Bloomberg News

IVG Falls Most Since 2001 After Forecast Missed: Frankfurt Mover

March 06, 2013

IVG AG fell the most since September 2001 in Frankfurt trading after the German property investor missed its 2012 profit forecast and said it won’t pay a dividend. The shares dropped as much as 21 percent.

IVG said in a statement today that it had an annual loss of 98.7 million euros ($128.8 million) because of one-time costs tied to development projects. The Bonn-based company in July said it would “almost” break even.

“It is a negative surprise that IVG had to clean up the balance sheet again,” Jochen Rothenbacher, an analyst at Equinet Bank in Frankfurt, wrote in a note to investors today. “However, the one-off items are non-cash and the operational performance adjusted for these effects was in line with the company guidance.”

Rothenbacher cut his rating to reduce, a notch higher than sell, from buy.

IVG last reported an annual profit after tax in 2007. The company said the one-time costs stemmed mostly from projects and financing activities initiated in 2006 to 2008. IVG’s pretax loss narrowed to 86.9 million euros from 217.6 million euros.

The developer was down 18 percent at 1.89 euros at 10:45 a.m. in Frankfurt, cutting its market value to about 391 million euros and reducing the gain for the past six months to 3.8 percent.

To contact the reporter on this story: Andrew Blackman in Berlin at ablackman@bloomberg.net.

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus