conwert Immobilien Invest SE

conwert generates record earnings in 2016 - Seite 2

Balance sheet structure strengthened, liabilities reduced
conwert significantly improved its balance sheet structure and financing terms in the 2016 business year.

The loan to value (LTV) - debt in relation to property assets - was decreased still further and stood at 40.8% at 31 December 2016 (31.12.2015: 51.0%). The equity ratio rose sharply to 48.6% (31.12.2015: 43.7%). These positive developments in the balance sheet structure were achieved through the reduction in borrowed-capital liabilities and the increase in the share capital resulting from the conversion of the 5.25% and 4.5% convertible bonds.

The average cash-effective interest rates had fallen significantly as of the reporting date to just 1.97% (2015: 2.32%). Even though the financial result was burdened by non-cash effects from derivatives, it still improved to EUR (70.4) mn (2015: EUR (80.6) mn).

Outlook
In 2017 conwert will continue to focus on developing its residential property portfolio in the core markets. Property in the non-core portfolio should be sold off where possible. The goal is to generate sales volumes of around EUR 400-450 mn in the course of the full year. The sale of a large commercial property portfolio, initiated in 2016 and closed at the start of 2017, means that a significant share of the planned volume has already been fixed. Acquisitions and the related portfolio growth depend on the market availability of attractive portfolios.

In 2016 financing costs were reduced to such a level that they even seem attractive in light of the generally low interest rate environment. Successful portfolio streamlining means that LTV is set to fall to below 40% in 2017.

Following on from conwert more than doubling FFO I in the past two business years, conwert expects an FFO I between EUR 64 mn and EUR 74 mn in 2017. This decline is primarily due to the decrease in usable space resulting from the sale of large parts of the portfolio on non-core markets in 2016 and early 2017.

The 2016 Annual Report of conwert Immobilien Invest SE will be published on 29 March 2017 on the website http://www.conwert.com.

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This release contains forward-looking 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 realized at a later date, may differ from the forecasts presented here for a variety of reasons.