conwert Immobilien Invest SE

conwert achieves record half-year - Seite 2

Proactive asset management and the positive growth on the markets led to a significant valuation increase in the property portfolio of EUR 95.5 mn (1-6/2015: EUR 3.0 mn). Earnings before interest and taxes (EBIT) climbed by 137.4% to EUR 146.0 mn (1-6/2015: EUR 61.5 mn).

In terms of revenue, the further optimisation of the portfolio had a positive impact. In the course of streamlining the portfolio conwert already achieved sales in the first - and typically weaker - half of the year valued at EUR 153.6 mn (1-6/2015: EUR 92.5 mn). Of this total, EUR 142.3 mn related to the non-core sector (1-6/2015: EUR 78.9 mn). When all of the sales announced by August are included, the sales volume is already at around EUR 185 mn. Rental income slipped back slightly in the first half to EUR 107.1 mn (1-6/2015: EUR 113.5 mn) because of sales.

Further improvements to the financing and balance-sheet structure
Progress in terms of financing was reflected in the financing costs with an effect on cash in the first half of the year. These were cut in half compared to the same period of the previous year from EUR (31.4) mn to the current EUR (15.9) mn. In contrast, the financial result was temporarily hampered by non-cash effects from the remaining swaps and totalled EUR (43.6) mn (1-6/2015: EUR (32.3) mn).

The loan to value (LTV) - debt in relation to property projects under inclusion of cash and cash equivalents - underwent a further reduction and stood at just 44.6% at 30 June 2016 (31/12/2015: 51.0%). The equity ratio rose to 47.1% (31/12/2015: 43.7%).

Outlook: record year expected
For the remainder of the business year 2016 conwert expects the market environment to remain positive. The company will continue to consistently pursue the optimisation of the portfolio and asset management, as well as the sale of properties from the non-core portfolio. conwert is planning further reductions in the properties in the non-core portfolio and intends to sell a total of around EUR 300-350 mn worth of non-core properties in 2016. The sales proceeds should increasingly be reinvested in property portfolios in the core regions. With regard to earnings, the optimisation and cost-cutting measures which have already been introduced are expected to have a positive impact from the fourth quarter. From today's viewpoint, conwert thereby expects a new record year and has increased the guidance for FFO I (funds from operations before sales and one-off items) to more than EUR 75 mn (previously EUR 70 mn).