Good real estate year for Investcorp
Investcorp, the asset management firm specializing in alternative investments, has announced a record net profit for the fiscal year ended June 30, 2006 of $130.8 million, an increase of 18.6 percent over the previous year’s reported net income of $110.3 million. Income before operating expenses was at $370.2 million.
Investcorp’s Board of Directors has recommended a dividend payment of $40 million on ordinary shares, maintaining the level paid for the past three years. Additionally, a dividend at the prescribed rate of 10 percent per annum will be paid on Investcorp’s preference shares. Total assets at June 30, 2006 were $4.17 billion, and total shareholders’ funds were $1.06 billion.
Nemir A. Kirdar, Investcorp’s President and Chief Executive Officer, said: “This record year was achieved through strong performance underpinned by the strength of Investcorp’s brand name with all its four lines of business generating outstanding results and returning to clients $1.4 billion from investment realizations.”
He stated: "Real estate had another good year. We realized 15 properties, returning $153.7 million to investors. We acquired 46 new properties, deploying a record $306 million in equity. These included both ‘core plus’ and ‘opportunistic’ investments across all property types and geographic sectors in the US. Four new portfolios were placed with investors, whose demand for our real estate product remains very high."
Investcorp is a global asset management firm specializing in alternative investments with offices in the Kingdom of Bahrain, New York and London. The firm offers four products: private equity, hedge funds, real estate investment and venture capital. It was established in 1982 and currently manages total investments in alternative assets of $9.9 billion.