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Immoeast profit almost triples on value of properties

Immoeast Immobilien Anlagen AG, an Austrian real-estate company, said fiscal Q2 profit almost tripled as the value of property assets rose. The shares rose to a record.

Net income increased to €75.3 million ($99 million) in the three months ended October 31, from €26.1 million a year earlier, the Vienna-based company said yesterday in a statement. Revenue more than tripled to €42.3 million from €15.7 million. Immoeast Immobilien Anlagen AG, which raised €2.75 billion by selling new shares in July, has bought commercial, business and residential projects in eastern Europe to tap heftier property yields, which are almost double those in developed markets.

The company has „optimism” for the future, CEO Karl Petrikovics said in statement. Shares of Immoeast rose 13 cents, or 1.2%, to €10.69 in Vienna, an all-time high. The company's revaluation of property in the Q2 increased its value to €37.4 million from €21 million a year earlier. Income from financial instruments tripled to €28 million versus 9.3 million a year ago. Operating profit increased to €44.7 million from €26.9 million. Immoeast has invested €3.4 billion in the first six months of the financial year. In November, it invested €1.2 billion and aims to increase its total investments for the fiscal year to €7 billion, Petrikovics said.

The company is buying and building property in south-east Europe. „Our prime focus for the future is Romania and Bulgaria,” Petrikovics said at a press conference in Vienna. „We also want to diversify our portfolio to ex-Yugoslav states, Russia and Ukraine.” Immoeast doesn't plan any capital increase in the financial year to fund its new purchases in south-east Europe. It aims to increase its debt to 50% versus the total size of its equity, Petrikovics said. (Bloomberg)