conwert Immobilien Invest SE

conwert generates record earnings in 2016

Public disclosure of inside information according to article 17 MAR

Vienna (pta022/20.03.2017/16:57) - - + FFO I up by 49.7% to a record value of EUR 80.0 mn
+ Net profit improves by 51.1% to EUR 124.1 mn
+ Sales of EUR 286.7 mn concluded - EUR 617.6 mn including the HanseMerkur commercial package, which closed in early 2017
+ Net revaluation gains more than triple to EUR 206.9 mn
+ Lower FFO I expected for 2017 due to sales

conwert Immobilien Invest SE (conwert), listed on the Austrian ATX, achieved improvements in practically every key indicator in the 2016 business year. FFO I (Funds from Operations before sales and one-off items), an important indicator of the property company's operating performance, saw a year-on-year rise of 49.7% to EUR 80.0 mn (2015: EUR 53.4 mn). EBIT grew by 64.2% to EUR 297.8 mn (2015: EUR 181.3 mn). Below the line, conwert increased its consolidated earnings after tax (net profit) by 51.1% to EUR 124.1 mn, following on from EUR 82.1 mn in the previous year. The strong operating performance and positive market environment led to a significant increase in net revaluation gains to EUR 206.9 mn (2015: EUR 66.0 mn).

Revenues held steady at EUR 505.3 mn (2015: EUR 506.4 mn). Here sales proceeds climbed to EUR 286.7 mn (2015: EUR 272.6 mn), mainly because of sales from the non-core portfolio. The strategic sale of non-core properties meant that the IFRS gains on sale of EUR 14.2 mn were 25.0% lower than the previous year (2015: EUR 18.9 mn). The IFRS margin declined by 2.3 percentage points year-on-year and stood at 5.2% in 2016. The previously announced sale of a commercial property portfolio for around EUR 331 mn to HanseMerkur closed after year-end 2016. As expected, rental income slipped back - as the result of the streamlined portfolio - to EUR 211.2 mn (2015: EUR 226.1 mn).

Strong operating performance
conwert achieved significant improvements in its operating business: vacancy rates in the core residential sector fell from 3.1% in the previous year to 2.8%. On a like-for-like basis, rental income in the core portfolio underwent a 2.9% rise year-on-year. The smaller property portfolio meant that the Net Rental Result (NRR) of EUR 139.2 mn was below the value of the previous year (2015: EUR 148.8 mn). The NRR margin held steady at 65.9% (2015: 65.8%); on an adjusted basis it was 87.2% (2015: 87.2%).