EANS-Adhoc: conwert Immobilien Invest SE / conwert with strong growth in revenues in the first quarter of 2011

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announcement.
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3-month report

20.05.2011

Vienna, 20 May 2011. conwert Immobilien Invest SE, which is listed on
the Vienna Stock Exchange, reported strong operating growth in the
first quarter of 2011. In comparison to the prior-year reference
quarter, revenues increased by 37% to EUR 126.8 million, earnings
before interest and taxes improved by 24% to EUR 27.6 million, and
earnings before interest, taxes, depreciation and amortisation rose
by 21% to EUR 30.2 million. In the sales business, attractive prices
and a profit margin of more than 11% were realised. Proceeds on the
sale of properties were 44% higher than in the comparable prior-year
quarter. FFO (including sales) amounted to EUR 14.9 million after EUR
13.0 million in the prior-year reference period. The property assets
of conwert totalled EUR 3,197.2 million as of 31 March 2011 (versus
EUR 2,533.2 million in Q1/2010). Overall, conwert owned 1,790 objects
at 31 March 2011, 21 less than at 31 December 2010, which was due to
increased sales activities. At 31 March 2011, conwert´s equity
amounted to EUR 1,351.6 million and was EUR 21.5 million higher than
at the end of 2010 (EUR 1,330.1 million). The equity ratio rose to
38.4% (12/2010: 37.5%). Cash and cash equivalents equalled EUR 80.5
million at the end of the period, thus significantly exceeding the
figure of EUR 66.2 million at year-end 2010. Net assets per share
(book value (NAV)/share) increased from EUR 15.56 at year-end 2010 to
EUR 15.90. Therefore the current share price is roughly 28% below the
NAV.

On a like-for-like basis, rental income rose by 4.17%, thus
significantly exceeding the inflation rate. Net rental income (NRI)
improved by 40% to EUR 32.4 million, which corresponds to an improved
NRI margin of 60%. At 31 March 2011, rental income amounted to EUR
53.9 million, up 37% on the prior-year quarter (EUR 39.2 million).
The average contractual rent amounted to EUR 6.41 at the end of the
first quarter of 2011 (previous year: EUR 5.82). Thanks to strong
demand for residential properties, the vacancy rate dropped from
17.3% in the first quarter of 2010 to 15.9%. Vacancies in the
residential property portfolio fell significantly by 23% to 13.4%
compared to the previous year.

Service revenues from third parties declined slightly by 6% to EUR
7.7 million due to the takeover of the ECO portfolio. Adjusted to the
commissions for the management of the ECO portfolio, service revenues
increased by 10% year-on-year (from EUR 7.0 million at 31 March
2010).

In the first quarter of 2011, conwert started to optimise the
property portfolio and sold properties totalling EUR 65.3 million. As
a result, proceeds on the sale of properties were 44% higher than in
the first quarter of 2010. The company is thus pursuing the new
strategy, which in addition to sales in Austria and Eastern Europe
provides for optimising and strengthening business in Germany.

In Berlin conwert acquired a property portfolio containing a total of
1,689 residential and 160 retail units in sought-after locations in
the western part of Berlin. The portfolio, which consists of 125,805
sqm, was acquired with an initial yield of 7.9% before vacancies. It
is a value added portfolio with disproportionately high growth
potential. To deploy the equity in the most efficient way, a
joint-venture with an equity partner is intended while current
negotiations are taking place.

Against the background of the good operating results in the first
quarter of 2011, the planned further portfolio optimisation and the
positive outlook for the developments in the German and Austrian
rental markets, conwert expects the earnings before interest and
taxes to increase by 15% not considering fair value adjustments of
the real estate portfolio. The improved earnings should be the basis
for a dividend-payment on last year`s level. The NAV-growth should
result in 2.5 - 3% increase without calculating any extraordinary
evaluation effects.

The company forecasts organic growth in rental income of 4 to 5%. In
the sales segment, conwert plans to part with 15% of the total
portfolio realising positive profit margins. Sales amounting to EUR
99.3 million, which will have an effect on revenues of the second
quarter, have already been concluded. Further sales transactions are
currently in progress.

As of the newly implemented strategic orientation and in view of the
good economic development, conwert expects a reduction of the vacancy
rate in the residential property portfolio to less than 10% by the
end of the year.

The increased focus on residential properties in Germany and Austria
will be consistently implemented in the course of the year. The
company will gradually sell commercial properties. Another focus will
be the extended cooperation with institutional investors in Germany
and Austria in the service business segment.

In order to enhance transparency and codify the ethical principles of
the entrepreneurial activities the Executive Board of conwert adopted
a Code of Conduct on 14 March 2011. This Code is part of a
comprehensive compliance management system, which is to be fully
implemented by the second quarter of 2011, and can be viewed on the
company´s website at www.conwert.at.

conwert aims to achieve a reduction of the difference between NAV and
share price for the whole year 2011. The compliance management system
is supposed to enhance the transparency and therefore make the
conwert share more attractive. In addition, the streamlining process
for the organisation structure started. The optimisation of the
internal structures will proceed during the remaining financial year.

The interim report 1-3/2011 of conwert Immobilien Invest SE will be
available on the website www.conwert.at as of 25 May 2011.

Earnings indicators

| |1-3/2011|1-3/2010 |Change |1-12/2010 |
|Rental income EUR mill. |53.9 |39.2 |+38 % |187.7 |
|Proceeds on the sale of |65.3 |45.3 |+44 % |325.1 |
|properties EUR mill. | | | | |
|Service revenues EUR mill. |7.7 |8.2 |-6 % |34.4 |
|Total revenues EUR mill. |126.8 |92.7 |+37 % |547.2 |
|Earnings before interest, | | | | |
|taxes, |30.2 |24.9 |21 % |184.9 |
|depreciation and | | | | |
|amortisation | | | | |
|(EBITDA) EUR mill. | | | | |
|Earnings before interest and|27.6 |22.2 |+24 % |103.2 |
|taxes | | | | |
|(EBIT) EUR mill. | | | | |
|Funds from Operations |14.9 |13.0 |+15 % |53.6 |
|(FFO)1) EUR mill. | | | | |
|Net Rental Income (NRI) EUR |32.4 |23.3 |+39 % |103.9 |
|mill. | | | | |
|Cash Profit2) EUR mill. |14.8 |12.9 |+15 % |44.0 |
|Basic earnings/share EUR |0.06 |0.05 |+20 % |0.29 |
|Diluted earnings/share EUR |0.06 |0.05 |+20 % |0.29 |
|Funds from Operations/share |0.15 |0.16 |-6 % |0.65 |
|EUR | | | | |

Balance sheet indicators
| |1-3/2011|1-3/2010 |Change |1-12/2010 |
|Balance sheet total EUR |3,517.1 |3,056.8 |+15 % |3,550.8 |
|mill. | | | | |
|Non-current loans and |1,166.7 |978.9 |+19 % |1,211.9 |
|borrowings EUR mill. | | | | |
|Current loans and borrowings|458.4 |289.8 |+58 % |456.1 |
|EUR mill. | | | | |
|Equity EUR mill. |1,351.6 |1,266.6 |+7 % |1,330.1 |
|Equity ratio % |38.4 |41.4 |- |37.5 |
|Gearing % |144.6 |118.7 |- |151.8 |
|Book value (NAV)/share EUR |15.90 |15.84 |2.2 % |15.56 |

Property indicators
| |1-3/2011|1-3/2010 |Change |1-12/2010 |
|Number of objects no. |1,790 |1,746 |-21 % |1,811 |
|Rental units no. |25,719 |24,576 |+2 % |25,194 |
|Total usable space sqm |2,426,14|2,019,795 |-1 % |2,453,049 |
| |9 | | | |
|Property assets EUR mill. |3,197.2 |2,533.2 |-1 % |3,238.3 |

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
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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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issuer: conwert Immobilien Invest SE
Albertgasse 35
A-1080 Wien
phone: 52145-0
FAX: 52145-111
mail: cw@conwert.at
WWW: http://www.conwert.at
sector: Real Estate
ISIN: AT0000697750
indexes: WBI, ATX
stockmarkets: official market: Wien
language: English

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 peter.sidlo@conwert.at

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