IVG posts EUR 45m loss in Q1, yields at 'preliminary peak'

IVG Immobilien, the largest listed real estate group in Germany, struck an upbeat note on Thursday despite posting a EUR 44.8 mln after-tax loss for the first quarter of 2009. A year earlier, IVG recorded a profit of EUR 21.1 mln.

Noting its performance continued to be affected in 2009 by the international financial market crisis, IVG said in had got off to a good start in 2009 despite pre-tax earnings falling to EUR 14.4 mln compared with a EUR 25.4 mln profit in the first quarter of 2008.

More positively, net rental income increased to EUR 82.6 mln (Q1 2008: EUR 79.2 mln) and its investment portfolio shed only EUR 33.7 mln, compared with EUR 352.1 mln in the fourth quarter of 2008.

IVG said it had observed the first signs suggesting that rising initial yields had reached a preliminary peak in selected European markets. The company manages assets worth more than EUR 22 bn spread over its own portfolio, specialised funds and mandates for institutional investors and closed-end funds.