EANS-News: Strong start in first quarter for GSW Immobilien AG

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

3-month report

Berlin (euro adhoc) - Strong start in first quarter for GSW
Immobilien AG

• Net rental income up 9% compared to Q1 2010 to EUR 34.8 million

• Vacancy down 12% to 3.7% within the last 12 months

• Adjusted EBITDA rises 12.4% to EUR 28.8 million

• Consolidated earnings of EUR 36 million for first quarter

• Net asset value climbs to over EUR 1 billion

Berlin, 31 May 2011. The Berlin residential company GSW Immobilien
AG, listed on the Frankfurt stock exchange since 15 April 2011, has
enjoyed a good start to its first reportable quarter.

Earnings figures improved

Net rental income climbed by 9% to EUR 34.8 million in the first
quarter of 2011 (Q1 2010: EUR 31.9 million). "In particular, the key
factors driving the increase in rental income were the reduction in
the vacancy rate from 4.2% to 3.7% and the positive development of
the average net basic rent per square metre per month," explained
GSW´s CFO Andreas Segal. The Berlin company increased this figure
from EUR 4.84 to EUR 4.92.

The 2011 rent index was published yesterday for the State of Berlin
and showed an average rent of EUR 5.21 per square meter per month for
the German capital. "The current rent level shows that GSW rents are
still trailing the Berlin market," said Jörg Schwagenscheidt, COO at
GSW, on the publication of Berlin´s rent index (Mietspiegel).

The increase in EBIT from EUR 7.7 million to EUR 51.2 million is due
to a number of extraordinary effects. Among other things, EBIT for Q1
2011 included income of more than EUR 25 million from the disposal of
broadband cable business.

Taking into account the non-recurring effects, GSW´s adjusted EBITDA
increased from EUR 25.6 million to EUR 28.8 million (up 12.4%).In the
first quarter of 2011, GSW generated Consolidated net income of EUR
36.0 million after EUR -11.3 million in the previous year.

FFO I of between EUR 54 million and EUR 59 million forecast for year
as a whole

Funds from operations (FFO I), the figure relevant for dividend
payments, amounted to EUR 13.2 million as at the end of the first
quarter of 2011. With 41.052 million shares, this corresponds to FFO
I per share of EUR 0.32. "We are anticipating FFO I of between EUR
54 million and EUR 59 million for the year as a whole," forecasts
Segal. GSW is planning to distribute around 65% of its FFO I as a
dividend.

Successful refinancing in first quarter

In the first quarter, GSW refinanced a credit securitisation deal of
around EUR 890 million, maturing by no later than 2013 (CMBS loan),
well ahead of schedule. Given the new bilateral loan agreements with
six German banks, GSW therefore has no further notable refinancing
requirements until 2016. The higher average interest rate of the
refinanced loans compared to the securitisation transaction in favour
of securing a long-term financing structure will influence the FFO
over the year.

Rise in equity ratio and net asset value

As of 31 March 2011, GSW´s IFRS equity ratio was 37.8%
(31 December 2010: 36.4%). The company´s EPRA NAV rose on account of
the positive results for the quarter by EUR 30.7 million from EUR
991.4 million as at 31 December 2010 to EUR 1,022.1 million. Based on
41.052 million shares after the capital increase, this corresponds to
EPRA NAV per share of EUR 24.90. Given the analysis as at the end of
the reporting period, these figures do not yet include the net
proceeds of around EUR 100 million from the capital increase as part
of the IPO.

The Loan to Value (LTV) ratio as at 31 March 2011 was 59.9% after
61.1% as at the end of the previous year (31 December 2010).

Value of portfolio unchanged at EUR 2.6 billion

The property portfolio is valued each year as at 31 December. The
value of the property portfolio is therefore unchanged at EUR
2.6 billion. In the first quarter, GSW acquired 101 residential units
in Berlin Reinickendorf. 122 apartments were sold.

Capital increase and successful IPO

The shares of GSW were listed on the regulated market (Prime
Standard) on 15 April 2011. The issue volume of the approximately
24.6 million shares placed, including full utilisation of the
greenshoe option, was EUR 468 million. GSW Immobilien AG received
gross issue proceeds of around EUR 115 million from the issue of new
shares. GSW´s IPO was the biggest flotation on a German stock
exchange to date this year. The issue price per share was EUR 19.00.
In the context of the listing, the first price for GSW shares was
stipulated as EUR 19.55 per share and the closing price on the first
day of trading was EUR 21.50 per share, corresponding to an increase
of 13% from the issue price. On account of the shares issued, the
interest held by the existing shareholders of GSW was reduced to
approx. 40%. GSW´s shares have been included in all key EPRA indices
since 18 April 2011 due to fast entry regulations. The EPRA indices
are a key benchmark for institutional real estate equity investors.

Contact

GSW Immobilien AG
Charlottenstraße 4, 10969 Berlin

|Press |Investor Relations |
|Thomas Rücker |Sebastian Jacob |
|e-mail: thomas.ruecker@gsw.de |E-Mail: sebastian.jacob@gsw.de |
|Tel.: +49. (0) 30. 25 34-13 32 |Tel.: +49 (0) 30. 2534-1882 |
|Fax: +49. (0) 30. 25 34-19 34 |Fax: +49 (0) 30. 2534-1909 |

About GSW

Founded in 1924, GSW Immobilien AG is a leading private residential property
company in Berlin with a portfolio of around 48,800 residential units and total
residential space of 3.0 million sqm. A subsidiary of GSW also manages around

15,800 residential- and commercial units for third parties. GSW´s
corporate strategy is focussed on the long-term management of rented
apartments, using a systematic approach intended to enhance customer
satisfaction and operational efficiency. As at 31 December 2010, the
company´s property portfolio was valued at around EUR 2.6 billion.

end of announcement euro adhoc
--------------------------------------------------------------------------------

company: GSW Immobilien AG
Charlottenstr. 4
D-10969 Berlin
phone: +49 30 68 99 99 0
FAX: +49 30 68 99 99 999
mail: kundenservice@gsw.de
WWW: http://www.gsw.de
sector: Real Estate
ISIN: DE000GSW1111
indexes:
stockmarkets: regulated dealing/prime standard: Frankfurt, regulated dealing: Berlin
language: English

ots Originaltext: GSW Immobilien AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

René Bergmann
Tel.: +49 30 2534 1362
Fax: +49 30 2534 1909
E-Mail: rene.bergmann@gsw.de

Branche: Real Estate
ISIN: DE000GSW1111
WKN: GSW111
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / regulated dealing