German property giant IVG Immobilien swung back into the black in in the first quarter of 2010 for the first time since Q2 2008 with a net profit of EUR 10.2 mln. This compares to a net loss of EUR 44.8 mln in the year-earlier period. The profit reflected a substantial improvement in EBIT (earnings before interest and tax) of EUR 71.9 mln from EUR 16.9 mln a year ago.
German property giant IVG Immobilien swung back into the black in in the first quarter of 2010 for the first time since Q2 2008 with a net profit of EUR 10.2 mln. This compares to a net loss of EUR 44.8 mln in the year-earlier period. The profit reflected a substantial improvement in EBIT (earnings before interest and tax) of EUR 71.9 mln from EUR 16.9 mln a year ago.
After successfully completing its financial restructuring programme, IVG said it was increasingly focused on strategic and operational improvements in the first three months of the fiscal year.The occupancy level of IVG's own portfolio was stable at 90.2% while the pre-letting rate of development projects increased to 66.6% over the three-month period. The company let a total of approximately 143,680 m2 of its own and managed properties in the first quarter
The NRI and NOI yields of properties in IVG’s own portfolio remained nearly stable at 5.5% and 5% per cent, respectively. Writedowns of EUR26.2 mln in the real estate business were more than offset by appreciations totalling EUR 34.4 mln in the caverns business. In addition, IVG’s earnings were
not burdened by write-downs of project developments as in the previous year.
IVG’s loan-to-value ratio remained virtually stable at around 68.8%.
In a press statement CEO Gerhard Niesslein said: 'In 2009, we already made considerable progress. Without any doubt, a lot still remains to be done in 2010. However, the turnaround for IVG is now clearly in sight. We therefore believe that IVG is well on track. The fact that a new major shareholder with real estate experience came onboard in March this year also strengthened our belief that we have embarked on the right course. Our efforts in the
current year will be focused on further improving our company’s operational efficiency, continuing to improve our cost structures and reducing risk positions in the development business.'
IVG Immobilien is one of the leading real estate companies in Europe. The company manages assets worth EUR 22.5 bn and has 600 employees in 18 selected major German and European cities.
