EANS-Adhoc: conwert Immobilien Invest SE / conwert presents successful half-year report: EBIT climbs 9% to EUR 51.7 million

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25.08.2010

conwert presents successful half-year report: EBIT climbs 9% to
EUR 51.7 million

+ Second quarter sees rising revenues in all areas as against first
quarter of 2010 + Strong positive earnings performance: EBIT up 9%
year-on-year to EUR 51.7 million in first half-year + Successful ECO
acquisition to increase value and income from third quarter

Vienna, 25 August 2010. Listed company conwert Immobilien Invest SE
has concluded the first half of 2010 with an encouraging interim
balance sheet. The residential property company significantly
improved on its satisfactory operating performance in the opening
quarter of the year in the second quarter of 2010. The strong demand
for residential property and the push in sales activities had a
positive impact on all business areas. For example, conwert recorded
5% growth in rental income (EUR 41.3 million), 62% growth in revenues
from the sale of properties (EUR 73.3 million) and 30% growth in
service revenues (EUR 10.7 million) in the second quarter of 2010 as
against the first three months of the financial year.

With this strong operating development in the second quarter of 2010,
the previous year´s earnings levels were maintained or even
outperformed in the first six months of 2010. With revenues down
slightly on the previous year at EUR 218.0 million in the first half
of 2010 (1-6/2009: EUR 227.9 million) conwert generated a
year-on-year rise in EBIT of 9% to EUR 51.7 million.

The full inclusion of ECO Business-Immobilien in consolidation will
improve value and income from the third quarter of 2010 onwards:
Thus, conwert is anticipating a positive earnings effect of around
EUR 35-50 million from first-time consolidation.

Increase in rental income and service revenues

conwert increased its rental income by 0.2% year-on-year to EUR 80.5
million in the first half of 2010. In the reporting period, conwert
made up for the lack of rental income due to the sale of a total of
636 units with its successes in asset management.

In sales business, conwert increased its revenues significantly in
the second quarter of 2010 to EUR 73.3 million, a rise of 62% as
against the first three months of 2010. As, unlike in the previous
year, there were no major package transactions in the first quarter
of 2010, disposal proceeds declined to EUR 118.6 million in the first
six months after EUR 130.2 million. Sales were again significantly
higher than their IFRS carrying amounts. The IFRS profits amounted to
EUR 14.3 million with a profit margin of 14%. Based on total
investment costs, conwert generated a cash profit of EUR 20 million
with a profit margin of 20%.

conwert´s service revenues increased from EUR 33.2 million to EUR
37.1 million in the first half of 2010. EUR 18.9 million of this was
generated in business with third parties, an increase of 9% on the
previous year´s figure of EUR 17.4 million. The second quarter of
2010 went particularly well, with major agency and asset management
orders in Austria and Germany being realised in revenues.

Positive earnings figures and cash earnings

conwert generated strong positive earnings in the first half of 2010.
Thanks to the strong operating development, the earnings level was
maintained or even exceeded in spite of the lack of non-recurring
income from the buy-back of convertible bonds (EUR 0.5 million after
EUR 10.2 million in the first half of 2009). conwert generated EBITDA
of EUR 50.6 million on lower revenues (1-6/2009: EUR 55.6 million).
The value of conwert properties, the success of asset management and
the further improvement in the market environment were reflected in
the gain on remeasurement of EUR 6.2 million after EUR 3.1 million
in the same period of the previous year. conwert´s EBIT increased by
9% to EUR 51.7 million (1-6/2009: EUR 47.3 million). The financial
result was down on the previous year at EUR 34.3 million (1-6/2009:
EUR 29.8 million). Nonetheless, EBT was clearly positive and stable
year-on-year at EUR 17.4 million (1-6/2009: EUR 17.5 million).
conwert´s profit after tax rose by 4% to EUR 14.0 million. Basic
earnings per share were also roughly on par with the previous year´s
level at EUR 0.15 (1-6/2009: EUR 0.17). In addition, solid figures
were achieved for operating cash in the first six months: conwert
generated EUR 47.2 million in net rental income (NRI) (1-6/2009: EUR
48.1 million) and funds from operations of EUR 27.4 million despite
the lack of income from the buy-back of convertible bonds (1-6/2009:
EUR 44.4 million).

Stable value in property portfolio - NAV of EUR 15.20 per share

In the first half of 2010, the property portfolio grew by EUR 103.6
million as against 31 December 2009 to EUR 2,261 million. As at 30
June 2010, the portfolio consisted of 1,787 properties with total
usable space of 2.05 million sqm.

Total assets increased by 5% as against 31 December 2009 to EUR
3,107.9 million. The reported equity of conwert increased as a result
of the resale of treasury shares in particular from EUR 1,279.9
million as at the end of 2009 to EUR 1,296.7 million as at 30 June
2010. At 42%, the equity ratio remained at a high level (December
2009: 43%). However, net asset value per share declined year-on-year
from EUR 15.68 at the end of 2009 to EUR 15.20 as at the reporting
date on account of the higher number of shares (resale of 6,296,699
treasury shares). Nonetheless, the share price is still around 40%
below NAV.

Confirmation of positive outlook for 2010

conwert expects the stable development for the residential property
markets in Austria and Germany to continue. Metropolitan regions in
particular should benefit from the expected economic upswing and the
continuous population growth. In addition to the existing excess
demand, prices and rents will increase further as new construction
activity is still low, particularly in good locations. Moreover,
demand for high-quality residential properties as an
inflation-protected form of investment is still strong.

In this environment, conwert is anticipating that operating business
developments will remain positive. conwert will also reduce the
vacancies in its property portfolio. Rental income in the second half
of the year will exceed the level for the first half on account of
new leases, rent hikes and new acquisitions.

Several transactions are currently being prepared in the property
sales segment. For 2010 as a whole, conwert is therefore still
planning revenues from the sale of properties of roughly 10% of the
current property portfolio, or EUR 275 million. The margins on the
sale of properties are expected to match the historic levels achieved
to date (10-15% IFRS profit margin). Overall, the property portfolio
will grow significantly as against the end of 2009 as a result of the
absorption of the ECO-Immobilien portfolio.

The property service segment will focus on a further expansion of
third-party business. conwert feels there are further growth
opportunities in the area of asset management for foreign funds in
particular.

If the capital market and real economy continue to develop in a
stable manner as forecast, conwert is anticipating a continuation in
its positive operating business development. In addition, the full
inclusion of ECO in consolidation will improve value and income from
the third quarter of 2010 onwards. The positive earnings performance
of 2009 should therefore be outstripped in the 2010 financial year
with corresponding income opening the door for dividend payments.

The Financial Report 1-6/2010 of conwert Immobilien Invest SE can be
found on the website www.conwert.at.

Earnings indicators
1-6/2010 1-6/2009 Change 1-12/2009
Rental income EUR mill. 80.5 80.3 - 162.3
Proceeds on the sale
of properties EUR mill. 118.6 130.2 -9% 361.3
Service revenues EUR mill. 18.9 17.4 9% 36.6
Total revenues EUR mill. 218.0 227.9 -4% 560.1
EBITDA EUR mill. 50.6 55.6 -9% 105.0
EBIT EUR mill. 51.7 47.3 9% 94.9
FFO 1) EUR mill. 27.4 44.4 -38% 72.6
Net Rental Income (NRI) EUR mill. 47.2 48.1 -2% 94.6
Cash profit2) EUR mill. 26.8 44.3 -40% 68.0
Basic earnings / share EUR 0.15 0.17 -12% 0.29
Diluted earnings / share EUR 0.15 0.17 -12% 0.29
Funds from operations / share EUR 0.34 0.55 -38% 0.90

Balance sheet indicators
6/2010 6/2009 Change 12/2009
Balance sheet total EUR mill. 3,107.9 2,976.8 4% 2,962.5
Non-current loans/borrowings EUR mill. 1,006.2 970.3 4% 968.3
Current loans and borrowings EUR mill. 268.8 327.6 -18% 320.8
Equity EUR mill. 1,296.7 1,273.2 2% 1,279.9
Equity ratio % 41.7 42.8 - 43.2
Gearing % 120.6 116.5 - 115.0
Book value (NAV)/share EUR 15.2 15.56 -2% 15.68

Property indicators
6/2010 6/2009 Change 12/2009
Number of objects No. 1,787 1,699 5% 1,752
Rental units No. 24,720 24,301 2% 24,548
Total usable space sqm 2,048,719 1,990,205 3% 2,018,254
Property assets EUR mill. 2,621.0 2,519.1 4% 2,517.4

1) 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
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
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ots Originaltext: conwert Immobilien Invest SE
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

conwert Immobilien Invest SE,

Peter Sidlo, Head of Corporate Communications - Investor Relations,

T +43 / 1 / 521 45-250,

E sidlo@conwert.at

Metrum Communications,

Roland Mayrl,

T +43 / 1 / 504 69 87-331,

E r.mayrl@metrum.at

Branche: Real Estate
ISIN: AT0000697750
WKN: 069775
Index: WBI
Börsen: Wien / official market