IVG Immobilien AG significantly improved its consolidated net result in the first quarter of 2012 and ended the reporting period with just a slight loss of €4.8 million. In the fourth quarter of 2011, IVG’s consolidated net result had still been highly negative at €71.3 million on account of extraordinary factors. Revenues climbed by €24.7 million to €101.9 million, predominantly as a result of increases in net rents and the absence of negative extraordinary factors in the fourth quarter of 2011 in the Development segment. Operating EBIT also improved significantly from -€26.3 million to €50.3 million.
Factors behind the improvement in the first quarter of 2012 included the near completion of the major project THE SQUAIRE at Frankfurt Airport, the initial rental income associated with this and the absence of the negative extraordinary factors that had squeezed earnings in the fourth quarter of 2011. Positive unrealised changes in market value in the Caverns segment (€40.3 million in the first quarter of 2012) more than offset negative unrealised changes in market value in the Real Estate segment of €25.1 million, and therefore resulted in a positive overall contribution to earnings. The Funds segment continued to enjoy a stable trend in income.
The financial result improved significantly by €20.9 million to €54.8 million as a result of repayments, lower average interest rates and currency effects. IVG utilised the attractive interest rate to reduce its share of variable financial liabilities from around 41% in the previous quarter to now around 29%, and thereby to further improve planning certainty in its financial result. As at the end of the first quarter of 2012, the Group had cash and cash equivalents of €112 million.
