IVG Immobilien AG / Key word(s): Final Results/Change of Personnel
28.03.2012 07:18
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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The issuer is solely responsible for the content of this announcement.
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Return to profitability through expansion of real estate and cavern
business and innovative fund products
Financial year 2011: Consolidated net loss of EUR126 million primarily
attributable to substantial impairment losses on the nearly completed major
project 'THE SQUAIRE'
New Chairman of the Supervisory Board: Stefan Jütte, CEO of Postbank AG,
set to succeed Detlef Bierbaum
New Group management team systematically presses ahead with IVG's
development into an integrated real estate and infrastructure investor:
* Debt reduced by EUR460 million in 2011; a further reduction of EUR1
billion and a corresponding rise in the equity ratio from the current level
of 20% to almost 30% is planned for the period from 2012 to 2014
* New real estate business: Focus on Germany and co-investments for
selected IVG fund products
* Expansion of cavern and energy infrastructure business: 14 new oil and
gas storage caverns in 2012/13
* IVG aims to break even in 2012 and record a substantial net profit in
2013
Frankfurt a.M. / Bonn, 28 March 2012 - IVG Immobilien AG closed the
financial year 2011 with a consolidated net loss of EUR126 million, largely
as a result of non-recurring impairment losses on its phase out development
business. Driven by the accelerated expansion of storage facilities for oil
and natural gas (caverns), the continuation of the successful co-investment
strategy in the real estate sector and new, innovative fund products for
institutional and private investors, IVG intends to return to clear
profitability by 2013 at the latest. The Board of Management expects to
break even in 2012. The real estate group will also be expanded into an
integrated real estate and infrastructure investor through additional
investments in the area of energy infrastructure.
New Chairman of the Supervisory Board
At the Annual General Meeting on 15 May 2012 it is planned that the
current Chairman of the Board of Management of Postbank AG, Stefan Jütte
will be elected as a new member of IVG's Supervisory Board. Mr. Jütte is
expected to take over as Chairman of the Supervisory Board, succeeding
Detlef Bierbaum, who will step down from the Board.
Operational success across all divisions and significant reduction in debt
despite net loss for the year
The consolidated net loss for the year, which was attributable to
impairment losses on the major project 'THE SQUAIRE', should not distract
from the important strategic measures and operational successes recorded in
2011, which will have a positive long-term impact on future results. The
co-investment strategy successfully continued in late 2011 with the
acquisition of the 'Silver Tower' building in Frankfurt's banking district
as part of a club deal with eight institutional investors initiated and
managed by IVG. Meanwhile, the extremely strong start to the marketing of
the IVG EuroSelect 21 Munich fund, in which IVG will retain a long-term
investment of 10%, means that an impressive product for private investors
has been placed as part of the Company's strategic orientation.
In its own real estate portfolio, IVG continued to focus on the less
volatile German market. Properties in Germany now account for more than 90%
of the portfolio in terms of market values. The proportion of 'workout
properties' also declined as planned, from roughly 10% in 2010 to roughly
8% in 2011. IVG is continuing to prioritise the streamlining of its real
estate portfolio to eliminate isolated properties that do not fit into its
portfolio strategy.
IVG also made considerable progress with our financing and risk structure
in 2011. The successful extension of the project finance for the major
project 'THE SQUAIRE' with a volume of roughly EUR500 million was
successfully extended in September 2011, followed by the renewal of
portfolio financing in the amount of EUR145 million in October. The
extensions for the 'CORE' financing in the amount of EUR933 million and the
'Syndicated Loan II' financing in the amount of EUR1,047 million, with new
terms scheduled until December 2015 and September 2014 respectively, were
particularly pleasing. This means that no major maturities of liabilities
to banks are expected before the end of 2013. Liabilities to banks were
also already reduced by around EUR460 million in 2011.
Positive outlook for consolidated net profit over the coming years
IVG is planning to further cut its financial liabilities to around EUR3.5
billion over the next two years, largely through the monetarisation of
assets, thereby reducing the impact of net financial income on consolidated
net profit. This should also improve its equity ratio to almost 30%.
Assuming no significant remeasurement effects, IVG expects to break even in
2012 and record a substantial consolidated net profit in 2013.
28.03.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: IVG Immobilien AG
Zanderstr. 5-7
53177 Bonn
Germany
Phone: +49 (0)228 844-333
Fax: +49 (0)228 844-372
E-mail: ir@ivg.de
Internet: www.ivg.de
ISIN: DE0006205701
WKN: 620570
Indices: SDAX
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), München; Freiverkehr in Hamburg, Hannover,
Stuttgart
End of Announcement DGAP News-Service
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DGAP-Adhoc: IVG Immobilien AG: Financial year 2011 publication / Changes in the Supervisory Board
| Source: EQS Group AG