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UPDATE 1-Immofinanz 9M pretax loss widens to 3.3 bln eur

Published 03/31/2009, 02:11 AM
Updated 03/31/2009, 03:24 AM
IMFI
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* 9M pretax loss 3.32 bln eur vs 400 mln eur profit yr-ago

* NAV per share declines 17 pct to 5.84 eur in Q3

* Devaluations, goodwill writedowns, loss provisions weigh (Adds detail, background)

VIENNA, March 31 (Reuters) - Troubled Austrian developer Immofinanz will need more restructuring to secure its existence in the long term it said on Tuesday, as it posted a 3.32 billion euro ($4.4 billion) nine-month pretax loss.

Property devaluations, goodwill writedowns and falling currencies in emerging Europe, booked at its fully consolidated Immoeast unit, contributed to the losses in the nine months to January, Immofinanz said.

The group said it had raised 535 million euros through asset disposals in the business year so far, and slashed its development pipeline to help avoid a looming liquidity threat.

"This stabilised the liquidity situation and secured the existence of the company in the short- and medium-term," it said. "However, to safeguard the group in the long term additional restructuring measures are indispensable."

The group did not elaborate in the statement.

Shares in Immofinanz lost 93 percent of their value last year as the financial crisis hit property firms worldwide and corporate governance concerns weighed.

They have tripled since hitting a low of 0.28 euro in November, closing at 0.84 euro on Monday, but still trade at only a fraction of its net asset value, which dropped 17 percent to 7.07 euros per share in the third quarter. (Reporting by Boris Groendahl; Editing by Rupert Winchester)

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