EANS-Adhoc: conwert Immobilien Invest SE / strong operating result enables higher dividend payout for the financial year 2010

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23.03.2011

Vienna, 23.03.2011. conwert Immobilien Invest SE, listed on the Vienna Stock
Exchange, reported a strong operating result in the financial year 2010. The new
dynamism in the capital and financial markets, the resulting increase in demand
for residential properties and the takeover and consolidation of ECO
Business-Immobilien AG led to revenues totalling EUR 547.2 million. The profit
on sales reached a record level of EUR 37.7 million. Earnings before interest
and taxes (EBIT) recorded an increase by 9% to EUR 103.2 million, and earnings
before interest, taxes, depreciation and amortisation (EBITDA) by 76% to EUR
184.9 million. Against the backdrop of this positive development, the company
intends to raise the dividend. The proposed dividend to the Annual General
Meeting amounts to EUR 0.30 per share.

In addition to the takeover of ECO Business-Immobilien AG, conwert benefited
from the economic upturn in the core markets Germany and Austria as well as from
the resulting higher demand for residential properties in the financial year
2010. Private investors in particular were looking for inflation-protected
tangible assets, preferably residential properties. In Berlin and Vienna,
residential property markets experienced a particularly strong development. In
this environment, rental income was raised significantly. Moreover, the vacancy
rate was lowered by 11% to 15.1%. Proceeds on the sale of properties amounted to
EUR 325.1 million.

Based on the strong operating development, conwert realised clearly positive
figures for all key earnings indicators in the year 2010. The yield on market
value of the letting portfolio increased to 5.18%, after 4.88% in 2009. Earnings
before interest, taxes, depreciation and amortisation (EBITDA) reached a record
level, which was above all due to the value-enhancing acquisition of ECO
Business-Immobilien AG, and were up 76% year-on-year to EUR 184.9 million.
Financial results amounted to EUR -91.1 million in 2010 versus EUR -63.0 million
in the year 2009, the reason being the consolidated financial expenses of ECO
Business-Immobilien AG. EBIT rose by 9% to EUR 103.2 million, but was affected
by higher non-scheduled amortisation totalling EUR 69.2 million. The
amortisation resulted from impairment losses on customer relationships and
management contracts as well as goodwill. The profit for the year rose by 8% to
EUR 25.7 million. Earnings per share, at EUR 0.29, remained at the prior-year
level.

In the financial year 2010, conwert sold 2,057 residential units (2009: 1,715).
The selling business was significantly marked by the sale of individual
apartments. The profit margins were up 30% on the previous year. At EUR 37.7
million, the highest gain on sales in the company´s history and a double-digit
IFRS profit margin of 13% were realised. The cash margin amounted to 28%, which
was primarily attributable to the strong apartment sales.

Revenues in the property service segment rose by 23% to EUR 86.4 million and
proved to be a stable earnings factor. 40% of the overall service revenues were
realised with external customers. Two new third-party mandates in Germany were
also concluded, especially the second mandate with the Germany fund company DWS
for the fund management of a second closed-end residential property fund.

Following the takeover of ECO Business-Immobilien AG in the second half of 2010,
60 commercial objects worth EUR 709 million were added to conwert´s portfolio.
This was the largest property transaction since the establishment of conwert.
The property assets of conwert rose to EUR 3.3 billion due to the business
combination. The significantly improved operating result of ECO
Business-Immobilien AG also contributed to conwert´s strong operating
performance as of the initial consolidation at 1 August 2010, thus underscoring
the attractiveness of this acquisition.

conwert´s property assets amounted to EUR 3,238.3 million at the end of the year
2010 (after EUR 2,517.4 million in 2009). Overall, conwert´s portfolio consisted
of 1,811 objects with total useable space of roughly 2.5 million sqm at the end
of 2010; the number of rental units rose by 2.6% to 25,194.

As of 31 December 2010, conwert´s equity equalled EUR 1,330.1 million, up 4% on
the previous year. The equity ratio amounted to 37.5% and is therefore still at
a good level. Cash and cash equivalents totalled EUR 66.2 million (2009: EUR
61.6 million) at the end of 2010.

Net assets per share (book value (NAV)/share) remained nearly unchanged at EUR
15.56 (2009: EUR 15.68). The stagnation of book value was caused by the dividend
payment, the lower number of treasury shares and the slight deterioration in the
valuation result of the cash flow hedges. The gap between the share price and
the NAV was substantially reduced in 2010 - a development which has continued
since the beginning of the year 2011.

In view of the positive economic conditions for the year 2011, conwert plans to
increase the operating result further.

The strategic reorientation, which was started in the fourth quarter of 2010,
will be consistently implemented further in 2011.

In addition, the focus for the financial year 2011 will be placed on optimising
internal structures. This includes the introduction of a new, uniform
organisation structure with the objective to merge the respective organisation
units in Germany and Austria and to optimally use synergies.

Based on the strong operating results in 2010, the strategic reorientation and
enhanced transparency, conwert expects the positive development to continue in
the financial year 2011.

The Annual Report 2010 of conwert Immobilien Invest SE will be available on 31
March 2011 on the company´s website at www.conwert.at.

Earnings indicators

EUR mill.                       2010            2009        Change
Rental income                   187.7           162.3       +16%
Proceeds on the sale of 
properties                      325.1           361.3       -10%
Service revenues                34.4            36.6        -6%
Total revenues                  547.2           560.1       -2%
Earnings before interest, 
taxes, depreciation and 
amortisation(EBITDA)            184.9           105.0       +76%
Earnings before interest 
and taxes(EBIT)                 103.2           94.9        +9%
Funds from Operations (FFO) 1)  53.6            72.6        -26%
Net Rental Income (NRI)         103.9           94.6        +10%
Cash Profit 2)                  44.1            68.0        -35%
Basic earnings/share (EUR)      0.29            0.29        -
Diluted earnings/share (EUR)    0.29            0.29        -
Funds from Operations/share 
(EUR)                           0.65            0.90        -28%


Balance sheet indicators
EUR mill.                       2010            2009        Change
Balance sheet total             3,550.8         2,962.5     +20%
Non-current loans and 
borrowings                      1,211.9         968.3       +25%
Current loans and borrowings    456.1           320.8       +42%
Equity                          1,330.1         1,279.9     +4%
Equity ratio (%)                37.5            43.2        -
Gearing (%)                     151.8           115.0       -
Book value (NAV)/share (EUR)    15.56           15.68       -1%

Property indicators

2010            2009        Change
Number of objects               1,811           1,752       +3%
Rental units (No.)              25,194          24,548      +3%
Total usable space (sqm)        2,453,049       2,018,254   +22%
Property assets (EUR mill.)     3,238.3         2,517.4     +29%

1) FFO: Earnings before tax (EBT) minus the net gain from fair value adjustments
+ difference between cash gains on sale and IFRS gains on sale + depreciation +
non-cash parts of financial result and investment costs
2) Cash Profit: FFO minus actual income taxes paid

end of ad-hoc-announcement
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This report contains forward-looking estimates and statements that were made on
the basis of the information available at this time. Forward-looking statements
reflect the point of view at the time they are made. We would like to point out
that the actual circumstances and, consequently, the actual results realised at
a later date may differ from the forecasts presented in this report for a
variety of reasons.

Further inquiry note:
conwert Immobilien Invest SE,
Peter Sidlo, Managing Director, Head of Corporate Communications - Investor
Relations,
T +43 / 1 / 521 45-250,
E [email protected]
end of announcement euro adhoc
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issuer:      conwert Immobilien Invest SE
             Albertgasse 35
             A-1080 Wien
phone:       52145-0
FAX:         52145-111
mail:        [email protected]
WWW:         http://www.conwert.at
sector:      Real Estate
ISIN:        AT0000697750
indexes:     WBI, ATX

stockmarkets: official market: Wien
language: English

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