German investor suffers share dive - ResearchInChina

Date:2008-08-18liaoyan  Text Size:
SHARES in Colonia Real Estate AG, a German property investor, have fallen the most in 10 months in Frankfurt trading after the firm cut its full-year profit forecast, citing financial-market uncertainty.

Colonia dropped 11 percent, the most since November, to 6.54 euros in Frankfurt last Friday, valuing the company at 146.5 million euros (US$215 million), Bloomberg News reported.

Net income would be 20 million to 25 million euros this year compared with a previous goal of as much as 75 million euros, the Cologne-based company said on its Website. Colonia posted an 81-percent decline in second-quarter profit to 7.92 million euros.

"The second half holds a lot of uncertainty," Chief Executive Officer Stephan Rind said. "The financial crisis is still there and we saw relatively few transactions in the first half."

IVG Immobilien AG, Germany's largest commercial real estate firm, also cut its full-year forecast last week.
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