EANS-News: GSW Immobilien AG increases operating result in first nine months of 2012

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9-month report

Berlin (euro adhoc) - GSW Immobilien AG increases operating result in
first nine months of 2012 * Net rental income increases to EUR120.9
million * Adjusted EBITDA up at EUR100.7 million * Vacancy rate
decreases to 3.2 percent * Average rent increases to EUR5.17/m² * FFO
I (excluding sales result) increases to EUR50.0 million * Management
Board confirms annual forecast for 2012 * Further purchase of around
3,000 apartments planned for this year * Acquisitions to positively
impact operating margins and FFO starting in 2013

Berlin, 15 November 2012 - In the first nine months of this year, GSW
Immobilien AG successfully structured its rental and management
business whilst continuing to expand. Positive developments in
operating activities once again contributed to a strong performance
in the first nine months of this year. In addition, the MDAX-listed
real estate group purchased approximately 4,400 apartments in Berlin,
which will have a long-term positive impact on operating margins and
FFO starting from 2013. The full interim report for the first nine
months of the 2012 financial year can be viewed and downloaded at
www.gsw.de.

In the first nine months, GSW continued to benefit from positive
developments in its operating activities. The real estate company
also increasingly focussed on continuing to successfully optimise the
management of its property portfolio. For instance, net rental income
rose by 17.6 percent to EUR120.9 million compared with the first nine
months of 2011. At the same time, the vacancy rate fell to roughly
3.2 percent, while the monthly in-place rent climbed by 4.4 percent
to EUR5.17 per square metre in the same period. On a like-for-like
basis (the property portfolio not including purchases and disposals)
in-place rent increased by 3.2 percent in the past 12 months.

Higher rental income drives up operating profit EBIT also rose by
around 8 percent to EUR102.3 million as compared to the same period
of 2011. "However, the prior-year figure was influenced to a large
extent by non-recurring effects such as the gain on the disposal of
the broadband cable business in January 2011 (EUR25.4 million) and
expenses in connection with the IPO in April 2011. Adjusted for these
non-recurring effects, EBIT increased substantially by EUR20.1
million, largely as a result of the higher net rental income and
result on the disposal of investment property," said the company's
CFO, Andreas Segal. Due to the strong market demand for properties in
Berlin at present, GSW had sold around 709 residential and commercial
units by the end of September (9M 2011: 480 units). Accordingly, the
result of disposals increased significantly year-on-year to EUR7.7
million. EBITDA grew to a similar degree to EBIT in the reporting
period. As against the same period of 2011, however, adjusted EBITDA
was up 16.5 percent at EUR100.7million and therefore in line with
expectations. Overall, GSW concluded the first nine months of 2012
with consolidated net income of EUR40.7 million (2011: EUR45.8
million), representing a year-on-year slide of EUR5.1million largely
due to non-recurring effects in the previous year.

GSW Management Board confirms annual forecast By contrast, the figure
relevant to the dividend, FFO I (funds from operations, excl. sales
result), rose by 23.7 percent compared to the same period in the
previous year to EUR50.0million as a result of operating performance
and the larger portfolio. In addition, sound foundations for the
long-term stability of FFO have been laid through active financial
management and a sustainable financial structure. "The situation on
the Berlin housing market remains positive and stable. We are
therefore confident of achieving the FFO I of approximately EUR61
million to EUR64 million targeted for the 2012 financial year," said
Segal. Net asset value (EPRA NAV), which represents the Group's
economic equity, increased to EUR1,412.0 million at the end of
September. The loan-to-value ratio fell to 51.1 percent. Net asset
value (EPRA NAV) per share declined from EUR29.72 as of 31 December
2011 to EUR27.95 as a result of the larger number of shares following
the capital increase as well as the dividend payment of EUR0.90 per
share.

Purchase of 4,400 apartments completed, further acquisitions planned
GSW also continued to expand in the current year, purchasing a total
of 4,400 apartments. As early as the end of October, purchase
agreements for a total of around 4,400 apartments in Berlin were
concluded in three transactions. The average apartment size is
approximately 51 square metres; the in-place rent for these
portfolios is around EUR5.32 per square metre per month, and the
vacancy rate is 2.4 percent. The purchase price for the three
portfolios totals around EUR200 million, or EUR873 per square metre.
However, the acquisitions will only impact earnings starting in the
coming year, as the transfer of risks and rewards or ownership is to
be completed at the turn of the year.

This successful growth strategy is set to continue. GSW is already in
the advanced stages of negotiations to buy around 3,000 more
apartments. The purchase deal is expected to be completed shortly.
The current acquisitions will also influence the future results of
the Berlin-based real estate company in the long term. CFO Andreas
Segal: "Starting from next year, the new portfolios will have a
positive impact on our operating margins. In addition, our FFO will
rise significantly, not least due to the higher rental income."

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 52,100 residential units, GSW Immobilien
AG is one of the leading private residential property companies in
Berlin. GSW's corporate strategy is focused on the long-term
management of rental properties, applying a systematic approach aimed
at increasing both customer satisfaction and operating efficiency. As
at 31 December 2011, the company's property portfolio was valued at
around EUR2.9billion. Since then GSW has acquired approximately 4,400
apartments with a value of around EUR200million.

Further inquiry note:
Kati Pohl
Tel.: +49 30 25 34-13 40
E-Mail: Kati.Pohl@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