Ernst Russ AG Half-Year Report: Consistent pursuit of strategy as an asset and investment manager
- Significant expansion of investment activities in the Shipping and Real Estate segments
- Disposal of Investor Management and Solar segments
Hamburg, 17 September 2019 – In the first half of 2019, we made additional important investments in both our core business areas, Shipping and Real Estate. In the Shipping segment, the fleet was expanded through the acquisition of the majority shareholding in a ship portfolio comprising a handymax bulker and a 3,100 TEU container ship, as well as the acquisition of a 4,200 TEU container ship.
The 'ElbFeeder' joint venture, which is already established in the Shipping segment, operates seven feeder class vessels, which make a significant contribution to the performance of the Ernst Russ Group. This joint venture will be fully consolidated from August 2019. “We consider the opportunities arising from our strategy, and its optimisation on a regular basis. Our strategic partnerships, like the 'ElbFeeder' joint venture, play a crucial role for our portfolio in this respect. We also look into opportunities to engage in strategic partnerships in the Real Estate segment”, adds Robert Gärtner, Executive Board of Ernst Russ AG.
In February 2019, the Ernst Russ Group Real Estate segment acquired three project sites in ILO Park, Pinneberg, together with a joint venture partner for the construction of around 75 subsidised housing units. This was followed in August by the acquisition of a property in Bad Oldesloe, also as part of a joint venture, on which a total of 136 residential units will be built from 2020 on.
The disposal of both its Investor Management and Solar businesses has allowed the group of companies to make an essential step forward in the stabilization of its business model as an asset and investment manager.
Investments made in the first half of 2019 led to an increase in total equity and liabilities of EUR 14.1 million to EUR 117.5 million. Despite a consolidated net loss of EUR -0.6 million in the first half of the year, which was influenced by one-off effects, equity was up from EUR 51.1 million to EUR 58.5 million. This again produced an increased equity ratio of 49.8 %.
The half-year performance of Ernst Russ AG is attributable mainly to the streamlining of the Group's structure, which will enhance its ability to act effectively and in a flexible manner in the asset investment and management segment in the long term.
The Ernst Russ AG 2019 Half-Year Report can be downloaded from www.ernst-russ.de.