EANS-News: GSW Immobilien AG successfully closes the fiscal year 2012

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annual report/Annual Report 2012

GSW Immobilien AG successfully closes the fiscal year 2012

  • Consolidated net income improved by 36.3 percent to EUR 143.3 million
  • Net operating profit (EBIT) increased by 21 percent to EUR 214.4 million
  • FFO I increased by 13.5 percent to EUR 64.2 million
  • Vacancy rate reduced by 0.7 percentage points to 2.7 percent
  • Equity ratio improved from 38.4 to 40.4 percent
  • Net Asset Value (EPRA) increased from EUR 29.72 to EUR 30.21 per share

Berlin, 22 March 2013- GSW Immobilien AG can look back at an eventful and successful fiscal year 2012. With the successful capital increase, the placement of a convertible bond and the acquisition of 7,000 apartments, the MDAX-listed company was able to further consistently pursue its path of growth. Moreover, GSW was able to achieve its stated planning and forecasts in its operative business. Together with the apartments acquired in 2012, the Berlin-based real estate company managed around 60,000 residential and commercial units at the turn of the year, and thus one of the largest real estate portfolios in Berlin. In the fiscal year 2012 the income from rents increased by around EUR 19.0 million to EUR 202.1 million - a substantial plus of 10.4 percent. "The acquisition of a real estate portfolio in the fourth quarter of 2011 influenced this considerably, and was relevant to the results throughout the whole year of 2012 ", said Jörg Schwagenscheidt, COO of GSW Immobilien AG. The average rents, which were higher compared with the previous year, and the lower vacancy rate also contributed to this improvement in results. On the whole, the net rental income increased compared with 2011 by around 13.4 percent to EUR 160.0 million. It was possible to once again substantially reduce the vacancy rate by 0.7 percentage points to 2.7 percent. The monthly in-place rent increased in the same period of time by 2.8 percent to EUR 5.22 per square metre. In the like-for-like analysis, without acquisitions and sales, the in-place rent increased by 2.4 percent to EUR 5.20 per square metre in 2012. Also worth mentioning is the exceptionally good result on disposals: "Owing to the currently strong demand for real estate in Berlin, we were able to increase our result on disposals by EUR 6.3 million to EUR 9.6 million", said Schwagenscheidt.

In the fiscal year 2012, GSW invested a total of around EUR 46.4 million (2011:
EUR 41.1 million) in maintenance and modernisation for its real estate portfolio, of which around EUR 26.3 million (2011: EUR 19.8 million) were capitalised as measures for increasing the value.

Net operating profit and the consolidated net income of the period increase substantially
The net operating profit (EBIT) also increased to EUR 214.4 million (2011:
EUR 177.2 million). This is, however, influenced by special effects. Adjusted for one-off effects and project expenses, there is an increase in the EBIT by EUR 40.8 million, which primarily results from higher rental, sales and valuation results. The consolidated net income for the year increased to EUR 143.3 million (2011: EUR 105.1 million).

GSW is intending to keep the dividend per share constant
The development of the key figure Funds from Operations (FFO I), which is relevant for the dividend payment 2012, was particularly pleasing. The FFO I increased by 13.5 percent and was with EUR 64.2 million slightly higher than the forecast, thanks to one-off special effects. The Management Board has decided to propose a constant dividend payment in the amount of EUR 0.90 per share at the Annual General Meeting on 18 June 2013.

Value of the real estate assets increases to around EUR 3.3 billion The positive development of the operative business and the market rents were also further reflected in the valuation results of EUR 76.4 million; this has had a positive effect on the financial equity of the group. The EPRA Net Asset Value (EPRA NAV) increased by the end of the fiscal year by around 25 percent to EUR 1,526.2 million. This corresponds with a value of EUR 30.21 per share as of 31 December 2012. The equity ratio improved to 40.4 percent (31 December 2011:
38.4 percent). Over the course of the year, the Loan-to-Value ratio (LTV) fell compared with the previous year to 53.8 percent (31 December 2011: 58.0 percent). On the whole, GSW's portfolio showed a market value of approximately EUR 3.3 billion (EUR 909/ sqm) as of the key date.
During the past fiscal year, GSW continued the course of expansion and acquired a total of 7,000 residential units. The rental income generated will have a positive impact on the company results starting from 2013.

Capital increase and issue of a convertible bond secure the path of growth The growth was made possible by two essential measures: At the end of April 2012, GSW carried out a successful capital increase and placed around 9.5 million new shares.
Moreover, GSW was able to further optimise its cost of debt in 2012 by the placement of a convertible bond and guarantee a high degree of flexibility with the financing of new investments. "With the issue on 15 November 2012 we have, for the first time, placed a convertible bond on the capital market in the full scope. This has a term of seven years and securitises a coupon of 2 percent per annum. In total GSW generated net cash of more than EUR 370 million from the capital measures of 2012", said Andreas Segal, CFO of GSW.

Outlook 2013
"External growth through purchases is also planned in future", said Schwagenscheidt. "The bases for the success of GSW, in addition to its efficient business model, are also the positive economic development in Berlin and the housing market in Berlin." In recent years, the economic environment of Berlin has improved continuously. Falling unemployment rates, rising real incomes and a substantial increase in the population are having a positive influence on the housing market. Both rental apartments as well as condominiums were in high demand in the past year. New building activity has also developed positively, although it cannot satisfy the consistent increase in the demand for housing space. As a consequence, the rental and purchase prices increased over all price segments in 2012, something that will continue to have positive implications for the revenue position and results of operations of the company. "Based on further growth, we are expecting an increase in the FFO I of EUR 73 to 78 million for the fiscal year 2013", Segal said.

"In 2012, GSW took a further big step towards a sustainable future. After eight years, I am leaving a well-organised company", said the leaving CEO Thomas Zinnöcker. With the the business model focused on the management of residential real estate for a broad-based population segment in Berlin, and with its conservative financing structure, GSW has deliberately chosen a low-risk profile with a reasonable dividend yield for its shareholders. Sustainable growth and attractive dividend policies are thus combined.

GSW Immobilien AG's full annual report for 2012 is available for viewing and downloading at www.gsw.de starting today.

GSW Immobilien AG
Charlottenstraße 4, D-10969 Berlin

Investor Relations

Thomas Rücker Sebastian Jacob E-Mail: thomas.ruecker@gsw.de E-Mail: sebastian.jacob@gsw.de Phone: +49. (0) 30. 25 34-13 32 Phone: +49.(0)30.2534-18 82 Fax: +49. (0) 30. 25 34-19 34 Fax: +49.(0)30.2534-233 1960 About GSW With a portfolio of around 60,000 residential and commercial units, GSW

Immobilien AG, founded in 1924, is a leading market-listed real estate company 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 2012, the company's property portfolio was valued at around EUR 3.3 billion.

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:

René Bergmann
Tel.: +49 30 2534 1362
Fax: +49 30 2534 233 1960
E-Mail: rene.bergmann@gsw.de