EANS-Adhoc: conwert Immobilien Invest SE
conwert records an increase in
revenues and EBITDA in 2008 - depreciation and impairment losses have a negative
effect on the result
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
26.03.2009
conwert records an increase in revenues and EBITDA in 2008 - depreciation and impairment losses have a negative effect on the result
+ Positive operating development: revenues EUR 391.12 million (+8%), EBITDA EUR 94.36 million (+25%), FFO EUR 53.82 million + Stable value of the property portfolio (decrease in value -0.09%) through organic growth in rental income + EBIT (EUR 69.98 million) adversely affected by higher financial costs, depreciation and impairment losses + Solid financing structure: 42% equity ratio and minor refinancing needs + Positive operating business development expected for 2009
Vienna, 26 March 2009. conwert Immobilien Invest SE (Vienna Stock Exchange: CWI, Reuters: CONW.VI, Bloomberg: CWI AV) recorded significant growth in its core business in the financial year 2008. Revenues rose from EUR 363.12 million to EUR 391.12 million. This increase by 8% results from higher rental income, the expansion of the service business as well as clearly positive sale margins. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose from EUR 75.53 million to EUR 94.36 million. The operating result (EBIT) fell to EUR 69.98 million (2007: EUR 172.53 million) due to slight fair value adjustments of property assets, non-scheduled depreciation and impairment losses of investments as well as higher financing costs. Cash earnings, which do not take into account non-cash effects on the result, were clearly positive: Funds from operations (FFO) amounted to EUR 53.82 million (2007: EUR 57.77 million). Due to the difficult framework conditions, the central focus of business activities was placed on optimising the property portfolio in the financial year 2008. Property assets increased by 6% to EUR 2.50 billion in comparison with the previous year.
- Operating business development Revenues amounted to EUR 391.12 million in the financial year 2008 (+8%). Rental income increased from EUR 109.49 million in the previous year to EUR 147.74 million. At EUR 203.13 million (2007: EUR 252.47 million), the target value of EUR 200 million for proceeds on the sale of properties was accomplished. The properties were sold 14% above the IFRS book values and 27% above continued acquisition costs. Revenues from services totalled EUR 70.65 million in the first fully consolidated financial year (2007: EUR 1.16 million). 57% or EUR 40.25 million were generated with external customers.
- Earnings indicators affected by non-cash effects Due to the positive operating development in the reporting period, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose from EUR 75.53 million to EUR 94.36 million, up 25% on the previous year despite difficult market conditions. Despite impairment losses (EUR -2.16 million) and higher depreciation, the operating result (EBIT) was positive at EUR 69.98 million, following EUR 172.53 million in 2007. The unpredictable effects of the financial crisis on the office and commercial property market affected EBIT with non-scheduled depreciation in the amount of EUR 12.00 million for ECO Management GmbH. The financial result fell from EUR -27.37 million in the previous year to EUR -98.80 million. The financial result was adversely affected by higher financial costs, of which only EUR 64.52 million affected liquidity. In addition, the negative contribution to earnings equalling EUR 8.89 million by ECO Business-Immobilien AG, which is consolidated at equity, and an investment valuation adjustment by EUR 18.37 million also reduced earnings. The impairment loss was recorded within the framework of a conservative valuation because the company, which focuses on office and commercial properties, was affected by value decreases to a greater extent. Overall, non-cash effects from impairment losses, depreciation and valuation adjustments in the amount of EUR 51.65 million had a negative impact on conwert´s earnings development. Earnings before taxes (EBT) were negatively affected by this development and therefore amounted to EUR -28.83 million (2007: EUR 145.15 million).
- Solid financial position and equity ratio of 42% Equity amounted to EUR 1,274.21 million at year-end 2008. The equity ratio was shown at 42% (2007: 48%). The total financing volume rose to EUR 1,559 million. On average, conwert financed at a premium of 80 basis points over the EURIBOR. The average interest rate amounted to 4.75%, the average term of the loans to 11.3 years. At the balance sheet date conwert owned cash and cash equivalents totalling approx. EUR 70 million. On the refinancing side, only minor amounts of EUR 54 million are due for extension in 2009 and EUR 61 million 2010. The net asset value (NAV) declined from EUR 16.25 in the previous year to EUR 15.55 as a result of the negative group result and the negative effects from interest rate hedges.
- Outlook on the financial year 2009 Despite the generally negative economic climate conwert expects a largely stable development of the residential property market at the most important conwert locations from its present perspective. The strategic focus will be placed on further improvements in the cost and financing structure, expanding the service business, the sale of properties as well as organic growth in rental income in the financial year 2009. Acquisition opportunities will only be used very selectively. conwert has already sold properties worth EUR 60 million in the first months of the financial year 2009, again at double-digit IFRS margins and cash profit margins exceeding 25%. The target sale value for the whole year 2009 is EUR 200 million. In an unchanged market environment, conwert therefore expects a positive operating business development with cash earnings (FFO) that at least maintain the level of 2008. Subject to the operating development in the coming weeks, the Executive Board reserves the right to propose a dividend pay-out at the Annual General Meeting in May.
Earnings Indicators
2008 2007 Change
Rental income EUR mill. 147.74 109.49 +35%
Proceeds on the
sale of properties EUR mill. 203.13 252.47 -20%
Service revenues EUR mill. 40.25 1.16 -
Total revenues EUR mill. 391.12 363.12 +8%
Earnings before interest, taxes,
depreciation (EBITDA) EUR mill. 94.36 75.53 +25%
Earnings before interest
and tax (EBIT) EUR mill. 69.98 172.53 -59%
Funds from Operations (FFO)1) EUR mill. 53.82 57.77 -7%
Cash Profit2) EUR mill. 53.02 57.06 -7%Balance Sheet Indicators Balance sheet total EUR mill. 3,016.21 2,948.43 +2% Non-current loans and borrowings EUR mill. 1,011.13 817.30 +24% Current loans and borrowings EUR mill. 321.90 285.85 +13% Equity EUR mill. 1,274.21 1,407.25 -9% Equity ratio % 42.25 47.73 - Gearing % 115.17 85.81 -
Property Indicators Number of objects No. 1,710 1,590 +8% Rental units/Parking spaces No. 24,931/7,768 23,283/6,832 +7%/+14% Total usable space sqm 2,035,421 1,896,898 +7% Property assets EUR mill. 2,497.32 2,345.25 +6%
Stock Exchange Indicators Basic earnings/share EUR (0.37) 1.46 -125% Diluted earnings/share EUR (0.37) 1.44 -125% Book value/share EUR 15.55 16.25 -4% Funds from Operations/share EUR 0.65 0.74 -12%
1) FFO: Earnings before tax (EBT) minus the net gain from fair value adjustments + Difference between cash gains on sale to 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 announcement euro adhoc
Further inquiry note:
conwert Immobilien Invest SE, Johann Kowar, Chairman of the Executive Board
T +43 / 1 / 521 45-200, E kowar@conwert.at
Peter Sidlo, Head of Corporate Communications - Investor Relations,
T +43 / 1 / 521 45-250, E sidlo@conwert.at
Hochegger|Financials, Roland Mayrl, T +43 / 1 / 504 69 87-331
E r.mayrl@hochegger.com
Branche: Real Estate
ISIN: AT0000697750
WKN: 069775
Index: WBI
Börsen: Wiener Börse AG / official dealing