euro adhoc: conwert Immobilien Invest AG
quarterly or semiannual financial
statement
Record course continued in 1-9/2006
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
29.11.2006
conwert Immobilien Invest AG: Record course continued in 1-9/2006
Vienna, 11/29/2006. conwert Immobilien Invest AG (Vienna Stock Exchange: CWI, Reuters: CONW.VI, Bloomberg: CWI AV) continued its record course of growth in the third quarter of 2006. Compared with the same period of the previous year, sales revenues were increased by 200% to EUR 131.30m and earnings before interest and taxes (EBIT) were up by 182% to EUR 73.45m. The property portfolio was expanded to EUR 1,599m. conwert was thus able to surpass, regarding sales and profit key figures, the values for the entire record year of 2005 after a mere 9 months.
conwerts growth course was positively reflected in all of the company's key figures. Compared with the same period of the previous year, revenues from sales were up 200 % to EUR 131.30m. Revenues from rental income during the period under review rose to EUR 54.73 m, i.e. 115%, thus more than doubling compared with the previous year. The strong growth was based on successfully completed development projects and constantly increasing rental levels in Austria, Germany and the Czech Republic on the one hand as well as the consistent expansion of the property portfolio on the other hand.
Revenues from sales went up disproportionately when the predominate strong demand on the Vienna market has been utilised so that the company could optimise its portfolio by selling certain properties. All together, conwert generated a profit of EUR 11.88m from sales of blocks and freehold flats, 406% more than in the period of the previous year (EUR 2.35m). As regards profit key figures, earnings before interest and taxes (EBIT) went up by 182% to EUR 73.45m compared with the previous year, thus exceeding earnings for the entire 2005 fiscal year (EUR 45.55m). Responsible for the improvement in results were the earnings from flat and property sales as well as higher revenues from rentals. The reappraisal of the properties by independent experts in the framework of fair value adjustments totalling EUR 36.66m positively affected the results, in which both new additions - especially the properties acquired in the Allianz package - as well as properties already in the portfolio contributed to the appreciations. EBT rose from EUR 17.48m to EUR 54.27m, more than tripling in value. Net result after minority interests rose by 181% to EUR 37.51m, although this result was disproportionately burdened with deferred, non-liquidity related income taxes due to real estate sales and fair value adjustments. Actual, cash-related taxes on profit expenses were not assessed during the period under review.
In the quarter under review, conwert also continued to selectively expand its property portfolio. Thus, in the first nine months of 2006, the property portfolio was expanded to 963 properties with more than 18,400 rental units (including parking spaces) in Austria, Germany, the Czech Republic and Hungary, compared to 598 properties as of 31st December 2005. The total useable space of conwerts properties was approximately 1,260,000 sqm as of the reference day 30th September 2006. Property value went up to EUR 1.599m - an increase of EUR 687m in the first three quarters of 2006 or of EUR 890m in the last twelve months.
In Austria, the property portfolio was expanded to its current total of 444 properties worth a total of EUR 1.145m. The most important transaction in the third quarter was the acquisition of 16 residential properties in Vienna with a total useable space of around 53,000 sqm and a transaction volume of EUR 67.5m. The acquisitions were rounded off through single investments. As of the reference day of the period under review, conwert held a total of 486 properties in Germany. The total value of the properties in the population centres Berlin, Dresden, Hamburg and Leipzig amounts to EUR 390m. In the third quarter of 2006, the property portfolio was selectively expanded with premium city centre properties mainly in Berlin, Dresden and Leipzig. Furthermore, in Leipzig, just about one year after the market entry, conwert was able to conclude the first part of a major modernisation project and has immediately let almost half of the 195 redeveloped flats as soon as they were finished. In Eastern Europe, conwert entered the Budapest residential real estate market during the period under review, which, from a risk-return point of view, is one of the top locations in Europe. With the takeover of a Hungarian real estate company, conwert also acquired, as a first move, a property portfolio with new property development projects including 500 flats under construction. A development project whose commercialisation has initiated very positively was completed in the third quarter. Freehold flats totalling EUR 20m should be constructed each year and the business segment, "Letting and Development of Older Residential Properties" shall be successively developed. conwert will also continue the company's successful growth in the current 4th quarter and take advantage of the attractive market environment in Austria, Germany and Eastern Europe for further expansion of its portfolio. In addition to strengthening its market leadership in Vienna, conwert will also push the internationalisation of the company.
This growth strategy should also result in increased sales and earnings key figures much higher than those of the previous year. With regard to sales from property disposals and revenues from rental income, the conwert management board predicts a further increase. In accordance with the expected increase in sales revenues, returns should also continue to increase, thus resulting in another considerable improvement of the company results.
Selected Key Figures
Company Key Figures in EUR M
1-9/2006 1-9/2006 1-12/2005
Total revenues 131.30 43.80 105.37
Revenues from rental income 54.73 25.49 37.12
Revenue from property disposal 76.57 18.31 68.25
Earnings before interest and taxes (EBIT) 73.45 26.04 45.55
Earnings before taxes (EBT) 54.27 17.48 33.76
Equity holders of the parents 37.51 13.34 24.68
Shareholders' Equity 843.39 372.11 520.63
Equity ratio in % 45.6 48.1 47.6
Adjusted equity ratio in % * 46.3 49.6 48.7
Total assets 1,848.18 773.72 1.093.58
* Shareholders equity including tenant-financing contributionsProperty Portfolio Key Figures
09/30/2006 09/30/2005 12/31/2005
Number of properties 963 288 598
Total usable space in sqm 1,262,827 577,202 815,932
Vehicle parking/garage spaces 3,416 1,927 2,068
Property assets in EUR m 1,598.52 708.55 911.83Stock Market Key Figures
09/30/2006 09/30/2005 12/31/2005
Profit per Share 0.73 0.55 0.95
Share price (end of period) 15.90 14.27 14.55
Number of shares (end of period) 58,684,500 29,342,300 39,123,000
Market capitalisation in EUR m
(end of period) 933.08 418.72 569.24end of announcement euro adhoc 29.11.2006 08:20:00
Further inquiry note:
conwert Immobilien Invest AG, Johann Kowar, Member of the Management Board,
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