Vienna (pta008/16.02.2016/08:07) - -
+ Successful real estate sales of non-core assets
+ Interest costs, LTV ratio and vacancy rates further reduced
+ FFO I guidance of EUR 65 mn for 2016 confirmed
The ATX-listed company conwert Immobilien Invest SE (conwert) enjoys a good start into the fiscal year 2016 and further improves several financial ratios. A recent repayment of EUR 70 mn in bridge financing has led to a further improvement of interest costs and the LTV ratio. Thanks to successful real estate sales of non-core assets, a bridge financing that was arranged only last year, has been completely paid back also earlier than expected.
"We have made excellent progress improving our financing. The average interest costs on our financial liabilities amounted to only 2.3% at the end of 2015. With a loan to value ratio of under 50% on a downward trend, we are solidly financed and at a level comparable to the best peers in the industry. The early repayment of bridge financing will give us further financial flexibility we need to be able to make targeted acquisitions, especially in attractive locations in the German real estate market," said Thomas Doll, CFO of conwert.
conwert also managed to improve, and therefore decrease, the vacancy rate as at 31 December 2015 to 6.6% across its entire portfolio, including commercial properties, clearly beating the targeted level of 8% at the year-end, compared to 9.9% at the end of 2014. Overall, a significant improvement, but when calculated on the core portfolio, the vacancy rate is only 3.1%, in the same range as the best comparable companies. The company expects vacancy rates to further improve in the course of the year.
Wolfgang Beck, CEO of conwert, said: "Since I took office at conwert in late summer of last year during an intensive phase for the company, a lot has changed for the better. The focus on residential property that we have pursued, and the sale of properties that are not part of our core business are progressing well. We have launched several programmes that will contribute to reducing our operating costs by 20%. In the many conversations we have had with our shareholders, we have also received encouragement to continue to pursue our strategy of gradually increasing value for our shareholders on a solid foundation."
Given the good start to the 2016 financial year, conwert confirms its forecast for the full year of FFO I (Funds from Operations before sales income and one-off effects) of EUR 65 mn. The company will announce the results for the full year 2015 as planned on 23 March 2016.
This release 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 here for a variety of reasons.(end)