Corporate | 8 August 2008 18:54
HCI Capital AG / Profit Warning
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
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The issuer / publisher is solely responsible for the content of this announcement.
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HCI Capital AG adjusts 2008 earnings forecast
EUR 24.8 million write-downs on investment in US commercial real
estate loans
Breakeven result expected for the full year
EUR 880 million target placements affirmed
Hamburg, 8 August 2008 – HCI Capital AG, the SDAX-listed independent
issuing house for closed-end funds and structured products, has lowered its
earnings forecast for the 2008 financial year: HCI Capital AG now expects
to break even (after taxes) for the 2008 financial year. A previous
forecast had projected net profit after taxes at EUR 33 million. Thanks to
the strong performance in its operating business, the company envisages
placing aggregate equity capital of EUR 880 million (unchanged) in 2008.
The adjustment to the earnings forecast was required largely due to
significant write-downs on the investment held by HCI Real Estate Finance I
GmbH & Co. KG in NY Credit Operating Partnership L.P, an entity holding a
portfolio of US commercial real estate loans. Originally conceived as an
investment fund concept, HCI Real Estate Finance I was accounted for in HCI
Group's 2007 consolidated financial statements for the first time, using
the equity method, following the decision not to commence distribution of
the fund in the wake of the crisis affecting financial markets.
Unanticipated losses incurred by NY Credit Operating Partnership LP during
the second quarter of 2008 triggered an impairment test (in accordance with
IAS 39), as a result of which the investment was written down by EUR 24.8
million. As a result of this significant adjustment, which has been
accounted for in full in HCI Capital AG's consolidated six-month financial
statements as at 30 June 2008, the company envisages a half-year loss
expected to amount to approx. EUR 18.5 million after taxes.
'The Management Board and Supervisory Board believe that this write-down on
an investment in a loan portfolio is as necessary as it is painful', said
Dr Ralf Friedrichs, Chairman of the Management Board of HCI Capital AG: 'We
are convinced that, on the back of our strong operating business, this step
will allow HCI Group to benefit from its full profitability in the years to
come.'
With EUR 340.5 million in aggregate equity capital placed during the first
six months of 2008, the HCI Group clearly demonstrated the placement power
in its operating business. Thanks to this 15% increase over the same period
of the previous year (H1 2007: EUR 296.2 million), HCI Group markedly
outperformed the general market trend. Thanks to the positive development
in its operating businesses, HCI Capital AG has affirmed its equity capital
placement target of EUR 880 million, and expects consolidated net income
after taxes to break even for the financial year 2008 as a whole.
HCI Capital will publish its half-yearly financial report 2008 on 13 August
2008, as scheduled.
About HCI:
Established in 1985, the HCI Group creates closed-end funds and structured
investments in shipping, real estate, private equity fund of funds, and in
the secondary life insurance market, as well as asset creation plans. Since
1985, more than 112,000 clients have invested EUR 5.5 billion in 478
issues, with an investment volume totalling more than EUR 13.97 billion
(figures as at 30 Jun 2008), making HCI one of the leading financial
services system houses in Germany. HCI Capital AG has been listed on the
stock exchange since October 2005, and has been included in the SDAX index
since 19 December 2005.
Press Relations:
Ingo Pfeil
HCI Capital AG
Head of Public Relations
Phone: +49 40 88 88 1 236
ingo.pfeil@hci-capital.de
Investor Relations:
Dr. Olaf Streuer
HCI Capital AG
Head of Investor Relations
Phone: +49 40 88 88 1 125
olaf.streuer@hci-capital.de
08.08.2008 Financial News transmitted by DGAP
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Language: English
Issuer: HCI Capital AG
Bleichenbrücke 10
20354 Hamburg
Deutschland
Phone: +49 (0)40 88881-0
Fax: +49 (0)40 88881-199
E-mail: hci@hci.de
Internet: www.hci.de
ISIN: DE000A0D9Y97
WKN: A0D9Y9
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg;
Freiverkehr in Berlin, Hannover, Stuttgart, München,
Düsseldorf
End of News DGAP News-Service
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