conwert Immobilien Invest AG posted record sales and earnings figures in fiscal year 2005. In the last year, sales revenues moved up 135% to EUR 105.37m. The key profit ratios also climbed to new highs: EBIT rose by 122% to EUR 45.55m, the net result after minority interest climbed 172% to EUR 24.68m. Property assets were systematically expanded both nationally and internationally. At EUR 911.83m, property assets nearly reached the EUR 1bn mark. In the current fiscal year, conwert will continue this dynamic development.
In fiscal year 2005, sales revenues increased to EUR 105.37m. There were above-average rises in revenues from property disposals and revenues from rental income. In the Letting & development of older residential properties business segment, strong demand for individual investments was utilised to optimise the portfolio with a total of 17 properties with a value of EUR 51.30m being sold at a profit in the past fiscal year after 9 proprieties with a total value of EUR 12.48m in the previous year. In the Sale of flats business segment, disposal proceeds improved by 22% to EUR 16.95m. Overall, conwert generated profits of EUR 11.69m from selling individual properties and apartments. This represents an increase of 247% against the previous year. In fiscal year 2005, rental income doubled year-on-year to EUR 37.12m.
In comparison to the previous year, EBIT rose by 122% to EUR 45.55m. The revaluation of properties through independent appraisers positively impacted the figure as a result of fair value adjustments totalling EUR 17.60m. The Group result after minority interest rose by 172% to EUR 24.68m.
In fiscal year 2005, conwert expanded the property portfolio to 598 properties in Austria, Germany and the Czech Republic, after 209 properties as of 31st December 2004. The management took advantage of the positive market environment to strengthen conwerts position in these three countries. The focus of acquisition activities lay on high-quality property packages in Austria and in Germany and on individual investments in the Czech Republic. Total property assets increased to EUR 911.38m a rise of 82% against the figure of the previous year.
With the purchases in Germany and the Czech Republic, conwert increased its international share of the property portfolio to 31%. At the end of fiscal year 2004, the figure was 25%.
The conwert management will again take advantage of the good market environment in Austria, Germany and the Czech Republic to extend the property portfolio in the current fiscal year. On the core market of Vienna, conwert will further strengthen its leading position as expert for the development of older residential properties in 2006.
Furthermore, conwert will pursue the international alignment of the company. In addition to Germany and the Czech Republic, conwert will continue to actively utilise investment opportunities. The company is also examining further attractive residential properties in Europe on an ongoing basis.
The result of this rigorous growth strategy should be increasing revenue and profit figures in the current year. The Management Board anticipates a further increase of rental income and sales proceeds. In line with the expected revenues increase, earnings should also increase and consequently should exceed the result of fiscal year 2005.
As has been the case, conwert will implement this growth only on the basis of a solid balance sheet with an appropriate equity level. For this reason conwert convened an extraordinary shareholders meeting on 9th March 2006. At this meeting conwert intends to have a capital increase resolved to rise share capital by up to EUR 195.6m to EUR 586.8m.
Source: conwert
