EANS-Adhoc: conwert Immobilien Invest SE / strong operating result enables higher dividend payout for the financial year 2010

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23.03.2011

Vienna, 23.03.2011. conwert Immobilien Invest SE, listed on the
Vienna Stock Exchange, reported a strong operating result in the
financial year 2010. The new dynamism in the capital and financial
markets, the resulting increase in demand for residential properties
and the takeover and consolidation of ECO Business-Immobilien AG led
to revenues totalling EUR 547.2 million. The profit on sales reached
a record level of EUR 37.7 million. Earnings before interest and
taxes (EBIT) recorded an increase by 9% to EUR 103.2 million, and
earnings before interest, taxes, depreciation and amortisation
(EBITDA) by 76% to EUR 184.9 million. Against the backdrop of this
positive development, the company intends to raise the dividend. The
proposed dividend to the Annual General Meeting amounts to EUR 0.30
per share.

In addition to the takeover of ECO Business-Immobilien AG, conwert
benefited from the economic upturn in the core markets Germany and
Austria as well as from the resulting higher demand for residential
properties in the financial year 2010. Private investors in
particular were looking for inflation-protected tangible assets,
preferably residential properties. In Berlin and Vienna, residential
property markets experienced a particularly strong development. In
this environment, rental income was raised significantly. Moreover,
the vacancy rate was lowered by 11% to 15.1%. Proceeds on the sale of
properties amounted to EUR 325.1 million.

Based on the strong operating development, conwert realised clearly
positive figures for all key earnings indicators in the year 2010.
The yield on market value of the letting portfolio increased to
5.18%, after 4.88% in 2009. Earnings before interest, taxes,
depreciation and amortisation (EBITDA) reached a record level, which
was above all due to the value-enhancing acquisition of ECO
Business-Immobilien AG, and were up 76% year-on-year to EUR 184.9
million. Financial results amounted to EUR -91.1 million in 2010
versus EUR -63.0 million in the year 2009, the reason being the
consolidated financial expenses of ECO Business-Immobilien AG. EBIT
rose by 9% to EUR 103.2 million, but was affected by higher
non-scheduled amortisation totalling EUR 69.2 million. The
amortisation resulted from impairment losses on customer
relationships and management contracts as well as goodwill. The
profit for the year rose by 8% to EUR 25.7 million. Earnings per
share, at EUR 0.29, remained at the prior-year level.

In the financial year 2010, conwert sold 2,057 residential units
(2009: 1,715). The selling business was significantly marked by the
sale of individual apartments. The profit margins were up 30% on the
previous year. At EUR 37.7 million, the highest gain on sales in the
company´s history and a double-digit IFRS profit margin of 13% were
realised. The cash margin amounted to 28%, which was primarily
attributable to the strong apartment sales.

Revenues in the property service segment rose by 23% to EUR 86.4
million and proved to be a stable earnings factor. 40% of the overall
service revenues were realised with external customers. Two new
third-party mandates in Germany were also concluded, especially the
second mandate with the Germany fund company DWS for the fund
management of a second closed-end residential property fund.

Following the takeover of ECO Business-Immobilien AG in the second
half of 2010, 60 commercial objects worth EUR 709 million were added
to conwert´s portfolio. This was the largest property transaction
since the establishment of conwert. The property assets of conwert
rose to EUR 3.3 billion due to the business combination. The
significantly improved operating result of ECO Business-Immobilien AG
also contributed to conwert´s strong operating performance as of the
initial consolidation at 1 August 2010, thus underscoring the
attractiveness of this acquisition.

conwert´s property assets amounted to EUR 3,238.3 million at the end
of the year 2010 (after EUR 2,517.4 million in 2009). Overall,
conwert´s portfolio consisted of 1,811 objects with total useable
space of roughly 2.5 million sqm at the end of 2010; the number of
rental units rose by 2.6% to 25,194.

As of 31 December 2010, conwert´s equity equalled EUR 1,330.1
million, up 4% on the previous year. The equity ratio amounted to
37.5% and is therefore still at a good level. Cash and cash
equivalents totalled EUR 66.2 million (2009: EUR 61.6 million) at the
end of 2010.

Net assets per share (book value (NAV)/share) remained nearly
unchanged at EUR 15.56 (2009: EUR 15.68). The stagnation of book
value was caused by the dividend payment, the lower number of
treasury shares and the slight deterioration in the valuation result
of the cash flow hedges. The gap between the share price and the NAV
was substantially reduced in 2010 - a development which has continued
since the beginning of the year 2011.

In view of the positive economic conditions for the year 2011,
conwert plans to increase the operating result further.

The strategic reorientation, which was started in the fourth quarter
of 2010, will be consistently implemented further in 2011.

In addition, the focus for the financial year 2011 will be placed on
optimising internal structures. This includes the introduction of a
new, uniform organisation structure with the objective to merge the
respective organisation units in Germany and Austria and to optimally
use synergies.

Based on the strong operating results in 2010, the strategic
reorientation and enhanced transparency, conwert expects the positive
development to continue in the financial year 2011.

The Annual Report 2010 of conwert Immobilien Invest SE will be
available on 31 March 2011 on the company´s website at
www.conwert.at.

Earnings indicators

EUR mill. 2010 2009 Change
Rental income 187.7 162.3 +16%
Proceeds on the sale of
properties 325.1 361.3 -10%
Service revenues 34.4 36.6 -6%
Total revenues 547.2 560.1 -2%
Earnings before interest,
taxes, depreciation and
amortisation(EBITDA) 184.9 105.0 +76%
Earnings before interest
and taxes(EBIT) 103.2 94.9 +9%
Funds from Operations (FFO) 1) 53.6 72.6 -26%
Net Rental Income (NRI) 103.9 94.6 +10%
Cash Profit 2) 44.1 68.0 -35%
Basic earnings/share (EUR) 0.29 0.29 -
Diluted earnings/share (EUR) 0.29 0.29 -
Funds from Operations/share
(EUR) 0.65 0.90 -28%

Balance sheet indicators
EUR mill. 2010 2009 Change
Balance sheet total 3,550.8 2,962.5 +20%
Non-current loans and
borrowings 1,211.9 968.3 +25%
Current loans and borrowings 456.1 320.8 +42%
Equity 1,330.1 1,279.9 +4%
Equity ratio (%) 37.5 43.2 -
Gearing (%) 151.8 115.0 -
Book value (NAV)/share (EUR) 15.56 15.68 -1%

Property indicators

2010 2009 Change
Number of objects 1,811 1,752 +3%
Rental units (No.) 25,194 24,548 +3%
Total usable space (sqm) 2,453,049 2,018,254 +22%
Property assets (EUR mill.) 3,238.3 2,517.4 +29%

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

end of ad-hoc-announcement ==========================================
====================================== 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, Managing Director, Head of Corporate Communications - Investor
Relations,
T +43 / 1 / 521 45-250,
E peter.sidlo@conwert.at

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