IVG said on Thursday that its final figures for 2009 confirm a turnaround in fortunes for the German listed real estate giant. Earnings before interest and tax came to just over EUR 64 mln in the last fiscal year compared to minus EUR 98.6 mln in 2008.

IVG said on Thursday that its final figures for 2009 confirm a turnaround in fortunes for the German listed real estate giant. Earnings before interest and tax came to just over EUR 64 mln in the last fiscal year compared to minus EUR 98.6 mln in 2008.

Acknowledging the negative effects of the financial and economic crisis on the occupancy rate and the development of like-for-like rents (2.9 % relative to the previous year, including units already let to new tenants; unadjusted: -4.3 %), IVG said it generated a positive Funds from Operations (FFO) of EUR 36.6 mln in 2009. The cost reductions achieved in the past fiscal year played a special role in this context. Other operating expenses were substantially reduced, from EUR 178.6 mln in 2008 to EUR 137.4 mln in 2009.

'As a result, IVG has already reached a cost level below the envisaged target of between EUR 140 mln and EUR 150 mln for the full year, which had been previously published,' the company said in a statement.

The 90.4% occupancy rate for 2009 was down by 2.9% on the previous year.

At the end of 2009, the Net Asset Value adjusted per share amounted to EUR 9.95 (2008: EUR 12.70) and remained stable, relative to the previous quarter, amongst others due to the successful letting of 6 future caverns. The loan-to-value ratio remained unchanged at 68%.

After successfully stabilising its debt financing and safeguarding its liquidity, IVG began the operational restructuring phase in the third quarter of 2009. This process will be continued in 2010.

Gerhard Niesslein, CEO of IVG Immobilien, said: 'After having managed the impact of the financial and economic crisis, the focus in 2010 will be on the increase of the quality of IVG's services and investment products. In this process we expect that our Operational Excellence and Efficiency programme will be particularly helpful in restoring our competitiveness.'