Frankfurt’s commercial property investor and developer IFM Immobilien’s operating profit rose from €2.2m in the first quarter of 2011 to €2.8m in Q1 2012.
The firm’s group profits after tax also increased by 2.3% between the first quarter in 2011 and the same period in 2012 to €1.8m.
The increase in group turnover in the first quarter of 2012 was owing to the effects of planned revitalisation-related vacancies such as the Kureck project in Wiesbaden, which was overcompensated by additional increases in the occupancy rate in other properties, after the tenant R+V moved out in January 2011.
Rental income increased by 7.4% to around €3.8m between Q1 2011 and Q1 2012, the result of higher rental rates introduced for several properties. The income from fair valuation of investment properties amounted to €2.7m in the first quarter of 2012, which is predominately the result of a revaluation of Zeilgalerie in Frankfurt and Das Carré in Heidelberg. IFM’s result per share is €0.19.
Georg Glatzel, CEO of IFM Immobilien AG, said: “With the results for the first quarter, we have established a sound basis for the coming months. We were able to increase both our revenues and our profits. In addition, we have further improved our financing structure by means of loan extensions.
“For the coming months, in addition to working on our current projects, we also aim to further optimise the cost structure within the group. Moreover, we are exploring the sale of properties in order to generate funds for new commitments in properties with potential for development and high potential for value creation.”
