Positive consolidated net profit for fiscal year 2010 - Final figures confirm turnaround at IVG
Bonn, 24.03.2011
- After two years with losses consolidated net profit with € 23.2m back in black figures, operating result (EBIT) triples compared to previous year to € 256.2m
- Positive FFO I of € 15.0m and FFO II of € 10.0m
- Occupancy rate at c90%, Like-for-like rents only slightly reduced by 1.1%, NRI yield at 5.3% and NOI yield at 5.0% virtually stable
- NAV per share rises by 2.4% to € 7.02, NAV adjusted per share stabilises at € 9.85, Loan-to-value continuously at c70%
- Focus in 2011 on continuation of successful realignment initiated in 2009 and on further risk- and debt reduction
The preliminary and unaudited figures published already at the beginning of February have been confirmed and are introduced during the balance sheet press conference and a consecutive analyst conference in the Japan Centre in Frankfurt a.M. today.
The positive EBIT of 2009 in the amount of € 64.1m could be significantly improved in 2010 by IVG. EBIT rose to € 256.2m and confirmed not only a stabilisation of real estate markets but also the success of the operative and financial restructuring of IVG in particular.
Also Funds from operations (FFO) in fiscal year 2010 reached a positive result with FFO I of € 15.0m and FFO II of € 10.0m.
Net rents decreased by c14% in 2010, primarily due to the liquidity-driven disposal program of selected investment properties initiated in 2009. Adjusted for these effects, Like-for-like rents showed a stable development within the overall market environment and showed only a slight decrease of -1.1% in 2010 (vs. -2.9% in fiscal year 2009), which is also reflected by the occupancy rate of c90%.
The stabilisation of real estate markets furthermore manifests itself in NRI- and NOI yields of the on-balance portfolio with 5.3% and 5.0%. Both figures could be managed to remain nearly stable throughout the fiscal year 2010.
Because of the positive net consolidated result Net Asset Value per share increased for the first time in two years to € 7.02 (2009: € 6.86) on 31.12.2010. NAV adj. per share, which includes the value potential of the cavern business, remained almost stable with € 9.85 at end of the year 2010 (2009: € 9.95). Financial leverage (Loan-to-Value according to banks' definition) was 70.3%.
Due to a reported loss in the separate financial statements in accordance with the German Commercial Code (HGB) there will be no dividend payment for the last fiscal year 2010.
Dr. Gerhard Niesslein, Chief Executive Officer of IVG Immobilien AG: "After we have now been able to show the visible successes of our "Operational Excellence & Efficiency"– program, we are focussing in 2011 especially on the successful placement of the "New Work City" idea in our major project THE SQUAIRE at Frankfurt Airport and on developing further innovative products for IVG and its customers in terms of IVG as integrated investment platform. "
Concerning this, Dr. Wolfgang Schäfers, Chief Financial Officer of IVG Immobilien AG, adds: "Our focus in the fiscal year 2011 will furthermore distinctly be to continue the path of financial recovery of IVG. As to that, it is crucial to also repay and prolong liabilities as scheduled to further work on the debt relief of IVG as well as restructuring of our bank debt in order to improve the maturity profile of our liabilities. The validity and correctness of this strategy has also been confirmed again by the successful capital increase in particular in February 2011 by capital market participants".
Assuming no further major unplanned valuation effects or cost overruns for the last project developments occur, IVG also expects a consolidated net profit for fiscal year 2011.
Key figures
IVG Immobilien AG
IVG Immobilien AG is one of the major real estate companies in Europe. The company manages assets worth €22 billion and is located with approx. 590 employees in 19 selected major German and European cities. Via this network of local branches, IVG manages inter alia on balance properties with a market value of €4.3 billion. In northern Germany IVG constructs and operates underground storage caverns for oil and gas. In the fund segment IVG is the leading provider of tailored property funds for institutional investors. In combination with the closed-end funds for private investors, IVG manages funds and mandates amounting to a volume of €15.1 billion.
Investor Relations contact
Martin Praum & Nina Wittkopf
Tel.: +49 (0)228 / 844-400
Fax: +49 (0)228 / 844-372
E-mail: ir@ivg.de
