EANS-Adhoc: conwert Immobilien Invest SE / conwert generates positive half-year results

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6-month report

17.08.2011

Vienna, August 17, 2011. The Austrian ATX-traded conwert Immobilien
Invest SE concluded the first half-year 2011 with positive results.
The sales business, in particular, set a new record in the company´s
history. Proceeds on the sale of properties amounted to EUR 251.2
million, an increase of 111.8% or more than double the previous
year´s level of EUR 118.6 million. Net rental income also grew
considerably as a consequence of new successful rentals as well as
additional income from the recently acquired ECO portfolio. Rental
income totalled EUR 107.3 million as of the reporting date 30th June
2011, a rise of 33.3% from the corresponding figure of EUR 80.5
million in the previous year. Due to the complete internalisation of
service revenues for ECO Business-Immobilien AG since the third
quarter of 2010, external service revenues have declined since last
year by 23.3%, amounting to EUR 14.5 million as of 30th June 2011 (H1
2010: EUR 18.9 million). In all, total revenues amounted to EUR 373.1
million in the first half of 2011, a rise of 71.1%. The increased
revenues are also reflected in the very strong earnings before
interest and taxes (EBIT) of EUR 63.0 million in the first half-year,
up 22% from the previous year (H1 2010: EUR 51.7 million).

In line with the value enhancement strategy communicated at the
beginning of the year, conwert pressed ahead with the optimisation of
its real estate portfolio in the first half of 2011. In addition to
successive sales of commercial properties from the ECO
Business-Immobilien AG portfolio and real estate from the Central and
Eastern European portfolio, the strategy also includes the targeted
underweighting of the Austrian share of the real estate portfolio and
the strengthening of activities on the German market. Since the
beginning of the year, the number of properties owned by conwert has
been reduced from a total of 1,811 to 1,775 objects. The objective is
to continue to maintain the geographical diversification in the core
markets of Austria and Germany in the future. Thus conwert is in a
position to take selective advantage of market opportunities in the
acquisition or sale of real estate. The property assets of conwert
amounted to EUR 3,140 million on the reporting date, 30th June 2011,
compared EUR 3,238.3 million at the beginning of the year. The IFRS
profit margin on sales calculated in the first half-year was 9.2%,
whereas the cash margin amounted to 26.5% on the basis of the
acquisition price.

Thanks to good rental and sales trade, the funds from operations
(FFO) almost doubled, increasing by 98.9% to EUR 54.5 million (H1
2010: EUR 27.4 million).

As of 30th June 2011, conwert´s equity was EUR 1,306.9 million, an
increase of 0.8% compared to last year´s figures. Thus conwert boasts
a strong equity ratio of 37.6% compared to other companies in the
industry, a figure which will also enable conwert to systematically
exploit market opportunities that arise in the future.

In spite of numerous property sales, the net assets per share figure
(NAV) has increased only slightly to EUR 15.58 since the beginning of
the year. This is also due to the share buy-back programme of the
company, which will be continued in the future and will allow
conwert, amongst other things, to use treasury stock as a transaction
currency.

Against the backdrop of the positive business results achieved in the
first half of 2011, further planned portfolio optimisation and the
ongoing positive perspectives for the development of conwert´s core
markets of Austria and particularly Germany, the management confirms
the positive outlook for the entire year 2011. Earnings before
interest and taxes (EBIT) are expected to improve by 15%, with
proceeds on the sale of properties to reach a total of EUR 600
million. On the basis of the corresponding improvement in earnings, a
dividend payment matching the previous year´s level is still
expected.

With a view to achieving potential cost optimisation and enhancing
transparency, conwert has begun a comprehensive evaluation of all the
company´s external contracts and will subject them to an arm´s length
test. Furthermore, subsequent to the reporting date on 30 June 2011,
the sale of a portfolio valued at EUR 102.1 million was firmly agreed
upon as well as the conclusion of the participation process for the
Berlin Coinvest Portfolio. The transaction should be formally
completed in the third quarter of 2011.

The Interim Report 1-6/2011 of conwert Immobilien Invest SE is
available on the company´s Website at www.conwert.at.

Earnings indicators

| | |1-6/2011 |1-6/2010 |Change |1-12/2010 |
|Rental income |EUR mill.|107.3 |80.5 |+33% |187. 7 |
|Proceeds on the sale of|EUR mill.|251.2 |118.6 |+111.8% |325.1 |
|properties | | | | | |
|Service revenues |EUR mill.|14.5 |18.9 |-23.3% |34.4 |
|Total revenues |EUR mill.|373.1 |218.0 |+71.1% |547.2 |
|Earnings before |EUR mill.|64.1 |50.6 |+26.7% |184.9 |
|interest, taxes, | | | | | |
|depreciation and | | | | | |
|amortisation (EBITDA) | | | | | |
|Earnings before |EUR mill.|63.0 |51.7 |+21.9% |103.2 |
|interest and | | | | | |
|taxes (EBIT) | | | | | |
|Funds from Operations |EUR mill.|54.5 |27.4 |+98.9% |53.6 |
|(FFO)1) | | | | | |
|Net Rental Income (NRI)|EUR mill.|107.3 |47.2 |+33% |103.9 |
|Cash Profit2) |EUR mill.|54.21 |26.8 |+102% |44.0 |
|Basic earnings/share |EUR |0.10 |0.15 |-33.3% |0.29 |
|Diluted earnings/share |EUR |0.10 |0.15 |-33.3% |0.29 |
|Funds from |EUR |0.65 |0.34 |91.2% |0.65 |
|Operations/share | | | | | |

Balance sheet indicators

| | |1-6/2011 |1-6/2010 |Change |1-12/2010 |
|Balance sheet total |EUR mill.|3,425.7 |3,107.9 |10% |3,550.8 |
|Non-current loans and | | | | | |
|borrowings |EUR mill.|1,153.8 |1006.2 |+15% |1,211.9 |
|Current loans and |EUR mill.|435.4 |268.8 |+62% |456.1 |
|borrowings | | | | | |
|Equity |EUR mill.|1,306.9 |1,296.7 |+1% |1,330.1 |
|Equity ratio |% |38.10 |41.7 |-9% |37.5 |
|Gearing |% |149.01 |120.6 |+24% |151.8 |
|Book value (NAV)/share |EUR |15.58 |15.2 |+3% |15.56 |

Property indicators

| | |1-6/2011 |1-6/2010 |Change |1-12/2010 |
|Number of objects |No. |1,775 |1,787 |-0.7% |1,811 |
|Rental units |No. |26,038 |24,720 |+5.3% |25,194 |
|Total usable space |sqm |2,421,407|2,048,719|+18.2% |2,453,049 |
|Property assets |EUR Mio. |3,139.6 |2,621.0 |+19.8% |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 other 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.

Further inquiry note:
conwert Immobilien Invest SE
Investor Relations - Konzernkommunikation
T +43 / 1 / 521 45-700
E cw@conwert.at

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