Strong growth for conwert Immobilien Invest AG (AT)

conwert Immobilien Invest AG successfully continued its dynamic
growth path in the first quarter of 2006. In comparison to the same period in the previous year, sales revenues increased by 243% to €36.64 million. EBIT improved by 128% to €15.07 million, the group result after minorities by 133% to €6.12 million. Both in Austria and internationally, property assets were extended with attractive objects reaching a level of €1,205 million. To the start of the year, we secured superb property portfolios in Austria and Germany, consistently moving down our successful expansion path, also on the income side, commented Johann Kowar, Member of the conwert Management Board, on the development in the quarter. conwert will continue the dynamic company expansion for the whole of the 2006 fiscal year.

Sales and earnings figures more than doubled
In the first three months of 2006, sales revenues increased to €36.64 million a year-on-year plus of 243%. In the first quarter of 2006, there was particularly strong growth in disposal proceeds. Currently the Vienna market for older residential buildings is experiencing strong demand momentum. In the first quarter of 2006, we took advantage of this strong demand in the process of optimising the portfolio by disposing of individual properties in the core Letting & Development of Older Residential Properties business segment, commented Günter Kerbler, Member of the conwert Management Board on the strong upturn in the disposal business. In the reporting period, 5 properties with a total value of €16.35 million were sold at a profit, compared to 1 property for €1.32 million in the comparable period of the previous year. In the Sales of Flats business segment, disposal proceeds increased by 87% to €3.44 million. Overall, conwert generated profits of €3.24 million from the disposal of individual properties and the sale of apartments, an increase of 450% compared to the first quarter of 2005.

In the first quarter of 2006, rental income improved to €16.85 million, up 124% year-on-year. The strong growth was driven by successfully concluded development projects, the steadily increasing level of rents in Vienna, Germany and the Czech Republic and the consistent expansion of the property portfolio.

In comparison to the previous year, EBIT rose by 128% to €15.07 million. This growth was driven primarily by profits from the sale of apartments and properties and higher rental income. The revaluation of properties through independent appraisers impacted the result positively with a net gain of €3.16 million from fair value adjustments. The Group result after minorities increased by 133% to €6.12 million. The fact that our results more than doubled confirms that we can generate good profits with our business model, irrespective of the general economic development even when a large number of our most recent acquisitions are still in the middle of the development process and income will only be obtained after new rental contracts have been concluded, Johann Kowar stated with reference to future earnings potential.

Property portfolio: acquisition of high quality property portfolios
In the first three months of 2006, conwert extended its property portfolio to 779 objects in Austria, Germany and the Czech Republic, after 598 properties as of 31st December 2005 reporting date or 216 to the end of the first quarter of 2005. The conwert Management Board took advantage of the positive market environment and further strengthened the position of conwert in these core markets. The focus of acquisition activity was on buying high-quality property packages in Austria und Germany.
As of 31st March 2006, usable space totalled approximately 1,055,000 m².74% of this space was used as apartments, 13% as commercial spaces, 11% office, 2% other. Overall, property assets increased to €1,205 million, a rise of 32% in the current fiscal year or 138% within a year.

International growth path continued
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