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conwert Immobilien Invest SE

EANS-Adhoc: conwert Immobilien Invest SE
conwert presents successful half-year report: EBIT climbs 9% to EUR 51.7 million

  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.
25.08.2010
conwert presents successful half-year report: EBIT climbs 9% to 
EUR 51.7 million
+ Second quarter sees rising revenues in all areas as against first 
quarter of   2010 + Strong positive earnings performance: EBIT up 9% 
year-on-year to EUR 51.7 million in first half-year + Successful ECO 
acquisition to increase value and income from third quarter
Vienna, 25 August 2010. Listed company conwert Immobilien Invest SE 
has concluded the first half of 2010 with an encouraging interim 
balance sheet. The residential property company significantly 
improved on its satisfactory operating performance in the opening 
quarter of the year in the second quarter of 2010. The strong demand 
for residential property and the push in sales activities had a 
positive impact on all business areas. For example, conwert recorded 
5% growth in rental income (EUR 41.3 million), 62% growth in revenues
from the sale of properties (EUR 73.3 million) and 30% growth in 
service revenues (EUR 10.7 million) in the second quarter of 2010 as 
against the first three months of the financial year.
With this strong operating development in the second quarter of 2010,
the previous year´s earnings levels were maintained or even 
outperformed in the first six months of 2010. With revenues down 
slightly on the previous year at EUR 218.0 million in the first half 
of 2010 (1-6/2009: EUR 227.9 million) conwert generated a 
year-on-year rise in EBIT of 9% to EUR 51.7 million.
The full inclusion of ECO Business-Immobilien in consolidation will 
improve value and income from the third quarter of 2010 onwards: 
Thus, conwert is anticipating a positive earnings effect of around 
EUR 35-50 million from first-time consolidation.
Increase in rental income and service revenues
conwert increased its rental income by 0.2% year-on-year to EUR 80.5 
million in the first half of 2010. In the reporting period, conwert 
made up for the lack of rental income due to the sale of a total of 
636 units with its successes in asset management.
In sales business, conwert increased its revenues significantly in 
the second quarter of 2010 to EUR 73.3 million, a rise of 62% as 
against the first three months of 2010. As, unlike in the previous 
year, there were no major package transactions in the first quarter 
of 2010, disposal proceeds declined to EUR 118.6 million in the first
six months after EUR 130.2 million. Sales were again significantly 
higher than their IFRS carrying amounts. The IFRS profits amounted to
EUR 14.3 million with a profit margin of 14%. Based on total 
investment costs, conwert generated a cash profit of EUR 20 million 
with a profit margin of 20%.
conwert´s service revenues increased from EUR 33.2 million to EUR 
37.1 million in the first half of 2010. EUR 18.9 million of this was 
generated in business with third parties, an increase of 9% on the 
previous year´s figure of EUR 17.4 million. The second quarter of 
2010 went particularly well, with major agency and asset management 
orders in Austria and Germany being realised in revenues.
Positive earnings figures and cash earnings
conwert generated strong positive earnings in the first half of 2010.
Thanks to the strong operating development, the earnings level was 
maintained or even exceeded in spite of the lack of non-recurring 
income from the buy-back of convertible bonds (EUR 0.5 million after 
EUR 10.2 million in the first half of 2009). conwert generated EBITDA
of EUR 50.6 million on lower revenues (1-6/2009: EUR 55.6 million). 
The value of conwert properties, the success of asset management and 
the further improvement in the market environment were reflected in 
the gain on remeasurement of EUR 6.2 million after EUR  3.1 million 
in the same period of the previous year. conwert´s EBIT increased by 
9% to EUR 51.7 million (1-6/2009: EUR 47.3 million). The financial 
result was down on the previous year at EUR  34.3 million (1-6/2009: 
EUR  29.8 million). Nonetheless, EBT was clearly positive and stable 
year-on-year at EUR 17.4 million (1-6/2009: EUR 17.5 million). 
conwert´s profit after tax rose by 4% to EUR 14.0 million. Basic 
earnings per share were also roughly on par with the previous year´s 
level at EUR 0.15 (1-6/2009: EUR 0.17). In addition, solid figures 
were achieved for operating cash in the first six months: conwert 
generated EUR 47.2 million in net rental income (NRI) (1-6/2009: EUR 
48.1 million) and funds from operations of EUR 27.4 million despite 
the lack of income from the buy-back of convertible bonds (1-6/2009: 
EUR 44.4 million).
Stable value in property portfolio - NAV of EUR 15.20 per share
In the first half of 2010, the property portfolio grew by EUR 103.6 
million as against 31 December 2009 to EUR 2,261 million. As at 30 
June 2010, the portfolio consisted of 1,787 properties with total 
usable space of 2.05 million sqm.
Total assets increased by 5% as against 31 December 2009 to EUR 
3,107.9 million. The reported equity of conwert increased as a result
of the resale of treasury shares in particular from EUR 1,279.9 
million as at the end of 2009 to EUR 1,296.7 million as at 30 June 
2010. At 42%, the equity ratio remained at a high level (December 
2009: 43%). However, net asset value per share declined year-on-year 
from EUR 15.68 at the end of 2009 to EUR 15.20 as at the reporting 
date on account of the higher number of shares (resale of 6,296,699 
treasury shares). Nonetheless, the share price is still around 40% 
below NAV.
Confirmation of positive outlook for 2010
conwert expects the stable development for the residential property 
markets in Austria and Germany to continue. Metropolitan regions in 
particular should benefit from the expected economic upswing and the 
continuous population growth. In addition to the existing excess 
demand, prices and rents will increase further as new construction 
activity is still low, particularly in good locations. Moreover, 
demand for high-quality residential properties as an 
inflation-protected form of investment is still strong.
In this environment, conwert is anticipating that operating business 
developments will remain positive. conwert will also reduce the 
vacancies in its property portfolio. Rental income in the second half
of the year will exceed the level for the first half on account of 
new leases, rent hikes and new acquisitions.
Several transactions are currently being prepared in the property 
sales segment. For 2010 as a whole, conwert is therefore still 
planning 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 achieved
to date (10-15% IFRS profit margin). Overall, the property portfolio 
will grow significantly as against the end of 2009 as a result of the
absorption of the ECO-Immobilien portfolio.
The property service segment will focus on a further expansion of 
third-party business. conwert feels there are further growth 
opportunities in the area of asset management for foreign funds in 
particular.
If the capital market and real economy continue to develop in a 
stable manner as forecast, conwert is anticipating a continuation in 
its positive operating business development. In addition, the full 
inclusion of ECO in consolidation will improve value and income from 
the third quarter of 2010 onwards. The positive earnings performance 
of 2009 should therefore be outstripped in the 2010 financial year 
with corresponding income opening the door for dividend payments.
The Financial Report 1-6/2010 of conwert Immobilien Invest SE can be 
found on the website www.conwert.at.
Earnings indicators
                                  1-6/2010   1-6/2009   Change   1-12/2009
Rental income EUR mill.               80.5       80.3        -       162.3
Proceeds on the sale
of properties EUR mill.              118.6      130.2      -9%       361.3
Service revenues EUR mill.            18.9       17.4       9%        36.6
Total revenues EUR mill.             218.0      227.9      -4%       560.1
EBITDA EUR mill.                      50.6       55.6      -9%       105.0
EBIT EUR mill.                        51.7       47.3       9%        94.9
FFO 1) EUR mill.                      27.4       44.4     -38%        72.6
Net Rental Income (NRI) EUR mill.     47.2       48.1      -2%        94.6
Cash profit2) EUR mill.               26.8       44.3     -40%        68.0
Basic earnings / share EUR            0.15       0.17     -12%        0.29
Diluted earnings / share EUR          0.15       0.17     -12%        0.29
Funds from operations / share EUR     0.34       0.55     -38%        0.90
Balance sheet indicators
                                         6/2010   6/2009   Change   12/2009
Balance sheet total EUR mill.           3,107.9  2,976.8       4%   2,962.5
Non-current loans/borrowings EUR mill.  1,006.2    970.3       4%     968.3
Current loans and borrowings EUR mill.    268.8    327.6     -18%     320.8
Equity EUR mill.                        1,296.7  1,273.2       2%   1,279.9
Equity ratio %                             41.7     42.8        -      43.2
Gearing %                                 120.6    116.5        -     115.0
Book value (NAV)/share EUR                 15.2    15.56      -2%     15.68
Property indicators
                                         6/2010   6/2009   Change   12/2009
Number of objects No.                     1,787    1,699       5%     1,752
Rental units No.                         24,720    24,301      2%    24,548
Total usable space sqm                2,048,719 1,990,205      3% 2,018,254
Property assets EUR mill.               2,621.0   2,519.1      4%   2,517.4
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
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

Further inquiry note:

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

Metrum Communications,
Roland Mayrl,
T +43 / 1 / 504 69 87-331,
E r.mayrl@metrum.at

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

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