08.03.2007 – 08:14

conwert Immobilien Invest AG

euro adhoc: conwert Immobilien Invest AG
Financial Figures/Balance Sheet / conwert Immobilien Invest AG reports record figures in 2006

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08.03.2007

conwert Immobilien Invest AG reports record figures in 2006

Vienna, 08.03.2007. conwert Immobilien Invest AG (Vienna Stock
Exchange: CWI, Reuters: CONW.VI, Bloomberg: CWI AV) once again
achieved record sales and profit figures in 2006. Total revenues in
2006 rose by 151% to EUR 265m. Earnings before interest and taxes
(EBIT) increased by 129% to EUR 104.42m, while earnings before taxes
(EBT) experienced a rise of 128% to EUR 77.03m. Through systematic
portfolio expansion, the value of property assets was increased by
84% to EUR 1,673m.  The dynamic expansion of the property portfolio
enabled conwert to set a new record in total revenues which was
mainly due to a continuous increase in revenues from rental income as
well as a dynamic development in sales. Thus, total revenues
increased by 151% to EUR 265.00m, compared to EUR 105.37m for the
previous year.  As a result of portfolio expansion, revenues from
rental income increased from EUR 37.12m to EUR 79.54m, a rise of 114%
compared to the previous year’s figures. The reasons for this steep
rise were the growth in total usable space, a general increase in
rent levels in conwert’s core markets as well as successfully
completed development projects and, as a result, new rentals of
previously vacant space. Backed up by the high demand prevailing in
the Viennese property market, sales in the previous reporting period
attained a record high of EUR 185.46m, which meant an increase of
172%. In the course of portfolio optimization, in the business
segment "Letting & Development of Older Residential Properties", 37
properties with a total value of EUR 124.84m were successfully sold
(2005: 17 properties for EUR 51.30m). In the business segment "Sale
of flats and houses", revenue from property disposals was gained
mainly through the sale of properties from the Allianz Trading
Portfolio, rising by 258% to EUR 60.63m. Altogether, conwert’s
profits from sales totaled EUR 32.04m, an increase of 174% compared
to the previous year’s figures. The profit margin (ratio of sales
from properties to the book values of properties) reached, as it did
last year, the very appealing level of 21%. Earnings before interest
and taxes (EBIT) rose by 129% to EUR 104.42m. The main reasons for
this were higher revenue from rental income, earnings from the sale
of flats and properties as well as the positive effects of fair value
adjustments. The reappraisal of properties conducted by independent
appraisers according to IAS 40 showed fair value adjustments of EUR
45.24m (2005: EUR 17.60m), corresponding to 2.7% of property assets.
The main reasons for profits from appreciation were low purchasing
prices as part of packaged deals, which enabled appreciation, as well
as increases in value and earnings from properties within the
framework of development and new rentals.  Earnings before taxes
(EBT) were increased from 128% to EUR 77.03m. Net results after
minority interest rose by 110% to EUR 51.82m, although this result
was disproportionately burdened by deferred income tax on real estate
sales. Actual cash-related income tax expenditure did not accrue in
the reporting period, so that despite a significant increase in the
number of shares in the reporting period, the adapted profits per
share rose by 12% from EUR 1.29 to EUR 1.44 per share. conwert took
advantage of the positive market conditions in 2006 to expand its
property portfolio. By the end of 2006, conwert’s property portfolio
included 981 properties (2005: 598) in Austria, Germany, the Czech
Republic and Hungary. In 2006, the number of rental units rose to
15,376 (flats: 12,722), compared to 9,722 (flats: 8,375) the previous
year. Moreover, on the reporting date, the property portfolio
included 4,298 parking spaces/ garage spaces, compared to 2,068 the
previous year. Total usable space rose by 62% from 815,900 sqm at the
end of 2005 to 1,322,400 sqm, with 53 % of this space located in
Austria. Further acquisitions in Germany led to an increase in the
German share to 43% of total usable space, as compared to 40% the
previous year. The CEE-markets Czech Republic and Hungary made up 4%.
Property assets in the business year 2006 rose by 84% to EUR 1,673m.
This increase came about mainly through the acquisition of
properties, but also from investments in properties in the course of
development. 69% of property assets were made up of properties
located in Austria, most of these in Vienna. By the closing date, 27%
had been invested in Germany, although the disproportionately low
share with respect to total usable space was due to much lower set-up
costs compared to Austria. Investment in the CEE countries comprised
4% of property assets.  conwert plans to continue this course of
expansion. Favorable market conditions in Austria, Germany, the Czech
Republic and Hungary will be used by the management to realize good
investment opportunities. In 2007, conwert will continue to expand
its position as market leader in the Viennese market for development
of older properties. Acquisitions of medium to large property
portfolios of institutional investors will continue to be the major
target. The internationalization which already began in 2005 will be
pushed even more in 2007. In the short to mid-term, the share of
foreign properties should be raised from 31% currently to about 50%.
Because of its low set-up costs and thus higher yields the German
market offers major opportunities for investment. In the CEE markets,
where conwert has also been active in the segment "Development of New
Properties" in 2006, there has been sustained growth. Depending on
further developments in the properties and capital markets, conwert
should be in the position to attain a total investment volume of
approx. EUR 800-1,000m in the next 12-18 months. Based on planned
investments, almost half of this will be realized in Germany,
achieved by the acquisition of larger portfolios and selected single
investments. The expansion of the properties portfolio in Austria
will comprise about a third of total investment expenditures, and
conwert’s investment program will be rounded off by investments in
existing markets in the CEE countries. This purposeful growth
strategy should lead to rising sales and profit key figures for the
current year. The Management anticipates a further rise in earnings
from rentals and sales. As earnings rise, net profits should also
rise, leading to considerably higher figures in 2006. As always, this
growth will be financed only with sufficient equity capital, on a
firm financial footing. conwert plans to finance these growth
measures - as economic and financial markets conditions allow - by
using authorized capital to again raise share capital by up to EUR
293.42m. to up to EUR 880.25m. conwert also announced changes in its
management structure to support the increasing scale and
international nature of conwert’s business. Certain of these changes
have effect immediately and certain changes will be implemented
following a change in conwert’s articles of association in the Annual
General Meeting on 4 June 2007. Günter Kerbler has retired from the
management board with immediate effect and will run for a supervisory
board mandate at the upcoming annual general meeting in June, thereby
continuing to contribute his expertise and deep knowledge of the
Austrian real estate business to conwert. The management board
thanked Günter Kerbler for his outstanding contribution to the
development of conwert since its foundation. Helmut Hardt also
retired from the management board. The supervisory board has
appointed Dr. Alexander Zartl and Andreas Nittel as management board
members with immediate effect. Dr. Zartl will be primarily
responsible for conwert’s international property activities,
especially in Germany and Hungary. Andreas Nittel will have
responsibility for asset and property management in Austria. Going
forward, it is intended that the management board will be enlarged
from its current three member-structure to a five member-structure.
The relevant change in the company’s articles of association shall be
approved by the next Annual General Meeting Johann Kowar will remain
member of the management board and will assume the role of Chief
Executive Officer.

Selected Key Figures

Company Key Figures in EURm
                                               2006          2005        Change
Revenues from rental income                   79.54         37.12          114%
Sales from property disposals                185.46         68.25          172%
Total revenues                               265.00        105.37          151%
Cost of sales - property expenses            -30.52        -13.63          124%
Cost of sales - book values of properties   -153.42        -56.56          171%
Fair value adjustments                        45.24         17.60          157%
Earnings before interest and taxes (EBIT)    104.42         45.55          129%
Financial results                            -27.39        -11.79          132%
Earnings before tax (EBT)                     77.03         33.76          128%
Profit for the year                           51.67         24.90          108%
  thereof profit of the year
  after minority interest                     51.82         24.68          110%
Total assets                               1,921.85      1,093.58           76%
Total shareholders' equity                   857.99        520.63           65%
Equity ratio in %*                             44.6          47.6            -
Adjusted equity ratio in %  **                 45.3          48.7            -
*    Shareholders’ equity including minority interest
**   Shareholders’ equity including tenant-financing contributions

Property Portfolio Key Figures
                                         31/12/2006    31/12/2005        Change
Number of properties                            981           598           64%
Rental units                                 15,376         9,722           58%
Total usable space in sqm                 1,322,412       815,932           62%
Vehicle parking/garage spaces                 4,298         2,068          108%
Property assets in EURm                    1,673.37        911.83           84%

Stock Market Key Figures
                                               2006          2005        Change
Earnings per share in EUR                      0.97          0.95            2%
Adjusted earnings per share in EUR*            1.44          1.29           12%
Share price (end of period)                   16.40         14.55           13%
Number of shares (end of period)         58,684,500    39,123,000           50%
Number of shares (average)               53,325,185    26,111,706          104%
Market capitalisation in EURm
  (end of period)                            962.43        569.24           69%
*  Earnings per share taking into consideration cash-related income tax
expenditure (2006: EUR 0,00m, 2005: EUR 0,10m)

Important Information:

This information does not constitute an offer to sell or a
solicitation to buy any securities of conwert Immobilien Invest AG. A
public offer by conwert Immobilien Invest AG does currently not take
place. Any securities orders received prior to the commencement of
any offer period will be rejected. A potential public offering of
securities of conwert Immobilien Invest AG in Austria will be made
solely through and on the basis of a prospectus approved by the
Austrian Financial Market Authority and published in accordance with
the Austrian Capital Market Act.

The information contained herein is not for publication or
distribution to United States Persons or to publications with a
general circulation in the United States. The information contained
herein does not constitute an offer for sale of the securities in the
United States. No public offering of the securities of conwert
Immobilien Invest AG will be made in the United States. The
securities referred to herein have not been and will not be
registered pursuant to the US Securities Act of 1933, as amended, and
may not be offered or sold in the United States without registration
there under or pursuant to an available exemption there from.

The past performance and results of conwert Immobilien Invest AG are
no indication of future performance and results.

end of announcement                               euro adhoc 08.03.2007 07:30:00

Further inquiry note:

conwert Immobilien Invest AG, Johann Kowar, Chief Executive Officer,
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