EANS-News: GSW Immobilien AG posts positive nine-month figures for 2011

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9-month report

Berlin (euro adhoc) - GSW Immobilien AG posts positive nine-month
figures for 2011

• Consolidated net income rises up significantly to EUR 54.8 million
(previous year: EUR 20.0 million)
• Adjusted EBITDA of EUR 86.4 million as expected
• FFO I of EUR 40.4 million
• Equity ratio climbs to 40.3%
• Net asset value (EPRA) rises to EUR 28.20 per share

Berlin, 30 November 2011 - GSW Immobilien AG continued its positive
business performance from the first half of the year in the third
quarter and enjoyed a successful close of the first nine months of
the financial year 2011. GSW generated significantly higher
consolidated net income compared to the same period of the previous
year. The company´s operating activities continued to perform in a
stable manner. The full interim report for the first nine months of
the financial year 2011 can be viewed and downloaded at www.gsw.de.

Results confirm stability and continuity of business model

Despite a smaller property portfolio as compared to the same
period of the previous year, GSW´s net rental income remained
virtually constant. It declined slightly year-on-year as of
30-September-2011 to EUR 102.8 million (2010: EUR 107.1 million).
The basis for this good result was the reduction of vacancy as of
30-September-2011 from 4.0% to 3.6% while at the same time
increasing the average rent for residential units from EUR 4.90 per
square meter to EUR 4.95.

In addition to the positive development in operating activities, the
clear rise in EBIT from EUR 69.2 million to EUR 103.8 million is also
due to non-recurring other income of EUR 25.4 million generated
mainly by the disposal of the cable network Berlin Mediahaus GmbH
(BMH).

EBITDA amounted to EUR 104.6 million in the reporting period
after EUR 84.1 million in the first nine months of 2010. After the
adjustment for non- recurring effects such as project costs for the
IPO in April 2011 and income from the sale of BMH, the adjusted
EBITDA amounted to EUR 86.4 million, down slightly on the
previous year´s level of EUR 91.0 million.

Overall, GSW closed the first nine months of 2011 with a
consolidated net profit of EUR 54.8 million, a clear rise in
earnings compared to the same period of the previous year (EUR
20.0 million). Based on the weighted average number of shares,
earnings per share rose to EUR 1.42 (previous year: EUR 0.57).
"Reasons for the solid figures are our stable business model with
its clear focus on the Berlin residential market and our
robust financing structure", explained Thomas Zinnöcker, CEO of GSW
Immobilien AG.

Management Board confirms FFO I guidance of EUR 54 million to EUR
59 million for 2011

In the first nine months of 2011, the figure relevant to the
dividend, FFO I (funds from operations, excluding sales result)
amounted to EUR 40.4 million (previous year: EUR 62.2 million), in
line with GSW´s forecasts for this period. The drop in FFO I was
essentially a result of higher interest payments after the
refinancing of securitised loans in February. Based on 41.05 million
shares, FFO I per share for the reporting period was EUR 0.98.

In consideration of the positive development of the Berlin
residential market, GSW can look ahead with optimism and anticipates
rising rents with a positive impact on the company´s sales and
earnings. "We can therefore confirm the forecast already published
for the 2011 financial year of FFO I of between EUR 54 million and
EUR 59 million. At the same time, this is an important basis for
being able to pay our shareholders a dividend after just our first
year as a listed company," confirmed Andreas Segal, CFO of GSW.

GSW buys residential portfolio with around 4,800 units

GSW has also taken another key step forward in the implementation of
its corporate strategy. Effective 1 November 2011, around 4,800 units
in good locations across Berlin were acquired for approximately EUR
330 million. In particular, the above-average rents and relatively
low vacancy rate of this portfolio will have a positive effect on our
earnings power from the next financial year.

"From 2012, we are expecting an additional FFO I of EUR 6.5 million
to EUR 7.5 million per year. We are delighted that we have been able
to invest the capital raised by the IPO so promptly. It is a part of
our corporate strategy to expand our professional property platform
through external growth in the coming years as well," said COO Jörg
Schwagenscheidt.

Net asset value and equity ratio up significantly

GSW´s equity (IFRS) rose to EUR 1,113.9 million as of the end of the
reporting period, an increase of around 14.1% as against
31-December-2010. Taking into account the increase in equity, EPRA
NAV (net asset value) also increased significantly to EUR
1,157.9 million as of 30-September-2011, corresponding to EUR 28.20
per share. Thanks to this positive result, the equity ratio
improved to 40.3% (31-December-2010: 36.4%). The property portfolio
of GSW, which is regularly remeasured as of 31th December of
each year, is still valued at around EUR 2.6 billion.

Stable share price performance contrary to market trend

The stability and continuity of GSW´s business model has had a
stabilising effect on the development of its share price in recent
months, as a result of which GSW´s shares significantly
outperformed the market as a whole.

Further proof of GSW´s good acceptance on the capital market was the
successful placement of a total of 8.2 million shares held by the two
biggest shareholders Cerberus and Whitehall after the end of the
reporting period of 30-September- 2011. This transaction took
place on 13 October and lasted just a few hours in the face of
strong demand. Thus, Cerberus and Whitehall each reduced their
shareholdings to around 10%. At the same time, free float rose
significantly to 74%, which can have a positive effect on the
liquidity of GSW shares in future. "This makes the company more
attractive to institutional investors and strengthens our
positioning on the German capital market," said CFO Andreas
Segal.

Contact
GSW Immobilien AG
Charlottenstrasse 4, 10969 Berlin, Germany

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 25 34-18 82
Fax: +49 (0) 30 25 34-19 34 Fax: +49 (0) 30 25 34-19 09

About GSW Founded in 1924, GSW Immobilien AG is a leading private
residential property company in Berlin with a portfolio of around
53,000 residential units and total residential space of 3.3 million
sqm. In addition, a subsidiary of GSW manages approximately 17,350
residential and commercial units for third parties. GSW´s corporate
strategy is geared towards the long-term management of rented
apartments, using a systematic approach intended to enhance customer
satisfaction and operational efficiency. As of 31-December-2010, the
company´s property portfolio was valued at around EUR 2.6 billion.
Since then GSW has acquired residential properties with a value of
around EUR 330 million.

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

end of announcement euro adhoc
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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: MDAX
stockmarkets: regulated dealing/prime standard: Frankfurt, regulated dealing:
Berlin
language: English