euro adhoc: conwert Immobilien Invest AG
quarterly or semiannual financial
statement
conwert Immobilien Invest AG triples result in first quarter of 2007
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
3-month report
29.05.2007
conwert Immobilien Invest AG triples result in first quarter of 2007
Vienna, 29/05/2007. In the first quarter of 2007, conwert Immobilien Invest AG (Vienna Stock Exchange: CWI, Reuters: CONW.VI, Bloomberg: CWI AV) continued the successful company development of 2006. A positive market environment as well as numerous acquisition opportunities were used to expand the property portfolio to 1,004 properties with a total value of EUR 1.73bn. All key company figures improved: compared with the same period of the previous year, EBIT more than doubled to EUR 33.03m and EBT more than tripled to EUR 25.62m. 2007 started well with extraordinary high earnings in the first quarter. A positive market development, increasing rental income and profitable property sales all contributed to this excellent result for the first quarter.
Increased key revenue and earnings figures Compared with the same period of the previous year, total revenues increased by 192% to EUR 106.85m. During the reporting period, conwert took advantage particularly of demand on the Viennese market within the scope of its trading activities in order to dispose more properties in the first quarter. This resulted in an above-average increase in proceeds from sales within 12 months, from EUR 19.79m to EUR 82.44m. Profit from the disposal of individual properties and freehold apartments amounted to EUR 10.45m compared with EUR 3.24m in the same period of the previous year. Compared with the first quarter of 2006, there was a 45% increase in rental income to EUR 24.41m during the quarter under review. The main reasons for this increase were the rigorous expansion of the portfolio, steadily increasing rents in conwert´s core markets and active property management as well as successful development projects related to older residential properties. As a result of the Company´s internationalization, rental income generated outside Austria also increased to 41% of total rental income, compared with 39% in the 2006 fiscal year and 38% in the first quarter of 2006. At 81%, the largest share of rental income was again attributable to the Letting & Development of Older Residential Properties segment. In line with the positive development of revenue, the earnings figures also increased to new record values for the quarter. In addition to increases in rental income and high proceeds from sales of properties, this was also the result of gains from fair value adjustments required by IFRS. These were valued by independent experts and amounted to EUR 13.40m or 0.8% of total property assets in the reporting period. Compared with the previous year, EBIT increased by 119% to EUR 33.03m, and was therefore also above the value for the fourth quarter of 2006 (EUR 30.97m). As a result of an almost unchanged financial result, earnings before income tax (EBT) improved from EUR 8.23m to EUR 25.62m compared with the same period of the previous year, an increase of 211%. Profit for the year after minority interests more than tripled to EUR 19.21m, while the posted income tax expenditure can be chiefly attributed to deferred taxes from fair value adjustments. As in previous years, there was no actual income tax expenditure impacting liquidity. Earnings per share for the period doubled from EUR 0.16 to EUR 0.33. However, this momentum will decline from the second quarter of 2007 due to dilution resulting from the capital increase. Adjusted earnings per share, which takes into consideration only the income tax expenditure actually impacting liquidity, increased from EUR 0.21 in the first quarter of 2006 to EUR 0.44.
More than 1,000 properties for the first time During the quarter under review, conwert expanded its property assets acquiring high-quality properties in Austria and Germany. As at the reporting date, the portfolio comprised 1,004 properties, the first time the number of properties exceeded 1,000. The total usable space increased to 1,355,594 sqm, after 1,322,412 sqm at year end 2006 and 1,054,681 sqm at the end of the first quarter of 2006. The book value of the property portfolio was EUR 1.73bn, equivalent to an increase of EUR 55m compared with the value at the end of 2006 (EUR 1.67b) and 43% within one year (first quarter of 2006: EUR 1.21bn.). In addition to the development of the property portfolio, as part of the company´s trading activities a total of 14 properties and single flats with an overall value of EUR 72 million were sold at a profit.
Growth course continued During the current quarter, with the acquisition of individual properties and portfolio transactions, conwert continued expanding its portfolio. At the beginning of the second quarter, conwert successfully concluded the largest residential property transaction made by an Austrian investor in Germany. In Potsdam, a first-class property portfolio with a total of 152 properties and total usable space of around 118,000 sqm was acquired. The transaction volume amounted to around EUR 160m and was another milestone in conwert´s expansion course in Germany. In Leipzig and Altenburg, further property portfolios with a total value of around EUR 39m were acquired. conwert intends to continue on its growth path. In addition to the investments activated in the second quarter of 2007, a further EUR 600m to EUR 800m will be invested in the expansion of the property assets. The focus of acquisition will be Germany. Around a third of the targeted investment volume will be activated in Austria. Activities in the CEE region will complete the investment program. Rental income is expected to be considerably higher than in previous years in line with this portfolio expansion. In the context of trading activities, it is planned to trade real estate with a value of roughly 10% of the entire property portfolio. On the basis of this revenue trend, the Management Board is expecting a considerable increase in key earnings figures compared with the previous year.
Selected Key Figures
Company Key Figures in EURm
Q1/2007 Q1/2006 Change 2006 Rental income 24.41 16.85 45% 79.54 Proceeds from sale of properties 82.44 19.79 317% 185.46 Total revenues 106.85 36.64 192% 265.00 Earnings before interest and tax (EBIT) 33.03 15.07 119% 104.42 Financial results -7.41 -6.85 8% -27.39 Earnings before tax (EBT) 25.62 8.23 211% 77.03 Profit for the year 19.12 6.12 212% 51.67 Thereof attributable to equity holders of the parent 19.21 6.12 214% 51.82 Total assets 1,936.94 1,302.80 49% 1,921.85 Total shareholders' equity 875.46 528.53 66% 857.99 Equity ratio in %* 45.20 40.59 - 44.6 Adjusted equity ratio in %** 45.81 45.26 - 45.3 * Equity incl. minority interest **Equity incl. tenant-financing contributions
Property Portfolio Key Figures
31/03/2007 31/03/2006 Change 31/12/2006
Number of properties 1,004 788 27% 981
Rental units 15,557 12,812 21% 15,376
Total usable space in sqm 1,355,594 1,054,681 29% 1,322,412
Parking/garage spaces 4,304 3,222 34% 4,298
Property assets in EURm 1,728.03 1,205.25 43% 1,673.37Stock Market Key Figures
Q1/2007 Q1/2006 Change 2006
Earnings per share in EUR 0.33 0.16 106% 0.97
Adjusted earnings per share in EUR* 0.44 0.21 110% 1.44
Share price (end of period) 16.48 14.90 11% 16.40
Number of shares
(end of period) 58,684,500 39,123,000 50% 58,684,500
Average number of shares 58,684,500 39,123,000 50% 53,325,185
Market capitalisation in EURm 967.12 582.93 66% 962.43
* Earnings per share taking into consideration income tax expenditure actually
impacting liquidity.end of announcement euro adhoc 29.05.2007 07:40:00
Further inquiry note:
conwert Immobilien Invest AG, Johann Kowar, Chairman of the Management Board,
T +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