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Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

BONN-Locally based listed property group IVG, Germany’s largest, posted a much narrower consolidated net loss of €2.2 million in third quarter 2009 from a loss of €54.5 million in Q2 2009, but said operations are now stable and liquidity is assured following restructuring of debt, and completed asset sales.

“IVG is now entering a phase of improvement in its operating performance and the active, selective exploitation of market opportunities as planned,” said CEO Gerhard Niesslein. “We intend to achieve this operational improvement through cost reductions and process optimization.”

In operations, IVG reported like-for-like occupancy of 91.4% across the portfolio at end September, essentially unchanged on the previous quarter, pre-letting for development projects improving to 64.4% at end-October, liquidity assured through debt restructuring and sales, and cost-cutting initiated, with significant savings potential through 2012.

The third quarter saw a stabilization of the economy and property investment markets, and IVG noted it has achieved its aim of divesting more than €1 billion in properties in 2009. This marked completion of its phase of direct financial structuring, allowing it to turn full attention to further strategic and operational development. IVG let a total of 238,000 square meters in Q3 2009. The investment portfolio gross yield held stable at 6.6%.

Unrealized negative changes in value of real estate and the caverns holdings had a significantly less pronounced impact on earnings than in previous quarters, and were almost fully offset by unrealized positive changes in the fair value of caverns totaling €23 million. As of 30 September, adjusted net asset value remained largely stable at €10.25 per share.

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