Listed German property firm IVG Immobilien on Wednesday reported a net loss of EUR 126 mln for the financial year 2011, following a number of significant impairment write-downs and major acquisitions.
Listed German property firm IVG Immobilien on Wednesday reported a net loss of EUR 126 mln for the financial year 2011, following a number of significant impairment write-downs and major acquisitions.
Earnings before interest and taxes fell 83% to EUR 43 mln on revenues down 37% at EUR 518 mln compared to the year-earlier period. The value of the German giant’s total assets held broadly steady at EUR 6.9 bn.
Foremost among the write-downs and acquisitions were the substantial impairment losses on its major office development The Squaire at Frankfurt International Airport and the company’s acquisition of a stake in the EUR 400 mln Silver Tower (Silberturm) building in Frankfurt's banking district.
Despite the gloomy figures, IVG expects to break even in 2012 and post ‘a substantial net profit’ in 2013. Total bank debt for the group was reduced by EUR 460 mln during 2011 and with a future focus on energy infrastructure projects and the expected sale of The Squaire in 2013, the company remains confident of a turnaround.
‘With a real estate portfolio of EUR 3.8 bn, assets under management totalling EUR 21.5 bn and lettings of more than 800,000 m2 in the past financial year, IVG is one of the largest and most important market players in Europe. 2012 and 2013 will be essential years for IVG and will determine whether we can not only consolidate our position as a major European real estate and infrastructure investor, but also further expand this position,’ said IVG CEO Wolfgang Schafers.
