The first six months were extremely successful for conwert Immobilien Invest AG. Record results were achieved in sales and earnings figures. Compared to last year's period, turnover rose by 243% to €89.78m. Earnings before income and taxes (EBIT) increased by 201% to €47.46m. Property assets were expanded to €1.476m. conwert will also continue its growth in the second semester.
In the first six months of 2006, conwert was able to reach record levels in all of its sales and earnings figures. Compared with the same period of the previous year, sales revenues increased by 243% to €89.78m. There was particularly strong growth in sales, since the company took advantage of the predominant demand dynamics on the Vienna market in order to divest itself of single properties for portfolio optimisation. In the business segment "Letting & Development of older residential properties", 11 properties totalling €45m were sold at profit, compared to two properties sold for €5.22m in last year's period. In the "Sale of flats" business segment revenues of €10.43m were achieved, an increase of 86%. All together conwert drew a profit of €7.93m from selling single properties and freehold flats during the reporting period, compared to €1.53m in the first six months of 2005.
Compared to last year's period, revenues from rental income increased to €34.34m, a rise of 124%. Factors responsible for the strong growth included successfully concluded development projects, the constantly rising rental level in Vienna, Germany and the Czech Republic as well as the consistent expansion of the company's property portfolio.
Earnings before income and taxes (EBIT) increased by 201% to €47.46m and already exceed the figures of the fiscal year 2005 (€45.55m). This growth is mostly due to the profits from apartment and property disposals as well as higher revenues from rental income. The new appraisal of our properties by independent experts in the framework of fair value adjustments totalling €23.86m positively affected our result, in which both new additions - especially the properties acquired in the Alliance package - as well as properties already in our portfolio contributed to the appreciations. Earnings before tax (EBT) rose from €10.23m to €34.57m. The net result after minority interests rose by 190% to €23.15m, although this result was disproportionally burdened with latent, not liquidity-related income taxes due to real estate sales and fair value adjustments. Actual, cash-related tax on profits expenses were not assessed during the reporting period.
In expanding its property portfolio, conwert steadily continued its dynamic growth. In the first six months of 2006, conwert was thus able to expand its property portfolio in Austria, Germany, and the Czech Republic to 899 properties, compared to 598 properties by December 31, 2005 and 243 to the same period of the previous year. As of June 30, 2006, the total usable space of these properties was 1,154,332 m² of which, pursuant to the business model, 71% are used as apartments. Property assets rose to €1,476m - an increase of 62% in the first six months of 2006 or 149% in 12 months.
The company's acquisition activities primarily focused on the additional purchase of property packages in Austria and Germany. The most significant transaction in the second quarter of 2006 was the purchase of the Allianz properties in Austria. conwert will also continue its company expansion in the second half-year of 2006.
The management intends to use the healthy market environment for residential properties in the 2006 fiscal year to further expand its property portfolio. In addition to strengthening market leadership in Vienna, conwert will also push the internationalisation of the company. In order to do so, conwert will consistently utilise attractive investment opportunities as well in markets, in which conwert is already present as well as in other residential property markets in Europe. Thus, in July 2006,