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

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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."

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.

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: MDAX

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Rückfragen & Kontakt:

Kati Pohl
Tel.: +49 30 25 34-13 40
E-Mail: Kati.Pohl@gsw.de