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euro adhoc: conwert Immobilien Invest SE
Financial Figures/Balance Sheet /
conwert with strong development of operating business in first half of 2008
-------------------------------------------------------------------------------- Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement. -------------------------------------------------------------------------------- 6-month report 27.08.2008 conwert with strong development of operating business in first half of 2008 Vienna, 27.08.2008. conwert Immobilien Invest SE (Vienna Stock Exchange: CWI, Reuters: CONW.VI, Bloomberg: CWI AV) recorded strong operating performance during the first half of 2008 against the backdrop of challenging conditions on global financial markets. In addition to sustainable asset management as well as selective acquisitions and sales, activities for the first six months focused on the integration of the property service companies that were acquired at the end of 2007 and the beginning of 2008. The sound year-on-year growth of 44% in rental income to EUR 72.25 million supported an increase of 29% in earnings before interest, taxes, depreciation and amortisation (EBITDA) to EUR 48.03 million. Lower gains from fair value adjustments were reflected in a decline in earnings before interest and tax (EBIT) to EUR 87.14 million (1-6/2007: 101.61 mill.). Funds from operations (FFO) and cash profit were clearly positive at EUR 25.87 million and EUR 25.35 million, respectively. Net assets per share (NAV) rose to EUR 17.08 during the reporting period, which represents an increase of 11% within the past year. + Strong growth in rental income Rental income rose to a new record level of EUR 72.25 million during the first half of 2008, which represents a 44% increase over the comparable prior year period. This development was supported above all by higher prices on new rentals, a reduction in vacancies and the expansion of space. The strong organic growth in rental income is illustrated by a like-for-like analysis: based on an unchanged portfolio compared with the first half of 2007, the rental income generated by properties in the investment portfolio rose by 10%. A change in the business climate led to a substantial drop in momentum on the property investment market compared with 2007, which was reflected in a decline in both portfolio and individual property transactions. Proceeds on the sale of objects during the first half of 2008 totalled EUR 84.27 million, in relation to a strong EUR 128.22 million for the first six months of 2007. The focus on high cash transactions resulted in a gain on sale of EUR 12.21 million as well as a continued sound IFRS profit margin of 17% and a cash margin of 29% based on acquisition and investment costs. Service revenues rose by 28% from the first to the second quarter of 2008, equalling EUR 33.19 million for the reporting period. Of this amount, EUR 17.47 million represented third party revenues. Revenues totalled EUR 174.00 million for the reporting period, compared with EUR 178.35 million in the first half of 2007. + Sound profitability indicators and cash earnings Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to EUR 48.03 million during the first half of 2008 (1-6/2007: EUR 37.18 mill.). The fair value adjustment to properties that is required by IFRS was again clearly positive at EUR 44.13 for the reporting period due to the high quality of the properties and a further improvement in earnings generated by the existing portfolio. However, it reflects an expected decrease from the comparable prior year value of EUR 64.43 million, which was influenced by the initial measurement of the Kirchsteigfeld portfolio (revaluation gain of EUR 32.6 mill.). As a consequence of lower revaluation gains, earnings before interest and tax (EBIT) equalled EUR 87.14 million for the reporting period (1-6/2007: EUR 101.61 mill.). Financial results were negative at EUR -33.02 million (1-6/2007: EUR -11.53 mill.) due to a decline in the share of profit from ECO Business-Immobilien AG and higher finance costs (1-6/2007: EUR -11.53 million). Earnings before tax (EBT) equalled EUR 54.12 million (1-6/2007: EUR 90.09 mill.). Cash earnings, which exclude revaluation gains, were clearly positive for the reporting period. Funds from operations (FFO) equalled EUR 25.87 million and nearly matched the comparable prior year period level of EUR 28.01 million. Cash profit equalled EUR 25.35 million, compared with EUR 28.01 million for the first half of 2007. Net assets per share (NAV) rose by 11% to EUR 17.08 for the reporting period (6/2007: EUR 15.33). + Outlook on 2008 In this difficult market environment conwert profits from the high value added that is inherent in the group as well as the related opportunities for organic growth. However, the company is unable to completely disengage from the external factors that influence the financing sector or the current market-based reservation that has led to a decline in property transactions. Activities during the second six months of 2008 will therefore remain focused on the intensive management and development of the existing property portfolio. The forecasts for rental income show a further steady increase for the reporting year. Selling activities will most likely remain volatile over the short-term, and proceeds on the sale of properties are therefore expected to reflect the lower end of the target range (10-15% of the total property portfolio). The property portfolio should total roughly EUR 2.5 billion at year-end following the selective purchase and sale of objects. In the service segment, the sound development of business should continue throughout the second half of 2008. However, revenues generated by the management companies from intergroup transactions are forecasted to decline as a result of the decrease in trading activities and the slower expansion of the portfolio. The growth in service revenues will therefore be less dynamic than originally expected. A continuation of the difficult conditions on financial and capital markets leads to expectations of a temporary slowdown in the pace of growth originally forecasted for the conwert Property Group in 2008. Operating earnings are forecasted to roughly match the record prior year level due to the strong development of the rental business and the new service activities, in spite of a decline in revaluation gains and higher financing costs. The strong operating development of the company should support a further steady improvement in the substance value per share during 2008 and payment of the company´s first dividend. The report on the first six months of 2008 by conwert Immobilien Invest SE is published on the company´s website under www.conwert.at. Key Company Figures 1-6/2008 1-6/2007 Change 2007 Rental income in EUR mill. 72.25 50.13 +44% 109.49 Proceeds from the disposal of properties in EUR mill. 84.27 128.22 -34% 252.47 Service revenues in EUR mill. 17.47 - - 1.16 Revenues in EUR mill. 174.00 178.35 -2% 363.11 Earnings before interest, taxes, depreciation and amortisation (EBITDA) in EUR mill. 48.03 37.18 +29% 75.53 Earnings before interest and tax (EBIT) in EUR mill. 87.14 101.61 -14% 172.53 Earnings before tax in (EBT) EUR mill. 54.12 90.09 -40% 145.15 Funds from operations (FFO) 1) in EUR mill. 25.87 28.01 -8% 62.41 Cash profit 2) in EUR mill. 25.35 28.01 -9% 60.10 Equity in EUR mill. 1,407.36 1.333.03 +6% 1,407.25 Equity ratio in % 45.26 55.17 - 47.7 Gearing in % 99.61 55.48 - 85.8 Key Property Figures Number of objects Nr. 1,677 1,238 +35% 1,590 Rental units Nr. 24,424 18,506 +32% 23,283 Parking spaces Nr. 7,559 5,403 +40% 6,832 Total usable space in m² 2,004,515 1,570,050 +28% 1,896,898 Property assets in EUR mill. 2,537.95 2,016.64 +26% 2,345.25 Key Stock Exchange Figures in EUR Basic earnings / share 0.49 0.93 -47% 1.46 Diluted earnings / share 0.47 0.93 -50% 1.44 Adjusted earnings / share 3) 1.07 1.26 -15% 1.82 Book value/ share 17.08 15.33 +11% 16.25 Adjusted NAV / share 4) 21.82 18.79 +16% 20.78 Funds from operations / share 0.31 0.39 -21% 0.79 1) FFO: Earnings before tax (EBT) - net gain on the adjustment of fair value + cash gains on the sale of properties in relation to IFRS gains on sale + depreciation + non-cash parts of the financial result 2) Cash Profit: FFO after the deduction of actual income taxes paid 3) Earnings per share after an adjustment for income taxes paid 4) value per share after an adjustment for unrecognised appreciation in the property portfolio and deferred taxes end of announcement euro adhoc -------------------------------------------------------------------------------- ots Originaltext: conwert Immobilien Invest SE Im Internet recherchierbar: http://www.presseportal.ch Further inquiry note: conwert Immobilien Invest SE, Johann Kowar, Chairman of the Management Board, T +43 / 1 / 521 45-200, E email@example.com, Peter Sidlo, Head of Corporate Communications, T +43 / 1 / 521 45-250, E firstname.lastname@example.org, Hochegger|Financials, Roland Mayrl, T +43 / 1 / 504 69 87-31, E email@example.com Branche: Real Estate ISIN: AT0000697750 WKN: 069775 Index: WBI Börsen: Wiener Börse AG / official dealing