IVG Immobilien, Germany's largest listed property group, surprised the market by posting a €99 mln loss in 2012 despite earlier forecasts of breaking even for the full year.
IVG Immobilien, Germany's largest listed property group, surprised the market by posting a €99 mln loss in 2012 despite earlier forecasts of breaking even for the full year.
In its preliminary full-year figures, IVG said it expects to report a loss of €99 mln due to 'extraordinary non-cash expenses' relating to its development projects and financing activities.
This compares with a guidance for 2012 of an 'almost break-even' as announced in the company's first-half results in August. In 2011, the company reported a loss of €158 mln.
Bonn-based IVG attributed the negative result to a loss of €37 mln in the development segment, related in particular to an office property in Paris which did not achieve the targeted rents. Another €36 mln was linked to the convertible bond due in March 2017, as a majority of bondholders are expected to exercise their put option in May 2014.
'The significant negative result which deviates from our guidance should not hide the fact that the restructuring and reorganisation of IVG to an integrated investment and asset management platform is going according to plan,' commented CFO Hans Volkert Volckens.
Preliminary earnings before taxes improved from a loss of €218 mln in 2011 to a loss of €87 mln in 2012.
The company will pay no dividend for the 2012 financial year.
In the last 12 months IVG has raised around €965 mln of equity from institutional and private investors as part of the company's strategy to reposition the business around services and fund management.
