EANS-Adhoc: conwert Immobilien Invest SE
conwert with strong operating
development in the first quarter 2009 - cash earnings: FFO +72% to EUR 23.87
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.
3-month report
26.05.2009
conwert with strong operating development in the first quarter 2009 - cash earnings: FFO +72% to EUR 23.87 million
+ Rental income +15% to EUR 39.99 million - organic growth of rental income by 9% (like-for-like) + Proceeds on the sale of properties +123% to EUR 67.32 million + EBITDA +15% to EUR 26.93 million; cash earnings increased significantly: FFO +72% to EUR 23.87 million. + Stable-value property portfolio: property assets increase to EUR 2.54 bn + Strong financial results due to positive one-off effects and low interest rates + Positive development of operating activities expected in 2009
Vienna, 26 May 2009. conwert Immobilien Invest SE (Vienna Stock Exchange: CWI, Reuters: CONW.VI, Bloomberg: CWI AV) reported a strong development of operating activities in the first quarter of 2009. Despite the difficult climate caused by the financial and economic crisis, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 15% to EUR 26.93 million. This increase results primarily from the strong development of the proceeds on the sale of properties (+123% over Q1/2008) and the good development of rental income (+15%). Cash earnings also grew substantially: Funds from Operations (FFO) amounted to EUR 23.87 million (+72%). Due to a lack of revaluation gains, the operating result (EBIT) declined to EUR 24.22 million. (Q1/2008: EUR 40.82 million). As a reaction to the difficult market conditions, the optimisation of the property portfolio formed the focal point of the activities in the first quarter of 2009. Total property value amounted to EUR 2.54 billion (after EUR 2.50 billion as of end 2008).
+ Steep increase in proceeds on the sale of properties Despite the difficult environment on property investment markets, proceeds on the sale of properties rose from EUR 30.12 million in the prior year to EUR 67.32 million in the first quarter of 2009. Even in the current market environment properties were sold above IFRS book values. The related gains totalled EUR 7.83 million, while the selling margin remained high at 13.5% based on the IFRS values. Based on acquisition cost, a cash profit of EUR 13.66 million and a cash margin exceeding 25% were recorded.
The core rental business showed an increase of rental income by 15% period-on-period to EUR 39.99 million. The average rental price in the residential segment rose from EUR 4.80 to EUR 5.12 per square meter and month year-on-year. Revenues in the service segment totalled EUR 15.10 million. (+4% yoy). EUR 8.13 million were accounted for by third-party business. Revenues totalled EUR 115.44 million in the first quarter of 2009 (Q1/2008: EUR 73.16 million).
- Positive earnings indicators and rising cash earnings Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR 26.93 million (Q1/2008: EUR 23.42 million). As a result of the lack of revaluation gains, earnings before interest and tax (EBIT), at EUR 24.22 million, fell short of the prior-year figure of EUR 40.82 million. The financial results of EUR -13.57 million (Q1/2008: EUR -13.61 million), was substantially improved by positive one-off effects and low interest rates while the financing volume was higher, but was affected by the negative share of profit of ECO Business-Immobilien AG in the amount of EUR -2.45 million (following in a positive share of profit of EUR 2.17 million in the previous year). Earnings before tax (EBT) declined from EUR 27.21 million to EUR 10.65 million in the first three months of 2009. Cash earnings, which exclude non-cash effects, increased significantly. Funds from operations (FFO) totalled EUR 23.87 million (+72% on the previous year) due to high cash profits when selling and buying back convertible bonds.
- Stable financing structure As of 31 March 2009 equity totalled EUR 1,262 million. The equity ratio equalled 42% (compared with 45% in the same period of the previous year). Net assets per share (NAV) amounted to EUR 15.39, compared with EUR 15.55 at the end of the financial year 2008. The financing volume amounted to EUR 1,545 million as of 31 March 2009. The average cash-effective interest rate equalled 4.55% including effects from hedging and 3.99% before hedging. Hedges were concluded for 76.5% of the interest-bearing liabilities to provide protection against interest ration fluctuations. With cash and cash equivalents totalling approx. EUR 82 million (12/2008: EUR 69,92 Mio.), conwert has sufficient liquidity reserves.
- Outlook on the year 2009 Economic forecasts are still negative. A recovery of the economic situation is only expected towards the end of 2010. As forecasts were repeatedly downgraded in the past months, the extent and the end of the worldwide economic downturn can, however, not be forecast reliably. Despite this negative economic climate, conwert at present expects a largely stable development in the residential property markets at its most important locations. In the financial year 2009, the focus of strategic development remains on the further improvement of the cost and finance structure, an expansion of the service business, the sale of properties and organic growth in rental income. Arising opportunities to acquire properties will only be used very selectively. The target sales volume for the year 2009 amounts to EUR 200 million. In an unchanged market environment conwert therefore expects a positive operating development in the financial year 2009 and cash earnings (FFO), which should significantly exceed the level of 2008.
The quarterly report Q1/2009 of conwert Immobilien Invest SE is available at the website www.conwert.at.
Earnings Indicators
1-3/2009 1-3/2008 Change 2008
Rental income EUR Mio. 39.99 34.64 +15% 147.74
Proceeds on the sale of
properties EUR Mio. 67.32 30.12 +123% 203.13
Service revenues EUR Mio. 8.13 8.40 -3% 40.25
Total revenues EUR Mio. 115.44 73.16 +58% 391.12
Earnings before interest, taxes,
depreciation (EBITDA) EUR Mio. 26.93 23.42 +15% 94.36
Earnings before interest
and tax (EBIT) EUR Mio. 24.22 40.82 -41% 69.98
Funds from Operations (FFO)1) EUR Mio. 23.87 13.88 +72% 53.82
Cash Profit 2) EUR Mio. 23.82 13.88 +72% 53.02Balance Sheet Indicators Balance sheet total EUR Mio. 3,006.83 3,100.53 -3% 3,016.21 Non-current loans and borrowings EUR Mio. 1,007.66 995.13 +1% 1,011.13 Current loans and borrowings EUR Mio. 323,28 275,80 +17% 321.90 Equity EUR Mio. 1,261.65 1,400.06 -10% 1,274.21 Equity ratio % 41.96 45.16 - 42.25 Gearing % 120.32 92.49 - 115.17
Property Indicators Number of objects No. 1,696 1,637 +4% 1,710 Rental units No. 24,659 23,818 +4% 24,931 Parking spaces No. 8,109 7,422 +9% 7,768 Total usable space sqm 2,033,158 1,946,085 +4% 2,035,421 Property assets EUR Mio. 2,543.55 2,417.55 +5% 2,497.32
Stock Exchange Indicators Basic earnings/share EUR 0.08 0.24 -66% (0.37) Diluted earnings/share EUR 0.08 0.24 -68% (0.37) Book value/share EUR 15.39 16.50 -7% 15.55 Funds from Operations/share EUR 0.29 0.16 +81% 0.65
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
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, 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: Wien / official dealing