) of the Commercial Code: BOTAG Bodentreuhand- und Verwaltungs AG (until 31 December 2001) DBI Dortmunder Beteiligungs- und Immobilien AG* (until 31 August 2001)
Board of Management
HANNOVER HL Leasing GmbH & Co. KG SIBRA Beteiligungs AG*
Dr. Eckart John von Freyend
Stodiek Europa Immobilien AG*
Chief Executive Officer,
Überseeische Industrie- und Handelsgesellschaft mbH*
Bad Honnef
*
IVG Group Companies
p. 110
|
S U P E R V I S O R Y
ADVISORY
B O A R D
A N D
B O A R D
O F
M A N A G E M E N T
COMMITTEE
Dr. Klaus Asche
Dr. Gert Haller
Chief Executive, LIBRA Unternehmensberatung GmbH
Chairman of the Board of Management, Wüstenrot + Würtembergische AG
Dr. Bernd Balzereit Member of the Management Board, Bewag AG
Dr. Volker Hassemer Chairman of the Board of Management, Partner für Berlin
Dr. Gerold Bezzenberger
– Gesellschaft für Hauptstadtmarketing mbH
Lawyer and notary Dr. Karl Kauermann Udo Cahn von Seelen
Chairman of the Board of Management,
Chairman of the Board of Management,
Berliner Volksbank e.G.
Energie-Aktiengesellschaft Mitteldeutschland Peter Kobiela Karl-Hans Caprano
Member of the Management Board,
Managing Partner, Technoform Caprano + Brunnhofer OHG
Landesbank Hessen-Thüringen
Dr. Karl-Joachim Dreyer
Thies J. Korsmeier
Spokesman of the Board of Management,
Former Member of the Board of Management,
Hamburger Sparkasse
Deutsche Shell AG
Karl Ehlerding
Dr. Heinrich Kraft
WCM Beteiligungs- und Grundbesitz AG
Chairman of the Advisory Committee,
Dr. Dierk Ernst
ECE Projektmanagement GmbH
Managing Partner, TERCON Immobilien
Dr. Thomas Kurze
Projektentwicklungs GmbH
Member of the Board of Management,
Wolfgang Fink
Bankgesellschaft Berlin AG
Chairman of the Management Board,
Georg Lewandowski
Allianz Immobilien GmbH
Mayor of the City of Kassel
Dr. Christoph Franz
Dr. Walter Lohmeier
Member of the Management Board, Deutsche Bahn AG
Chief Executive Manager,
Werner Gegenbauer Managing Partner, Gegenbauer Holding GmbH & Co. KG Dr. Joachim Grünewald Retired Parliamentary State Secretary
Chamber of Industry and Commerce, Kassel Dr. Johannes Ludewig Retired State Secretary Dr. Klaus Lukas Chairman of the Board of Management, Kasseler Sparkasse
S U P E R V I S O R Y
B O A R D
A N D
B O A R D
O F
M A N A G E M E N T
Dr. Werner Martin
Dipl.Kfm. Fried Scharpenack
Lawyer
Former Member of the Board of Management,
|
p. 111
IVG Holding AG Dr. Lutz Mellinger Member of the Corporates and Real Estate Group
Dr. Udo Schlitzberger
Divisional Executive, Deutsche Bank AG
Chief Executive of the Council of the administrative district of Kassel
Dr. Gerhard Niesslein Chairman of the Managing Board, DeTeImmobilien
Alfred Schmidt
Deutsche Telekom und Service GmbH
Retired Minister of State
Dr. Klaus Nolting
Dr. Manfred Schmidt
Member of the Board of Managing Directors,
Chairman of the Supervisory Board, Philips GmbH
Bayerische Hypo- und Vereinsbank AG Prof. Dr. Karl-Werner Schulte Lars G. Öberg
ebs European Business School
AB Rännilen, Former Chairman of Asticus AB Erich K. Schulthess Dr. Andreas Odefey
Schulthess Holding AG
Managing Partner, BPE Capital partners GmbH Klaus-Werner Sebbel Dr. Jens Odewald
Managing Partner, Hannover HL Leasing GmbH & Co. KG
Chairman of the Administrative Board, Odewald & Compagnie GmbH
Thilo von Trott zu Solz Chief Executive – Economic Development,
Dr. Karl Ohl
Region Kassel GmbH
Lawyer Dieter Ullsperger Paul Orchard-Lisle
Member of the Management Board, Deutsche Bahn AG
Chairman and CEO, Healey & Baker Investment Advisors, Cushman & Wakefield
Dr. Henning Voscherau Notary, retired Mayor and President of the Senate of the
Dr. Klaus Riebschläger
Free Hansa City of Hamburg
Lawyer Claus Wisser Dr. Jochen Scharpe
Member of the Supervisory Board, AVECO Holding AG
Member of the Executive Management, Siemens Real Estate
Eckard Ziegert Former Member of the Board of Management, Esso AG
p. 112
|
G L O S S A R Y
GLOSSARY
Authorized capital (as yet unissued)
DVFA/SG cash earnings
The potential to increase a company’s capital via new share
Previously referred to as ”DVFA/SG cash flow”. The financial
issues, as written into its Articles of Association. In IVG’s
surplus generated by all current business operations affec-
case, the Articles provide for three types of potential new
ting a company’s earnings. This is an indicator of its internal
capital: Class I Authorized Capital (genehmigtes Kapital I ) is
financing capability, which it can use to fund investment, to
the potential for new share issues by offering subscription
amortize debt, pay out dividends and top up its stock of
rights to existing shareholders; Class II Authorized Capital
cash and cash equivalents.
covers potential new issues without offering subscription rights, while the Class III category newly established in 2000
DVFA/SG earnings
allows new shares to be issued on the basis of either cash
These are annual earnings as adjusted to eliminate extra-
or non-cash contributions, dispensing with subscription
ordinary influences during the year. The indicator allows
rights in the latter case. (See also ”conditional capital”).
underlying profitability to be assessed, and hence the trend in profitability over a number of years, while enhancing
Caverns
comparability with other companies.
Voluminous storage facilities hollowed out underground (e.g., in a salt dome) to take oil or natural gas.
EBIT Earnings before interest and taxes.
CFROI Cash-flow return on investment, used to measure the value
EBITD
growth of investments.
Earnings before interest, taxes and depreciation.
Conditional capital
EPRA
An additional potential to raise the Company’s issued
European Public Real Estate Association.
capital, written into the Articles of Association, established by the Annual General Meeting with conditions attached,
Fixed assets cover
including the requirement that this potential be used to
The ratio of fixed assets to long-term capital (i.e. sharehol-
issue convertible and/or warrant-linked bonds. (See also
ders’ equity + liabilities with over one year to maturity).
”authorized capital”). GAS German Accounting Standard published by the German Accounting Standards Committee.
G L O S S A R Y
|
p. 113
Gross floor area (GFA)
Project development
The sum of the total areas of all floors of a building, using
Overall management of a major real estate project.
the overall dimensions of all construction elements.
Depending on the nature of the project, includes a wide variety of roles along the road from the original idea to a
Logistics centre
facility’s final operation.
A commercial property well located with good transport links, and used to store, transship and distribute merchandise.
Research coverage The extent to which a listed public company has been
Market capitalization
covered by studies and analyses issued by banks and stock
The total value placed on a company’s equity by the stock
analysts.
market at any one time (share price x number of shares). Road show Net building land
Series of corporate presentations made to institutional
The total site area less the area devoted to access roads and
investors in major financial centres.
gardens or grassed areas. Sec. 6b, Income Tax Law (EStG) Operating earnings
This legislative provision allows a real estate company to
These are derived from the net income from ordinary activi-
transfer the book profits on a property disposal, constituting
ties, by eliminating net interest income or expenses and
a release of hidden reserves, to new property investments,
extraordinary effects while adding in the ”other taxes” item
thus neutralizing the gain for tax purposes and in the
as a charge.
income statement.
P/E ratio
Total operating performance
Price/earnings ratio.
Turnover plus changes in inventories plus own work capitalized.
Portfolio management Administering and managing a stock of properties, acqui-
XETRA computer trading
ring new ones while disposing of others. A key method of
The computerized stock exchange trading system in
enhancing and preserving value.
Germany (short for ”exchange electronic trading”). The system is increasingly superseding the use of the stock exchange floor. XETRA trading can be carried out between 9.00 a.m. and 8.00 p.m.
p. 114
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R E A L
TABLE
OF
E S TAT E
THE
P O R T F O L I O
REAL
ESTATE
PORTFOLIO IVG share
Berlin Carossa Quartier, Streitstraße 5–19 2) Airport Center Schönefeld, Mittelstraße 5/5a 1) Bundesallee 204–206 Hafenplatz 6/7, Köthener Str. 29 Joachimstaler Str. 1–3 Montanstraße 18–26 Spreespeicher, Stralauer Allee 1–2 3) Leibnizkolonnaden, Walter-Benjamin-Platz 6, Leibnizstr. 53 Other Berlin total
4)
Brussels/Antwerp Sweden House, Rue du Luxembourg 3 North Gate, Bd. Roi Albert II, 6, 8, 16 Diegem, Rue Bessenveld 9 Tour Leopold, Rue de Geneve 10 Sq. de Meeus 8 Oaktree, Dreve de Bonne Odeur 20 Louise Village, Avenue Louise 29–31/Rue Dejonker 34–36 Le Croissant, Avenue Beaulieu 24–26 Place St Lambert Chaussée de la Hulpe 154 Rue de Trèves 59–61 Madou Plaza, Place Madou 2) Président, Avenue Louise 106 Tervuren Plaza/Rue Gribaumont 1 Pléiade A-C, Avenue des Pléiades 11–15–19 Twin House, Rue Neerveld 105 Other Brussels total Antwerp total Brussels/Antwerp total Budapest Budapest total Dresden Dresden total, Micropolis, Zur Wetterwarte 10 und 50
2)
Düsseldorf Düsseldorf, Business park am Flughafen, Heltorfer Straße 1–22 Düsseldorf, Fashion Plaza, Karl-Arnold-Platz 2 Düsseldorf, Global Gate, Grafenberger Alle 293–297 2) Dortmund, Gothic-Haus, Westfalendamm 94–100 Dortmund, Stockholmer Allee 32 Other Düsseldorf total Frankfurt Frankfurt Flughafen, Cargo City Süd Wiesbaden, Otto-von-Guericke-Ring 13–15 Other Frankfurt total Geneva Geneva, Rue de Lausanne 80–82
5)
Hamburg IVG Business park Hamburg Nord, Essener Str. 89–99 Habichtstr. 41 Other Hamburg total
2)
Form of ownership
Date added, last refurbished
Type of use
100 100 95 95 72 100 89 50
% % % % % % % %
Freehold Freehold Freehold Freehold Freehold Freehold Leasehold Freehold
1948/2001 1997/2001 1998 1998 2000 1948 1995/2001 1996/2001
Offices Offices Offices Other Offices Logistics Offices Offices
100 100 86 100 100 100 100 100 100 100 100 100 100 100 100 100
% % % % % % % % % % % % % % % %
Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold Freehold
2001 1998 1998/2001 1999 1996/1999 1999 1999 1999 1999 1989/1999 1999 1999/2001 1999 1999 1999 1999
Offices Offices Offices Offices Offices Offices Other Offices Offices Offices Offices Offices Offices Offices Offices Offices
100 %
Freehold
1999
Diverse
100 %
Freehold
2001
Offices
100 %
Freehold
1992/1993/2001
Business park
100 100 100 100 100
% % % % %
Freehold Freehold Freehold Freehold Freehold
1999 1998 1985/2001 1995/2001 2001
Business park Offices Offices Offices Offices
100 % 100 %
Leasehold Freehold
1997/1999 1993/2001
Logistics Offices
100 %
Beneficial
2001
100 % 100 %
Freehold Freehold
1948/2001 1991/1995
Offices
Business park Offices
R E A L
Site area 1,000 m2
Lettable space 1,000 m2
occupancy rate
Development potential 1,000 m2 BGF
Market value incl. excess space € ,000
Investment 2001 € ,000
E S TAT E
P O R T F O L I O
|
p. 115
Rental income forecast 2002 1) € ,000
Cashflow 2001 € ,000
Operating earnings 2001 € ,000
1,190 2,364 2,883 1,461 2,118 846 332 300 530 12,024
1,630 2,436 2,940 1,490 1,964 887 1,216 1,400 2,802 16,765
– 282 1,677 2,084 1,183 1,614 681 – 1,231 6,136 975 12,837
– 357 914 1,857 1,054 794 620 – 1,957 6,135 294 9,354
1,401 16,824 2,781 2,679 9,001 618 1,825 1,571 734 739 1,522 863 2,416 2,074 1,384 4,497 50,929 919 51,848
174 15,649 2,167 – 149 6,567 544 346 1,359 643 629 1,148 1,353 – 281 1,807 1,161 933 756 34,806 840 35,646
– 47 13,613 1,567 – 478 4,754 454 282 1,105 515 506 914 891 – 423 1,467 742 601 597 27,060 494 27,554
Rental income 2001 1) € ,000
241.7 14.0 7.5 12.0 1.8 44.2 12.7 9.8 140.3 484.0
22.0 14.8 25.0 21.4 6.7 7.5 41.0 12.5 29.3 180.2
100 100 100 97 92 100 65 85 94 94
% % % % % % % % % %
1.2 9.4 19.8 5.7 10.9 4.7 7.6 4.4 2.0 3.5 1.6 1.5 0.9 6.5 8.1 4.1 23.9 115.8 49.8 165.6
7.3 77.0 27.1 27.3 50.2 5.2 16.7 10.1 6.2 6.0 10.8 40.0 7.9 14.2 20.4 11.4 90.6 428.4 31.5 459.9
100 100 97 95 100 100 96 100 93 94 91
% % % % % % % % % % %
78 100 92 75 99 97 93 97
% % % % % % % %
730,037 16,063
746,100
4,974
665 15,791 2,264 1,777 8,915 615 1,867 1,544 751 690 1,428 1,933 723 2,339 1,851 1,273 4,613 49,039 1,385 50,424
1.9
7.7
100 %
17,696
3,228
476
757
88
7
192.0
33.4
81 %
32,900
3,582
1,829
2,058
1,249
623
70.3 1.7 20.9 13.3 7.3 87.2 200.7
53.8 7.7 13.4 24.1 6.7 10.8 116.5
99 100 92 100 100 99 98
% % % % % % %
19.9
1,478
6,600 1,413
13.5
14,134 6,186 12,022 8,086 41,906
2,688 550 889 12,140
6,758 1,423 1,633 3,010 943 1,036 14,803
6,162 1,371 – 1,518 1,917 556 12 8,500
4,826 1,357 – 1,552 1,508 534 – 162 6,511
17.7 9.8 345.0 372.5
11.7 11.1 1.6 24.4
100 100 100 100
% % % %
30,777
1,904
1,220 1,167 147 2,534
1,220 1,155 147 2,522
794 894 109 1,797
715 875 110 1,700
2.8
18.0
81 %
49,133
44,827
2,542
5,063
19
19
133.7 3.0 65.9 202.6
57.2 9.3 17.3 83.8
3,838 382
4,813 884 197 5,894
4,937 873 166 5,976
3,894 619 128 4,641
2,865 467 – 6 3,326
172.0 15.0 7.0 18.0
5,461 207
2 10.0
50.0 272.0
369,125
30 3 84,152 89,855
142 8 1,305
3,255
98 94 100 98
% % % %
22.8
18.0 51.4
241,973
264 4,974
235 1,669
50.7
50.7
88,350
4,220
p. 116
|
R E A L
E S TAT E
P O R T F O L I O
Form of ownership
Date added, last refurbished
Type of use
100 % 100 % 100 %
Freehold Freehold Freehold
1948/1980/2001 1948/2000 1983/2001
Logistics Logistics Logistics
82 % 82 %
Freehold Freehold
2000 2000
Offices Offices
100 % 100 % 100 %
Freehold Freehold Freehold
1999 1999 1999
Offices Offices Offices
87 %
Freehold
1999
Offices
82 82 82 82
% % % %
Freehold Freehold Freehold Freehold
1998 1998 2000 1998
Logistics Logistics Offices Logistics
82 82 82 82 82 100
% % % % % %
Freehold Freehold Freehold Freehold Freehold Freehold
1999 1999 2000 2000 2000 2001
Offices Offices Offices Other Offices Offices
100 100 100 100 84
% % % % %
Freehold Freehold Freehold Freehold Freehold
1948/2001 1974/2001 1960/2001 1948/2001 1977
100 100 100 100 100 82
% % % % % %
Freehold Freehold Freehold Freehold Freehold Freehold
1999 1999 1999 1997 1997 2000
Offices Offices Offices Offices Offices Offices
100 %
Freehold
2001
Offices
IVG share
Hannover/Kassel Hannover, Lilienthal-Center, Kugelfangtrift 4–8/Lilienthalstraße 300 Kassel-Waldau, Falderbaumstraße 7–13 Lohfelden, Otto-Hahn-Straße 26, 28, 34, 36 Other (mainly Forst) Hannover/Kassel total
2)
Lisbon OMNI, Avenida Duque d' Avila 141 SONY, Rua Tomás da Fonseca Lisbon total London 20 St. James Street 40/41 Conduit Street 18 Great Marlborough Street London total Luxembourg Luxembourg total Madrid/Barcelona Madrid, Calle Isla de la Palma Madrid, Calle Fuerteventura 9 Madrid, Calle Santiago de Compostella Sur Barcelona, San Esteve de Sesrovires Madrid/Barcelona total Milan S. Giovanni, Via Carducci 125 Via Dione Cassio 13 Palazzi Fermi & Galeno, Basiglio Palazzo dei Cigni, Basiglio Via Cascia 5 Cernusco sul Naviglio, Via Gobetti 2 Milan total Munich/Nuremberg Munich, MMW Media Works Munich, Rosenheimer-/Anzinger Straße 2) Dornach, Margaretha-Ley-Ring 1–14 Ottobrunn, TIP Technik & Innovationspark vor München, Einsteinstraße 2) Nuremberg, Nordostpark 14 2) Puchheim, Benzstraße 11, Siemensstraße 4 Other Munich/Nuremberg total Paris 7, Place Vendôme 42, Rue de Bassano 55, Avenue Hoche 21, Place de la Madeleine 173–175, Bd Haussmann 121–123, Rue d'Aguesseau Paris total Stockholm Stockholm, Jamtlandsgatan 99
6)
All markets total 1) 2) 3)
Non-consolidated Space (partly) in development Near completion
4) 5) 6)
Non-consolidated, near completion, IVG share of value stated Beneficial ownership – mortage-secured loan Exchange rate on date of purchase differs from that of other year end figures
Business park Business park Business park Business park Business and Logistics
R E A L
Site area 1,000 m2
Lettable space 1,000 m2
occupancy rate
87 98 100 97 97
% % % % %
Development potential 1,000 m2 BGF
Market value incl. excess space € ,000
54.1 93.5 75.8 42,565.8 42,789.2
16.8 23.2 25.7 78.5 144.2
2.6 3.9 6.5
7.1 9.7 16.8
100 % 100 % 100 %
0.8 0.7 1.6 3.1
5.1 2.8 10.4 18.3
100 100 100 100
% % % %
15.9
31.4
100 %
6.6 17.2 9.1 25.0 57.9
3.4 11.6 11.7 16.6 43.3
100 100 100 100 100
% % % % %
1.5 7.0 5.9 4.8 2.4 4.7 26.3
13.0 10.2 19.3 2.7 5.4 8.4 59.0
100 100 100 100 100 100 100
% % % % % % %
68.1 30.7 811.1 280.3 43.7 487.6 1,721.5
146.4 38.6 69.8 162.7 22.0 19.9 459.4
99 100 100 98 100 100 99
% % % % % % %
2.5 0.4 0.6 0.8 1.6 3.0 8.9
11.0 1.9 2.7 3.3 15.1 20.8 54.8
100 100 100 100 100 100 100
% % % % % % %
358,269
86.2
97.6
100 %
46,337.6
1,848.7
98 %
20.0 20.3 5.4 2.9 48.6
Investment 2001 € ,000
Rental income forecast 2002 1) € ,000
Cashflow 2001 € ,000
|
p. 117
Operating earnings 2001 € ,000
112,886
645 1,264 1,787 3,529 7,225
1,046 1,191 1,813 3,596 7,646
165 1,090 1,507 2,839 5,601
103 965 1,275 2,387 4,730
34,582
1,300 1,300
1,421 1,234 2,655
1,260 1,261 2,521
1,022 1,064 2,086
825 887 1,712
177,204
389 389
3,236 1,734 6,330 11,300
2,861 1,688 6,453 11,002
2,563 1,374 5,412 9,349
1,962 1,052 4,638 7,652
73,699
9
5,136
5,222
4,968
3,912
43,555
234 616 1,637 731 3,218
236 632 1,637 743 3,248
834 2,197 1,468 2,607 7,106
799 2,103 948 2,495 6,345
85,215
1,190 853 1,949 506 553 432 5,483
1,214 867 1,920 506 553 685 5,745
1,021 732 790 205 224 759 3,731
857 614 395 103 112 669 2,750
12,621 2,808 11,421 12,922 2,027 2,390 44,189
13,066 2,857 7,590 13,071 2,058 2,421 41,063
9,499 2,329 7,638 9,309 1,839 4,527 35,141
7,967 2,157 6,660 7,515 1,105 2,142 27,546
535
5,805 676 1,057 2,076 6,627 3,030 19,271
5,852 706 1,088 2,076 6,627 3,050 19,399
4,950 631 1,024 3,828 6,595 2,575 19,603
4,587 569 929 3,510 5,638 2,125 17,358
70,407
68,807
3,669
7,615
3,281
3,010
3,189,120
316,270
190,009
203,253
155,643
124,109
30.0
7
7,222 927 9,282 24,794
174.5 112.0 5.6 657,249
42,225
268
267
767.6
P O R T F O L I O
4,774 323 786 2,619 8,502
7
322.1
Rental income 2001 1) € ,000
E S TAT E
p. 118
|
O R G A N I S AT I O N
C H A R T
I V G
Dr. Dirk Matthey
I M M O B I L I E N
Dr. Eckart John von Freyend
Niederlassungen
A G
Dr. Bernd Kottmann
F I N A N C I A L
FINANCIAL
C A L E N D A R
CALENDAR
7 March 2002
Provisional results for 2001
10 April 2002
Analysts’ conference
16 May 2002
Publication of figures for the first 3 months
23 May 2002
IVG Annual General Meeting
15 August 2002
Publication of figures for the first 6 months
20 November 2002
Publication of figures for the first 9 months
20 November 2002
Analysts’ meeting
|
p. 119
Concept and realization:
Kirchhoff Consult AG, Hamburg
Art direktion und layout:
Bettina Stoess, Hamburg
Printing:
Offizin Paul Hartung, Hamburg
Photographer:
Gerd Rettinghaus, Düsseldorf
Photo credits:
IVG Holding AG, Bonn
I V G
G R O U P
I N
ANNUAL REPORT 2001
€m
2001
2000
Change
1999
1998
1997
TURNOVER
319,3
321,3
– 0,6 %
423,6
388,3
399,9
T O TA L O P E R AT I N G P E R F O R M A N C E
486,6
434,7
11,9 %
543,6
505,3
464,6
NET INCOME FROM ORDINARY ACTIVITIES
90,0
91,1
– 1,2 %
80,1
60,5
45,3
NET INCOME FOR THE YEAR
68,1
61,9
10,0 %
53,9
46,9
32,1
O P E R AT I N G E A R N I N G S
165,8
147,7
12,3 %
96,4
70,6
50,6
EBIT
161,7
147,7
9,5 %
114,9
80,2
46,4
EBITD
259,8
201,0
29,3 %
172,8
168,7
112,9
INVESTMENTS
432,2
306,5
41,0 %
1.179,9
430,9
246,9
T O TA L A S S E T S
3.021,9
2.585,4
16,9 %
2.520,7
943,4
728,4
FIXED ASSETS
2.441,5
2.112,6
15,6 %
2.070,5
601,3
594,9
96,2
91,1
5,6 %
90,0
106,7
83,8
758,4
690,4
9,8 %
659,7
356,1
334,5
24,3
27,4
– 11,3 %
25,3
34,9
42,5
714
709
1,0 %
747
2.268
2.150
0,33
3,0 %
0,31*
0,29
0,27
FIXED ASSETS COVER % SHAREHOLDERS’ EQUITY E Q U I T Y R AT I O ( B O O K VA L U E S ) % Brüssel
Lissabon
Hamburg
EMPLOYEES DIVIDEND PER SHARE € * Excluding special dividend (€ 0.20 per share) ** Proposed
ANNUAL REPORT 2001 IVG Holding AG Zanderstraße 5/7 53177 Bonn Germany
Public Relations Telephone: +49 (0)228 / 844-300 Telefax: +49 (0)228 / 844-337 E-Mail:
[email protected] Investor Relations Telephone: +49 (0)228 / 844-137 Telefax: +49 (0)228 / 844-372 E-Mail:
[email protected] Internet: www.ivg.de
Passion for Real Estate.
F I G U R E S
0,34**
