pta20160823034
Public disclosure of inside information according to article 17 MAR

conwert Immobilien Invest SE: conwert achieves record half-year

Vienna (pta034/23.08.2016/23:00 UTC+2) -
+ FFO I up by 52.6% to EUR 39.3 mn
+ Net earnings of EUR 74.9 mn
+ Non-core sales of around EUR 142 mn
+ FFO I guidance for 2016 increased to over EUR 75 mn

conwert Immobilien Invest SE (conwert), traded on the Austrian ATX, has achieved the best half-year result in the company's history. This pleasing development was driven by the strong operating performance and the fair value gains for the property portfolio. FFO I (funds from operations before sales and one-off items), the most important indicator for conwert, underwent a significant rise of 52.6% against the previous year to EUR 39.3 mn (1-6/2015: EUR 25.7 mn). conwert tripled its group earnings after tax (net profit) to reach a new record high of EUR 74.9 mn (1-6/2015: EUR 24.5 mn). Revenues also grew by 26.0% to EUR 264.3 mn (1-6/2015: EUR 209.7 mn).

CEO Wolfgang Beck on the positive interim results: "The record-breaking half-year is the result of the consistent implementation of our strategy. We are making good progress with optimising the portfolio, structures and costs; today all of the key performance indicators are much better than they were twelve months ago. conwert now has a strong basis to undertake further optimisation measures and once again have a stronger presence as an acquirer. We have already signed the first acquisitions of around EUR 90 mn, which will add additional value. This is why we have decided to raise our FFO I guidance for 2016 to over EUR 75 mn."

Strong performance through proactive asset management
conwert achieved a strong operating performance in the period under review. Average rents per square metre increased and vacancy rates were reduced yet again. In the core portfolio like-for-like rents increased by 2.2%, while vacancy rates in the core residential portfolio fell from 4.7% to 3.4%. Thanks to this good performance, the Net Rental Result (NRR) of EUR 71.6 mn held steady at around the level of the previous year (1-6/2015: EUR 74.7 mn), despite the smaller property portfolio as a result of sales. The NRR margin rose from 65.8% to 66.8%.

Proactive asset management and the positive growth on the markets led to a significant valuation increase in the property portfolio of EUR 95.5 mn (1-6/2015: EUR 3.0 mn). Earnings before interest and taxes (EBIT) climbed by 137.4% to EUR 146.0 mn (1-6/2015: EUR 61.5 mn).

In terms of revenue, the further optimisation of the portfolio had a positive impact. In the course of streamlining the portfolio conwert already achieved sales in the first - and typically weaker - half of the year valued at EUR 153.6 mn (1-6/2015: EUR 92.5 mn). Of this total, EUR 142.3 mn related to the non-core sector (1-6/2015: EUR 78.9 mn). When all of the sales announced by August are included, the sales volume is already at around EUR 185 mn. Rental income slipped back slightly in the first half to EUR 107.1 mn (1-6/2015: EUR 113.5 mn) because of sales.

Further improvements to the financing and balance-sheet structure
Progress in terms of financing was reflected in the financing costs with an effect on cash in the first half of the year. These were cut in half compared to the same period of the previous year from EUR (31.4) mn to the current EUR (15.9) mn. In contrast, the financial result was temporarily hampered by non-cash effects from the remaining swaps and totalled EUR (43.6) mn (1-6/2015: EUR (32.3) mn).

The loan to value (LTV) - debt in relation to property projects under inclusion of cash and cash equivalents - underwent a further reduction and stood at just 44.6% at 30 June 2016 (31/12/2015: 51.0%). The equity ratio rose to 47.1% (31/12/2015: 43.7%).

Outlook: record year expected
For the remainder of the business year 2016 conwert expects the market environment to remain positive. The company will continue to consistently pursue the optimisation of the portfolio and asset management, as well as the sale of properties from the non-core portfolio. conwert is planning further reductions in the properties in the non-core portfolio and intends to sell a total of around EUR 300-350 mn worth of non-core properties in 2016. The sales proceeds should increasingly be reinvested in property portfolios in the core regions. With regard to earnings, the optimisation and cost-cutting measures which have already been introduced are expected to have a positive impact from the fourth quarter. From today's viewpoint, conwert thereby expects a new record year and has increased the guidance for FFO I (funds from operations before sales and one-off items) to more than EUR 75 mn (previously EUR 70 mn).

The interim report 1-6/2016 of conwert Immobilien Invest SE is available on the website http://www.conwert.com.

Key performance indicators

1-6/2016 1-6/2015 Change 1-12/2015
Rental income EUR mn 107.1 113.5 -5.7% 226.1
Proceeds from sale of properties EUR mn 153.6 92.5 66.0% 272.6
Revenues from property services EUR mn 3.6 3.7 -2.0% 7.7
Total revenue EUR mn 264.3 209.7 26.0% 506.4
EBITDA EUR mn 51.4 59.2 -13.2% 116.6
EBIT EUR mn 146.0 61.5 137.4 181.3
EBT EUR mn 102.5 29.2 n.m. 100.7
Group earnings after tax*) EUR mn 74.9 24.5 n.m. 83.3
Funds from operations before sales income (FFO I)**) EUR mn 39.3 25.7 52.6% 53.4
Funds from operations after sales income (FFO II)***) EUR mn 39.4 29.0 35.7% 64.8
Net Rental Result (NRR) EUR mn 71.6 74.7 -4.1% 148.8
NRR margin % 66.8 65.8 1.6% 65.8
Adjusted NRR margin****) % 89.1 87.1 2.3% 87.2
Basic earnings/share*) EUR 0.75 0.27 176.8% 0.95
Diluted earnings/share*) EUR 0.71 0.27 162.7% 0.85
FFO I**)/share EUR 0.43 0.31 37.0% 0.64
Financial result EUR mn (43.6) (32.3) -34.8% (80.6)


Balance sheet indicators
30/06/2016 31/12/2015 Change
Total assets*) EUR mn 2,872.5 2,886.1 -0.5%
Non-current loans and borrowings EUR mn 928.6 1,028.2 -9.7%
Current loans and borrowings EUR mn 247.3 246.3 0.4%
Equity*) EUR mn 1,354.0 1,260.6 7.4%
Equity ratio*) % 47.1 43.7 7.9%
Gearing*) % 90.3 107.8 -16.2%
Diluted EPRA NAV/share*) EUR 16.40 15.61 5.0%


Property indicators
30/06/2016 30/06/2015 Change 31/12/2015
Rental units No. 26,687 29,896 -10.7% 27,494
Parking spaces No. 10,623 12,340 -13.9% 11,386
Total usable space sqm 2,084 2,363 -11.8% 2,175,867
Property assets EUR mn 2,677.7 2,757.1 -2.9% 2,692.3
Vacancy rate % 6.7 8.9 -24.3% 6.6
ø Rent EUR /sqm/m 6.40 6.36 0.5% 6.42
l-f-l NCR growth (% yoy) % 1.1 1.1*****) - 1.5


****) Retrospective adjustment of the equity breakdown to majority and minority shareholders due to the reallocation of a capital reserve according to IAS 8.41 in the half-year financial statement 2016 for 2015.
**) FFO I: Earnings before tax (EBT) - difference between sales and carrying amount of sold properties + operating expenses of sales result -/+ revaluation result + depreciation and value adjustments + non-cash part of financial result and other non-cash costs + one-off charges - cash taxes on net rental business
***) FFO II: FFO I + difference between sales and carrying amount of sold properties - operating expenses of sales result
****) Adjusted NRR margin: margin on net rental income (rental income less running costs charged to tenants)
*****) Hold portfolio

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This release contains forward-looking 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 realized at a later date, may differ from the forecasts presented here for a variety of reasons.

(end)

Emitter: conwert Immobilien Invest SE
Alserbachstraße 32
1090 Vienna
Austria
Contact Person: Clemens Billek
Phone: +43 1 52145-700
E-Mail: cwi@conwert.at
Website: www.conwert.at
ISIN(s): AT0000697750 (Share)
Stock Exchange(s): Vienna Stock Exchange (Official Trade)
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