annual financial statement 2011 - conwert Immobilien Invest SE

INTRO | MANAGEMENT REPORT |
| FINANCIAL STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS
Notes
CAPITAL MANAGEMENT
The conwert Group monitors its capital structure with the help of the so-called gearing ratio, which
equals net debt divided by equity. Internal financial guidelines call for a ratio of 40:60% equity to
debt financing, which represents a gearing ratio of 150%. This optimal financing structure will be
reached over the short- to medium-term through additional project refinancing. Net debt comprises
non-current interest-bearing loans and borrowings plus current trade and other payables,
less cash and cash equivalents and current trade and other receivables. Equity comprises equity
attributable to the equity holders of the parent and non-controlling interests
in € million 2011 2010
Cash and cash equivalents 95.8 66.2
Current trade and other receivables 96.1 99.6
Current trade and other payables (462.7) (578.3)
Total current net financial surplus (270.8) (412.5)
Non-current payables (1,442.5) (1,606.5)
Total net debt (1,713.2) (2,019.0)
Equity 1,248.3 1,330.1
Gearing as a % of equity 137.2 % 151.8 %
The conwert Group also calculates and monitors the loan-to-value ratio of its property portfolio on
a regular basis. This ratio shows the relationship between borrowings and the related collateral.
The loan volume comprises non-current and current liabilities, the bond liability and the convertible
bonds as well as all other types of interest-bearing loans and borrowings.
in € million 2011 2010
Investment property 2,424.2 2,701.1
Property held for sale 404.4 537.1
Project-related financing 1,621.7 1,910.1
Loan-to-value ratio in % 57.3 % 58.9 %
The loan agreements concluded with financing partners often include so-called covenants, which
require the conwert Group to maintain certain financial indicators at the individual loan level.
These financial indicators are generally based on the ratio between the fair value of the property
and the outstanding loan balance (LTV – Loan to Value) or on the earnings generated by the project
that are available to service the respective loan obligations (interest coverage or debt coverage).
These requirements are recorded in the information systems used by the conwert Group. The various
financial covenants are monitored separately for each loan because of the different calculation
requirements and parameters. The conwert Group met the provisions of all loan agreements as of
31 December 2011 and, accordingly, no financial covenants were violated.
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