conwert Immobilien Invest SE: conwert's profit triples in the first quarter of 2013

Vienna (pta007/29.05.2013/07:40 UTC+2) -
+ EBT more than doubled to EUR 12.3 million
+ Solid operating improvement in asset management
+ Integration of KWG Kommunale Wohnen AG progressing successfully
+ Confirmation of targets for the year 2013

Vienna, 29 May 2013. The Austrian ATX-traded conwert Immobilien Invest SE completed the first quarter of 2013 with a very strong profit for the period.

The Company, which focuses on portfolio management of residential properties, realised a profit after income tax of EUR 9.9 million in the first three months of the year (1-3/2012: EUR 2.4 million). Earnings before tax (EBT) more than doubled to EUR 12.3 million year-on-year (1-3/2012: EUR 4.8 million) and funds from operations before sales result (FFO I) also more than doubled from EUR 3.8 million to EUR 9.0 million. Funds from operations after sales (FFO II) increased significantly by 37.9%, from EUR 10.3 million to EUR 14.2 million.

"conwert completed the first quarter with very strong results. Especially the indicators relevant to us as an asset manager of residential properties underpin the positive operating development of the first three months", says Johannes Meran, Chairman of the Administrative Board of conwert.

In March 2013, conwert increased its share in KWG Kommunale Wohnen AG (KWG), based in Hamburg, to a total of 75.7% and fully consolidated KWG in the first quarter of 2013 as announced. This led to a positive valuation result of EUR 5.2 million. In terms of rental income, the Company recorded a significant increase by 20.5% to EUR 56.4 million in comparison to the prior-year quarter (1-3/2012: EUR 46.8 million), also due to the enlarged portfolio. The efficiency of the portfolio management also continued to improve, which is why the NRI margin (NRI: Net Rental Income) increased significantly from 60.0% to 65.2%. Like-4-like rental income (excluding KWG) increased by 4.4%.The vacancy rate dropped substantially from 15.0% to 11.8% in comparison with the same period of the previous year.

In line with the Company's strategic focus as a residential property portfolio manager, proceeds from the sale of properties declined from EUR 37.8 million in the prior-year quarter to EUR 28.2 million. The margins realised exceeded the IFRS carrying amount by 21.9% on average. As expected, service revenues declined and amounted to EUR 4.8 million in the first three months due to the deconsolidation of RESAG Immobilienmakler GmbH (1-3/2012: EUR 6.6 million). Overall, conwert's revenues were stable at EUR 89.4 million in comparison with the prior-year quarter (1-3/2012: EUR 91.2 million).

The loan-to-value ratio (LTV) amounted to 56.3% at 31 March 2013, thus only slightly exceeding the long-term target corridor of 50 to 55%. The equity ratio equalled 35.2% at the closing date (1-3/2012: 36.0%).

After the full consolidation of KWG in the first quarter of 2013, conwert anticipates further positive synergy effects resulting from a stronger operational integration of KWG in the coming months, as announced. The plans include measures to reduce current fixed costs and merging the existing asset managements.

Against the background of the strong operating performance in the first quarter of 2013, conwert confirms the targets announced at the beginning of the year: For the full year 2013, conwert strives to improve funds from operations (FFO) to EUR 25 million and to reduce the vacancy rate for the asset portfolio in Germany and Austria to less than 10%.

The interim report 1-3/2013 of conwert Immobilien Invest SE is available on the website http://www.conwert.at.

Company indicators

		1-3/2013	1-3/2012	Change in %	2012
Rental income	mill. EUR	56.6	46.8	20.9	188.1
Proceeds on sale	mill. EUR	28.2	37.9	(25.6)	409.6
Service revenues	mill. EUR	4.8	6.6	(27.3)	27.3
Revenues	mill. EUR	89.4	91.2	(2.0)	625.1
Earnings before interest, taxes and depreciation (EBITDA)	mill. EUR	30.7	26.0	18.1	97.2
Depreciation, amortisation and other impairment charges	mill. EUR	(0.3)	(0.3)	-	(118.5)
Earnings before interest and taxes (EBIT)	mill. EUR	35.6	26.7	33.3	(58.5)
Funds from Operations I *) (excl. sales and one-off effects)	mill. EUR	9.1	3.8	>100	20.7
Funds from Operations II **)	mill. EUR	14.2	10.3	37.9	43.0
Net Rental Income (NRI)	mill. EUR	36.8	28.1	31.0	110.5
NRI Marge	%	65.2	60.0	8.7	58.7
Non-diluted earnings/share	EUR	0.11	0.03	>100	(2.06)
Diluted earnings/share	EUR	0.09	0.03	>100	(1.61)
FFO I (excl. sales and one-off effects) *)/share	EUR	0.11	0.05	>100	0.25

*) FFO I: 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

		1-3/2013	1-3/2012	Change in %	2012
Balance sheet total	mill. EUR	3,113.6	3,131.1	(0.6)	2,849.8
Non-current loans and borrowings	mill. EUR	1,049.2	977.7	7.3	921.1
Current loans and borrowings	mill. EUR	319.1	394.8	19.2	308.0
Equity	mill. EUR	1,096.3	1,245.5	(12.0)	1,025.0
Equity ratio	%	35.2	39.8	(11.5)	36.0
Gearing	%	163.8	137.0	19.6	146.9
EPRA NAV (non-diluted)/share	EUR	15.74	18.37	(14.3)	15.79

Property indicators

		1-3/2013	1-3/2012	Change in %	2012
Number of properties	No.	1,781	1,641	8.5	1,502
Rental units*)	No.	29,974	22,524	33.1	20,479
Parking spaces*)	No.	13,437	11,719	14.7	10,795
Total usable space*)	sqm	2,506,315	2,096,413	19.6	1,924,433
Property assets	mill. EUR	2,885	2,818	2.4	2,511

*) As of 30 June 2012, units are shown excluding parking spaces. The comparative figures for the financial year 2012 were adjusted to the new system and are therefore not comparable with the interim figures 1-3/2012.

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