conwert Immobilien Invest SE: conwert significantly increases earnings before tax again in first half of 2012

Vienna (pta006/23.08.2012/09:00 UTC+2) + Earnings before tax (EBT) increased by 45.2% to 18.0 million Eur
+ Profit for conwert shareholders increased by 17.1% to 9.6 million Eur
+ Efficiency improvements and cost-cutting measures take effect
+ Positive outlook for the whole of 2012 confirmed
+ Management considering tender offer to existing holders of the 1.5% convertible bond

Vienna, 23 August 2012. conwert Immobilien Invest SE, which is traded on the Austrian ATX, has completed the first half of 2012 with a strong overall result.

The residential property specialist increased its earnings before taxes (EBT) by 45.2% to 18.0 million Eur as of the reference date 30 June 2012 (1-6/2011: 12.4 million Eur). This positive development is largely due to conwert's greater profitability and efficiency in managing the company's hold portfolio.

In light of lower property sales relative to the previous year, total revenues in the first half of 2012 stood at 275.5 million Eur (1-6/2011: 373.1 million Eur).

Up to the reporting date conwert had made property sales of 166.6 million Eur (1-6/2011: 251.2 million Eur). The margin made on these sales was increased. On average it was 10.6% over the IFRS carrying amount (1-6/2011: 9.2%), which exceeded the long-term target range of 5 - 10%. As in the first quarter of this year, conwert's rental income of 95.4 million Eur was down on the prior-year figure of 107.3 million Eur. This reflects the comprehensive portfolio restructuring undertaken last year. However, the management efficiency of the rental portfolio was improved, leading to a higher NRI (net rental income) margin of 61.0% (1-6/2011: 58.4%). The vacancy rate was again lowered slightly. As of 30 June 2012 it stood at 14.9% (1-6/2011: 16.0%). The service revenues of 13.5 million Eur generated in the first six months were slightly down on the prior-year figure (1-6/2011: 14.5 million Eur). This reflects the reduced property sales.

Efficiency improvements and cost-cutting measures take effect
As well as an improvement in management efficiency, the cost-optimisation and efficiency-enhancing measures introduced last year had a significant positive impact for the first time in the first half of 2012. This resulted in a 7.0 million Eur contribution from the hold portfolio and business segment portfolio to earnings before taxes (EBT). The measures led also to a 5.0 million Eur (13.6%) decrease of expenses over the previous half year. conwert recorded a total operating result (EBIT) of 60.1 million Eur (1-6/2011: 63.0 million Eur). Despite the lower proceeds on sales, funds from operations (FFO) in the first six months came to 40.5 million Eur (1-6/2011: 54.5 million Eur).

conwert recorded a financial result of (42.1) million Eur in the first half-year, which was a significant improvement (1-6/2011: (50.6) million Eur). This was due in part to extensive loan repayments and fewer one-off non-cash effects compared to the prior-year period. In light of this, the management has decided to consider the option of a tender offer to existing holders of the 1.5% convertible bond. This would allow the existing bond to be exchanged for a new convertible bond of a smaller volume, which would mean a de facto extension of the maturity of the existing convertible bond. This could grant conwert some additional strategic flexibility. However, a decision on the tender offer has not yet been made.

Following the successful placement of the corporate bond with a total volume of 65.0 million Eur in June of this year, the loan-to-value (LTV) ratio as of 30 June 2012 was 58.0% (31/12/2011: 57.3%). The equity capital ratio fell slightly to 39.1% (31.12.2011: 39.3%). Some of the proceeds from the transaction will be used to pay off the 2007-2014 convertible bonds, which will in turn have a positive impact on the LTV and equity capital ratios.

conwert recorded an increase of 17.1% in profit after minority interests to 9.6 million Eur (1-6/2011: 8.2 million Eur). This was achieved despite a tax burden that was four times higher than in the previous year, which was largely due to differences between the IFRS and UGB results. Net asset value per share (EPRA NAV, undiluted) stood at EUR 18.24 on the reporting date, which is almost the same level as at the start of the year (31/12/2011: EUR 18.35).

Confirmation of positive outlook and targets for 2012
In light of the strong half-year result, the conwert management confirms its positive outlook for 2012 as a whole and its stated targets of earnings before taxes (EBT) of 50.0 million Eur (including the valuation result) and sales proceeds of 450.0 million Eur.

The 1-6/2012 Financial Report of conwert Immobilien Invest SE is available online at www.conwert.at.

EARNINGS INDICATORS		1-6/2012	1-6/2011	Change in %	2011
Rental income	mill. Eur	95.4	107.3	(11.1)	210.0
Proceeds on sale	mill. Eur	166.6	251.2	(33.7)	613.3
Service revenues	mill. Eur	13.5	14.5	(6.9)	29.5
Revenues	mill. Eur	275.5	373.1	(26.2)	852.9
Earnings before interest and tax (EBIT)	mill. Eur	60.1	63.0	(4.6)	119.8
Earnings before tax (EBT)	mill. Eur	18.0	12.4	45.2	23.6
Profit after minority interests	mill. Eur	9.6	8.2	17.1	23.4
Funds from Operations (FFO) 1)	mill. Eur	40.5	54.5	(25.7)	81.3
Net Rental Income (NRI)	mill. Eur	58.2	63.1	(7.2)	119.1
Cash Profit 2)	mill. Eur	36.8	54.2	(32.1)	73.8
Non-diluted earnings/share	Eur	0.12	0.1	20.0	0.28
Diluted earnings/share	Eur	0.12	0,10	20.0	0.28
Funds from Operations/share	Eur	0.50	0.65	(23.1)	0.98
BALANCE SHEET INDICATORS		1-6/2012	1-6/2011	Change in %	2011
Balance sheet total	mill. Eur	3,145.7	3,429.9	(8.3)	3,176.4
Non-current loans and borrowings	mill. Eur	967,6	1,153.8	16.1	1,005.9
Current loans and borrowings	mill. Eur	354.6	435.4	18.6	408.9
Equity	mill. Eur	1,229.0	1,306.9	(6.0)	1,248.3
Equity ratio	%	39.1	38.1	-	39.3
Gearing	%	131.7	149.0	-	137.2
Non-diluted EPRA NAV/share	Eur	18.24	-	-	18.35
PROPERTY INDICATORS		1-6/2012	1-6/2011	Change in %	2011
Number of properties	No.	1,601	1,781	(10.1)	1,666
Rental units/	No.	21,900/	26,038/	(15.9)/	22,923/
parking spaces		11,240	9,795	14.8	11,213
Total usable space	sqm	2,039,330	2,394,688	(14.8)	2,146,097
Property assets	mill. Eur	2,710.2	3,139.6	(13.7)	2,828.6

1) FFO: Earnings before tax (EBT) minus the net gain from fair value adjustments plus the difference between cash gains on sale to IFRS gains on sale plus depreciation plus non-cash components of financial results and other costs
2) Cash profit: FFO minus actual income taxes paid

This report contains forward-looking estimates and statements that were made on the basis of the information available at this time. Forward-looking statements reflect the point of view at the time they are made. We would like to point out that the actual circumstances and, consequently, the actual results realised at a later date may differ from the forecasts presented in this report for a variety of reasons.

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