EANS-Adhoc: conwert Immobilien Invest SE conwert with positive results for the
first nine months of 2011 despite one-off effects - strong operating development
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
9-month report
23.11.2011
Vienna, 23 November 2011. The Austrian ATX-traded conwert Immobilien Invest SE
completed the third quarter of 2011 with overall positive results.
As a result of higher rental income and higher proceeds on property sales,
overall revenues improved by 85.1% to EUR 681.2 million at the end of the third
quarter of 2011 (1-9/2010: EUR 368.0 million).
In the reporting period conwert realised an increase in rental income by 21.6%
to EUR 159.7 million (1-9/2010: EUR 131.3 million). With property sales
amounting to EUR 499.6 million at the end of the third quarter, conwert exceeded
the value of the reference period of the previous year by 137.5% and is on track
for the year 2011. The proceeds on the sale of properties, at EUR 248.4 million
in the third quarter of 2011, were roughly as high as the two previous quarters
taken together. Service revenues amounted to EUR 21.9 million in the first nine
months of 2011, down 16.7% on the prior-year reference period (1-9/2010: EUR
26.3 million). This development is, however, due to the first-time full
consolidation of ECO Business-Immobilien AG in this year, whose service revenues
are now recognised as internal service revenues.
The strong proceeds on property sales and the increase in rental income led to a
growth in earnings before interest, tax, depreciation and amortisation
(EBITDA).EBITDA for the first nine months of the year improved by 25.9% over
previous year and amounted to EUR 97.1 million.
As a result of negative fair value adjustments in the third quarter, the
revaluation result amounted to EUR -10.0 million at 30 September 2011. This
non-cash-effective deterioration is primarily attributable to valuation
adjustments of the ECO property portfolio as well as an write-down of RESAG
Immobilienmakler GmbH. Earnings before interest and tax (EBIT) consequently
declined by 25.6% to EUR 82.4 million in comparison with the first three
quarters of 2010.
The impairment of individual ECO properties carried out within the balance sheet
date of ECO Business-Immobilien AG at 30 September 2011 was made against the
background of an extraordinary profit of EUR 77.6 million, which was realised in
the third quarter of 2010 in the course of the initial consolidation of ECO,
which was acquired below book value. In addition, following the decision
communicated in September to internalise the activities of RESAG
Immobilienmakler GmbH in order to save costs conwert wrote down EUR 3.7 million
on the value of the RESAG investment.
The financial results also deteriorated slightly by 16.9% to EUR -79.0 million
in the first nine months of 2011 (1-9/2010: EUR -67.6 million) as a result of an
interest rate swap write-down amounting to EUR 4.2 million in the third quarter
of 2011.
Profit after income taxes amounted to EUR 6.1 million at 30 September 2011 and
was thus 86.6% lower than in the reference period of the previous year
(1-9/2010: EUR 45.4 million). At EUR 3.6 million, profit after minority
interests at 30 September 2011 also fell short of the value of the prior-year
period (1-9/2010: 30.5 million).
In the reporting period conwert realised earnings per share of EUR 0.04 down
from the prior-year period figure of EUR 0.37.
Funds from operations (FFO) after financial results rose sharply by 108.7% to
EUR 74.5 million thanks to the good letting and selling business in the first
nine months of 2011 (1-9/2010: EUR 35.7 million).
At 30 September 2011, the balance sheet total amounted to EUR 3,264.7 million
and has thus decreased slightly by 8.1% in comparison with the whole year 2010
(31.12.2010: EUR 3,550.8 million). The item "investment properties", which
amounted to EUR 2,414.1 million, is still the largest item in the balance sheet
(corresponds to 74.0% of the balance sheet total). The assets included in
"properties held for sale" equalled EUR 494.5 million on the balance sheet date.
With EUR 1,250.5 million equity as of 30 September 2011 was slightly lower than
the EUR 1,330.1 million of equity recorded per 31 December 2010 In contrast, the
equity ratio slightly increased to38.3% at 30 September 2011, (31.12.2010:
37.5%).
The NAV, the book value per share, declined slightly to EUR 15.07 due to the
negative contribution to earnings despite the large number of property sales
above book value (whole year 2010: EUR 15.56).
conwert confirms its guidance for 2011. This includes a targeted increase in
proceeds from property sales to roughly EUR 600 million as well as an
improvement in the operating result by approx. 15% not taking into account
property valuations.
In addition, for the coming months, the Administrative Board of conwert has set
the target of a further reduction of leverage from roughly 58% today and to
pursue the share buyback programme and the buyback of convertible bonds with a
view to opportunities.
The interim report 1-9/2011 of conwert Immobilien Invest SE is available on the
website www.conwert.at.
Earnings indicators
1-9/ 1-9/ Change 1-12/
2011 2010 2010
Rental income EUR mill. 159.7 131.3 21.6% 187.7
Proceeds on the sale of
properties EUR mill. 499.6 210.4 137.5% 325.1
Service revenues EUR mill. 21.9 26.3 -16.7% 34.4
Total revenues EUR mill. 681.2 368.0 85.1% 547.2
Earnings before interest,
taxes, depreciation and
amortization (EBITDA) EUR mill. 97.1 77.1 25.9% 184.9
Earnings before interest
and taxes (EBIT) EUR mill. 82.4 110.7 -25.6% 103.2
Funds from Operations
(FFO)*) EUR mill. 74.5 35.7 108.7% 53.6
Net Rental Income (NRI) EUR mill. 93.4 75.6 23.5% 103.9
Cash Profit**) EUR mill. 66.7 34.8 91.7% 44.0
Basic earnings/share EUR 0.04 0.37 -89.2% 0.29
Diluted earnings/share EUR 0.04 0.37 -89.2% 0.29
Funds from Operations/
share EUR 0.90 0.44 104.5% 0.65
Balance sheet indicators
1-9/ 1-9/ Change 1-12/
2011 2010 2010
Balance sheet total EUR mill. 3,264.7 3,679.9 -11.3% 3,550.8
Non-current loans and
borrowings EUR mill. 1,071.2 1,258.3 -14.9% 1,211.9
Current loans and
borrowings EUR mill. 362,5 502,5 -27.9% 456,1
Equity EUR mill. 1,250.5 1,338.9 -6.6% 1,330.1
Equity ratio % 38,3 36,4 5.2% 37,5
Gearing % 143,8 158 -9.0% 151,69
Book value (NAV)/share EUR 15,07 15,33 -1.7% 15,56
Property indicators
1-9/2011 1-9/2010 Change 1-12/2010
Number of objects No. 1,711 1,857 -7.9% 1,811
Rental units No. 23,683 27,194 -12.9% 25,194
Total usable space sqm 2,204,839 2,514,742 12.3% 2,453,050
Property assets EUR mill. 2,908.6 3,315.7 -12.3% 3,238.3
*) FFO: Earnings before tax (EBT) minus the net gain from fair value adjustments
+ difference between cash gains on sale and IFRS gains on sale
+ depreciation + non-cash parts of financial result and other costs
**) Cash Profit: FFO minus actual income taxes paid
Further inquiry note:
conwert Immobilien Invest SE
Investor Relations - Konzernkommunikation
T +43 / 1 / 521 45-700
E cw@conwert.at
end of announcement euro adhoc
--------------------------------------------------------------------------------
issuer: conwert Immobilien Invest SE
Albertgasse 35
A-1080 Wien
phone: 52145-0
FAX: 52145-111
mail: cw@conwert.at
WWW: http://www.conwert.at
sector: Real Estate
ISIN: AT0000697750
indexes: WBI, ATX
stockmarkets: official market: Wien
language: English