IVG Immobilien AG returned to profitability in the third quarter of 2011 with a consolidated net profit of 3.0 million after a loss of 68.8 million in the previous quarter.
The value driver in the third quarter was again the Caverns business. Unrealized positive changes in market value totaling 21.7 million in the segment Investment (Caverns) more than compensated for unrealized negative changes in market value in the amount of 13.2 million in the segment Investment (Real Estate).
Revenues increased to 121.0 million in Q3 2011 as against 105.6 million in Q2 2011, driven by property sales in the segment Investment (Real Estate) and revenues from letting fees (promote structure) in the segment Investment (Caverns).
Due to non-recurring effects, the cost item of other operating expenses was up only slightly at 27.4 million in Q3 2011 as against 25.6 million in Q2 2011, but remains lower than the previous year's level. (Q3 2011: 29.1 million)
The financial result was negatively impacted in particular by non-cash valuation effects of financial instruments (-15.5 million) and by foreign currency effects (-6.1 million) in the third quarter of 2011. Overall, the financial result therefore fell from -71.4 million in the second quarter of 2011 to -75.6 million in the third quarter of 2011.
The unrealized changes in value in the financial result amounting to -21.7 million were almost offset by the tax results of 20.0 million. In contrast, net interest expenses improved by 3.6 million from -52.4 million in the second quarter of 2011 to -48.8 million in the third quarter of 2011.
At 1.9 million, Funds from operations (FFO I) were again positive as in the previous quarter and show the current profitability on the basis of the company's recurring cash flows. Liquidity amounted to 117 million and was thus at the same level as in the previous quarter (116 million).
Net asset value including the potential value of the cavern business (NAV adj.) amounted to 8.66 per share as at September 30, 2011. Reported net asset value was 6.66 per share. Neither of these key figures changed significantly as against the previous quarter.
As already reported, in September 2011 the financing for THE SQUAIRE project development at Frankfurt Airport in the amount of 500 million was extended until the end of 2013 and, in addition, new financing of 35 million was concluded for the adjacent car park THE SQUAIRE Parking.
Dr Wolfgang Schäfers, CEO of IVG Immobilien AG, said: "Operationally and financially we have made considerable progress, particularly in recent weeks. Back in October 2011, we reported that we were able to secure the extension of a portfolio financing in the amount of 145 million.
"However, the extensions that we have now secured for the 'CORE' financing in the amount of 933 million and for the 'Syndicated Loan II' financing in the amount of 1,047 million, with planned new terms until December 2015 and September 2014 respectively are particularly pleasing. Both agreements constitute an important step towards improving our financial and risk structure. As a result of these extensions, we no longer have any major maturities of liabilities to banks within the next two years.
With a view on the future business at IVG, Dr Schäfers noticed in addition: "This enables IVG at the same time to participate more actively in market again. With the purchase of Silver Tower (Silberturm) property in Frankfurt am Main at the end of October 2011 through a consortium of investors led by IVG, we also achieved another success in implementing IVG Immobilien AG's investment platform strategy defined in 2010.
"According to this strategy, IVG selectively acts as co-investor in institutional investment products from the property and infrastructure segments. Successful placements in the last years include the IVG Cavern Fund, the IVG Protect Fund and the IVG Premium Green Fund."