conwert Immobilien Invest SE

EANS-Adhoc: conwert shows satisfactory operating development in the first quarter of 2010 -clearly positive results

@@start.t1@@--------------------------------------------------------------------------------   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. --------------------------------------------------------------------------------@@end@@

3-month report


Vienna, 26 May 2010. conwert Immobilien Invest SE (Vienna Stock   Exchange:  CWI, Reuters:  CONW.VI,  Bloomberg:  CWI  AV)  recorded  a satisfactory    operating development with stable rental income and service revenues in the first  quarter of 2010. Attractive prices and high margins were realised again on the  sale  of properties. However, a lack of package transactions caused the proceeds  on  the sale of properties to fall below the prior-year level.  Revenues   thus  amounted to EUR 92.7 million versus EUR 115.4 million  in  the first  quarter  of  2009. Earnings  before  interest,  taxes,   depreciation  and    amortisation    (EBITDA) equalled  EUR  24.9   million  (1-3/2009:  EUR  26.9  million),  earnings  before interest and taxes (EBIT) EUR 22.2 million (EUR 24.2 million).

+ Stable rental income and service revenues

conwert  took  advantage  of  the  persisting  strong  demand  for     residential properties in the first quarter of 2010. As a result  of new  rentals  and  the sale of objects, vacancies were reduced from 18.3% in the first quarter of  2009 to 17.3% now. At the same time, a newly constructed  development  of  6,000  sqm was completed in Slovakia in the first quarter and  handed  over  to  the  sales department for new rentals. On a  like-for-like  basis  rental   income  grew  by 2.8%, thus clearly above  the  inflation  rate.   Therefore,  rental  income  was retained at a stable level of EUR 39.2  million  (1-3/2009:  EUR  40.0  million) despite the sale of completely developed objects let at market prices.

In the first quarter, when demand is traditionally  weaker,  the   focus  of  the selling business was placed on  the  high-profit  sale of  freehold  flats  and smaller individual properties. The   properties  were  again  sold  significantly above IFRS book values: the profit margin amounted to 17%,  thus  exceeding  the prior-year level of 13%. The related gains based on  IFRS  values  equalled  EUR 6.7 million. Based on the acquisition cost, a cash profit  of  EUR   9.4  million was realised. However, as  opposed  to  the  previous   year,  no  major  package transactions took place in the reporting period. Therefore the proceeds  on  the sale of properties fell from EUR 67.3 million to EUR 45.3 million.

conwert recorded a stable development of service revenues in the first  quarter. Overall, revenues in this segment were up 15%  on   the  previous  year  to  17.3 million, which  was  primarily   attributable  to  the  progressing  transfer  of portfolio properties to  the  company´s  own  property  management.  Third-party business accounted for 47% or EUR 8.2 million.

+ Positive key earnings figures and cash earnings

Due to the satisfactory development of  operating  business,  conwert generated clearly positive results in the first quarter of 2010. However, the  decline  in sales volume could  not  be  compensated   completely  by  the  focus  on  highly profitable single transactions on the earnings side. In  addition,  conwert  had realised an extraordinary  positive  effect  on  earnings  of  EUR  7.8  million through the buy-back of convertible bonds in the first quarter of 2009, so  that the key earnings figures have now fallen short of the high level of  the  prior- year period. Earnings before  interest,   taxes,  depreciation  and  amortisation (EBITDA) amounted to EUR 24.9 million (1-3/2009: EUR 26.9 million).  As  in  the previous year, the valuation result was neutral  (EUR  -0.2  million  after  EUR -0.1 million), so that earnings before interest and taxes  (EBIT)  of  EUR 22.2 million (1-3/2009: EUR 24.2 million) were realised.  The   financial  result,  at EUR -16.8 million, was below the prior-year figure of EUR -13.6 million.  Profit after income taxes was positive at EUR 4.1 million (1-3/2009: EUR 7.4  million). Basic earnings  per share  amounted  to  EUR  0.05  (1-3/2009:  0.08).  conwert generated funds from operations (FFO) to the amount  of  EUR  13.0  million   (1- 3/2009/ EUR 23.9 million).

+ Stable-value property portfolio - book value at EUR 15.84 per share

As of 31 March 2010 the  equity  of  conwert  remained  stable  at   EUR  1,266.6 million compared with the end of 2009 (EUR 1,279.9 million). The  equity  ratio, at  41%,  was  at  an  unchanged  high level  (12/2009:  43%).  Cash  and  cash equivalents equalled EUR 165.0  million  as  of  31  March,  thus  significantly exceeding the figure of EUR 61.6 million at year-end 2009.

Net assets per share (NAV/share) increased from EUR 15.68 at   year-end  2009  to EUR 15.84. The share price was thus still roughly 45% below the NAV.

+ Positive outlook for 2010 - Sales transactions under preparation

conwert expects the stable development to continue in the   residential  property markets in Austria and Germany. Especially metropolitan regions  should  benefit from the expected economic upswing and  the  continuous  population  growth.  In addition to the existing excess demand, prices and  rents,  above  all  in  good locations, will increase further as new construction activities are   still  low. Moreover, demand  for  high-quality  residential   properties  as  an  inflation- protected form of investment continues to be strong.

In this environment, conwert expects an ongoing positive  business   development. conwert will continue to reduce vacancies in the property  portfolio.  Moreover, benchmark rents, which were raised by 3.8% as of 1 April 2010 in  Austria,  will have an additional positive effect on rental income.  Several  transactions  are currently  being  prepared  in  the  sale  of  properties  segment.   Therefore, increasing revenues are to be expected for the second   quarter.  For  the  whole year 2010 conwert still plans revenues from the sale of  properties  of  roughly 10% of the current property portfolio, or EUR 275 million. The  margins  on  the sale of properties are expected to match the historic levels reached so far (10- 15% IFRS profit margin). Overall, purchases are expected to exceed sales in  the financial year 2010.

In the property service segment, the focus is placed on a further   expansion  of third-party business. Especially in the area of  asset management  for  foreign funds conwert sees further growth opportunities.

Provided  that  the  current  turbulences  in  the  capital  markets have    no

@@start.t2@@sustainable impact on  the  real  economy  and  the  financing  options  of  the property  sector,  conwert  expects  the  positive  operating    development    to continue. Accordingly, an earnings development that will build  on  the  success of the year 2009 is expected for the year 2010.

The Interim Report 1-3/2010 of conwert Immobilien Invest SE is available on  the@@end@@


@@start.t3@@Earnings Indicators
                                                              1-3/2010    1-3/2009    Change    1-12/2009
Rental income                          EUR mill.    39.2            40.0        -2 %          162.3
Proceeds on the sale
    of properties                      EUR mill.    45.3            67.3      -33 %          361.3
Service revenues                      EUR mill.      8.2              8.1        +1 %            36.6
Total revenues                         EUR mill.    92.7          115.4      -20 %          560.1
Earnings before interest,
    taxes, depreciation
    and amortisation (EBITDA)  EUR mill.    24.9            26.9        -7 %          105.0
Earnings before interest
    and taxes (EBIT)                 EUR mill.    22.2            24.2        -8 %            94.9
Funds from operations (FFO)1) EUR mill.    13.0            23.9      -46 %            72.6
Net operating income (NOI)      EUR mill.    23.3            23.6        -1 %            94.6
Cash profit2)                          EUR mill.    13.0            23.8      -46 %            68.0
Basic earnings / share            EUR              0.05            0.08      -38 %            0.29
Diluted earnings / share         EUR              0.05            0.08      -38 %            0.29
Funds from operations / share EUR              0.16            0.29      -45 %            0.90@@end@@

@@start.t4@@Balance sheet indicators
                                                                    3/2010        3/2009      Change  12/2009
Balance sheet total                 EUR mill.    3,056.8      3,006.8        +2 %    2,962.5
Non-current loans and
    borrowings                          EUR mill.        978.9      1,007.7        -3 %        968.3
Current loans and borrowings  EUR mill.        289.8         323.3      -25 %        320.8
Equity                                      EUR mill.    1,266.6      1,261.7         -        1,279.9
Equity ratio                            %                      41.4          42.0         -            43.2
Gearing                                    %                    118.7         120.3         -          115.0
Book value (NAV)/ share          EUR                 15.84         15.39        +3 %        15.68@@end@@

@@start.t5@@Property indicators
                                                                    3/2010         3/2009    Change  12/2009
Number of objects                  No.                  1,746          1,696      +3 %        1,752
Rental units                          No.                 24,576         24,659      +0 %      24,548
Total usable space                 sqm            2,019,795    2,033,158      -1 % 2,018,254
Property assets                      EUR mill.      2,533.2        2,543.6      +0 %    2,517.4@@end@@

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.

@@start.t6@@end of announcement                                                 euro adhoc

ots Originaltext: conwert Immobilien Invest SE
Im Internet recherchierbar:

Further inquiry note:
conwert Immobilien Invest SE
Johann Kowar, CEO
T +43 / 1 / 521 45-200

Peter Sidlo, Head of Corporate Communications - Investor Relations
T +43 / 1 / 521 45-250

Metrum Communications
Roland Mayrl
T +43 / 1 / 504 69 87-331

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

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