The international financial crisis has led to substantial losses on the stock markets – including for the IVG share

Developments on the stock markets in 2008 were shaped worldwide by the international crisis on the financial markets, which had a significant impact on the property sector and, therefore, on the share of IVG. The share price of IVG fell sharply in the financial year 2008. Despite the successful sale for €1.7 billion of 70 [glossary] caverns during the course of the financial year to a fund subscribed by institutional investors and in the light of the crisis in the financial markets and banking sector and declining economic development despite relatively robust business operations, the share price at the end of the financial year was significantly below the closing share price at the end of the financial year 2007.

During the course of the year, the IVG share lost about 76% of its value and it closed on 31 December 2008 at €5.72 (31 December 2007: €23.58). This meant that in the same period, the [glossary] market capitalisation of IVG fell from €2.7 billion to €664 million. The free float market capitalisation declined from €2.2 billion to €339 million. By comparison with the 50 MDAX companies, this puts IVG in 42nd place. During the financial year, the average number of IVG share trades per trading day rose considerably from 815,000 to about 1.25 million.

Large shareholders increase equity investment

During 2008, the course of the financial year 2008, two large shareholders, Santo Holding and Sal. Oppenheim increased their equity investment in IVG, thus expressing their trust in the strength of IVG:. Sal. Oppenheim increased its investment in October 2008 initially from 10.1% to 15.67% and then up to 20% plus one share. Santo Holding increased its investment at the end of the year from 10.97% to 15.63%. In accordance with the definition of Deutsche Börse, the free float at the end of the year was 64.37% (2007: 78.93%).