DGAP-News

KWG Kommunale Wohnen AG: KWG AG shows substantial earnings increases

DGAP-News: KWG Kommunale Wohnen AG / Key word(s): Final Results/Real
Estate
KWG Kommunale Wohnen AG: KWG AG shows substantial earnings increases

14.04.2014 / 08:00

---------------------------------------------------------------------

- Net Rental Income rises to EUR 30.7 mn. (prev. EUR 19.8 mn.)
- FFO more than doubles to EUR 5.4 mn. (prev. EUR 2.0 mn.)
- NNNAV per share at EUR 11.38 (prev. EUR 11.16)
- Positive outlook for business year 2014

Hamburg - 14 April 2014 - KWG Kommunale Wohnen AG, a long-term oriented
property holding company of residential real estate in which Austrian
conwert Immobilien Invest SE holds a 77% majority stake, looks back upon a
successful course of its FY 2013:

Considerable increase in earnings / outperformance of guidance

Revenues in FY 2013 increased to EUR 45.7 mn. after EUR 27.9 mn. in the
previous year. Net Rental Income in the KWG-Group rose from EUR 19.8 mn. in
2013 to EUR 30.7 mn. and increased considerably during the course of the
year. Q4 2013 Net Rental Income amounted to EUR 7.5 mn. versus prior year's
level of approx. EUR 5.5 mn. during the comparable quarter.

In the business year 2013 the Funds from Operations (FFO) more than doubled
to 5.4 mn. versus EUR 2.0 mn. in the previous year. With this substantial
increase KWG AG outperformed its guidance of EUR 5.0 mn. The Group's Net
Result of EUR 1.2 mn. in 2013 is based on a positive operating cash flow of
EUR 3.8 mn.

Net asset value enhancement / conservative balance sheet structure

The Triple Net Asset Value (NNNAV) per share climbed from EUR 11.16 in 2012
to EUR 11.38 in 2013. By the year end the KWG-share showed a discount of
approx. 44% to the NNNAV per share. The Loan to Value (LTV) was kept at a
reasonable debt level standard with 55.5% (2012: 56.2%) and was in line
with the guidance of KWG AG. The value of KWG AG's property assets declined
slightly due to property sales and value adjustments in the portfolio from
EUR 428.1 mn. in 2012 to EUR 424.5 mn. in 2013. Hence, the property assets
per sqm increased from EUR 712 in 2012 to EUR 723 in 2013.

The positive operative development is based on the consistent optimization
of the KWG AG portfolio and on rent increases for properties acquired in
2012. With EUR 14.7 mn. almost half of the rental income in 2013 was
realized with the acquired properties.

Further increase of earnings in 2014 expected

For the fiscal year 2014 the management board of KWG AG expects an ongoing
positive development. KWG AG plans to carry on its approach to sell