Hypo Real Estate Surges on Improved Earnings

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MUNICH-Despite embracing a strategy to pursue non-real estate investments going forward, Hypo Real Estate Holding AG is reporting a solid beginning to 2007 for its core business, with annual earnings seen increasing by $40 million thanks to higher revenues from commissions in the first half. Germany’s second largest commercial property lender expects to achieve pre-tax net income of $252 million when mid-year results are finalized next month.

Up from $197 million a year ago, the gains reflect commissions earned from $13.8 billion of business generated in the first half, more than 60% higher than the business level seen during the same period in 2006.