euro adhoc: conwert Immobilien Invest AG
quarterly or semiannual financial
statement
Record figures in 1-6/2006
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
29.08.2006
conwert Immobilien Invest AG: Record figures in 1-6/2006
Vienna, 29 August 2006. The first six months were extremely successful for conwert Immobilien Invest AG (Vienna Stock Exchange: CWI, Reuters: CONW.VI, Bloomberg: CWI AV). Record results were achieved in sales and earnings figures. Compared to last year's period, turnover rose by 243% to EUR 89.78m. Earnings before income and taxes (EBIT) increased by 201% to EUR 47.46m. Property assets were expanded to EUR 1.476m. conwert will also continue its growth in the second semester.
In the first six months of 2006, conwert was able to reach record levels in all of its sales and earnings figures. Compared with the same period of the previous year, sales revenues increased by 243% to EUR 89.78m. There was particularly strong growth in sales, since the company took advantage of the predominant demand dynamics on the Vienna market in order to divest itself of single properties for portfolio optimisation. In the business segment "Letting & Development of older residential properties", 11 properties totalling EUR 45m were sold at profit, compared to two properties sold for EUR 5.22m in last year's period. In the "Sale of flats" business segment revenues of EUR 10.43m were achieved, an increase of 86%. All together conwert drew a profit of EUR 7.93m from selling single properties and freehold flats during the reporting period, compared to EUR 1.53m in the first six months of 2005.
Compared to last year's period, revenues from rental income increased to EUR 34.34m, a rise of 124%. Factors responsible for the strong growth included successfully concluded development projects, the constantly rising rental level in Vienna, Germany and the Czech Republic as well as the consistent expansion of the company's property portfolio.
Earnings before income and taxes (EBIT) increased by 201% to EUR 47.46m and already exceed the figures of the fiscal year 2005 (EUR 45.55m). This growth is mostly due to the profits from apartment and property disposals as well as higher revenues from rental income. The new appraisal of our properties by independent experts in the framework of fair value adjustments totalling EUR 23.86m positively affected our result, in which both new additions - especially the properties acquired in the Alliance package - as well as properties already in our portfolio contributed to the appreciations. Earnings before tax (EBT) rose from EUR 10.23m to EUR 34.57m. The net result after minority interests rose by 190% to EUR 23.15m, although this result was disproportionally burdened with latent, not liquidity-related income taxes due to real estate sales and fair value adjustments. Actual, cash-related tax on profits expenses were not assessed during the reporting period.
In expanding its property portfolio, conwert steadily continued its dynamic growth. In the first six months of 2006, conwert was thus able to expand its property portfolio in Austria, Germany, and the Czech Republic to 899 properties, compared to 598 properties by December 31, 2005 and 243 to the same period of the previous year. As of June 30, 2006, the total usable space of these properties was 1,154,332 sqm of which, pursuant to the business model, 71% are used as apartments. Property assets rose to EUR 1,476m - an increase of 62% in the first six months of 2006 or 149% in 12 months.
The company's acquisition activities primarily focused on the additional purchase of property packages in Austria and Germany. The most significant transaction in the second quarter of 2006 was the purchase of the Allianz properties in Austria.
conwert will also continue its company expansion in the second half-year of 2006. The management intends to use the healthy market environment for residential properties in the 2006 fiscal year to further expand its property portfolio. In addition to strengthening market leadership in Vienna, conwert will also push the internationalisation of the company. In order to do so, conwert will consistently utilise attractive investment opportunities - as well in markets, in which conwert is already present as well as in other residential property markets in Europe. Thus, in July 2006, conwert entered the Budapest property market, which, from a risk-return point of view is one of the top locations in Europe for residential properties.
This consistent growth strategy should also result in increased sales and earnings figures. With regard to revenues from sales and rental incomes, the Management Board is projecting an even more significant increase. In accordance with the expected increase in sales, returns should also continue to increase and the annual result of the 2005 business year should be substantially exceeded.
Selected Key Figures
Company Key Figures in EURm
1-6/2006 1-6/2005 1-12/2005
Total revenues 89.78 26.19 105.37
Revenues from rental income 34.34 15.35 37.12
Sales from property disposals 55.44 10.83 68.25
Earnings before interest and taxes (EBIT) 47.46 15.77 45.55
Earnings before tax (EBT) 34.57 10.23 33.76
Net result after minority Interests 23.15 7.98 24.68
Shareholders equity 826.62 367.10 520.63
Equity ratio in % * 46,9 51.2 47.6
Adjusted equity ratio in % ** 47.5 52.4 48.7
Total assets 1,763.71 716.98 1,093.58
* Shareholders equity including minorities
** Shareholders equity including rental financing contributions~ Property Portfolio Key Figures 30.6.2006 30.06.2005 31.12.2005 Number of Properties 899 243 598 Total usable space in sqm 1,154,332 496,579 815,900 Vehicle/garage spaces 3,208 1,122 2,068 Property assets in EURm 1,476 592 912
~
Stock Market Key Figures
30.6.2006 30.6.2005 31.12.2005
Earnings per share 0.48 0.37 0.95
Share price (end of period) 14.90 13.80 14.55
Number of shares (end of period) 58,684,500 29,342,300 39,123,000
Market capitalisation in EURm 874.40 404.92 569.24end of announcement euro adhoc 29.08.2006 08:22:30
Further inquiry note:
conwert Immobilien Invest AG,
Johann Kowar, Member of the Management Board,
Tel: +43 / 1 / 521 45-200,
E-mail: kowar@conwert.at
Hochegger|Financials,
Roland Mayrl,
T: +43 / 1 / 504 69 87-31,
E-mail: r.mayrl@hochegger.com
Branche: Real Estate
ISIN: AT0000697750
WKN: 069775
Index: WBI
Börsen: Wiener Börse AG / official dealing