conwert Immobilien Invest SE

EANS-Adhoc: conwert Immobilien Invest SE
conwert with strong growth in revenues in the first quarter of 2011

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  ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
  distribution. The issuer is solely responsible for the content of this
  announcement.
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3-month report

20.05.2011

Vienna, 20 May 2011. conwert Immobilien Invest SE, which is listed on the Vienna Stock Exchange, reported strong operating growth in the first quarter of 2011. In comparison to the prior-year reference quarter, revenues increased by 37% to EUR 126.8 million, earnings before interest and taxes improved by 24% to EUR 27.6 million, and earnings before interest, taxes, depreciation and amortisation rose by 21% to EUR 30.2 million. In the sales business, attractive prices and a profit margin of more than 11% were realised. Proceeds on the sale of properties were 44% higher than in the comparable prior-year quarter. FFO (including sales) amounted to EUR 14.9 million after EUR 13.0 million in the prior-year reference period. The property assets of conwert totalled EUR 3,197.2 million as of 31 March 2011 (versus EUR 2,533.2 million in Q1/2010). Overall, conwert owned 1,790 objects at 31 March 2011, 21 less than at 31 December 2010, which was due to increased sales activities. At 31 March 2011, conwert´s equity amounted to EUR 1,351.6 million and was EUR 21.5 million higher than at the end of 2010 (EUR 1,330.1 million). The equity ratio rose to 38.4% (12/2010: 37.5%). Cash and cash equivalents equalled EUR 80.5 million at the end of the period, thus significantly exceeding the figure of EUR 66.2 million at year-end 2010. Net assets per share (book value (NAV)/share) increased from EUR 15.56 at year-end 2010 to EUR 15.90. Therefore the current share price is roughly 28% below the NAV.

On a like-for-like basis, rental income rose by 4.17%, thus significantly exceeding the inflation rate. Net rental income (NRI) improved by 40% to EUR 32.4 million, which corresponds to an improved NRI margin of 60%. At 31 March 2011, rental income amounted to EUR 53.9 million, up 37% on the prior-year quarter (EUR 39.2 million). The average contractual rent amounted to EUR 6.41 at the end of the first quarter of 2011 (previous year: EUR 5.82). Thanks to strong demand for residential properties, the vacancy rate dropped from 17.3% in the first quarter of 2010 to 15.9%. Vacancies in the residential property portfolio fell significantly by 23% to 13.4% compared to the previous year.

Service revenues from third parties declined slightly by 6% to EUR 7.7 million due to the takeover of the ECO portfolio. Adjusted to the commissions for the management of the ECO portfolio, service revenues increased by 10% year-on-year (from EUR 7.0 million at 31 March 2010).

In the first quarter of 2011, conwert started to optimise the property portfolio and sold properties totalling EUR 65.3 million. As a result, proceeds on the sale of properties were 44% higher than in the first quarter of 2010. The company is thus pursuing the new strategy, which in addition to sales in Austria and Eastern Europe provides for optimising and strengthening business in Germany.

In Berlin conwert acquired a property portfolio containing a total of 1,689 residential and 160 retail units in sought-after locations in the western part of Berlin. The portfolio, which consists of 125,805 sqm, was acquired with an initial yield of 7.9% before vacancies. It is a value added portfolio with disproportionately high growth potential. To deploy the equity in the most efficient way, a joint-venture with an equity partner is intended while current negotiations are taking place.

Against the background of the good operating results in the first quarter of 2011, the planned further portfolio optimisation and the positive outlook for the developments in the German and Austrian rental markets, conwert expects the earnings before interest and taxes to increase by 15% not considering fair value adjustments of the real estate portfolio. The improved earnings should be the basis for a dividend-payment on last year`s level. The NAV-growth should result in 2.5 - 3% increase without calculating any extraordinary evaluation effects.

The company forecasts organic growth in rental income of 4 to 5%. In the sales segment, conwert plans to part with 15% of the total portfolio realising positive profit margins. Sales amounting to EUR 99.3 million, which will have an effect on revenues of the second quarter, have already been concluded. Further sales transactions are currently in progress.

As of the newly implemented strategic orientation and in view of the good economic development, conwert expects a reduction of the vacancy rate in the residential property portfolio to less than 10% by the end of the year.

The increased focus on residential properties in Germany and Austria will be consistently implemented in the course of the year. The company will gradually sell commercial properties. Another focus will be the extended cooperation with institutional investors in Germany and Austria in the service business segment.

In order to enhance transparency and codify the ethical principles of the entrepreneurial activities the Executive Board of conwert adopted a Code of Conduct on 14 March 2011. This Code is part of a comprehensive compliance management system, which is to be fully implemented by the second quarter of 2011, and can be viewed on the company´s website at www.conwert.at.

conwert aims to achieve a reduction of the difference between NAV and share price for the whole year 2011. The compliance management system is supposed to enhance the transparency and therefore make the conwert share more attractive. In addition, the streamlining process for the organisation structure started. The optimisation of the internal structures will proceed during the remaining financial year.

The interim report 1-3/2011 of conwert Immobilien Invest SE will be available on the website www.conwert.at as of 25 May 2011.

Earnings indicators

|                            |1-3/2011|1-3/2010   |Change      |1-12/2010    |
|Rental income EUR mill.     |53.9    |39.2       |+38 %       |187.7        |
|Proceeds on the sale of     |65.3    |45.3       |+44 %       |325.1        |
|properties EUR mill.        |        |           |            |             |
|Service revenues EUR mill.  |7.7     |8.2        |-6 %        |34.4         |
|Total revenues EUR mill.    |126.8   |92.7       |+37 %       |547.2        |
|Earnings before interest,   |        |           |            |             |
|taxes,                      |30.2    |24.9       |21 %        |184.9        |
|depreciation and            |        |           |            |             |
|amortisation                |        |           |            |             |
|(EBITDA) EUR mill.          |        |           |            |             |
|Earnings before interest and|27.6    |22.2       |+24 %       |103.2        |
|taxes                       |        |           |            |             |
|(EBIT) EUR mill.            |        |           |            |             |
|Funds from Operations       |14.9    |13.0       |+15 %       |53.6         |
|(FFO)1) EUR mill.           |        |           |            |             |
|Net Rental Income (NRI) EUR |32.4    |23.3       |+39 %       |103.9        |
|mill.                       |        |           |            |             |
|Cash Profit2) EUR mill.     |14.8    |12.9       |+15 %       |44.0         |
|Basic earnings/share EUR    |0.06    |0.05       |+20 %       |0.29         |
|Diluted earnings/share EUR  |0.06    |0.05       |+20 %       |0.29         |
|Funds from Operations/share |0.15    |0.16       |-6 %        |0.65         |
|EUR                         |        |           |            |             |

Balance sheet indicators
|                            |1-3/2011|1-3/2010   |Change      |1-12/2010    |
|Balance sheet total EUR     |3,517.1 |3,056.8    |+15 %       |3,550.8      |
|mill.                       |        |           |            |             |
|Non-current loans and       |1,166.7 |978.9      |+19 %       |1,211.9      |
|borrowings EUR mill.        |        |           |            |             |
|Current loans and borrowings|458.4   |289.8      |+58 %       |456.1        |
|EUR mill.                   |        |           |            |             |
|Equity EUR mill.            |1,351.6 |1,266.6    |+7 %        |1,330.1      |
|Equity ratio %              |38.4    |41.4       |-           |37.5         |
|Gearing %                   |144.6   |118.7      |-           |151.8        |
|Book value (NAV)/share EUR  |15.90   |15.84      |2.2 %       |15.56        |

Property indicators
|                            |1-3/2011|1-3/2010   |Change      |1-12/2010    |
|Number of objects no.       |1,790   |1,746      |-21 %       |1,811        |
|Rental units no.            |25,719  |24,576     |+2 %        |25,194       |
|Total usable space sqm      |2,426,14|2,019,795  |-1 %        |2,453,049    |
|                            |9       |           |            |             |
|Property assets EUR mill.   |3,197.2 |2,533.2    |-1 %        |3,238.3      |


1) FFO: Earnings before tax (EBT) minus the net gain from fair value
adjustments + difference between cash gains on sale and IFRS gains on sale +
    depreciation + non-cash parts of financial result  and investment costs
2) Cash Profit: FFO minus actual income taxes paid

end of ad-hoc-announcement
================================================================================
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 of announcement                               euro adhoc
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issuer:      conwert Immobilien Invest SE
          Albertgasse 35
          A-1080 Wien
phone:       52145-0
FAX:         52145-111
mail:     cw@conwert.at
WWW:      http://www.conwert.at
sector:      Real Estate
ISIN:        AT0000697750
indexes:     WBI, ATX
stockmarkets: official market: Wien
language: English 

Contact:

conwert Immobilien Invest SE, 
Peter Sidlo, Head of Corporate Communications - Investor Relations,
T +43 / 1 / 521 45-250,
E peter.sidlo@conwert.at

Branche: Real Estate
ISIN: AT0000697750
WKN: 069775
Index: WBI, ATX
Börsen: Wien / official market


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