conwert Immobilien Invest SE: conwert publishes results for the first nine months of 2012

Vienna, 22 November 2012 (pta005/22.11.2012/07:15 UTC+1) -
+ Earnings before tax (EBT) at 22.5 mill. EUR increased more than sixfold
+ Profit for conwert shareholders more than tripled to 12.1 mill. EUR
+ Cost savings further expanded
+ Targets for 2012 confirmed

The Austrian ATX-traded conwert Immobilien Invest SE increased earnings before tax (EBT) to 22.5 mill. EUR as of 30 September 2012 after the previous year had been characterised by one-off effects (1-9/2011: 3.4 mill. EUR). The essential drivers were appreciation of the property portfolio, efficiency increases in administration and cost optimisations.

Revenues generated in the first nine months totalled 416.9 mill. EUR (1-9/2011: 681.2 mill. EUR). The lower figure in comparison to the prior-year period is primarily due to extensive sales in the year 2011. By 30 September 2012, conwert sold properties totalling 254.7 mill. EUR in the current financial year (1-9/2011: 499.6 mill. EUR). The margin realised was increased in comparison with the previous year. On average, it exceeded the IFRS carrying amount by 8.8% (1-9/2011: 7.3%) and was thus within the long-term target corridor of 5 to 10%.

conwert realised rental income of 142,8 mill. EUR in the past reporting period (1-9/2011: 159.7 mill. EUR). The decline in rental income by 10.6% compared to the prior-year period reflects the reduction of space by some 7% resulting from sales, with the acquisition in Berlin in the third quarter hardly being reflected in rental income yet. The NRI margin (NRI: Net Rental Income), which is an indicator for the management efficiency of the rental portfolio, exceeded the prior-year figure at 59.3% at the reporting date (1-9/2011: 58.5%). Vacancies were reduced again so that the corresponding rate at the end of the third quarter amounted to 13.3% (1-9/2011: 15.6%). This means that vacancies were reduced by nearly 15% throughout the portfolio. The contribution to earnings of the property portfolio and the segment "portfolio", which had already been positive in the half-year result 2012, was expanded slightly and totalled 13.9 mill. EUR.
In view of lower sales activities, service revenues fell slightly short of the prior-year level and amounted to 19.4 mill. EUR (1-9/2011: 21.9 mill. EUR).

Efficiency increases and cost savings are taking effect
Based on the measures initiated in the past year to optimize costs and increase efficiency, conwert again reduced expenses in the third quarter. By 30 September 2012, a total of 14.2% or 8.0 mill. EUR was saved.

Positive fair value adjustments in the third quarter led to a revaluation result amounting to 12.7 mill. EUR net at 30 September 2012. The value increase especially reflects the strong development of the German property markets. By analogy to the strategic orientation, the portfolio in Germany accounts for roughly 90% of the adjustment and the Austrian portfolio of conwert for 10%.

The operating result (EBIT) for the first nine months was increased by 11.2% due to cost savings and revaluations and amounted to 91.6 mill. EUR (1-9/2011: 82.4 mill. EUR). The overall positive development compared with the previous year also had an impact on profit, which - after minority interests - more than tripled to 12.1 mill. EUR (1-9/2011: 3.6 mill. EUR).

Taking into account the Company's high cash level, which was generated through income from property sales and the recently issued convertible bond, conwert lowered the loan-to-value ratio (LTV) at 30 September 2012 significantly to 52.1% (1-9/2011: 54.0%). The loan-to-value ratio is thus within the target corridor of 50% to 55%.

The equity ratio rose slightly and amounted to 38.8% at the reporting date (1-9/2011: 38.3%).

The contract with Franz Jürgen Kelber, Executive Director of conwert, ends on 14 December 2012. His contract was not extended by mutual agreement. The process to select a successor is to be completed in the first quarter of 2013.

Targets for 2012 confirmed
Against the background of the events in the first nine months of the year, the management of conwert continues to adhere to the targets set for the year 2012, i.e. earnings before tax (EBT) of 50 mill. EUR (including valuation result) and proceeds on the sale of properties of 450 mill. EUR.

The interim report 1-9/2012 of conwert Immobilien Invest SE is available on the website http://www.conwert.at.

Earnings indicators

		1-9/ 2012	1-9/ 2011	Change in %	2011
Rental income	mill. EUR	142.8	159.7	(10.6)	210.0
Proceeds on sale	mill. EUR	254.7	499.6	(49.0)	613.3
Service revenues	mill. EUR	19.4	21.9	(11.4)	29.5
Revenues	mill. EUR	416.9	681.2	(38.8)	852.9
Earnings before interest and tax. depreciation and amortisation (EBITDA)	mill. EUR	80.8	97.1	(16.8)	124.8
Earnings before interest and tax (EBIT)	mill. EUR	91.6	82.4	11.2	119.8
Earnings before tax (EBT)	mill. EUR	22.5	3.4	>100	23.6
Profit after minority interests	mill. EUR	12.1	3.6	>100	23.3
Funds from Operations (FFO) 1)	mill. EUR	43.9	74.5	(41.1)	81.3
Net Rental Income (NRI)	mill. EUR	84.7	93.4	(9.3)	119.1
Cash Profit 2)	mill. EUR	41.1	66.7	(38.4)	73.8
Non-diluted earnings/share	EUR	0.15	0.04	>100	0.28
Diluted earnings/share	EUR	0.15	0.04	>100	0.28
Funds from Operations/share	EUR	0.54	0.90	(40.0)	0.98

Balance sheet indicators

		1-9/ 2012	1-9/ 2011	Change in %	2011
Balance sheet total	mill. EUR	3,121.9	3,264.7	(4.4)	3,176.4
Non-current loans and borrowings	mill. EUR	927.6	1,071.2	13.4	1,005.9
Current loans and borrowings	mill. EUR	372.2	362.5	2.7	408.9
Equity	mill. EUR	1,211.9	1,250.5	(3.1)	1,248.3
Equity ratio	%	38.8	38.3	-	39.3
Gearing	%	133.2	143.8	-	137.2
Non-diluted EPRA NAV/share	EUR	18.06	-	-	18.35

Property indicators

		1-9/ 2012	1-9/ 2011	Change in %	2011
Number of properties	No.	1,562	1,711	(8.7)	1,666
Rental units 3)	No.	21,201	23,683	(10.5)	22,923
parking spaces	No.	11,004	10,493	4.9	11,213
Total usable space 4)	sqm	2,027,124	2,177,571	(6,9)	2,120,247
Property assets	mill. EUR	2,687.6	2,908.6	(7.6)	2,828.6

1) FFO: Earnings before tax (EBT) minus the net gain/loss 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
3) The comparative date for the first three quarters of 2011 was adjusted to the new system. As of 30 June 2012, the units are shown exclusive parking spaces.
4) The comparative date for the first three quarters of 2011 was adjusted to the new system. As of 30 June 2012, usable space is shown exclusive parking spaces.

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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