EANS-Adhoc: conwert Immobilien Invest SE conwert generates positive half-year
results
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6-month report
17.08.2011
Vienna, August 17, 2011. The Austrian ATX-traded conwert Immobilien Invest SE
concluded the first half-year 2011 with positive results. The sales business, in
particular, set a new record in the company´s history. Proceeds on the sale of
properties amounted to EUR 251.2 million, an increase of 111.8% or more than
double the previous year´s level of EUR 118.6 million. Net rental income also
grew considerably as a consequence of new successful rentals as well as
additional income from the recently acquired ECO portfolio. Rental income
totalled EUR 107.3 million as of the reporting date 30th June 2011, a rise of
33.3% from the corresponding figure of EUR 80.5 million in the previous year.
Due to the complete internalisation of service revenues for ECO
Business-Immobilien AG since the third quarter of 2010, external service
revenues have declined since last year by 23.3%, amounting to EUR 14.5 million
as of 30th June 2011 (H1 2010: EUR 18.9 million). In all, total revenues
amounted to EUR 373.1 million in the first half of 2011, a rise of 71.1%. The
increased revenues are also reflected in the very strong earnings before
interest and taxes (EBIT) of EUR 63.0 million in the first half-year, up 22%
from the previous year (H1 2010: EUR 51.7 million).
In line with the value enhancement strategy communicated at the beginning of the
year, conwert pressed ahead with the optimisation of its real estate portfolio
in the first half of 2011. In addition to successive sales of commercial
properties from the ECO Business-Immobilien AG portfolio and real estate from
the Central and Eastern European portfolio, the strategy also includes the
targeted underweighting of the Austrian share of the real estate portfolio and
the strengthening of activities on the German market. Since the beginning of the
year, the number of properties owned by conwert has been reduced from a total of
1,811 to 1,775 objects. The objective is to continue to maintain the
geographical diversification in the core markets of Austria and Germany in the
future. Thus conwert is in a position to take selective advantage of market
opportunities in the acquisition or sale of real estate. The property assets of
conwert amounted to EUR 3,140 million on the reporting date, 30th June 2011,
compared EUR 3,238.3 million at the beginning of the year. The IFRS profit
margin on sales calculated in the first half-year was 9.2%, whereas the cash
margin amounted to 26.5% on the basis of the acquisition price.
Thanks to good rental and sales trade, the funds from operations (FFO) almost
doubled, increasing by 98.9% to EUR 54.5 million (H1 2010: EUR 27.4 million).
As of 30th June 2011, conwert´s equity was EUR 1,306.9 million, an increase of
0.8% compared to last year´s figures. Thus conwert boasts a strong equity ratio
of 37.6% compared to other companies in the industry, a figure which will also
enable conwert to systematically exploit market opportunities that arise in the
future.
In spite of numerous property sales, the net assets per share figure (NAV) has
increased only slightly to EUR 15.58 since the beginning of the year. This is
also due to the share buy-back programme of the company, which will be continued
in the future and will allow conwert, amongst other things, to use treasury
stock as a transaction currency.
Against the backdrop of the positive business results achieved in the first half
of 2011, further planned portfolio optimisation and the ongoing positive
perspectives for the development of conwert´s core markets of Austria and
particularly Germany, the management confirms the positive outlook for the
entire year 2011. Earnings before interest and taxes (EBIT) are expected to
improve by 15%, with proceeds on the sale of properties to reach a total of EUR
600 million. On the basis of the corresponding improvement in earnings, a
dividend payment matching the previous year´s level is still expected.
With a view to achieving potential cost optimisation and enhancing transparency,
conwert has begun a comprehensive evaluation of all the company´s external
contracts and will subject them to an arm´s length test. Furthermore,
subsequent to the reporting date on 30 June 2011, the sale of a portfolio valued
at EUR 102.1 million was firmly agreed upon as well as the conclusion of the
participation process for the Berlin Coinvest Portfolio. The transaction should
be formally completed in the third quarter of 2011.
The Interim Report 1-6/2011 of conwert Immobilien Invest SE is available on the
company´s Website at www.conwert.at.
Earnings indicators
| | |1-6/2011 |1-6/2010 |Change |1-12/2010 |
|Rental income |EUR mill.|107.3 |80.5 |+33% |187. 7 |
|Proceeds on the sale of|EUR mill.|251.2 |118.6 |+111.8% |325.1 |
|properties | | | | | |
|Service revenues |EUR mill.|14.5 |18.9 |-23.3% |34.4 |
|Total revenues |EUR mill.|373.1 |218.0 |+71.1% |547.2 |
|Earnings before |EUR mill.|64.1 |50.6 |+26.7% |184.9 |
|interest, taxes, | | | | | |
|depreciation and | | | | | |
|amortisation (EBITDA) | | | | | |
|Earnings before |EUR mill.|63.0 |51.7 |+21.9% |103.2 |
|interest and | | | | | |
|taxes (EBIT) | | | | | |
|Funds from Operations |EUR mill.|54.5 |27.4 |+98.9% |53.6 |
|(FFO)1) | | | | | |
|Net Rental Income (NRI)|EUR mill.|107.3 |47.2 |+33% |103.9 |
|Cash Profit2) |EUR mill.|54.21 |26.8 |+102% |44.0 |
|Basic earnings/share |EUR |0.10 |0.15 |-33.3% |0.29 |
|Diluted earnings/share |EUR |0.10 |0.15 |-33.3% |0.29 |
|Funds from |EUR |0.65 |0.34 |91.2% |0.65 |
|Operations/share | | | | | |
Balance sheet indicators
| | |1-6/2011 |1-6/2010 |Change |1-12/2010 |
|Balance sheet total |EUR mill.|3,425.7 |3,107.9 |10% |3,550.8 |
|Non-current loans and | | | | | |
|borrowings |EUR mill.|1,153.8 |1006.2 |+15% |1,211.9 |
|Current loans and |EUR mill.|435.4 |268.8 |+62% |456.1 |
|borrowings | | | | | |
|Equity |EUR mill.|1,306.9 |1,296.7 |+1% |1,330.1 |
|Equity ratio |% |38.10 |41.7 |-9% |37.5 |
|Gearing |% |149.01 |120.6 |+24% |151.8 |
|Book value (NAV)/share |EUR |15.58 |15.2 |+3% |15.56 |
Property indicators
| | |1-6/2011 |1-6/2010 |Change |1-12/2010 |
|Number of objects |No. |1,775 |1,787 |-0.7% |1,811 |
|Rental units |No. |26,038 |24,720 |+5.3% |25,194 |
|Total usable space |sqm |2,421,407|2,048,719|+18.2% |2,453,049 |
|Property assets |EUR Mio. |3,139.6 |2,621.0 |+19.8% |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 other costs
2) Cash Profit: FFO minus actual income taxes paid
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.
Further inquiry note:
conwert Immobilien Invest SE
Investor Relations - Konzernkommunikation
T +43 / 1 / 521 45-700
E cw@conwert.at
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