conwert Immobilien Invest SE: conwert with record operational result in the first half of the year

Vienna, 27 August 2013 (pta040/27.08.2013/23:05 UTC+2) -

+ Profit after tax of EUR 25.6 million - around 150% above the first half of 2012
+ Best operational half-year earnings in the company's history and thus already above earnings for the financial years 2010 and 2011
+ Very strong development of the rental business - FFO I up by more than 50% and NRI margin at 64.5% (10% increase)

conwert Immobilien Invest SE, which is traded on the Austrian ATX, concluded the first six months of 2013 with the best operational half-year result in the company's history.

"Our record result is an expression of the operational strength that conwert has gained and confirms that we are on track with the strategic repositioning of our business model," said Johannes Meran, Chairman of the Administrative Board of conwert.

The company focusing on residential properties increased earnings before tax (EBT) by 100.6% to EUR 36.1 million in the first six months (1-6/2012: EUR 18.0 million). Profit after tax amounted to EUR 25.6 million in the first half of 2013 (1-6/2012: EUR 10.1 million) and was already around 150% above the results for the financial years 2010 and 2011, respectively.

FFO I (Funds from Operations before sales result), which is the key indicator for the performance of the rental business increased from EUR 12.1 million in the comparative period to EUR 18.4 million. This corresponds to an increase of 52.1%. Rental revenues of EUR 113.2 million were substantially up compared EUR 95.4 million in the previous year. In addition to the successful takeover of KWG Kommunale Wohnen AG (KWG), this very positive development is also attributable to the improved management efficiency of the overall portfolio. As a result of this, the NRI margin (NRI: Net Rental Income) increased further throughout the group, from 58.6% in 2012 to 64.5% in the first six months of 2013.

As planned, the sales revenues of EUR 145.6 million were lower than in the previous year (1-6/2012: EUR 166.7 million). In the first six months of 2013, conwert sold commercial properties worth EUR 64.7 million with a margin of about 4.9%. The margins achieved in the privatisation of both German and Austrian apartments was above 20%. On average, a margin of 10.3% above the IFRS book value was achieved. This underlines the value of the portfolio and the conservative valuation of the portfolio on the balance sheet.

Since new valuations are only carried out during the year in exceptional circumstance, there were no significant new valuations in the second quarter of 2013. Compared to the first quarter of 2013, the valuation result remained virtually unchanged at around EUR 5 million.

In the first half of 2013, the financial result was EUR (34.1) million after EUR (42.1) million in the comparative period of the previous year. Increases in the interest rate environment had a positive impact particularly in the second quarter 2013. Approximately 90% of conwert's bank liabilities are subject to interest rate hedging and the valuation of these hedging instruments had a positive impact both on the balance sheet and the income statement.

The loan-to-value (LTV) ratio was constant at 55.1% and thus only marginally over the target corridor of 50-55%, whereas the equity ratio increased slightly to 36.7% compared with the first quarter of 2013.

This very positive result led to an increase in the NAV/share, which improved slightly from EUR 15.74/share to EUR 15.82/share. The share currently trades at a discount to the NAV of around 50%.

"We have significantly strengthened the efficiency, profitability and transparency of conwert over the last few years. In the course of the latest acquisitions, we are anticipating further synergies and substantial positive effects in the second half of the year, in particular because some measures that have already been implemented, such as the reduction in the workforce by about 14%, will only show a financial impact in the second half of the year," said Johannes Meran.

In light of the positive development of the first half of 2013 and a promising start to the second half of the year, conwert is increasing its FFO I target for the year from EUR 25 million to EUR 36 million (without restructuring charges). The company is expecting further restructuring charges in the second half of 2013 of EUR 3-5 million, which would have to be deducted. Also, in light of the strong sales performance, the company anticipates an improved sales margin above the IFRS book values of 7-9% compared to 0-5% previously.

The 1-6/2013 financial report of conwert Immobilien Invest SE is available on the website http://www.conwert.at.

...................................................................
Company indicators

		1-6/2013	1-6/2012	Change in %	2012
Rental income	mill. EUR	113.2	95.4	18.7	188.1
Proceeds on sale	mill. EUR	145.6	166.6	(12.6)	409.6
Service revenues	mill. EUR	9.9	13.5	(26.9)	27.3
Revenues total	mill. EUR	268.6	275.5	(2.5)	625.1
Earnings before interest, taxes and depreciation (EBITDA)	mill. EUR	65.2	57.8	17.8	97.2
Depreciation, amortisation and other impairment charges	mill. EUR	(0.5)	(0.8)	(0.4)	(118.5)
Earnings before interest and taxes (EBIT)	mill. EUR	70.2	60.1	16.8	(58.5)
Funds from Operations before sales result *) (FFO I)	mill. EUR	18.4	12.1	52.1	20.7
Funds from Operations after sales result **) (FFO II)	mill. EUR	38.0	40.5	(6.2)	43.0
Net Rental Income (NRI)	mill. EUR	73.0	58.2	25.4	110.5
NRI Margin	%	64.5	61.0	(5.7)	58.7
Non-diluted earnings/share	EUR	0.29	0.12	>100	(2.06)
Diluted earnings/share	EUR	0.23	0.12	91.7	(1.61)
FFO I *)/share	EUR	0.22	0.14	57.1	0.25

*) FFO I: Earnings before tax (EBT) - difference between sales and carrying amount of sold properties + operating expenses of sales result -/+ revaluation gains/losses + depreciation and valuation adjustments + non-cash part of financial result
**) FFO II: FFO I + difference between sales and carrying amount of sold properties - deduction of operating expenses of sales result + difference cash gains to IFRS gains on sales

Balance sheet indicators

		30/06/2013	30/06/2012	Change in %	31/12/2012
Balance sheet total	mill. EUR	3,064.4	3,145.7	(2.6)	2,849.8
Non-current loans and borrowings	mill. EUR	1,062.3	967.6	9.8	921.1
Current loans and borrowings	mill. EUR	337.4	354.6	4.9	308.0
Equity	mill. EUR	1,124.3	1,229.0	(8.5)	1,025.0
Equity ratio	%	36.7	39.1	(6.1)	36.0
Gearing	%	148.4	131.7	12.7	146.9
EPRA NAV (non-diluted)/share	EUR	15.82	18.24	(13.3)	15.79

Property indicators

		30/06/2013	30/06/2012	Change in %	31/12/2012
Number of properties	No.	1,740	1,601	8.7	1,502
Rental units*)	No.	29,243	21,900	33.5	20,479
Parking spaces*)	No.	13,181	11,240	17.3	10,795
Total usable space*)	sqm	2,441,546	2,039,330	19.7	1,924,433
Property assets	mill. EUR	2,795.1	2,710.2	3.1	2,511

...................................................................
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.

(end)