EANS-Adhoc: conwert Immobilien Invest SE / conwert with positive 9-month results: good business development and significant increase in earnings

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9-month report

24.11.2010

conwert with positive 9-month results:
good business development and significant increase in earnings

+ Good operating business development: increase in rents and high
margins on sales + Initial consolidation after takeover of ECO leads
to positive net effect on earnings of EUR 36.2 million.

Vienna, 24 November 2010. conwert Immobilien Invest SE, which is
listed on the Vienna Stock Exchange, concluded the first three
quarters of 2010 with very positive interim results. The good
development of operating business led to an increase in rental income
and high profit margins on sales. The initial consolidation of ECO
had a positive net effect on earnings of 36.2 million. Earnings
before interest and taxes (EBIT) therefore rose by 51% to EUR 110.7
million compared to the prior-year period, profit after tax to EUR
45.4 million (1-9/2009: EUR 21.4 million). Consequently, the
residential property group expects a profit for the whole year 2010
which enables a dividend payout.

Positive development in all segments

The residential property markets in conwert´s core markets Austria
and Germany showed a sustained dynamic development in the period
under review. High demand and low supply in inner-city metropolitan
regions led to significant price increases in the high-quality
segment of apartments and apartment buildings.

In the first three quarters of 2010, conwert raised rental income to
EUR 131.3 million, up 10% on the prior-year figure. Organic growth of
rental income (on a like-for-like basis for an unchanged portfolio
without acquisitions) amounted to 5%, which was primarily due to a
substantial reduction of vacancies in all regions.

In the sales segment, conwert increased the profit margins noticeably
in comparison with the prior-year period. Based on IFRS values, the
profit margins rose from 10% in the first three quarters of 2009 to
15% in 2010. The cash profit margin (based on acquisition costs) was
raised from 15% to 19%. The operating result generated by the sales
business was increased by 7% to EUR 16.7 million despite a decline in
sales volume (EUR 210.4 million vs. EUR 268.5 million). Sales volume
was lower because of the dissolution of a joint venture in the
previous year, which resulted in the sale of properties totalling EUR
70 million.

conwert increased service revenues from EUR 50.7 million to EUR 55.5
million in the first nine months of 2010. Third-party business
remained stable at EUR 26.3 million, as the expansion of the service
business for external customers was contrasted by the
reclassification of the ECO revenues from external to internal
service revenues.

Due to the one-off effect in the sale of properties segment last
year, total revenues, at EUR 386.0 million, fell short of the figure
of the prior-year reference period (1-9/2009: EUR 414.5 million).

Positive earnings figures and cash earnings

The good operating development and the contribution to earnings from
the initial consolidation of ECO led to stable earnings before
interest, taxes, depreciation and amortisation (EBITDA) of EUR 77.2
million in the first three quarters of 2010 after EUR 80.7 million in
the reference period of the previous year, despite higher personnel
and material costs marked by one-off effects. The revaluation result
was slightly positive at EUR 1.3 million in the reporting period
1-9/2010 (1-9/2009: EUR 0.2 million). Earnings before interest and
tax (EBIT) rose by 51% to EUR 110.7 million in particular due to
positive effects from the consolidation of ECO, and more than
compensated the negative effects on the result from impairment losses
at subsidiaries. The financial result deteriorated from EUR -46.4
million to EUR -67.6 million, which was primarily attributable to
effects of the consolidation of ECO. Nevertheless, earnings before
tax increased significantly from EUR 26.8 million to EUR 43.0
million. Profit after tax soared by 112% to EUR 45.4 million. Basic
earnings per share rose to EUR 0.37, versus EUR 0.26 in the
prior-year period.

In the first nine months the operating cash key figures also showed
positive values. Net rental income (NRI), a key figure which reflects
the management efficiency of the rental portfolio, increased in
comparison with the prior-year period to EUR 75.6 million (1-9/2009:
EUR 70.7 million). Due to lower earnings effects from the buyback of
convertible bonds, a slightly weaker sales volume as well as
extraordinary expenses, funds from operations (FFO), at EUR 35.7
million in the first nine months of 2010, fell short of the figure of
the prior-year period of EUR 51.4 million.

Property portfolio grows to EUR 3.3 billion

The value of the property portfolio increased to EUR 3.3 billion,
above all due to the takeover of ECO, compared with EUR 2.5 billion
at the beginning of the year. Total usable space expanded to 2.5
million sqm (12/2009: 2.0 million sqm). As a result of the
integration of the office and commercial properties of ECO, the
portion of residential properties fell to roughly 57% of the
portfolio. The regional focus remained unchanged, with Austria and
Germany accounting for 96%.

Particularly due to the takeover of the ECO properties the balance
sheet total of conwert increased from EUR 2,962.5 at 31.12.2009 to
EUR 3,679.9 million at 30.09.2010. On the liabilities side, equity
rose from 1,279.9 million at year-end 2009 to EUR 1,338.9 million
now. The equity ratio declined to 36.4% as a result of the takeover
of ECO (12/2009: 43.2%). In contrast, the net asset value per share
(NAV/share) increased slightly from EUR 15.20 at 30.06.2010 to EUR
15.33.

Positive Outlook

The economic recovery in Europe is likely to continue in the
remaining part of the financial year 2010. Therefore conwert expects
the positive development to continue for the residential and
commercial property markets in Austria and Germany. Especially
metropolitan regions should benefit from the expected economic upturn
and the continuous population growth. As there is a deficit in supply
and new construction activities are still low, prices and rents are
expected to increase further, especially in good locations. In
addition, demand for high-quality residential properties as an
inflation-protected form of investment continues to be strong.

In rental business conwert expects further growth. In the sale of
properties segment, the previous target of EUR 275 million in the
whole year will be exceeded. The margins on the sale of properties
are expected to match the historic levels reached (10-15% IFRS profit
margin). In the property service segment, the focus is placed on a
further expansion of third-party business. Above all in the area of
asset management for foreign funds conwert sees further growth
opportunities.

Provided that the capital market and the real economy show a stable
development as expected, conwert expects the company´s positive
operating development to continue. The positive earnings development
of the year 2009 should therefore be surpassed in the 2010 financial
year, leading to a profit that enables a dividend payout.

The Interim Report 1-9/2010 of conwert Immobilien Invest SE is
available on the website www.conwert.at.

Earnings indicators
1-9/2010 1-9/2009 Change 1-12/2009
Rental income EUR mill. 131.3 119.6 +10% 162.3
Proceeds sale of properties EUR mill. 210.4 268.5 -22% 361.3
Service revenues EUR mill. 26.3 26.3 - 36.6
Total revenues EUR mill. 368.0 414.5 -11% 560.1
EBITDA EUR mill. 77.2 80.7 -4% 105.0
EBIT EUR mill. 110.7 73.2 +51% 94.9
FFO 1) EUR mill. 35.7 51.4 -30% 72.6
Net Rental Income (NRI) EUR mill. 75.6 70.7 +7% 94.6
Cash Profit 2) EUR mill. 34.8 50.5 -31% 68.0
Basic earnings/share EUR 0.37 0.26 +42% 0.29
Diluted earnings/share EUR 0.37 0.26 +42% 0.29
Funds from Operations/share EUR 0.44 0.63 -30% 0.90

Balance sheet indicators
9/2010 9/2009 Change 12/2009
Balance sheet total EUR mill. 3,679.9 2,957.6 +24% 2,962.5
Non-current loans&borrowings mill. 1,258.3 944.5 +33% 968.3
Current loans & borrowings EUR mill. 502.5 336.1 +50% 320.8
Equity EUR mill. 1,338.9 1,274.1 +5% 1,279.9
Equity ratio % 36.4 43.1 - 43.2
Gearing % 158.0 116.8 - 115.0
Book value (NAV)/share EUR 15.33 15.57 -1% 15.68

Property indicators
9/2010 9/2009 Change 12/2009
Number of objects No. 1,857 1,721 +8% 1,752
Rental units No. 27,194 24,986 +9% 24,548
Total usable space sqm 2,514,742 2,020,014 +24% 2,018,254
Property assets EUR mill. 3,315.7 2,523.6 +31% 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 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

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