IVG Immobilien reported a net loss of 鈧�45 mln in the first quarter of this year following further devaluations in its investment portfolio.
IVG Immobilien reported a net loss of 鈧�45 mln in the first quarter of this year following further devaluations in its investment portfolio.
The result follows a loss of 鈧�76 mln in the fourth quarter of 2012 but represents a significant improvement on the same quarter a year ago, when IVG chalked up losses of 鈧�79 mln. EBIT fell from 鈧�16.2 mln in the previous quarter to -鈧�20.2 mln.
Bonn-based IVG said the value of its assets dropped by 鈧�47 mln in the first three months of the year largely due to lease renegotiations on a major office building in Frankfurt. Allianz, the tenant of the Theodor Stern Kai asset, extended its lease on the 51,000 m2 complex albeit at a lower rent, resulting in a 鈧�21 mln fall in the asset value.
Revenues declined 8% year-on-year to 鈧�94 mln, mainly as a result of lower income from project sales in the investment division. Funds from Operations (FFO I), which describes the company's operating cash flow without the non-recurring effects of development business or sales income, came in positive at 鈧�7.7 mln.
IVG鈥檚 debt amounted to around 鈧�4.2 bn at end March 2013, corresponding to a loan-to-value (LTV) ratio of around 72%, well above the industry average. As such, the company said it is developing a new financing strategy to be presented at the annual general meeting on August 14.
The programme will help IVG deal with the forthcoming maturity of large-volume bank loans and the probable exercise of a put option by the bearers of a convertible bond with a nominal value of 鈧�400 mln in March 2014.
