EANS-News: GSW Immobilien AG raises annual forecast for FFO I

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6-month report

Berlin (euro adhoc) - GSW Immobilien AG raises annual forecast for
FFO I * Net rental income climbs to E78.9million * Vacancy rate down
to 3.2 percent * Average rent increases to E5.14/sqm * Adjusted
EBITDA rises to E66million * Consolidated net income of E25million *
FFO I of E32.6million

Berlin, 20 August 2012 - This first six months of this year have
again been highly eventful for GSW Immobilien AG. The MDAX-listed
property portfolio holding company successfully concluded a capital
increase at the start of May 2012. At the end of June 2012, GSW held
its first Annual General Meeting as a listed company, at which its
shareholders approved all items on the agenda. These two events, a
tenable and stable business model and a positive development in
operating activities again contributed to a healthy performance in
the first half of 2012. The full interim report for the first six
months of the 2012 financial year can be viewed and downloaded from
today at www.gsw.de. In the first six months, GSW continued to
benefit from the positive development in its operating activities.
Net rental income rose by around 13.3 percent year-on-year to
E78.9million. At the same time, the vacancy rate declined to around
3.2 percent while in-place rents increased by 4 percent to E5.14 per
square metre per month in the same period. Strong rental and property
disposal income drives up earnings EBIT for the first half of the
year declined slightly as against the same period of 2011 to
E66.3million. However, the previous year's EBIT was influenced
considerably by the extraordinary effects from events such as the
sale of BMH Berlin Mediahaus GmbH and the expenses for the IPO.
Adjusted for these effects, EBIT rose significantly by E10million.
"This increase is primarily due to improved net rental income as a
result of higher rents, a lower vacancy rate and good results from
disposals," said Jörg Schwagenscheidt, Member of the Board of
Management of GSW Immobilien AG. EBITDA declined to a similar degree
as EBIT in the reporting period. As against the first half of 2011,
however, adjusted EBITDA was up 11.6 percent at E66million and
therefore in line with forecasts. Overall, GSW concluded the first
six months of 2012 with consolidated net income of E25million (2011:
E28.8million), a year-on-year slide of E3.8million. However, the
consolidated net income in 2011 was largely influenced by the
disposal of BMH in January 2011 in the amount of E25.4million as well
as expenses for the IPO. By contrast, the figure relevant to the
dividend, FFO I (funds from operations, not including the result of
disposals) rose by 12.4 percent as against the previous year to
E32.6million due to operating performance and increased portfolio
size. Successful capital increase influences net asset value Net
asset value (EPRA NAV), the Group's economic capital, increased to
E1,394.3million as per the end of the first half of the year. The
loan-to-value ratio declined to a current 51.5 percent. In
particular, this was due to the proceeds from the capital increase.
Compared to 31 December 2011, net asset value (EPRA NAV) per share
dipped from E29.72 to E27.59 owing to the higher number of shares
following the capital increase and the distribution of the dividend
of E0.90 per share. GSW successfully carried out a capital increase
at the start of May 2012. More than 90 percent of the new shares
offered were subscribed to by existing shareholders at a price of
E21.30 each, thereby generating net issue proceeds of E191.2million.
"Our business model combines sustainable growth with an attractive
dividend policy. The additional capital will enable us to continue
pushing ahead with this strategy and allow our shareholders to
participate in the company's success," said Thomas Zinnöcker,
Chairman of the Board of Management at GSW. First Annual General
Meeting paves the way for future growth GSW also held its first
Annual General Meeting as a listed company at the end of June 2012.
All items on the agenda were approved with a majority by the Annual
General Meeting. At the proposal of the Management Board and the
Supervisory Board, 99.99 percent of shareholders at the Annual
General Meeting voted in favour of the distribution of a dividend for
the 2011 financial year of E0.90 per entitled share. This corresponds
to a total amount of around E45.5million. The GSW Annual General
Meeting also resolved new authorised and contingent capital with a
large majority. "This will secure the company's future growth and
financial flexibility," said Andreas Segal, GSW'S CFO. GSW Management
Board raises annual forecast for FFO I to approximately E61 to E64
million The successful capital increase, the favourable general
conditions on the Berlin residential market and a positive
development in operating activities have prompted the Management
Board of GSW to adjust its forecast for FFO. "We are projecting FFO I
of approximately E61 to E64million for the 2012 financial year," said
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- 233
1960

About GSW With a portfolio of around 52,300 residential units, GSW
Immobilien AG is one of the leading private residential property
companies in Berlin. In addition, a subsidiary of GSW manages around
17,700 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. The company's
property portfolio as of 31 December 2011 was valued at around
E2.9billion.

Further inquiry note:
René Bergmann
Tel.: +49 30 2534 1362
Fax: +49 30 2534 233 1960
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: Berlin, regulated dealing/prime standard:
Frankfurt
language: English