MPC Capital AG, a German financial- services company, said 2005 profit fell 17 percent and forecasts earnings to fall further this year as investors put less money in shipping and real-estate funds.
Net income fell to 43.5 million euros ($51.6 million) from 52.3 million euros a year earlier, the Hamburg-based company said in a statement to the Frankfurt exchange today. That exceeded the 42.9 million-euro median estimate of seven analysts surveyed by Bloomberg.
``The development in the international real estate markets and the strict adherence to high quality criteria are currently making it difficult to launch high-yield investments,'' the statement said. ``MPC Capital expects equity placed in traditional real estate funds to decline noticeably.''
MPC is expanding its product offerings to offset waning demand for its closed-end real-estate and shipping funds. The company in January said clients put 11 percent less money into its funds last year and today forecast net income in 2006 may be as low as 36 million euros.
It will pay a dividend of 4 euros a share for last year, the same amount paid for 2004. MPC in November forecast net income in 2005 would amount to between 40 million euros and 43 million euros.
Real estate funds were the company's largest business segments in terms of money invested 2005.
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