ADHOC DISCLOSURE conwert increases rental income and earnings in the by eddie22


									ADHOC DISCLOSURE | 27.05.2008 conwert increases rental income and earnings in the first quarter of 2008
Vienna, 27 May 2008. conwert Immobilien Invest SE, listed on the Vienna Stock Exchange, used the first quarter of 2008 to optimise the current property portfolio and improved essential key figures. Following the significant expansion of the property portfolio and the acquisition of the property management and property service companies in 2007, the focus was placed on sustainable asset management and the integration of the acquired companies in the first three months of 2008. In line with this strategy, rental income was increased by 12 % year-on-year based on an unchanged portfolio (like-for-like). Overall, rental income rose by 42 % to EUR 34.64 million. Earnings before interest and tax (EBIT) increased to EUR 40.82 million (+24 %). Cash earnings (FFO and cash profit), at EUR 13.64 million, were clearly positive. The property key figures also experienced growth, with transactions focusing exclusively on selective acquisitions and sales in the reporting period. Property assets increased to EUR 2.42 billion in the first quarter of 2008, following EUR 2.35 billion at the end of 2007. Total usable space amounted to 1,946,100 sqm (12/2007: 1,896,900 sqm). At the end of the first quarter of 2008, the property portfolio comprised 23,818 rental units and 7,422 parking spaces. The net asset value (NAV) per share was up 12% to EUR 16.50 within a single year. + Strong growth in rental income Rental income rose by 42 % year-on-year to EUR 34.64 million in the first quarter of 2008. This growth resulted from an increase in space as well as higher prices on new rentals. The sound organic growth in rental income is demonstrated above all by a like-for-like analysis (based on an unchanged portfolio compared with the first quarter of 2007) of properties designated for rental. In comparison with the first three months of the previous year, rental income rose by 12%. Since the basis for trading activities was extremely high in the comparable prior year period, the transaction volume for the reporting period shows a decline. Proceeds on sale amounted to EUR 30.12 million, following the exceptionally high level of sales in the first quarter of 2007 (EUR 82.44 million). The gain on the sale of property of EUR 5.82 million was reflected in a high profit margin of 24 % compared to the IFRS figures. The margin based on acquisition cost equalled 47 %. Revenues from the provision of services developed as expected, reaching EUR 14.58 million in the first quarter of this year. EUR 6,18 million were accounted for by internal services and EUR 8.40 million, or approx. 58 %, were accounted for revenues from third parties. Due to the lower proceeds on sale, revenues amounted to EUR 73.16 million in the first quarter of 2008, following EUR 106.85 million in the same period of the previous year.

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+ Positive earnings development The strong growth in rental income, unchanged high margins on sales and the first revenues from the service companies as well as adjustments of EUR 19.89 million (0.8 % of property assets) to the fair value of properties in accordance with IFRS led to a further improvement in earnings indicators. Earnings before income tax (EBIT) rose by 42 % to EUR 40.82 million. Financial results were negative at EUR -13.61 million, as expected, due to the high volume of financing, but were positively influenced by the share of profit received from the associate ECO Business-Immobilien AG (EUR 2.17 million). Earnings before tax (EBT) equalled EUR 27.21 million (Q1/2007: EUR 25.62 million). Profit after profit attributable to other equity holders increased by 8 % to EUR 20.77 million. Funds from operations (FFO after financial results), which on an EBT basis do not take into account revaluation gains, were clearly positive at EUR 13.64 million for the reporting period despite lower proceeds from the sale of property (Q1/2007: EUR 34.07 million). Cash profit (net cash profit: FFO less actual income taxes paid) also improved year-on-year to EUR 13.64 million. A significantly higher number of shares outstanding reduced net profit for the period from EUR 0.33 per share in the first quarter of 2007 to EUR 0.24 per share for the reporting period. Adjusted earnings per share equalled EUR 0.30 (Q1/2007: EUR 0.44).

+ Increase in NAV to EUR 16.50 per share (+12 %) As of 31 March 2008 conwert’s equity totalled EUR 1,400.06 million and the equity ratio equalled 45%. The average interest rate on non-current interestbearing loans and borrowings was 5.5 % as of the balance sheet date. conwert has concluded hedges to protect roughly 71 % of interest-bearing loans and borrowings against changes in interest rates. Net assets per share (NAV) also experienced a positive development, rising to EUR 16.50 during the reporting period, which reflects an increase of 12 % within a single year. Adjusted NAV per share, which also takes into account hidden reserves in the property portfolio and deferred taxes, was EUR 20.95 per share (2007: EUR 18.98 per share).

+ Positive outlook for the full financial year conwert expects the development of business will remain generally positive throughout the remainder of the 2008 financial year. Plans call for an increase in the property portfolio to approximately EUR 2.5 – 2.6 billion by year-end. conwert also expects a further steady increase in rental income. For sales activities, the second quarter of 2008 has brought a renewed increase in the demand for individual properties, especially in prime locations and the high-quality segment. Moreover, conwert has responded to the strong demand for high-quality condominiums in Austria and Germany by increasing legal preparations for the sale of such objects and expanding its sale activities. The Group still plans to sell 10-15% of the total property portfolio in 2008.

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In the property services segment, a number of important external clients were acquired during the first quarter of 2008. Additional growth projects are currently in preparation, and the development of business is expected to reflect the forecasts for the full year. In addition to an increase in rental income and proceeds from the sale of properties, the expansion of the services segment should have a positive effect on revenues and earnings indicators. The forecasts prepared by conwert remain intact, with revenues and earnings before interest and tax (EBIT) expected to exceed the prior year by a significant amount. Accordingly, a further improvement is also expected in the inherent value (NAV) of the company. Further on, conwert plans to pay out a dividend for the first time in the financial year 2008.

The Letter to Shareholders Q1/2008 of conwert Immobilien Invest SE can be viewed on the website

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Key Company Figures Rental income Proceeds from the disposal of properties Service Revenues Total Revenue Earning before interest, taxes, depreciation and amortization (EBITDA) Earning before interest and taxes (EBIT) 1 Funds from Operations (FFO) 2 Cash Profit Total shareholders‘ equity Equity ratio Gearing Key property Figures Number of properties Rental units / vehicle parking spaces Total useable space Property assets Key Figures per share Earnings per share Diluted earnings per share Adjusted earnings per share3 Book value / share Adjusted NAV / share4 Funds from Operations/share
+ For further questions please contact: conwert Immobilien Invest SE Johann Kowar, Chairman of the Executive Board T +43 / 1 / 521 45-200 E Hochegger|Financials Roland Mayrl T +43 / 1 / 504 69 87-31 E

EUR mill. EUR mill. EUR mill. EUR mill.

1-3/2008 34.64 30.12 8.40 73.16

1-3/2007 24.41 82.44 106.85

Change + 42 % - 63 % - 32 %

2007 109.49 252.47 1.16 363.11

EUR mill. EUR mill. EUR mill. EUR mill. EUR mill. % %

23.42 40.82 13.64 13.64 1,400.06 45.16 92.49

19.63 33.03 34.07 34.07 875.46 45.20 96.60

+ 19 % + 24 % - 60 % + 60 % 4%

75.53 172.53 62.41 60.10 1,407.25 47.7 85.8

No. No. sqm EUR mill.

1,637 23,818 / 7,422 1,946,085 2,417.55

1,004 15,557/4,304 1,355,594 1,728.03

+ 63 % + 53 / + 72 % + 44 % + 40 %

1,590 23,283 / 6,832 1,896,898 2,345.25


0.24 0.24 0.30 16.50 20.95 0.16

0.33 0.33 0.44 14.79 18.98 0.58

- 27 % - 27 % - 32 % + 12 % + 10 % - 72 %

1.46 1.44 1.82 16.25 20.78 0.79


FFO: EBT – net gain from fair v alue adjustments + cash gains on sales in relation to IFRS gains on sale Cash Profit: FFO after deduction of actual income taxes paid 3 Earning per share, considering the effective liquid effect from the taxes on income. 4 Book value per share including hidden reserves in the property portfolio (Assumption: 15 % Hold-Portfolio, 20% TradingPortfolio) and deferred taxes 4 Book value per share, considering unrealised gains among the property assets and the deferred taxes.

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